February 12, 2014
Article by Frank Rudewicz, Advisory Services Principal & Brad Taylor, Advisory Services Director, "Forensic Accounting: At Crossroads of Business Valuation, Forensic Accounting," Featured in Connecticut Law Tribune
By Frank Rudewicz, Principal, Advisory Services & Brad Taylor, Advisory Services Director
Business valuation methods are commonly used by practitioners to assess damages in litigation, prepare for mergers and acquisitions, and properly anticipate estate planning. Valuation, however, is not just a "back of the envelope" exercise. Often times, the financial data on the books and records may not tell the entire picture. A deeper analysis is often necessary to find the explanations behind the numbers.
It is within this context that the roads of business valuation and forensic accounting intersect. Definitions of forensic accounting commonly refer to fraud-related activity. However, forensic accounting is often applied within a number of contexts to conduct business valuations, litigation and non-litigation alike. Forensic accounting has been commonly defined as the application of investigative and analytical skills for the purpose of resolving financial issues in a manner that meets standards required by courts of law.
It is not just the calculation of numbers, but the details behind the numbers that count. Forensic accounting allows for the process to identify, explain, contradict and verify the financial data presented when valuing a business.
Click here to read the full article on www.ctlawtribune.com >>