Forensic Accounting is a very general term. It is often used to describe a wide range of functions or tasks utilized by Certified Public Economists or other accounting professionals. With regard to the legal arena, forensic accounting often refers to the process whereby a forensic accountant utilizes investigative accounting skills to identify data and information relevant to the calculation of various forms of economic damages, including lost profits, business destruction, partnership/ownership disputes, etc. In addition to the use of investigative accounting skills, a forensic accountant is also responsible for the synthesis of that data into an opinion that is fully supported by forensic accounting procedures and that meets and usually exceeds applicable discovery requirements. Properly utilized forensic accounting procedures engender compliance with Daubert, Frye and other discovery standards in state and federal courts.

The utilization of forensic accounting procedures and skills lends specific utility to the assessment of damage claims and opinions set forth by opposing damage experts. A skilled forensic accountant can determine the extent to which an opposing expert’s opinion is based upon objective, independent evidence or is the product of speculation, improper generalization or unfounded assumption. The skilled forensic accountant will be well prepared to explain his procedures and opinions in a clear, cogent manner, thereby assisting a trier-of-fact in making an informed decision.