Forensic accounting is the specialty area of accounting that provides services relating to disputes or litigation. “Forensic” means “suitable for use in a court of law.” Forensic accounting falls into several categories:
- lost profit and economic damage calculations,
- fraud or improper reporting investigations,
- company acquisition disagreements, and
- business valuation.
Specialty divisions within forensic accounting include insurance claims, personal injury claims, bankruptcy, fraud, and royalty audits.
Forensic accountants, also known as forensic auditors or investigative auditors, use their knowledge of business information, technology, financial reporting methods, accounting and auditing standards, investigative techniques, and litigation procedures to perform their work. Their work is then used to resolve disputes, including assisting attorneys to understand their cases, delivering expert testimony in court, and presenting exhibits to juries.