Forensic Accounting & Fraud Examination
Forensic accountants work to investigate and uncover financial crimes within organizations. Improving transparency and eliminating financial misconduct is their goal. If a discrepancy exists, a fraud examination is the next step.
Facing a forensic accounting investigation is serious and should be taken earnestly. However with the right plan in place, forensic accounting can resolve conflicts quickly and provide proof that your business is innocent of any wrongdoing.
There are proactive measures you can take to avoid a forensic accounting investigation or fraud examination, and there are actions that should be taken if you are preparing for an investigation. To legally protect yourself during a forensic accounting investigation, it is imperative that you hire a professional, experienced attorney, like those at the Law Offices of Robert J. DeGroot, more on that to follow below.
Shielding Yourself from a Forensic Accounting Investigation
Avoiding a forensic accounting investigation or fraud examination means maintaining complete financial transparency as well as meticulous organization of all financial records. However, not every organization or person who does this will elude an investigation. Some steps you can take to lower the risk of an accounting investigation include:
- Separating Roles: Do not allow one person within your organization to oversee an entire financial transaction from start to finish. For large transactions, make sure there is a dual approval process in place.
- Auditing Independently: Incorporating routine internal audits by external auditors will help to uncover any inconsistencies in finances. This process also helps with showing any prospective forensic accountants that you are serious about keeping valid records.
- Establishing a Whistleblower Channel: Most forensic accounting investigations stem from an employee who reports possible wrongdoing within the organization. By setting up a third party reporting system, transparency is shown to be important.
Implementing these steps may assist your organization in avoiding a forensic accounting investigation and/or limit the opportunity for fraud to occur. However, if you or your organization are still the object of an investigation, there are other procedures to follow.
Protecting Yourself During a Forensic Accounting Investigation
Dealing with a forensic accounting investigation or fraud examination instantly causes fear and anxiety. Even when you’ve taken steps to protect yourself or organization from financial scrutiny, an investigation raises alarm. There are ways to legally protect yourself during the investigation or examination process. These steps include:
- Hiring Legal Representation: Do not try to handle the investigation on your own. Hiring a qualified, knowledgeable criminal defense attorney is the only way to go. Your attorney can enlist the help of a forensic accountant to work on your organization’s behalf as well, ensuring that attorney/client privilege is intact.
- Securing All Records: You should assume that all technological devices in your organization will be looked at. Do not delete, erase, or move any files, drives, etc. Doing this during an investigation not only heightens suspicion, it is illegal.
- Cooperating Cautiously: Work with your attorney to develop a narrative through the information you have gathered. You should be thorough when answering questions, but also direct and thoughtful in your answers.
Any information that you give during a forensic accounting investigation should be through your attorney, or with their guidance. Investigations are not arbitrary, they are carried out because there is cause for concern. Therefore, it is imperative that you enlist the assistance of an experienced attorney to lead you through the process.
Choose The Law Offices of Robert J. DeGroot
Facing a forensic accounting investigation puts your entire livelihood at stake, and no one understands that more than the legal team at the Law Offices of Robert J. DeGroot. With decades of experience successfully representing our clients in complex cases, we know that the right attorney makes a huge difference in the outcome of a case. We work tirelessly to defend your reputation and secure the best possible outcome for your case.
Facing a forensic accounting investigation or fraud examination? Reach out to the accomplished team at the Law Offices of Robert J. DeGroot today!
