Forensic accounting is a specialty area of accounting that describes engagements that result from actual or anticipated disputes or litigation. “Forensic” means “suitable for use in a court of law”, and it is to that standard and potential outcome that forensic accountants generally have to work. As forensic accountants we often have to give expert evidence at the eventual trial. As forensic accountants we specialize in helping our clients understand the accounting and making sense of what happened.
Engagements relating to civil disputes may fall into several categories: calculating and quantifying losses and economic damages, disagreements relating to company acquisitions–perhaps earn outs or breaches of contract; and business valuations.