It is hard to keep an eye on the influx of money flowing in and out of business. You will miss people leeching out their portions illegally if you are not vigilant enough. Hence, companies hire accountants, and some pick more than just a regular accountant. They look for forensic accounting in Singapore.

Fraud, embezzlement, and slush funds are common million-dollar issues in business industries. Since it involves a lot of money, the majority of these cases reach the highest courts.

If you desire to cleanse your company of these illegal activities, you need more than just audit services in Singapore. You are in dire need of forensic accountants.

What Does A Forensic Accountant Do?

Generally, forensic accounting primarily spearheads the investigation of fraud and financial manipulation in an organisation. Forensic accountants do it through rigorous research, in-depth analysis of financial information, and detailed interpretation and summarisation of financial matters and details.

Forensic accountants present the result of their investigation to the stakeholders. These findings and results can be used in courts during litigation of the case. Forensic accountants can also be key witnesses to the lawsuit.

Besides audit services in Singapore, many organisations hire forensic accounting services to catch fraudulent acts and hold people behind them accountable. You can find companies like Morrison that not only provides accounting services for clients, but also forensic accounting to uncover fraudulent matters.

How can forensic accountants help the business?

The loopholes in the system are leeways for people to commit fraud, theft, and embezzlement in the business. It is why forensic accounting and auditing in Singapore can take place anywhere in the organisation.

1. Financial theft

The most popular form of financial theft is embezzlement. In embezzlement, a person, employee or not, entrusted to manage money or property uses the assets for personal gain without authorisation.

Money laundering is a financial crime in which the person unlawfully earns money. This method evades taxes. Examples of money laundering are drug trafficking and human trafficking.

Forensic accounting and auditing in Singapore help trace the money from its origins to its destination by reviewing transactions and spotting irregularities. Their reviews and investigation results can be used in courts.

2. Fraud

There are many forms of fraud in Singapore:

●     Securities Fraud

Also known as stock fraud, securities fraud happens when a person misrepresents, omits, or misleading information in the statements to deceive investors.

●     Mortgage Fraud

Similar to securities fraud, mortgage fraud involves misrepresentation, omission, and misleading statements on mortgage documents to deceive a client or investor.

●     Tax evasion

Tax evasion happens when you under-report or do not pay the appropriate taxes intentionally.

Unintentional mistakes in filing taxes are not considered tax evasion; however, there could be penalties.

Forensic accounting services in Singapore help clients and investors evade and uncover these fraudulent activities. Most of the time, they work with law firms to put fraudsters to stop.

3. Bankruptcy

It is not the end for entrepreneurs when they file for bankruptcy. Many companies hire forensic accounting and audit services in Singapore to determine whether financial crimes have occurred, resulting in bankruptcy and economic losses.

4. Insurance Claims

Insurance claims are probably the easiest way to gain a large chunk of money. Many clients file fake insurance claims for their assets. For example, in property insurance, clients would stage fire to claim insurance. Some individuals try to claim a significant amount of money from minor vehicular damage.

The role of forensic accounting services in Singapore is to investigate the claims and determine whether there are foul plays. They also quantify damages to ensure the client gets the exact amount of the insurance claim.

Forensic accountants review historical data of the insurance and carefully look at the facts before issuing results.

Now that you know how a forensic accountant helps your business in many ways, the question is, is it required to get one when you already have in-house accounting and audit services in Singapore?

Forensic Accounting In Singapore: Why Your Business Needs It

Generally, large corporations have in-house accounting and audit teams that would check the financial health of the business. On the other hand, start-ups hire third-party accounting, auditing, and M&A advisory services to evaluate their financial status. But the question is: are they enough to make your business fraud-proof?

Here are the reasons why your business needs forensic accounting in Singapore:

1. Brand reputation

Investors will never put their money in a company that allows people to steal, leech, and embezzle funds in the company. If you want to build a reputation and credibility and gain the trust and respect of investors and other companies, make your business financial crimes-proof first. The first step is hiring a forensic accounting team in Singapore.

2. Minimises losses

Any amount of money stolen from your company accounts for your losses. As mentioned, unresolved and undetected financial crimes in the company could lead to bankruptcy and economic losses, which your IPO advisory services can’t save you from.

Forensic accountants detect and catch these fraudsters before they can steal a large amount of money from you.

3. Prevents legal issues

You can avoid money laundering, fraud, and tax evasion lawsuits filed by the stockholders and the government if you will hire a forensic accounting team in Singapore.

They will prevent fraudsters from committing crimes under your nose, stopping them from tarnishing your name.

Moreover, you have a strong case against fraudsters if you have pieces of forensic accounting evidence that you can present to the court.

4. Improves financial structure

As mentioned, fraudsters exploit the loopholes in your finance systems. Besides reviewing monetary transactions, forensic accountants enhance, optimise, and secure your company’s financial structure to prevent irregular and dubious transactions.

5. Acquisition and Debtors

If you are a larger company trying to acquire small businesses, you would want to investigate the business you want to get. But how can you do it? You can check their tax records.

Forensic accounting and M&A advisory services will help you determine whether the business is worth acquiring or if it has too much baggage that could be a burden to your company.

Conclusion

Never settle for less in protecting your money and business. Forensic accounting services in Singapore can help your business grow by eliminating those who take advantage of you.

Nexia TS

Are you looking for forensic accounting and IPO advisory services? Get the best at Nexia TS. Visit Nexia TS today.