Page 15 - First Coast Vol 3 No 6
P. 15

JOSH SHILTS | Forensic Accounting
What Separates a Forensic Accountant from Others?
Itis Friday a ernoon before the weekend. You have a client who is struggling to understand the
cash  ow produced by a business for which they own 25 percent. Your cli- ent is interested in resolving this issue because he/she may have a claim for fraudulent transfers.  is all came up as part of proposed merger of your client’s company. You are a lawyer, not a certi ed public accountant (CPA), so when one of those “pocket protec- tor wearing paper pushers” (FYI – I am one) starts  ooding your inbox with requests for items without any explanation you start to question what it is they are doing. Your case has a strategy and a budget for that matter. You are the one the client is yelling at when the bill comes, right? You don’t have time, nor the bud- get, to pay someone to nonchalantly thumb through tax returns, invoices, etc. in hopes of  nding “something,” “anything” tangible to your case. You and your client’s resources are better served elsewhere. You need answers and you need them fast...
Lawyers recognize the value of good forensic accounting and valuation services. Fallout from the recession, along with increased sensitivity to  nancial matters, have ampli ed the demand for these services. Whether it’s a complex lawsuit or an internal investigation, lawyers regularly turn to accounting professionals who pos- sess both the ability to analyze com-
plicated  nancial data and the ability to persuasively communicate their results.
 e complexity of litigation re- quires that a forensic or valuation accountant possess a unique set of skills. He or she must be more than just a CPA. He or she must also be part investigator, part lawyer, part professor, and part communications professional.
In an AICPA report titled “Char- acteristics and Skills of the Forensic Accountant” the authors discuss the reasons why some forensic accoun- tants are ine ective, from an attor- ney’s perspective:
More than 80% of attorney respondents identi ed that the inability to simplify the information and ineffective oral communications skills
as the top-two reasons why forensic accountants are ineffective, which is consistent with their Top 5 ranking of core skills for forensic accountants.
Attorneys required that forensic ac- countants not only be analytical and detail-oriented, but also have the fol- lowing core skills:
1. E ective oral communicators.
2. Ability to simplify information. 3. Possess critical/strategic thinking
ability.
4. Identify key issues.
5. Audit and investigative ability.
Forensic accountants must not only
AttorneyAtLawMagazine.com
possess the requisite  nancial compe- tence, but ideally, an understanding of the context of those principles and their relation to the case.  erefore, understanding the various stages of the litigation process ensures that the focus remains on the quality of the analysis and presentation. A good ex- pert understands potential litigation pitfalls and discusses them with the attorney proactively.  is mitigates future problems that could a ect the expert’s credibility. Most importantly, the  nancial expert must clearly and persuasively present their conclu- sions to the audience.  e goal is to ensure that they will pass a challenge or cross-examination from the other side.
One of the best ways to separate the novice from the professional is to review the practitioner’s certi ca- tions. In addition to having a CPA most credible forensic accountants will carry the certi ed fraud exam- iner (CFE), certi ed in  nancial fo- rensics (CFF), and/or the accredita- tion in business valuation (ABV). Be sure the professional you choose is quali ed as well as credentialed. Also, make sure to know
the expert’s back-
ground as it relates
to articles written
or presentations
given.
Josh Shilts is a partner with Villela & Shilts LLC. He assists attorneys, individuals and businesses with complex  nan- cial matters and disputes. He has held roles with international consulting and public accounting  rms in Miami and New York City as well as positions with large public organizations. Josh is a frequent lecturer on forensic accounting matters. He has been involved with hundreds of forensic investigations dealing with a variety of matters involving personal and business disputes as well as identi cation and mitigation of fraudulent activities. Clients have sought his advice and services because of his unique industry experience and knowledge.
15


































































































   13   14   15   16   17