<P> Forensic accounting, forensic accountancy or financial forensics is the specialty practice area of accounting that describes engagements that result from actual or anticipated disputes or litigation . "Forensic" means "suitable for use in a court of law", and it is to that standard and potential outcome that forensic accountants generally have to work . Forensic accountants, also referred to as forensic auditors or investigative auditors, often have to give expert evidence at the eventual trial . All of the larger accounting firms, as well as many medium - sized and boutique firms and various police and government agencies have specialist forensic accounting departments . Within these groups, there may be further sub-specializations: some forensic accountants may, for example, just specialize in insurance claims, personal injury claims, fraud, anti-money - laundering, construction, or royalty audits . </P> <P> Financial forensic engagements may fall into several categories . For example: </P> <Ul> <Li> Economic damages calculations, whether suffered through tort or breach of contract; </Li> <Li> Post-acquisition disputes such as earnouts or breaches of warranties; </Li> <Li> Bankruptcy, insolvency, and reorganization; </Li> <Li> Securities fraud; </Li> <Li> Tax fraud; </Li> <Li> Money laundering; </Li> <Li> Business valuation; and </Li> <Li> Computer forensics / e-discovery . </Li> </Ul> <Li> Economic damages calculations, whether suffered through tort or breach of contract; </Li>

The investigative approach for a forensic accountant is based on which of the following