Forensic accountants may help with risk reduction and risk management through the customized design of accounting and auditing systems and procedures. They will advise the following on a wide variety of financial transactions as a function of due diligence, and investment analysis is concerned:
- Venture capital investments
- Bankruptcy proceedings
- The purchase of corporate bonds, stocks, and commercial paper
- Contemplated mergers and acquisitions
Public accounting firms of forensic accounting divisions recruit forensic accountants, who are specialized in risk consulting and forensic accounting services by consulting firms; or by lawyers, insurance companies, government organizations, law enforcement or financial institutions. Because of heightened awareness and growing intolerance of fraudulent activity, there is an increase in the demand for Forensic Accountants at a rapid pace.
- Knowledge, Skills, and Abilities
- Job Responsibilities
- Benefits of the CFE Credential
In forensic accounting, a bachelor’s or master’s degree in the subject, accounting, finance, or a related field is required. Further training in criminal justice or law enforcement is a plus point. Certificate Fraud Examiner (CFE), Chartered Accountant (CA), and Certified Public Accountant (CPA).
Knowledge, Skills, and Abilities
Conducting a critical self-assessment of your knowledge, skills, and abilities is an important aspect to plan on. The employers are particularly looking for:
- Telemarketing fraud
- Securities fraud
- Money laundering
- Insurance claims
- Contract and procurement fraud
- Check to kite
- GAAP or GAAS violations
- Financial statement fraud
- Credit card fraud
- Bankruptcy fraud
- Asset misappropriation
- Evidence integrity analysis
- Tracing illicit funds
- Computer application design
- Damage assessment
- Due diligence reviews
- Locating hidden assets
- Accounting procedures
- Regression analysis
- Forensic Intelligence gathering
- The legal system and its procedures
- Computer applications
- Testifying as an expert witness
- Writing reports
- Written communication
- Interpersonal communication
- Verbal communication
- Attention to detail
Forensic accounting profile mostly requires at least accounting experience of one to three years.
Various Forensic Accountants obtain experience by working as a general accountant. Some responsibilities which are unique to forensic accountants include:
- Financial findings would be of great help to prepare forensic accounting reports.
- Forensic research has to be performed to trace funds and identify assets for recovery.
- Forensic analysis is to be conducted for financial data
- Preparation of analytical data for litigation and testifies as needed.
Benefits of the CFE Credential
To provide effective investigations, the CFE credential provides Forensic Accountants with the technological knowledge which is necessary. Forensic Accountants must determine which functions, areas, and the people of the enterprise require their attention, in variance to auditors, who typically take a more consistent and standardized approach in their work. Reason being, fraud is usually hidden; this particular process can be time-consuming and difficult. Therefore, Forensic Accountants should have advanced knowledge of typical fraud schemes and data analysis techniques to perform investigations efficiently and strategically.
CFEs earn about 31 percent income premium over their peers without the credential, according to the findings of the ACFE’s global salary study. This demonstrates that the value employers place on the credential. The study also provides information which is valuable and is helpful to all anti-fraud professionals in benchmarking their compensation levels and career growth. The fraud resources, training, and continuing education provided by the ACFE will help in any stage of your career path.
Forensic Accountants are also often called Certified Public Accountants and Certified Fraud Examiners (CFE). A specialist with an extensive training in the prevention and deterrence of fraud is called a Certified Fraud Examiner, and he/she is required to pass an examination of 500 questions for certification which covers topics such as, investigation techniques of forensic accounting and fraud examination, criminology and ethics, financial transactions, and other legal elements of fraud.
High moral character and strictly professional and academic standards are some of the essential requirements for certification which are also included.
The credential of CFE is conferred by the Association of Certified Fraud Examiners. This particular certification is recognized worldwide, and when it comes to forensic accounting, employers look for it which is needed in this area.
Both the CFE and forensic accounting must have a comprehensive understanding of business information and all the features of financial reporting, including the following:
- The balance sheet shows business’s assets, liabilities, and net equity at the time of the accounting period of the report.
- The income statement contains the profit or loss of a company over the reporting period.
- The statement of retained earnings, reports paid dividends and items which are credited to or charged against earnings.
- The cash flow statement shows the cash that is coming into the company (inflow) and going out of the company (outflow). Cash equivalents include - short-term government bonds or Treasury Bills, marketable securities and commercial paper or debt, which also appear in the statement of cash flows.
Thus, we can now understand how forensic accounting works and what can be done to become a forensic accountant. The skillset and the amount of knowledge shall be good enough so that you get hired in a reputed company. Forensic accounting can be a satisfying, fascinating, and well-compensated career. There are numerous job opportunities in the government sector, private sector, and other non-profit organizations. Jaxa Auditors can guide you on how to go about Forensic accounting and expert services in Dubai, UAE. Not only Accounting is advantageous to the company but also the community, and the profession is highly respected. We are open to help you with any regards to Accounting, VAT and TAX services, Auditing services in Dubai and much more. Contact us for information and details.