A forensic accountant candidate is at least a university graduate for accountancy or a business-related course. The work entails investigating financial fraud in a company. Due to this, the candidate must be knowledgeable of tax laws, federal and state laws, and complex financial transactions. The candidate handles a specialized form of accounting and works closely with law enforcement agencies.
Forensic accounting is the latest field in this industry. All companies need a forensic accountant who has a Master’s degree in business administration. It is also good when the candidate is certified to be a fraud examiner. Financial crime is prevalent in businesses.
A forensic accountant can create reports for clients as part of the investigation. The candidate must have integrity and professionalism in handling the confidential financial documents of the company. As a forensic accountant, the candidate knows the financial assets and liabilities of a company. Corporate financial documents, accounts, and transactions are all used in the case to give solutions to the anomalies.
Frauds in credit card, taxes, securities, workers, bankruptcy, contract, and procurement are all included for investigation. The forensic accountant socializes with lawyers and clients to come up with leads for a case. Normally, the candidate has good communication skills in oral and written.
In doing an investigation on the financial aspects of a business, patience, perseverance, integrity, honesty, and attention to details are important. Facts and figures can be interpreted well. Results are also summarized as accurately as possible. Financial information is analyzed to the last detail. There may be times that the forensic accountant can be asked to testify in a court proceeding. A candidate who has been experienced with accounting, law, law enforcement, and bookkeeping has an advantage. Computer software packages are also beneficial for a forensic accountant to learn how to operate. Banks, non-profit organizations, corporations, and individuals associate with a forensic accountant.
Insurance claims, money laundering, embezzlement, fraud, and tax crimes are all part of the duties of a forensic accountant. Huge companies always have financial crimes that need due processing and investigation. Through the prowess of a forensic accountant to dig deep into the corporate financial records, the candidate can help solve the complex anomalies. Financial statements such as owner’s equity, income statement, balance sheet, statements of cash flows, business plans, and footnotes in disclosures are all considered in the investigation. The general journal, cash receipts journal, sales journal, general ledger, and cash disbursements journal can also be used in the process.
Personal bank statements of the owner and the business bank statements are also needed to solve the anomaly sooner. Through the bank statements, the forensic accountant becomes knowledgeable of the amount that the business receives and spends, who receives the largest amount of money in the business, the customer base of the business, and the amount of money that has been sent to foreign accountants, if any. Normally, a forensic accountant in the United States is a Certified Forensic Accounting Professional, Certified Forensic Accountant, Certified Public Accountant or Certified Fraud Examiner among others.