Category: Forensic Accounting
-
The Basics of Cryptocurrency
The rapid expansion of cryptocurrency and blockchain-based financial activity has introduced new complexities for forensic accountants, litigators, and investigators. Digital assets operate within decentralized networks, often outside traditional financial institutions, yet they generate extensive digital footprints. A foundational understanding of cryptocurrency terminology, transaction mechanics, and documentation sources is essential for effective tracing, valuation, and discovery.…
-
Forensic Accountants in Family Law
Financial disputes in family law matters frequently involve allegations of hidden income, undisclosed assets, or manipulated financial reporting. Forensic accounting plays a central role in identifying red flags, applying targeted detection techniques, and assessing the resulting impact on business valuations and support calculations. This article outlines key risk areas and investigative approaches commonly used to…
-
The Basics of Asset Tracing
Asset tracing is a common tool in litigation and forensic accounting, particularly when funds are suspected of being misappropriated, hidden, or wrongfully transferred. While it often arises in fraud and insolvency cases, asset tracing can also play a role in divorce, shareholder disputes, judgment enforcement, and cross-border litigation. What Is Asset Tracing? Asset tracing is…
-
How to Exclude Data from QuickBooks
Our team has been involved in multiple cases where the end client needed to produce QuickBooks accounting records but, for perfectly legitimate reasons, did not want to disclose any more data than strictly necessary. This led to the question: Can you produce a QuickBooks file with only select periods included? The answer is yes —…
-
Forensic Accountants in Class Actions
In class action litigation, forensic accountants serve as indispensable advisors who bridge the gap between abstract legal claims and the concrete financial evidence required to support or challenge them. Their work is at once investigative, analytical, and strategic—often influencing not only the calculation of damages but also the structure and viability of the class itself.…
-
The Basics of Alter Ego Claims
Alter ego claims allow courts to look beyond the protective shell of a business entity and hold its owners individually liable when the business is essentially their alter ego. In such cases, the corporate structure becomes a mere façade, shielding misconduct or financial irresponsibility. Corporations are generally treated as separate legal entities from their owners.…
-
The Basics of Insolvency
In the world of corporate bankruptcy, insolvency is more than a financial status—it’s a legal cornerstone. When businesses face litigation related to fraudulent conveyance or preference actions, the determination of insolvency often makes or breaks a case. For professionals across disciplines—litigation, taxation, forensic accounting, and valuation—mastering this concept is critical. This article explores the key…
-
The Basics of Benford’s Law
Also known as the First-Digit Law or the Law of Anomalous Numbers, Benford’s Law describes the frequency distribution of leading digits in many sets of numerical data. It states that in many naturally occurring datasets, the smaller digits appear as the leading digit far more frequently than larger digits. In simpler terms, the number 1…
-
The Basics of Forensic Accounting
Forensic accounting is a specialized field that merges accounting, auditing, and investigative skills to examine financial records and transactions. This discipline is particularly relevant in litigation contexts where financial or accounting records play a crucial role. For lawyers, understanding forensic accounting is essential for effectively managing cases involving financial disputes, fraud, or embezzlement. Forensic accounting…
-
Investigating Financial Fraud
Once you have discovered some manner of theft from your (or your client’s) company, it is important to handle the situation carefully and responsibly. Fraud investigations are complex and multifaceted processes that require a systematic approach throughout. Assemble a Team of Professionals The first step in assessing an internal fraud is to assemble a team…