What is Forensic Accounting?
Forensic accounting is the specialized type of accounting skills to investigate fraud or embezzlement and analyzing financial information to use in the legal proceedings. This is the integration of accounting, auditing, and investigative skills yield the specialty. “Forensic Accounting”, 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
- Maths 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
- CPA, ABV, CFE, CVA, CFF, MAFF, ACA, ACCA
Top Forensic Accounting Firms
- PwC (PricewaterhouseCoopers) LLP
- Ernst & Young LLP (EY)
- Deloitte LLP
- KPMG LLP
- Grant Thornton LLP
- BDO USA LLP
- RSM US LLP
- Crowe Horwath LLP
- Baker Tilly Virchow Krause, LLP
- Moss Adams LLP