Need a Forensic Accountant? Here’s How to Hire One for Your Business

What Is a Forensic Accountant?

Definition and key responsibilities

A forensic accountant is a financial specialist who investigates fraud, disputes, or unusual financial activity. They combine accounting, auditing, and investigative skills to identify inconsistencies and gather evidence for legal or internal business use.

Forensic accountants are often called upon during:

• Fraud investigations

• Partnership or shareholder disputes

• Divorce cases involving hidden assets

• Business valuation conflicts

• Regulatory inquiries or audits

They work closely with lawyers, business owners, and sometimes law enforcement to uncover the truth behind the numbers.

To learn more about operational finance roles, check out What Are Back Office Operations in Accounting?.

When businesses need forensic accounting

Here are common scenarios:

• You're seeing unexpected dips in revenue or profit

• Internal reports don’t match bank statements

• There’s suspicion of employee theft or vendor fraud

• You’re preparing for litigation and need financial evidence

Hiring a forensic accountant early can prevent small issues from becoming costly legal problems.

Forensic accountant vs. regular accountant

Regular accountants focus on day-to-day financial management, such as bookkeeping, payroll, and tax filing. Forensic accountants dig deeper—looking for inconsistencies, tracking transactions, and documenting patterns that suggest wrongdoing.

If you’re not sure what level of support you need, review How to Hire a Bookkeeper Without Breaking the Bank for a side-by-side breakdown of accounting roles.

Signs You May Need a Forensic Accountant

Suspected fraud or embezzlement

If you notice unexplained expenses, unauthorized transactions, or missing funds, a forensic accountant can trace the source and determine whether internal fraud is involved.

They use specialized tools to:

• Analyze spending patterns

• Audit user access to financial systems

• Match documents to reported activity

This type of work is common in small businesses that rely on a single employee to manage both payments and recordkeeping.

Financial discrepancies in your records

Forensic accountants are trained to identify inconsistencies like:

• Duplicate invoices

• Misclassified expenses

• Unusual vendor behavior

• Manual edits to digital records

They help answer critical questions, such as: “Where did the money go?” or “Who had access at the time of the error?”

For businesses with multiple systems or remote teams, see How to Achieve Efficient Back Office Operations for prevention tips.

Legal action or shareholder disputes

If you're facing a lawsuit or internal dispute, a forensic accountant can:

• Produce financial evidence for court

• Write formal expert witness reports

• Testify or consult during litigation

• Support buyouts or dissolutions with accurate valuations

They serve as a neutral third party who can present financial facts clearly, which is vital in tense or complex legal scenarios.

See Remote Workers Tax Deductions for adjacent areas where financial accuracy is essential.

Qualities to Look for in a Forensic Accountant

Certifications (CPA, CFE, CFF)

A qualified forensic accountant should hold at least one of the following:

• CPA (Certified Public Accountant) – For general accounting expertise

• CFE (Certified Fraud Examiner) – Specializes in fraud detection

• CFF (Certified in Financial Forensics) – Awarded by the AICPA for forensic accounting

These credentials ensure the professional is trained in investigative accounting and meets ethical standards.

For more on vetting professionals, visit Best Practices for Hiring the Right Candidates.

Experience with investigations or litigation

Look for a track record in:

• Internal fraud reviews

• Asset tracing and recovery

• Business valuation disputes

• Expert testimony or court cases

Request anonymized case summaries or references from legal teams they've supported.

Communication, discretion, and documentation skills

Your forensic accountant must be:

• Able to explain findings in plain language

• Skilled at writing detailed, court-ready reports

• Comfortable working confidentially under NDAs

• Equipped to present findings visually (charts, timelines, reconciliations)

Strong reporting ability is critical, especially if evidence may be used in court or arbitration.

Where to Find a Qualified Forensic Accountant

Reputable networks and directories

The best forensic accountants often don’t advertise broadly. Instead, they’re listed in trusted directories or recommended through professional networks:

• AICPA’s Forensic & Valuation Services Section

• Association of Certified Fraud Examiners (ACFE) Directory

• State CPA societies

• Bar association referral networks (used by attorneys)

• LinkedIn (search with filters like “CFE” or “CFF”)

You can also ask your attorney, auditor, or insurance company for referrals.

Explore The Ultimate Guide to Hiring Top International Talent for tips on sourcing niche professionals.

Freelancers vs. firms

Option	Pros	Cons
Freelancers	Lower cost, flexible engagement	Limited support staff, may be overbooked
Specialist firms	Multi-staff teams, legal familiarity	Higher rates, more formal onboarding

Firms are best when litigation is involved. Freelancers may be enough for internal reviews or small investigations.

Red flags to avoid

• No certifications (CPA, CFF, CFE)

• Refusal to sign an NDA

• Vague answers about past projects

• No structured approach to reporting or documentation

Avoid anyone who promises outcomes instead of focusing on objective analysis.

How to Vet and Interview Forensic Accountants

Questions to ask during screening

• “What kind of forensic investigations have you led before?”

• “Are you comfortable preparing documents for court or legal teams?”

