Posted by David Cadorett.
The forensic accounting field is rapidly growing and is a well-desired skill set for many different companies and firms. One set of firms is law firms that could benefit greatly from having a forensic accountant on staff. Litigation requires a skill set that a forensic accountant possesses such as complex accounting and legal issues that goes hand in hand to provide a valuable insight into financial issues.
By having a forensic accountant within the firm, one is able to access their financial skills in a timely manner versus interviewing and clearing conflicts with hiring a forensic accountant each time. Scheduling meetings is much easier than scheduling with outside experts, meaning clearing schedules and times. By having one on staff, there is a cost savings that leads to lower rates for clients making the firm more attractable when a client is looking to hire.
As an agent of the law firm, internal FAs are not required to testify or to issue expert reports to the opposing side about their findings. They may communicate freely with attorneys as these communications are not discoverable by the opponents. When outside financial experts are needed for testimony, internal FAs assist in finding experts with the requisite skills and experience. The FA may also assist in preparing experts for trial. In investigating the financial facts of a case, much of the information needed by the outside expert will already have been obtained, organized and summarized by the internal FA.
This is valuable to the client this way the information is not discoverable by the opponent the internal forensic accountant has their clients best interest in mind and is able to help find the best expert witnesses to help testify where lawyers may not be able to ask the proper questions when looking for an expert.
David is a graduate student in accounting at the Feliciano School of Business, Montclair State University.