The term “forensic” means “relating to or appropriate for a court of law”, so it is natural that many people would believe that forensic accounting services are only applicable in a litigation setting. Forensic accounting is the process of reconstructing financial records and re-telling events that transpired from the residual transaction documentation.

The rigorous financial analysis and documentation methods of forensic accounting can be useful to management and company ownership in non-litigation settings as well:

1. Procurement Review – Industry surveys frequently highlight the risks of inappropriate vendor charges, especially in an outsource environment, and note that company diligence and oversight is essential for success. Analysis of the purchasing and payable records can validate the amounts paid to the vendors, including compliance with contracts and correct billing quantities.

2. Tenant/Landlord Lease Verification – Leases frequently contain provisions governing performance and charges. Validation of these contracts can help ensure that all provisions are met and charges made at negotiated levels.

3. Business Process Recovery – Unfortunately, incidents sometimes happen that can result in the loss of part or all of the records of a business. Records may be able to be reconstructed through the examination of partial remaining records and transactional records maintained at vendor, customer, and other locations.