How to Become a Forensic Accountant?

What is Forensic Accounting?

Forensic accounting means using scientific techniques to examine the accounts of any firm or person if there is suspicion of any type of fraud or misconduct. According to the ICAI, forensic accounting is the use of professional accountants’ in matters involving fraud or misconduct to gather all the relevant evidence. The accountants involved in the investigation use their accounting, auditing, and investigative skills to find any relevant evidence for a potential fraud. Forensic accounting is usually done by an independent auditor or an audit firm, and these are requested either by the management of the company or by the government to find out if there is any kind of fraud in the accounts of the company. The government usually orders forensic accounting of those companies in which there is any sudden flow of cash or if the company is generating more profit than expected....

How Does Forensic Accounting Work?

The main difference between normal accounting and forensic accounting is that the forensic accountant uses legal methods to identify whether the transaction of the company is legal or not. Forensic accountants can also submit their findings in court and they can act as experts in these kinds of investigation. In this, the accountants audit the books of the accounts of the company to find whether there is any type of fraud committed in the company or not. These accountants can ask the company to submit their entire books and can analyze all of them. The company cannot restrict themselves from checking their accounts as it is requested either by the board of the company or by the government. These accountants or firms use scientific techniques to analyze the books as the number of transactions they have to analyze is very big. They submit their finding to the government or the board of the company and their finding are accepted as expert evidence in the court....

Types of Forensic Accounting

Forensic accounting means using scientific techniques to examine the accounts of any firm or person if there is suspicion of any type of fraud or misconduct. There are different types of forensic accounting in India and each type of forensic accounting investigates a different aspect of financial fraud in the organization. Some of the types of forensic accounting are as follows,...

Forensic Accountant Duties

Forensic accountant mainly identifies any type of irregularity in the books of the company. The main duties of any forensic accountant are as follows,...

Forensic Accounting Audit Procedures

The forensic accounting audit procedures involve various steps and these steps are explained below,...

Advantages of Working in Forensic Accounting

1. Variety of Work: A forensic accountant deals with a lot of work from the investigation, financial analysis, fraud detection, and litigation support these all things are very different and provide a variety of work for the forensic accountant and keep their work interesting....

Disadvantages of Working in Forensic Accounting

1. Pressure: This job can sometimes become very challenging, while doing accounting for any big firm the pressure on the accountant is enormous. There is a very strict timeline that they have to follow and they also have the pressure to provide an accurate report regarding the fraud in the company....

How to Become a Forensic Accountant?

In India, there is no specialized degree or course that makes you a forensic accountant. A forensic accountant is a person who specializes in various fields, so a specific degree in a field will not make you a forensic accountant. A forensic accountant must know fields such as accounting, auditing, legal, and investigation. These are the skills that a forensic accountant must have to become a good forensic accountant. Due to globalization and the increase in the business sector, the need for forensic accountants and auditing firms is also increasing....

What Does a Forensic Accountant Do?

Forensic accountants use scientific techniques to examine the accounts of any firm or person if there is suspicion of any type of fraud or misconduct. They use their accounting, auditing, and investigative skills to find any relevant evidence for a potential fraud. There are various roles and responsibilities that a forensic accountant has to perform. They review the documents of the company and detect if there is any fraud going on in the company, they are also involved in asset training, and data analysis, and they can also act as an expert witness in court. Other than these there are also various tasks that a forensic accountant performs. The company hires forensic accountants or such firms if they find anything suspicious in the company. The company usually prefers to have an external forensic accountant because accounting and auditing can become a difficult task for an internal employee of the organization and also result in a conflict of interest....

What Skills Do I Need to Become a Forensic Accountant?

There are various skills that a good forensic accountant must possess. The main skills that they must have are accounting, auditing, analyzing, and investigation. If the forensic accountant does not possess these skills, then they will not be able to do their job in a better way. The job of forensic accountants requires them to analyze various problems at the same time and detect if there is any form of abnormalities and that requires them to have the best analytical skill in the market. They must have also good communication skills so they explain these complex financials to the board of the company. They also have to provide written reports of these finances to the company in a way that can be understood by a person who does not have to commerce or accounts background....

Career as a Forensic Accountant

In India, there is a current rise in this sector and the demand for forensic accountants in the job market is also increasing. There are several factors for the same and now companies are also building an in-house team of auditors that keeps a check on the sale and purchase of goods and services of the company. They also help all the teams in following the SOP and to follow the compliances established by the law. Forensic accountants grow as they gain experience in the work they do, and companies tend to hire forensic accountants who have more experience in the field. As this sector is new and emerging those who want to grow in this sector have to learn different skills and take certifications as many as they want....

Job Titles of Forensic Accountants and Average Salary Package

Forensic accountants can work in different sectors and different roles as they have various skills and knowledge. The main places where a forensic accountant works are public accounting firms, consulting firms, government bodies, and companies. All of these agencies have similar types of work for a forensic accountant and they are hired as a forensic accountant or consultant in the firms. Organizations such as the CBI or Enforcement Directorate also hire forensic accountants to investigate financial crimes and provide solutions. In India, the average salary package of an initial forensic accountant ranges from 3-10 lakhs and those who have experience in this sector have a salary range of 8-15 lakhs....

Conclusion

As the business is growing in the country the chances of these kinds of financial fraud in the companies is also growing. So the companies need to keep themselves updated and place SOPs in their company that all have to follow. If the companies take strict measures, then there will be very less chances of these kinds of fraud in their company. Forensic accounting is very essential and if there is any suspicion then the company must perform a forensic accounting of their organization with the help of external agencies to remove all the irregularities present in their company....

Forensic Accounting – FAQs

What is the meaning of forensic?...