Do You Know The Work of a Forensic Accountant?
Forensic accounting is a new course, new field, with a different type of work nature. Many people do not know anything about a forensic accountant. In fact, forensic accounting is an amalgamation of practicing accounting services, auditing, and investigating the fraudulence. Apart from these services, it also assists companies in preparing their financial statements.
Hence, Forensic Accounting Includes Following Important Areas:
Under litigation procedures, forensic accountants present factual financial issues pertaining to existing or pending litigation. In such conditions, the forensic accountants are generally responsible to quantify the damages caused by the respective employee or employees and also identify them before these cases are brought to the court.
The investigation does not starts immediately after the occurrence of the illegal act, rather it starts when one comes to know about it. It is of any kind such as internal theft, falsification of financial statements, securities fraud, bribery, insurance fraud, and many more. The forensic accountant now starts his/her work and does a detailed investigation to find out the fraudulence because the further actions are taken on the basis of his/her detail investigation report.
On the contrary, when any sort of case has been brought to the court then the forensic accountant may play the role of an expert witness to handle the concerning issue. He/she is also accountable for preparing the essential evidences. For all these reasons, forensic accountants are known as specialized accountants. However, some other popular names are forensic auditors and investigative auditors.
Likewise, forensic accountants utilize their skills to understand the accounting and finance as well as company law and commercial law in their daily routine. Hence, this job demands - a forensic accountant necessarily well versed in all the updated business information, financial reporting systems, accounting and auditing standards, government legislations, and litigation processes and procedures. These all skills assist financial accountants when they investigate the dispute.
Apart from all these knowledge and skills, it is important for them to have additional skills i.e. interviewing skills, investigative techniques, evidence gathering skills, and good communication skills.
Moreover, forensic accountants are one of the extensions of the legal team for preparing and examining financial fraudulences.