What Kind Of Work Does A Forensic Accountant Do

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What Kind Of Work Does A Forensic Accountant Do

Fraud and crime are an increasing threat these days worldwide. Dealing with it has long been a problem for the regulatory authorities, who seem to be always striving to find new ways of dealing with the same issues. Outside commentators often criticise them for not using qualified financial experts such as forensic accountants enough. However, it is usually cost constraints that prevent this and unfortunately can actually lead to higher expenditure in the long run!

Forensic accountants are accountants that have expanded their forensic accounting experience and skill base to include investigation, legal, criminal psychology and various other skills. However, more than this they are normally also those with a keen enquiring mind, a tenacious approach to any task presented and love the challenge of an intellectual puzzle.

The skills and experience allow them to approach a complex financial problem, unpick the strands and drill down to whatever is happening behind the subterfuge established by the cunning fraudster. They are then able to pull this information together and present it in a succinct form to lay-persons who do not have financial skills.

A forensic accountant often must act as an expert accounting witness. He or she will be called to court or some other form of dispute forum in order to present opinions on financial irregularities surrounding frauds and financial crime. They must be able to present their points clearly, and withstand rigorous cross examination by opposing counsel. This needs an active mind and sometimes a pretty thick skin!

As in all professions, the better the forensic accountant the more expensive are their services. However, sometimes a forensic accountant can be expensive mostly because he is employed by a large and prestigious firm. Some parties will feel better represented if their expert also comes with a leading "brand". Fortunately most courts will see through this and an expert forensic accountant must really be judged on his CV and track history.

Not all forensic accountants are the same. Some specialise in matrimonial disputes or personal injury claims. Some specialise in civil disputes involving contracts and loss of profits. Not many forensic accountants specialise purely in crime, but of course many are general practitioners and will have a go at any case presented to them. This can sometimes give the profession bad name, and anybody considering using the services of a forensic accountant should review past cases to see that there is sufficient experience available.

There is a strong case for using forensic accountancy resources more. The law enforcement agencies, government inspection agencies and tax authorities would all use forensic accountants if their budgets allowed. Unfortunately budgets are dwindling these days. This means that often investigations and prosecutions are not carried out as efficiently as they should. The cost of using forensic accountants is not as high as it seems.