Forensic Accountant Companies in Washington DC help investigate fraudulent accounting practices. These types of practices can result in the misrepresentation of an organization’s financial standing. Expenses may be understated and profits may be overstated. Private investors and those who purchase publicly traded securities may invest in a company and then find out that the investment was not a wise choice. In addition to falsely inflating profits, fraudulent accounting practices can also attempt to cover up the misuse of money. This money may come from government sources, grants or outside investors, and be designated for specific projects. Accountants such as Business name can help investigate whether an organization’s accounting practices are legitimate.
When a firm hires Forensic Accountant Companies in Washington DC, it is important to verify that the accountants are certified public accountants or CPAs. This professional designation ensures that professionals have undergone specific training. The CPA designation also ensures that the individual(s) have passed examinations that test their skills and knowledge. Not all CPAs specialize in forensic or investigative accounting. It is also crucial to verify that the accountant has experience working on investigative cases and has expertise in this area.
Another area that Forensic Accountant Companies in Washington DC can look into is fraud and bankruptcies. Fraud can come in various forms, but in the financial arena someone commits it with the deliberate aim to profit at the expense of someone else. A common form of fraud is identity theft, which occurs when someone obtains someone else’s financial information and uses it without permission. Companies can commit fraud if a law is violated at the expense of an individual and the fraud benefits the company financially. Sometimes companies file for bankruptcy protection when in fact there is enough financial solvency to pay creditors, employees and investors.
Forensic and investigative accounting is a serious practice that requires expertise and precision. Lawyers typically rely on the services of forensic accountants during cases involving fraud and bankruptcy. Searching for a firm with CPA credentials is the first course of action. Accountants who have experience with several investigative cases will prove to be champions of a defendant’s cause.
