What is Forensic Accounting? Who could be a Forensic Accountant?

What is Forensic Accounting?

Forensic Accountant is the accountant who has special accounting skills, and through this skills he investigate fraud or embezzlement. The information gathered by forensic accountant usually uses in the legal proceedings.  Forensic Accounting is the integration of accounting, auditing, and investigative skills yield the specialty. It provides an accounting analysis that is suitable to the court for discussion, debate and ultimately dispute resolution. This accounting encompasses both Litigation Support and Investigative Accounting.

Who are Forensic Accountants?

Forensic accountants are the experienced auditors, accountants, and investigators of legal and financial documents. They are hired to look into possible suspicions of fraudulent activity within a company. Usually, they are appointed to prevent fraudulent activities from occurring. The activities of forensic accountants are as follows:

  • to investigate and analyze financial evidence
  • to develop computerized applications to assist in the analysis, and presentation of financial evidence.
  • to communicate regarding their findings in the form of reports, exhibits, and collection of documents
  • to assist in legal proceedings.

A Forensic Accountants utilize accounting, auditing, and investigative skills when conducting an investigation. Equally critical is their ability to respond immediately and to communicate financial information clearly and concisely in a courtroom setting. Forensic Accountants are trained to look beyond the numbers and deal with the business reality of the situation.

Skills Required for Forensic Accountants

  • Strong knowledge of accounting and auditing are needed
  • Math’s Skills – These skills help to analyze correctly
  • Strong oral and written communication skills are required
  • Expert in information and communication technology
  • Good understanding of laws and legal procedures.

Qualification of Forensic Accountants

Basic Qualification required for Forensic Accounting jobs –

  • Bachelor’s degree in Accounting, Finance or Economics
  • Should be proficient with MS Office Suite

Why a Chartered Accountant could be the most fittest person to be a Forensic Accountant?

A Chartered Accountant has very sound knowledge on accounting, legal and auditing matters. His  skepticism mind helps him to investigate any kind of fraud, scam and others unfair activities happens within the organization.

Forensic Accounting typical requires following:

  1. Accounting knowledge
  2. Investigate mindset
  3. Legal system understanding
  4. Willingness to appear in court as expert witness.

A CA,CPA is very sound about above mentioned issues.

Top Forensic Accounting Firms

  1. PwC (PricewaterhouseCoopers) LLP
  2. Ernst & Young LLP (EY)
  3. Deloitte LLP
  5. Grant Thornton LLP
  8. Crowe Horwath LLP
  9. Baker Tilly Virchow Krause, LLP
  10. Moss Adams LLP