Career in Forensic Accounting

Gauri Chhabra
Do you remember famous Sherlock Holmes, the detective? Probably the most famous Forensic Chemist. More Indian version still was Kautilya who used to advise the famous Chandra Gupta Maurya on finance and business and enumerated several ways of embezzlement years ago. Little did we realize then he was laying the foundation of a rich career option – that of Forensic Accounting.
Now the question arises- What is Forensic Accounting?
Forensic Accounting is the amalgamation of accounting, auditing and investigative skills.It provides an analysis that is suitable to the court which forms the basis for discussion, debate and ultimately dispute resolution.It involves legal investigation and analysis of financial documents of any firm or client, who is involved in a legal dispute. In a nutshell,it encompasses both Litigation Support and Investigative Accounting.
Who are Forensic accountants?
Simply put,forensic accountants are financial detectives who audit, investigate and ascertain the accuracy of financial reporting documents, often in connection with anticipated or ongoing legal action. The financial tsunami that started with the fall of Lehman Brothers, Enron and Satyam created the need for a class of accountants who could identify questionable financial data, chiefly for the purpose of investigating white-collar crime involving individuals as well as businesses of all sizes. If you wish to opt for a career that goes a step beyond accounting into litigation, challenging and requires commitment, loyalty, and devotion. Forensic Accounting is the career for you.Your work entails risk management and risk reduction through customized design of accounting and auditing systems and procedures.
Getting in:
In order to be a Certified Forensic Accountant you must be a Graduate from a recognized University. Besides, you should have a professional experience of atleast three years and clear the CFAP examination with at least 75% marks. In India, CFAP Examinations are conducted by India Forensic and moderated under the bylaws of Forensic Accounting Research Foundation. CFAP is a person who has undergone training to become an expert in the field of forensic accounting, forensic auditing, litigation support and investigative accounting. You would be required to study business administration, finance, marketing, economics and statistics.
Besides, you would be generally required to have your Certified Public Accountant (CPA) certification. Some institutions offer a combined 5-year program for those looking to become CPAs. Forensic accountants can also become a Certified Fraud Examiner or Certified Forensic Accountant. You can take the examinations only after two years of experience.
Skillset:
If you want to become a Forensic Accountant you need to have variegated skills of should have curiosity, persistence, creativity, discretion, skepticism, organization, confidence and sound professional judgment. You must be able to present and consider all alternatives, scrutinize the fine details and perceive layers of embezzlement. In addition, you must be able to listen effectively and communicate clearly and concisely in a timely manner. Besides, you need to have problem solving abilities, interpersonal and communication skills, logical, analytical approach and the ability to relate legislation to a variety of different situations.
You would be required to be proactive in order to detect frauds and also investigate fraud and other financial misrepresentation and window dressing of balance sheets.Understanding of psychological theories and possessing investigative skills is an added advantage.You would have toenable lawyers, insurance companies and other clients resolve disputes.
Course Cursor:
Courses particularly pertaining to forensic auditing are now available that cater to the forensic accounting and auditing segments.
*Post Graduate Diploma in Forensic Accounting
*Certificate Course in Forensic Accounting Professional
*Certified Anti-Money laundering Expert
*Certified Bank Forensic Accounting
*Certified Vigilance and Investigation Expert
Institute Scape:
Several institutions are offering training and education to become a good forensic accountant.
*Indiaforensic, Pune offering a certificate course in forensic accounting and fraud detection.
*The Council of the Institute of Chartered Accountants of India, offering Certificate Course on Forensic Accounting and Fraud Detection
*The Institute of Chartered Financial Analysts of India University (ICFAI), West Tripura
*The Association of Chartered Certified Accountants (ACCA) also offers a Certificate Course in Forensic Accounting. The curriculum is based on global standards and, hence, it ensures that their accountants are ready for all areas of accounting and finance. Depending on previous exemptions, you can take from 1 year to 2.5 years to complete the course.
Responsibilities of forensic accountants include:
*Conducting thorough forensic financial analysis of business and personal records and developing financial profiles of individuals or groups identified as participating in suspicious or illegal activity;
*Participating in gathering evidence and preparing search warrants/affidavits associated with financial analysis;
*Accompanying case agents on interviews of subjects and key witnesses in secure and non-confrontational settings;
*Identifying and tracing funding sources and interrelated transactions;
*Compiling findings and conclusions into financial investigative reports; and
*Meeting with prosecuting attorneys to discuss strategies and other litigation support functions and testifying when needed as fact or expert witnesses in judicial proceedings.
Career Pathways:
There is always a mismatch between demand and supply as far as Forensic accounting is concerned. There is a plethora of career options open for you in accounting companiesfor investigating mergers and acquisitions, specialized audits and in other kinds of civil litigation support, economic crime investigations, tax investigations and even in terrorist investigations.Youcan find a job with clients, who are charged with allegation of fraud against the government, public, or private business, or a fraud involving insurance claims, real estate, investments, and financial instruments. You can also utilize your forensic accounting skills to solve divorce disputes, business carelessness investigation claims, and personal injury claims. Numerous government agencies like the FBI, IRS, CIA, and local government offices, at times, require your services.Public practice or insurance companies, banks, police forces and government agencies are the common employers of forensic accountants. You may work with businesses, nonprofit organizations including government and law-enforcement agencies, estates, individuals and others who require forensic-accounting services.
The Road ahead:
Growing cybercrimes, failure of regulators to track the security scams, series of co-operative banks bursting – all are pinpointing the need of forensic accounting. The law enforcement officers are the experts of analyzing the fingerprints and the Narcotics but the digital evidence analysis necessitates the need for forensic accountants.

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