Forensic Accounting

Topics: Accountancy, Accountant, Forensic accounting Pages: 5 (1767 words) Published: July 24, 2013
Forensic Accounting in Practice: Forensic Accountants: Fraud Busters A forensic accountant is part investigator, part auditor, part attorney, and part accountant (Levanti, T.). Due to the increase in high-profile cases of companies and individuals, forensic accounting is a growing and popular field in the business and forensic subjects. A forensic accountant is someone who is often retained to analyze, interpret, summarize, interviews and present complex financial and business related issues in a manner that is both understandable and properly supported (Zysman, A.). Forensic accountants usually work in a public practice or are employed by insurance companies, banks, police or government agencies. They are to investigate and analyze any financial evidence, communicate their findings in reports or documents and assist in legal proceedings, such as testifying in court as an expert witness (Zysman, A.). Determine the most important five (5) skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations. I think the five most important skills that a forensic accountant needs to posses are to be: (1) analytical, (2) detail-oriented, (3) ethical, (4) responsive, and (5) insightful (Davis, Farrell & Ogilby). Analytical

The need to be analytical in a forensic accounting engagement may be the most important overall characteristic, without which other traits would be hard to develop (Davis, Farrell & Ogilby). Being analytical allows you to apply logical thinking in gather information in your work, which is necessary for being a forensic accountant. Detail-Oriented

To be detail-oriented is a must for not only a forensic accountant, but in every job out there. Details are what make your work and workload important. A forensic accountant must be able to be patient and read and go through lots of papers, analyzing every little detail because even the smallest detail can affect an overall decision in the work and company. Ethical

A forensic accountant must be ethical in their work—meaning they must be able to tell the difference between right and wrong. It is what makes a person’s character and moral behavior (Candea, M.). They must be able to be objective and without prejudice and avoid all biases when reaching a forensic conclusion. To be ethical also means to abide in confidentiality, even after the case has finished (Candea, M.). Responsive

Being responsive in the field of forensic accounting is important because it allows the accountant to be readily reacting to suggestions and influences within the courtroom. It means the forensic accountant cherishes the work he does and he is willing to show much interest. Insightful

To be insightful means a lot for a forensic accountant. It allows the accountant to perceive and understand what he or she is doing clearly and respectfully. It allows one to understand the cause and effect in a specific matter. Describe the role of a forensic accountant within a courtroom environment. For years, attorneys have used forensic experts to support their position against the opposing counsel. Attorneys have even used forensic experts as a “second set of eyes” to assist in reviewing the data obtained in the case. Cases involving economic damages and involved accounting analyses can be mind-boggling to the attorney, so a consultant with a high expertise in the subject can be invaluable to the lawyer trying to cut through the paperwork, interpret the data found and communicate in the courtroom (Elmore, D.R.). The attorney would hire the forensic accountant to advise on the facts, issues and strategies of a specific case. Though the accountant’s thoughts and opinions are occasionally incorporated into the attorney’s legal strategy, they do not necessarily have to testify in court. The federal rules allow attorneys to consult with these experts as long...

References: Candea, M. Ethics for Forensic Accountants. Retrieved from http://www.ehow.com/facts_68285 29_ethics-forensic-accountants.html
Davis, C., Farrell, R., & Ogilby, S. Characteristics and Skills of the Forensic Accountant. Retrieved from http://www.aicpa.org/interestareas/forensicandvaluation/resources/practai dsguidance/downloadabledocuments/forensicaccountingresearchwhitepaper.pdf
Elmore, D. R. The Role of a Forensic Accountant as an Expert Consultant. Retrieved from http:// mdd.com/the-role-of-a-forensic-accountant-as-an-expert-consultant/
Levanti, T. What to Look for in a Forensic Accountant. Retrieved from http://www.nysscpa.org/s ound_advice/forensic_acc.htm
Ray, L. Famous Forensic Accounting Cases. Retrieved from http://www.ehow.com/about_48155 00_famous-forensic-accounting-cases.html
Zysman, A. What does a Forensic Accountant do? Retrieved from http://www.forensicaccountin g.com/three.htm
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