If you need to recover hidden assets and fraud losses, you will need the help of a forensic accountant. This is something that Cobra Financial can help you with. Below, we have taken a look at the role of a forensic accountant, and how they can help you to recover hidden assets and fraud losses.
Investigating Financial Records
One of the biggest jobs for a forensic accountant is to investigate financial records, of which there could be many. This means reviewing the books and statements, before identifying and reporting any gaps or irregularities. Gaps and irregularities can be a sign that a business is trying to keep something hidden, that the owners don’t want you to know exactly how much money it has. This can be a complex task, especially if a business has a lot of accounts for a forensic accountant to go through, but it’s an important part of recovering hidden assets and fraud losses.
Uncovering Hidden Accounts
By uncovering hidden accounts, a forensic accountant is able to get a better idea of how much money a business has. They do this by tracking money transfers, and looking into whether the business has any offshore accounts. Whether the business is being investigated for fraud or wrongdoing, or if a loss of earnings claim has been made, it’s important that all accounts are taken into consideration.
Tracing Illicit Spending
It’s not uncommon for business owners to spend their money incorrectly and not as it was intended to be spent, which can be a huge problem when it comes to fraud claims or investigations into financial wrongdoing. A forensic accountant will trace illicit spending by tracking a business owner’s purchases and lifestyle, and identifying misused funds. It’s important to know what has been spent, by who and when.
Locating Physical Assets
When a forensic accountant is looking into a business, they will try to locate all of the business’ physical assets, even those that are hidden away. This involves researching property records, asset searches and valuations. It’s important to have an accurate idea of all of a business’ physical assets when you’re looking into its financial background.
Reconstructing Lost Funds
Another part of a forensic accountant’s job is to reconstruct lost funds, which they do by recreating records and calculating stolen amounts. This can be complex, especially if there are a lot of records to go through and the trail of where the stolen funds have gone isn’t clear. But, an experienced forensic accountant will have the knowledge and skills required.
There is a lot that goes into recovering hidden assets and fraud losses, and the entire process can be a complex one. This is why it’s important to enlist the help of a professional accountant, someone who understands forensic accounting and recovering funds. Find out more by getting in touch with the Cobra Financial team.