Forensic Accounting

Forensic Accounting

Introduction:

A forensic accountant is a person who is one part accountant, one part detective, and one part legal expert. Forensic accountants combine their knowledge of accounting and finance with law and investigative techniques to determine whether an activity is illegal. Many forensic accountants work closely with law enforcement personnel and lawyers during investigations and often appear as expert witnesses during trials. A forensic accountant is an experienced auditor, who acts as a watch-dog of accounts of a company, in order to keep a check on the frauds. These experts are responsible for using technology and implementing investigative techniques to disclose fraudulence and illegal practices in the fields of accounting, banking, financial laundering, etc. They carry out elaborate audits, verify records, gather proof of financial malpractice, and question people related to the misconduct.

Nature of work: 

Forensic accountants and auditors help to unravel and solve crimes through the use of financial information, embezzlement activity records, security fraud, bankruptcies and money laundering. They interpret financial records and history to find information that may contribute to answers in a criminal case. Some forensic accountants work closely with law enforcement officers to investigate paperwork and the history of criminal suspects. Forensic accountants and auditors are skilled in unraveling detailed and complex financial transactions to determine whether or not they could potentially have something to do with criminal activity. They then report them to law enforcement officials and work with them to combine information and piece together details that may be used to solve a crime or benefit a court case.

Personality: 

Analytical:
Forensic accountants need to be analytical. As they review financial reports and source documents, they need to analyze the validity of each transaction and determine if the company recorded the transaction fairly. In some cases, the documentation will not support the numbers on the reports. The forensic accountant needs to analyze where the numbers on the reports came from and whether the company accurately reported those numbers.

Detail Oriented:
A forensic accountant needs to be detail oriented. Reviewing financial reports and the supporting documents requires looking at large quantities of numbers. At each step, the numbers from the supporting documents need to match the numbers on the financial reports. The forensic accountant needs to compare these amounts and note any inconsistencies. This requires seeking out the detailed information for each transaction and investing time to compare the details with the final totals.

Persistence:
Persistence plays an important role in the life of the forensic accountant. In some cases, the financial reports lack the supporting documentation. The forensic accountant needs to continue requesting that documentation and finding the source of the data reported. Without the supporting documentation, the forensic accountant cannot draw conclusions regarding the validity of the numbers. She needs to continue requesting the documentation, becoming more assertive if necessary, until she can make a solid conclusion.

Inquisitiveness:
Gaining the information necessary to investigate financial reports comes from asking questions. Inquisitive forensic accountants get answers. As the forensic accountant reviews the numbers on the financial reports, he needs to ask the staff questions regarding each number reported. The more questions he asks, the better he’ll understand why they reported the numbers that appear on the financial reports. If the staff members fail to answer his questions, he needs to continue asking other staff members or supervisors.

Professional courses, Duration and Eligibility Criteria:

• Graduate from high school 
• Attend a bachelor’s program in forensic accounting or a related field (4 years). 
• Take the uniform certified public accountant (CPA) examination (timeline varies). 
• Garner professional experience, especially in forensic accounting, internal auditing, fraud detection, white-collar crime investigations, and other relevant areas (1-3 years). 
• Seek state CPA licensure and other professional certifications (timeline varies). 
• Pursue a graduate degree in forensic accounting (typically 2 years).

Career Prospects:

Forensic accountants and auditors can expect more jobs to open up over the next several years. The job outlook is positive for forensic accountants and auditors due to the increased number of white collar crimes being committed by owners of large businesses regarding money laundering and other financial crimes. In recent years there have also been stricter laws enforced regarding money transactions and businesses, so these enforcements are causing the need for forensic accountants to increase significantly.

Forensic accountants and auditors who have worked in the field for several years can advance to working for a larger law enforcement agency or working as a financial investigator on larger crimes. Many also lead up to the head of the entire forensic accounting department, leading a team of accountants and auditors by giving each person a role or specific duty to perform in order to find all the information needed regarding a case. Large cases often require the use of several forensic accountants and auditors to look at information from different angles and perform different research techniques in order to obtain all the necessary information.

Forensic accountants and auditors can reach the top of their career ladder by becoming an accountant or auditor for the Federal Bureau of Investigation. They will then investigate crimes on a national level that can even involve federal government employees. Those who work for the FBI have usually worked a number of years in a smaller government agency and worked their way up to leadership positions.

Remuneration:

Forensic accounting is one of the highly paid jobs in India. As the demand for forensic accountants is on a rise and those with required qualification is rare, the scope for this job as well as remuneration is sky-scraping. A beginner can earn a salary between Rs. 25,000-30000 per month, while an experienced person can earn a lot more than that, probably in six figures.
Most forensic accountants abroad begin their career making between $30,000 and $60,000 and often work their way up to salaries often between $125,000 and $150,000 or more.

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