Career as Forensic Accountants

The growing complex nature of business environment has witnessed a simultaneous increase in the number of frauds and crimes. In this age of information technology, computer crimes, financial frauds, employee thefts, and securities scams, insurance and bank frauds are also on rise. Forensic accounting is the ‘speciality’ practice area of accounting that describes engagements, which result from actual or anticipated disputes or litigation. ‘Forensic’ means ‘suitable for use in court’. The integration of accounting, auditing and investigative skills creates the speciality known as forensic accounting.It is a new, growing field which helps in detecting financial frauds which are otherwise left undetected by auditing and investigative techniques alone. With interpersonal skills, an understanding of psychological theories and analytical mindset, an ability to pay attention to minute details, a forensic accountant goes beyond the numbers to unravel frauds and accounting crimes. Forensic accounting has become a hot career option post Satyam fiasco. According to reports at least 6,000 forensic accountants are required to fight corporate frauds in the country effectively. Forensic accountants are trained to detect evidence of frauds in financial statements. Forensic accountants have to go beyond the numbers and try to analyse cent per cent of the data as against the sampling procedures used by auditors. When the extended procedures are invoked, cases like the overvaluation of the sales or debtors become easy to investigate. Forensic accountants are supposed to play  more ‘proactive’ risk reduction roles by designing and performing extended procedures as part of the statutory audit, acting as advisors to audit committees and assisting in investment analysis research. Examples of forensic accounting objectives include: assessment of damages caused by an auditor’s negligence, fact-finding to see whether an embezzlement has taken place, valuation  of damage, and whether criminal proceedings are to be initiated; collection of evidence in a criminal proceeding; and computation of asset values in a divorce proceeding. As an emerging discipline, it encompasses financial expertise, fraud knowledge, and a sound knowledge and understanding of business reality and the working of the legal system. To be effective as a forensic accountant, one needs legal training in addition to education and extensive experience in the fields of finance, accounting, taxes and auditing.

Education: Although it is a relatively new field still certificate and diploma level courses are available in India. The Institute of Chartered Accountants of India (ICAI) offers certificate course in Forensic Accounting and Fraud Detection. Registration is open throughout the year. Only CA final qualified and members of ICAI can sit for the exam. The fee is Rs. 25,000. The Institute of Financial Analysis of Inda, Tripura and Dehradun offer PG Diploma in Forensic Accounting. The PG Diploma Program in Forensic Accounting is meant to prepare students/executives to take advantage of the growing opportunities and to make a successful career in forensic accounting and related fields. Indiaforensic Consultancy Services is a Pune-based anti-fraud education and consultancy service provider. India Forensic Research Foundation offers

(i)      CBFA Certified Bank Forensic Accountant Course

(ii)    CAME Certified Anti Money Laundering Expert

(iii)   CFAP Certified Forensic Accounting Professional

The course fee of all of the above mentioned exams is Rs. 13,500.

Forensic accounting skills can also be polished by participating in various national and international conferences, reading relevant journals, books and other literature on the topic.

Job Prospects: The opportunities for the forensic accountants are growing fast; they are being engaged in public practice and are being employed by insurance companies, banks, police forces, government agencies etc.  In India some forensic accountants may, for example, just specialise in insurance claims, personal injury claims, fraud detection, construction or royalty audits. In the Indian context, the forensic accountants are most required in the wake of the growing frauds. The growing number of regulatory and administrative agencies will demand the services in the nature of forensic practice. All of the larger accounting firms as well as many medium-sized firms have ‘specialist’ forensic accounting departments. The formation of Serious Fraud Investigation Office (SFIO) is the landmark creation for the forensic accountants.