New Jersey Forensic Accounting
At Robert A. Bonavito, CPA, A Professional Corporation, our New Jersey forensic accountants analyze, interpret, summarize and present complex financial and business related issues in a manner which is both understandable and properly supported.
Our New Jersey Forensic Accounting Services Often Involve the Following:
- Investigating and analyzing financial evidence;
- Communicating their findings in the form of reports, exhibits and collections of documents; and
- Assisting in legal proceedings, including testifying in court as an expert witness and preparing visual aids to support trial evidence.
Robert A. Bonavito, CPA, A Professional Corporation, forensic accounting and investigative professionals have the skills and experience to resolve high-stakes issues from the board room to the courtroom. Our team provides analytical and investigative services to major law firms, insurance companies, financial institutions, government entities, private equity firms, venture capital funds and corporate counsel and executive management. Team members include expert testifiers, witness interviewers, data mining and computer forensic specialists, fraud examiners qualified as international investigators, CPAs and others you may need to document the facts of your situation.
Our Team's Experience Covers a Full Range of Areas, Including:
- Asset tracing, misappropriation, waste and embezzlement
- Business Interruption
- Business valuation
- Fidelity claims
- Financial fraud, including misrepresentation and financial statement fraud
- Regulatory-related investigations
- Financial institution and health care fraud
- Foreign Corrupt Practices and UK Bribery Acts
- USA PATRIOT Act
- DOJ, SEC and State Attorneys General inquiries and investigations
- Whistleblower investigations
- White collar defense
- Bankruptcy services
- Bankruptcy fraud
- Fraudulent conveyance actions
- Preferential payments
- Litigation support, including expert testimony
- Billing, earn-out, working capital and post-acquisition purchase price disputes
- Breach of fiduciary duty
- Director and officer liability
- Business interruption/insurance coverage disputes
- Securities and shareholder litigation
- Tax representation
- Background investigations/due diligence
- Data mining and computer forensics
- Management fees and related-party transactions
Forensic Accounting FAQs
What is forensic accounting?
Forensic accounting is an area of specialization that focuses on the utilization of financial methodologies in order to investigate, prepare reports and testify in court in both civil and fraud trials. Forensic accounting can be broken down into two specific areas; litigation support and investigation. In litigation support, typically forensic accountants will assist attorneys and others in uncovering factual information regarding specific transactions.
In investigation, forensic accounting is a specific assignment in order to determine if misappropriation of financial assets occurred. The main benefit of a forensic accountant is that they are able to gather facts, prepare reports and testify in court. What this means is that they have the who, what and where of any misappropriation of an asset. Also, this gives the jury and the judge an opportunity to hear his or her testimony and hear specific answers to specific questions.
What types of forensic accounting services are available in New Jersey?
A forensic accountant can undertake any type of investigation in both civil and criminal matters. However, typically the services revolve around some type of financial transaction. Services offered by New Jersey forensic accountants generally involve the following; business damages, matrimonial divorce accounting, forensic accounting, court testimony, litigation support, tax issues, and business valuations.
Who can benefit from New Jersey forensic accounting services?
If you have a matter that requires either proving or disproving financial wrongdoing you will most likely use a New Jersey forensic accountant. New Jersey forensic accountants are uniquely qualified by their background, experience and training in order to investigate, prepare reports and testify in both federal and state courts. Federal and state courts both allow and rely on testimony of experts in many fields including forensic accounting. As an expert they are given special treatment under the law that allows them to testify based on their opinion on facts or data that they have been made aware of or personally observed. What this means is that the courts are relying on the New Jersey forensic accountant to help explain a complex matter so that the judge and jury can make an informed decision.
What is the difference between forensic accounting and a standard audit?
Audits performed by accountants and forensic accounting are often assumed to be the same thing by both attorneys and judges and the average layperson. However, they are performed under different standards, using different techniques for different purposes. Audits are prepared under Generally Accepted Auditing Standards (GAAS). These standards require that an accountant issue a report in accordance with those standards. However forensic accounting is performed under different litigation standards, and again the forensic accountant is required to meet those standards when performing services and issuing reports.
What are the most common “red flags” for business fraud?
When someone is committing a financial crime, there is usually a trail that can be observed that indicates that the fraud is taking place. The main areas that indicate fraud may be taking place are 1) living beyond their means, 2) having financial difficulties, 3) a close relationship with a vendor or supplier, 4) going through a lifestyle change, such as divorce or family issues. Studies have shown that someone who commits fraud usually has pressure to commit the crime, the opportunity to commit the crime and is able to rationalize the crime.
What is the difference between community property and shared property?
There are many legal definitions as to what is considered community property and what is not. Generally, community property is marital property that was acquired during the marriage, except for gifts or inheritance. Division of community property in a divorce relies on the facts and circumstances. However, splitting of the assets between the parties usually is subject to some type of state law, such as in California where the property is split 50-50 between each party.
What is “investigative accounting”?
Investigative accounting is just what it says, this is one of the services that a New Jersey forensic accountant provides. In investigative accounting the forensic accountant is hired to determine whether or not some type of financial wrongdoing occurred. If it is an investigation, it means the parties are not sure whether a crime or misappropriation actually occurred. Using the forensic accountant’s experience, techniques and education they have ways to determine whether a crime or misappropriation of assets did occur.
What is “litigation support”?
Litigation support is when there is an ongoing dispute between two parties and a forensic accountant is retained in order to help in one of many areas. Forensic accountants can help with document management, fact gathering, assist the attorneys with deposition questioning and calculations of damages. There are many ways in which New Jersey forensic accountants can assist with litigation.
Do New Jersey forensic accounting services account for anticipated disputes among business partners or spouses?
The experience of many New Jersey forensic accountants and their involvement in hundreds if not thousands of cases means they are able to anticipate potential disputes that may arise between partners. This is the reason why New Jersey forensic accountants are hired to help with the initial set up of corporations and partnerships. New Jersey forensic accountants can advise on buyout calculations, proper accounting and the initial set up and management of the records moving forward, in order to mitigate any possible dispute between the partners.
When are forensic accounting services needed?
Forensic accounting services can be used in many situations. If the event of a lawsuit it is best to retain a forensic accountant at the outset rather than at the midway or endpoint of the case. It may sound counterintuitive, but by hiring a forensic accountant early on in a dispute he can help resolve matters as well as save money and time.
Why should I hire a New Jersey forensic accountant?
By hiring a forensic accountant early on in a case you can actually reduce the amount of money and time required in that case. Often, when a forensic accountant is retained, he or she can give advice at the outset that can save 30% to 40% in fees typically spent in the case. Sometimes, they actually can advise clients whether or not they have a good position and if they should pursue a lawsuit at all.