Guide · FundamentalsWhat does a forensic accountant do?

Most engagements fall into a handful of types. The records differ, but the method is the same: define the question, gather records, test them against independent sources and explain the result.

Fraud investigations

Embezzlement, vendor schemes, payroll fraud and financial statement manipulation. The examiner traces how money left, how it was concealed and how much was lost. Our guide to embezzlement explains the common schemes, and our business fraud and financial investigations practice handles this work for owners, boards and counsel.

Litigation support and damages

In commercial disputes, forensic accountants measure lost profits and other damages, test the other side’s numbers and support counsel in discovery. Large criminal cases also rely on this work; see how financial evidence was presented in the FTX prosecution and in Alex Murdaugh’s financial crimes case.

Divorce: income and assets

In a Florida divorce, the court considers any intentional dissipation, waste, depletion or destruction of marital assets after the petition was filed or within two years before it.⁴ Child support depends on gross income, and business income means gross receipts minus ordinary and necessary expenses required to produce income.⁵ Both put the numbers at the center. Our divorce asset and income analysis practice and the whitepaper on hidden assets in a Florida divorce cover this work; valuing the business itself is a separate task, explained in our guide to business valuation in divorce.

Insurance claims

Coverage for business interruption losses and related extra expenses is often included in property and casualty policies, and the policy defines the terms of coverage.⁶ Forensic accountants measure what the business would have earned had the event not happened.

Due diligence and regulatory matters

Before an acquisition or a loan, they test whether revenue, customers and collateral are real. Our whitepaper on verifying receivables and collateral applies this to lenders.

Engagement	The question it answers	Typical records
Fraud and embezzlement investigation	Was money taken, how, by whom, and how much?	Bank and card statements, general ledger, vendor and payroll files, emails, cancelled checks
Litigation support and damages	What did the breach or wrong cost, in lost profits or other damages?	Financial statements, tax returns, budgets, contracts, industry data
Divorce: income and assets	What does each spouse really earn, what exists, and was anything dissipated?	Tax returns, business records, bank and brokerage statements, financial affidavits
Insurance claims	What business income and extra expense did a covered event cause?	Policy, monthly sales and expense history, payroll, repair and restart records
Due diligence	Are the target’s revenue, customers and assets real?	Customer contracts, receivables detail, bank data obtained directly, shipping records
Regulatory and internal investigations	Did transactions comply with law or policy, and what must be disclosed?	Transaction data, approvals, correspondence, policies, prior audit reports

Many matters combine several of these. A divorce involving a family business, for example, often needs both income analysis and a valuation by a credentialed appraiser.

Source: BLS¹; ACFE²; Florida Statutes §§61.075 and 61.30⁴⁵; AICPA⁶

There is no single license called “forensic accountant.” Practitioners hold a mix of accounting, fraud and valuation credentials, each issued by a different body.

CPA and CFF

The AICPA describes its Certified in Financial Forensics (CFF) credential as the premier designation for CPAs specializing in forensic accounting, covering fraud investigations, litigation support, commercial disputes, evidence gathering, expert reporting and professional standards.⁹ Applicants must be active AICPA members in good standing; the standard pathway requires at least 1,000 hours of forensic-related experience, 75 hours of continuing education within five years of application and a 175-question exam.¹⁰

CFE

The Certified Fraud Examiner credential is issued by the Association of Certified Fraud Examiners. Candidates must be ACFE members, reach at least 40 points for education and experience to sit the exam and 50 points to be certified, and have at least two years of professional experience related to detecting or deterring fraud. The exam covers fraud schemes and financial crimes, investigations and legal issues, and prevention and deterrence.¹¹ Our guide to what a Certified Fraud Examiner is explains the credential in more depth.

CVA and MAFF

The National Association of Certified Valuators and Analysts issues the Certified Valuation Analyst (CVA) and the Master Analyst in Financial Forensics (MAFF). NACVA says both are accredited by the National Commission for Certifying Agencies, and that the MAFF requires prerequisites, an experience requirement and a five-hour proctored exam.¹² A CVA matters most when the question is what a business is worth.

A credential is evidence of training, not proof of fit. Ask how often the person has done your kind of work, and whether a court has accepted their methods.

Bring in a forensic accountant when the answer to a legal or business problem depends on records you cannot interpret yourself, and earlier rather than later. Typical moments: when an owner first suspects theft, before a divorce petition is filed or answered, when a lender sees collections that do not match reported sales, when an insurer or policyholder disputes a loss, or when counsel needs to test the other side’s numbers before a deposition.

Searches for a “forensic accountant near me” are common, but location matters less than fit. Most records are electronic and much of the analysis is done remotely; what matters is experience with your type of matter and familiarity with the courts where it will be heard. Fraud Examination Service is a Florida-licensed investigation agency and works with attorneys, businesses and individuals on matters in Florida courts.

• Have you handled this type of matter before, and how many times in the last five years?
• Which credentials do you hold (CPA, CFF, CFE, CVA, MAFF or others), and which are relevant to this question?
• Have you testified, in which courts, and has your testimony ever been limited or excluded?
• Do you have any conflict with the parties, their businesses or the other side’s counsel?
• Will you work as a consulting expert, a testifying expert, or both, and how will that be documented?
• Who will actually do the work, and what will you need from us first?
• How will you scope and phase the engagement, and how will you report costs as it proceeds?
• If the question needs a business valuation, a tax opinion or an audit, who will provide it?
• Can you show an anonymized example of a report or schedule you have prepared?

Good answers are specific. Be cautious of anyone who promises a result before seeing the records.

Cost depends mostly on the question, the condition of the records and whether testimony is needed. Our guide on what a forensic accountant costs explains how engagements are priced and how to keep them proportionate. If you are dealing with suspected fraud in a company, start with our business investigations practice.