Defining Forensic Accounting
At RMI Accountancy in Media City, Manchester, we have a long and proud history in assisting individuals and organisations within the media industry and beyond to protect themselves against fraudulent activity, which is more widespread and common than you might think.
We do so by practising our speciality - Forensic Accounting.
So what is Forensic Accounting and what does it mean?
The definition of Forensic Accounting is:
“The use of financial information to provide evidence within a legal setting.”
This accountancy discipline requires the use of analytical skills to determine the facts of any particular company’s financial situation to a degree that meets the stringent standards required in the UK law courts. Forensic accounting is employed when a legal dispute arises within an organisation and it is the level of detail and precision required that gives it its name.
Forensic accounting typically comes into play when the following has occurred or is thought to be occurring:
- Fraudulent activity by employees or external parties
- Money laundering
- Tax Evasion
- Any breaches in legal regulations
The process involves the investigation, identification, recording, sorting, reporting and verifying all relevant data pertaining to an ongoing forensic assessment of current and historic activities. In layman’s’ terms, it is an extremely thorough practice that goes through all information with a fine tooth comb. If anything irregular has occurred, the likelihood is that it will be discovered.
Once the information gathered has been organised, it is correlated into a user-friendly report that can be easily read by the person nominated to make a legal decision on the case in question.
Known Patterns of Behaviour
What makes our team of forensic accountants able to work quickly and effectively is not just their attention to detail, but rather, their extensive experience in working in legal cases such as those described above. Knowing where to look is a big advantage when attempting to uncover wrongdoings. For example, someone attempting to embezzle from the company they work for will typically use the same type of method to commit this offence and the same type of actions to conceal their misdeeds. Many employees of large companies thinking of committing fraud for personal gain, think that their ‘small’ theft won’t get noticed and often that is true. That is until a forensic investigation is conducted, which will uncover everything, even down to irregularities in individual expense accounts.
If you have been the victim of fraud in the past or have your suspicions that it may have happened or even that it still is, then now is the time to act. Not only will this course of action address any current fraud problem you may have, but it will save you money in the long run, as our services will be effective in preventing fraud reoccurring in the future.
Call us now on 0161 4137958 or visit our website www.rmiaccountancy.com for a friendly chat with one of our experts about how we can help you.
We look forward to taking your call.