Essay on Forensic Accounting

Submitted By Desnewt
Words: 2515
Pages: 11

Forensic accounting is a growing field. A forensic accountant is considered as a representative of both as an auditor and private investigator. People who work as forensic accountants apply the proper methods to investigate fraud and illegal activities occurring in business. Fraud is exposed in various methods. The audit team can discover illegal happenings through regular activities. No matter the size of the organization, corporate, big or small, fraud needs to be investigated by a qualified accountant specializing in forensics. To become a forensic accountant, a person needs to possess the five most important skills which are communication, analytical, knowledge of the law, auditing and financial accounting. (What is required to become a Forensic Accountant?) p.1 First, communication skill is important because during the case, a forensic accountant needs to convey supportive information to all concern parties such as the offenders, private investigators, customers, concerned authorities and any others connected with the case.
Second, analytical skills are a must for the forensic accountant by having a creative mind.
Possession of a profound business intelligence to investigate any concealed gaps occurring in the business. On a general investigation by an accountant, due to negligence or an over-look may have missed important evidence. However, the eyes of a forensic accountant would be focused, very sharp and shrewd as not to miss any lacunae left while committing fraud by the fraudulent. Third, knowledge of the law is another important skill for the forensic accountant. It is necessary in this field to know legal concepts and proceedings. When an investigation is active, an understanding of the problem and procedures is to find the fraud. It is easier by knowing the law what resources to use to unearth the fraud.
(What is required to become a Forensic Accountant?) p.1 (How to obtain a Forensic Accounting
Certificate?) p.1 Additionally, fourth, a forensic accountant must be a researcher. This person has to be intelligent and vigilant. A strong individual who does interviews with all susceptible people to extract evidence and to elicit information. Also, the forensic accountant must have the ability to be a private investigator with capability to handle a difficult situation. The fifth and final important skill a forensic accountant should possess is auditing and financial skills. The knowledge for all accounting procedures like auditing and financial reporting systems are done by certified accountants who do forensic accounting audits. An accounting audit standard is in place to assist government agencies and private organizations in retrieving information in financial operations of a company due to numerous irregularities and inconsistencies.
(What is required to become a Forensic Accountant?) p.1 (The need of Forensic Accounting
Audit) p.1 Regarding the relationship between the skill of forensic accountant and its application to business operations are that certified accountants are forensic accountants. They sue their understanding of information for business and financial reporting systems standards and procedures to help agencies of the government and private industries. Gathering and investigating evidence for procedures pertaining to ligation. Forensic accountants are on audit committees acting as advisors, deterrence fraud engagements and assist with analyst investment research. An active role is played by the forensic accountant while being a catalysts in the proactive reduction in risk by exercising, designing extended procedures as part of the statutory audit. However, an opinion is generally not provide by the forensic accountants; from work they perform, reports that they submit provide answers to all questions i.e. what, why, how, who and where. Forensic accountants are