• “How do you approach preserving evidence and chain of custody?”

• “What tools do you use to analyze financial data?”

These questions reveal both experience and professionalism.

Learn how to structure remote interviews in Tips for Effective Team Management.

What a solid portfolio looks like

A qualified forensic accountant can provide:

• Anonymized case summaries

• Report samples (with client info removed)

• References from attorneys, auditors, or past clients

• A process overview: timelines, tools used, outcomes delivered

Request a sample report to gauge how clearly they explain findings.

Understanding their investigation process

Ask how they:

• Identify red flags in financial records

• Document and store digital evidence

• Communicate progress during an active case

• Coordinate with legal counsel, HR, or compliance teams

You want someone with a clear, methodical process.

Cost of Hiring a Forensic Accountant

Hourly rates and project-based pricing

Typical U.S. rates range from:

• $150–$400/hour depending on credentials and complexity

• $3,000–$10,000+ for project-based engagements (e.g. small fraud investigation, internal audit)

International forensic accountants (with U.S./UK experience) may charge:

• $50–$150/hour, especially from Eastern Europe or Southeast Asia

See How to Hire Top Talent Without Breaking the Bank for cost-effective hiring strategies.

Factors that affect total cost

• Scope of the investigation (1 month vs. 6 months)

• Number of systems/accounts to audit

• Whether legal or court documentation is required

• If testimony or depositions are needed

Request a clear scope of work and estimate up front to manage expectations.

Getting value while protecting your business

• Pay for a trial period or limited engagement first

• Use milestone-based contracts

• Store all reports securely and archive communication

• Require written summaries after every major deliverable

Working with a Forensic Accountant: What to Expect

Timeline and scope of work

Investigations can take:

• 1–2 weeks for a basic internal check

• 4–12 weeks for full audits or legal cases

Discuss expected turnaround times and agree on checkpoints (weekly, biweekly, etc.).

Tools and access needed

Be prepared to share:

• Bank statements and accounting software access

• Email or messaging logs (if relevant)

• HR reports and org charts

• Prior audits or tax filings

Set up secure access using platforms like Google Drive (with MFA) or encrypted tools like Egnyte.

See Remote Support with TeamViewer for remote access safety tips.

Reporting and legal documentation

Deliverables may include:

• A final forensic report (narrative and financial analysis)

• Supporting exhibits and reconciliations

• A timeline of events

• Expert witness statement, if required

Ask for editable versions of the report in case your legal team needs to reference or cite them.

Final Checklist and Risk Management Tips

Before hiring your forensic accountant, confirm:

• They have verifiable credentials and references 

• You’ve signed a mutual NDA 

• There’s a defined scope of work and payment plan 

• Your team understands the access and timeline 

• Reporting format is agreed in advance

Hiring a forensic accountant may not be something you plan for—but when the need arises, it’s critical to choose the right one. Whether you’re facing internal fraud, preparing for legal action, or resolving financial disputes, this guide gives you the tools to act with confidence.

For broader financial support roles, see Accounting Virtual Assistants for how to combine forensic expertise with ongoing admin support.

Is It Time to Hire a Forensic Accountant? Here’s Your Next Step

Financial red flags shouldn’t be ignored. Whether you suspect fraud, need help during a legal dispute, or just want an expert to validate your financial records, a forensic accountant can provide clarity, accuracy, and peace of mind.

Hiring the right forensic accountant means choosing someone with proven credentials, experience in investigations, and the ability to explain complex findings clearly. While the process may seem intimidating, the cost of not hiring the right expert is often much higher—especially if legal consequences or reputational damage are at stake.

If you're unsure where to begin, start with a small project, like reviewing one year’s worth of records or validating a single financial discrepancy. This limited engagement gives both sides a chance to build trust before diving into larger audits or legal support.

Need support managing this process or building a full back-office team? At OpsArmy, we help companies combine specialized roles like forensic accounting with scalable admin, finance, and hiring support. From investigation to execution—we’re here to help.

Knowing how to hire a forensic accountant is more than just checking credentials—it’s about protecting your business. Whether you're managing internal risk, preparing for legal action, or simply want to understand your finances more clearly, a forensic accountant can be a powerful ally. Take the time to choose wisely, and you’ll gain more than answers—you’ll gain confidence and control.

About OpsArmy

OpsArmy is building AI-native back office operations as a service (OaaS). We help businesses run their day-to-day operations with AI-augmented teams, delivering outcomes across sales, admin, finance, and hiring. In a world where every team is expected to do more with less, OpsArmy provides fully managed “Ops Pods” that blend deep knowledge experts, structured playbooks, and AI copilots. Think of us as your operational infrastructure: running faster, leaner, and smarter business execution. Visit operationsarmy.com to learn more.

Sources

• Certified Forensic Accountant Guidelines:  AICPA – www.aicpa.org

• Global Directory of Fraud Examiners:  ACFE – www.acfe.com

• Best Practices for Forensic Accounting Reports:  Forensic CPA Society – www.fcpas.org

• Secure Data Tools for Investigations:  Egnyte – www.egnyte.com