Forensic accountants have played major roles in cases such as Orinda-Moraga Disposal Services, and Sunbeam. Five Skills Forensic Accountants Should Have Forensic accountants should have many skills. In addition to their knowledge, forensic accountants should posses certain skills. They should have analytical skills (Freeman, 2011). Forensic accountants should be able to analyze situations and financial statements.
Due to the large amount s of cases in fraud, forensic accounting has become an important career in recent years. Forensic accountants are tasked with piecing together puzzles from big company scandals. They are in charge of rebuilding the entire financial systems, uncover financial fraud, trace funds, discover hidden assets and much more (Hecht & Redmond). The five most important skills needed to be a forensic accountant are; being an effective oral communicator, being able to simplify information, be a critical/strategic thinker, to be able to identify key issues and have auditing skills (Davis, Farell, & Ogilby). Being an excellent oral communicator and simplifying information would be the skills considered the most important.
The role of the forensic accountant in the courtroom and providing a service to business will also be discussed. Forensic accountants require more knowledge than that of an auditor or CPA. (Anastasi, 2003) The Forensic accountant must be part accountant, part detective, and part professional witness. Forensic Accounting Skills Strong Accounting Background. Whether or not they are actual CPAs, forensic accountants must have a strong accounting background.
The legal dictionary defines fraud as, “a false representation of a matter of fact” ((n.d.), 2008). This falsification can take many forms. Fraud can be spoken words, actions, ambiguous allegations, or concealment of material information. Fraud is generally understood as a dishonest act used for personal gain ((n.d.), 2008). Internal Fraud Internal Fraud is committed by a variety of individuals.
COURSE NAME: BUS 508: Contemporary Business - Assignment 3 Forensic accounting is often involved with accounting, auditing, analyzing financial evidence, and investigating legal proceedings, testifying in court as an expert and supporting trial evidence in legal matters (Houck et al., 2006). Forensic Accountants utilize these skills while conducting an investigation procedure. They are trained to look beyond the numbers and deal with business reality of the situation. In the corporate world today, due to the new requirements from government forensic accounting has been enforced in monitoring organizations accounts for fraudulent accounting practices. Lawyers, law enforcement, insurance companies, government agencies, banks, courts and businesses often hire forensic accountants.
This source is relative to my auditing collusion research because it discusses audits that are failing due to collusion and many other facets of fraud in the work place. Chauhan, A., & Kenkre, M. (2011). Fraud Investigations - Employee Fraud. Credit Control, 32(3/4), 8-17. Retrieved from
Legality Financial reporting activities and standards Earnings management has been used as the manipulation of the current standard of financial reporting established by G.A.A.P. Earnings management is when companies inflate their earnings or revenues. We have seen this with WorldCom who altered capital expenditures instead of expensing them. Waste Management also did this when it extended the useful life of its trash trucks. Materiality is defined by the FASB as an omission that would affect a normal person by a misstatement such as using earnings management to skew the true earnings or revenue.
Critical thinking, as defined by Boone and Kurtz, is defined as the “ability to analyze and assess information to pinpoint problems or opportunities” (Boone & Kurtz, 2012). The very nature of the forensic accountant falls within this definition. They have been hired to analyze and identify any discrepancies or intentional misrepresentations over a diverse set of situations. Assignments can range from analyzing matrimonial disputes to ensure proper
It is because there are several estimates and perceptions which accountants carry out apart from the rigid rules and regulations. This leads to variation in the computation of profits or losses and it can be misleading in the same way TESCO’s profits were
To attract the investors, to avoid the huge burden of Tax & also for many reasons, Accounting & Reporting frauds are undertaken. Our report focuses on the overview of Accounting & Reporting Fraud, its types, causes, its facilitators & contributors