CPAs
There’s no questions that CPAs are talented and trustworthy experts--allies that every business needs. However, a forensic accountant can be an extremely valuable ally to a CPA. Here’s why:
The CPA’s responsibilities include:
- Auditing, reviewing, and compiling financial statements; and
- Consulting about all financial matters.
Auditing is not investigating. A CPA may discover financial anomalies as part of an audit, or by accident. Sometimes, if assets are well hidden, he or she may never find them.
The forensic accountant’s job, on the other hand, is to seek out anomalies. Put in the most simplistic way, the CPA looks at the forest, the trees, and sometimes at the leaves. The forensic accountant sees the forest and the trees, goes right to the leaves, and searches for the spots on the back.
CPAs enjoy a win-win
We’ve worked with CPAs in several different ways. During tax season, for example, a CPA may encounter a situation that requires services beyond the scope of his or her practice. Or the CPA may not feel comfortable performing certain services because he or she is not independent of the client. Calling in a forensic accountant may be the solution to handling such situations.
A forensic accountant also can bring the CPA onto the job. This arrangement allows the CPA to perform—and bill for—non-investigative work on business valuations, estate and gift planning, bankruptcy, mergers and acquisitions, or whatever regular accounting activities the client requires.
In the meantime, the forensic accountant can simultaneously conduct lifestyle analyses, or launch similar investigations--such as in the case of suspected embezzlement.
