A Guide to Forensic Accounting Investigation, 2nd Edition

Chapter 29

Other Dimensions of Forensic Accounting

Michael S. Markman, Aron Levko, Mark W. Haller, Robert W. Dennis, Mona M. Clayton, J. Christopher Dineen, Dyan Decker, and Shane Sims

Some believe that all forensic accountants perform financial crime investigations. This view is explained largely by the fact that in the post-Enron, post-WorldCom era, forensic accounting has for many become associated solely with fraud detection and investigation. In reality, forensic accountants offer a much wider range of services. Although this book is focused predominantly on the deterrence, detection, investigation, and resolution of corporate fraud, it makes sense to offer here a chapter-length overview of some other dimensions of forensic accounting.

In their day-to-day practice, some forensic accountants focus on commercial disputes in specific industries or practice areas. In commercial disputes, forensic accountants typically play three roles: expert witness, consultant on technical accounting or financial issues, and arbiter of facts. As an arbiter or trier of facts, sometimes referred to as special master, forensic accountants are appointed by the court to act as judge and jury. In their consulting role, forensic accountants may provide discovery assistance, prove business facts, compute damages, and assist counsel in the development of strategy. One should not assume that a forensic accountant involved in commercial dispute projects is qualified to perform financial crime investigations. ...