In a world where financial crime is common, the need for forensic accountants is large. Forensic accountants rely heavily on their advanced knowledge of the finance industry to analyze financial records and look for evidence of financial fraud or embezzlement. Forensic accounting combines the fields of finance and criminal justice, and there are many careers in forensic accounting for aspiring professionals to consider.
The Role of a Forensic Accountant
A forensic accountant is an accounting professional who specializes in this niche area of the field. They are often responsible for collecting, analyzing, and evaluating financial records to uncover evidence of possible financial crimes, such as fraud or embezzlement. In addition to investigating financial crimes, forensic accountants also play an essential role in the criminal justice process. In some cases, they are called upon to serve as witnesses or to provide testimony during court cases, giving them an opportunity to have a direct impact on the case.
Unveiling Financial Crimes
Forensic accountants are called to draw back the curtain on financial crime and uncover the evidence related to a possible financial crime, such as fraud or embezzlement. Forensic accountants work to unveil financial crimes by:
- Compiling and reviewing financial documents of the organizations or individuals purported to be involved in a crime.
- Collecting and analyzing financial data to determine if there is evidence of a possible crime.
- Reviewing the evidence and compiling reports that can be presented to key stakeholders or law enforcement officers.
Some of the daily tasks that forensic accountants may be responsible for include:
- Tracing funds.
- Identifying and recovering assets.
- Conducting due diligence reviews.
Collaborating With Law Enforcement Agencies
In addition to working on independent financial investigations and compiling evidence related to possible financial crimes, forensic accountants often have to partner with law enforcement agencies. Forensic accountants may be required to share their reports or any possible evidence with law enforcement officers, particularly if an individual or an organization is going to be charged with a crime. They are also called upon to provide litigation support. In the event that an individual or organization is charged with a financial crime, forensic accountants are often responsible for quantifying the amount of damages, which plays a crucial role in the litigation and sentencing process. In some cases, a forensic accountant will appear in court as a witness to provide testimony about the type of evidence found during the investigation.
Essential Skills for Forensic Accountants
Accountants, by their very nature, should be detail-oriented and organized individuals who are comfortable working with numbers. Forensic accountants, on the other hand, should take that precision and dedication to a new level because the results of their financial reviews and analytical reports may be used as evidence in a criminal case.
Employers looking to hire forensic accountants are most interested in acquiring professionals with an advanced understanding of accounting principles, extensive knowledge of possible financial crimes, interpersonal communication skills, and analytical skills. Forensic accountants also need digital literacy skills, particularly because they could be working with advanced technology to complete their financial investigations.
Analytical Prowess and Attention to Detail
Due to the complex nature of most financial crimes, forensic accountants should be incredibly attentive and have an eye for detail. Evaluating and analyzing financial records is one of the primary responsibilities of financial accountants, and one missed piece of evidence could determine the outcome of a criminal case. It is crucial to prepare for this career by completing educational programs emphasizing the importance of analytical skills. A certificate program that allows you to become familiar with the leading data analysis techniques could allow you to hone the analytical skills required for leading forensic accounting careers.
Legal Knowledge and Ethical Standards
In addition to being proficient in the leading accounting principles and strategies, forensic accountants also should have a vast understanding of ethical standards and in-depth legal knowledge. Forensic accountants should be familiar with a wide variety of financial crimes and legal issues, including:
- Money Laundering
- Insurance Fraud
- Asset Misappropriation
- Bankruptcy Fraud
- Credit Card Fraud
- Embezzlement
- Securities Fraud
In addition, forensic accountants should become familiar with the legal system and its procedures to effectively navigate the litigation process. They are called upon to be financial and legal experts, allowing them to fill a critical gap within the criminal justice system. Above all else, however, forensic accountants should act with integrity to ensure that all investigations are conducted objectively and fairly.
Develop the Skills Required for the Top Forensic Accounting Careers at Post University
Those interested in careers in forensic accounting may need to focus on developing their business acumen and financial, analytical, and technical skills. In addition, they may need to have an in-depth understanding of the field of criminal justice to search for and uncover evidence of financial crimes effectively.
At Post University, we offer a Certificate in Forensic Accounting, focusing solely on the accounting and criminal justice skills required for this dynamic field. With an emphasis on accounting, auditing, and data analysis, this certificate program provides students with an opportunity to develop the niche skills required for forensic accounting careers.
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Please note jobs and/or career outcomes highlighted in this blog do not reflect jobs or career outcomes expected from any Post program. To learn more about Post’s programs and their outcomes, please fill out a form to speak with an admissions advisor.
