FORENSIC ACCOUNTING
MORE THAN JUST NUMBERS
The field of accounting is no longer just for those who enjoy crunching numbers.
Preparing financial statements, internal auditing, and tax accounting are only the tip of the
iceberg. In today society of the money hungry, the sue happy, and the financially unfit, a
new breed of accountant; the Forensic Accountant has emerged. Although Investigative
Accounting has been around for years, it has only recently begun to transform into the
science of accounting, hence Forensic Accounting. Forensic accountants are unique,
looking beyond the numbers, digging deep to uncover fraud, hidden assets, and the like.
The word forensic is defined in Merriam Webster dictionary as relating to or dealing with
the application of scientific knowledge to legal problems. The word accounting is defined
in the same source as a system of recording and summarizing business and financial
transactions and analyzing, verifying, and recording the results. By combining these two
definitions it can be concluded that forensic accounting utilizes regular accounting
practices in legal situations.
One of the most notable legal situations in the recent past would be the Enron scandals;
forensic accountants were employed to sift through months and years of computer back-up
tapes, dead files, and computer software programs to recover data where the hard copies
had been shredded or somehow destroyed.
Another notable legal situation was the O. J. Simpson wrongful death litigation. Forensic
accountants were hired to dig through his personal and professional papers so as to
uncover any evidence of hidden assets that may have been of value in determining a
monetary settlement. Forensic accountants are also being retained by divorce attorneys for
the same purposes.
The Michael Jackson child molestation case also employed forensic accountants to dig into
his financial situation. The prosecution alleged that Mr. Jackson financial status had
something to do with his victim and family changing their story. A forensic accountant,
Duross OBryan was used to testify to this extent.
Insurance companies retain forensic accountants to uncover fraudulent claims such as
arson and personal injury claims. Forensic accounting has even been used by the newly
created Department of Homeland Security to uncover terrorist schemes.
These examples illustrate that Forensic Accounting encompasses a wide range of industries
and applications; with the increase in litigation in today society and the increase in terrorist
acts, the value of a forensic accountant also increases.
The education required to become a forensic accountant is extensive. A bachelor degree in
business with an emphasis in accounting or finance is required. It is also required to have a
