Fraud

• A certified fraud examiner (CFE) has received intensive training to receive the CFE designation. Instruction includes in-depth study in reading financial statements to detect illegal and fraudulent activity and to uncover funds that may have been misappropriated. CFE specialists are called in when any suspicious financial activity may be underway. Forensic accounting firms with CFE services can be found through the Association of Certified Fraud Examiners.
  
  

Legal

• Forensic accountants are trained to give expert testimony in court. They often are called in to settle internal disputes over executive compensation and to aid prosecutors in trials involving theft and false financial reports. Forensic accounting firms with legal expertise can serve businesses involved in both criminal and civil suits. They assist the prosecution in uncovering evidence and preparing statements and reports for a trial or for plea negotiations.
  
  

Accounting

• While CPAs are trained to read and balance company financials, those with additional training in forensics look deeper into transactions that may raise red flags or are tapped for additional investigation. They typically report to the board of directors or are brought in by a governing body to research questionable accounting practices. New owners bring in forensic accountants to go over company policies and procedures to make sure enough controls are in place to avoid fraud and theft.
  
  

M&A

• As part of the due diligence process, investors often require an in-depth review of the company they are in negotiations with to acquire or begin merger negotiations. Forensic accountants with this specialty are expert at following the income and expense trails. They interview chief executives and upper management with a skilled investigative approach. Included in a forensic accounting report for a merger or acquisition is an intelligence report on the industry as a whole with recommendations as to the likelihood of future success in that market.
  
  

Find

• Look for accounting firms that specialize in forensic accounting by their advertising and promotional material. Since 2001, the field of forensic accounting has grown significantly and firms that have CFEs and trained legal forensic accountants on staff vigorously market those services. Firms such as Daylight Forensic & Advisory and Terry L. Gilbeau, CFE LLC, clearly direct businesses to their specialty by their name. Use peer referrals and sources such as the Embezzlement Lawyer blog to find reviews and reports on forensic accounting firms.