Forensic accountants are accountants that carryout investigative activities to; discover, prevent and deter fraud and other assets misappropriation. The high degree of fraud and financial crime today made it compulsory that every accountant should have forensic skill needed to fight fraud.
There are certification bodies now offering to train you as an accountant with the prowess to fight fraud. Do not hesitate to join one today.
The important question is; what are the roles of forensic accountants? This question will be addressed in this article. Before you read on, you may consider buying some of the books on forensic accounting displayed below:
LINKS TO MORE AMAZON BOOKS ON FORENSICS
ROLES OF FORENSIC ACCOUNTANTS
Whistle blowing: forensic accountants are known for their whistle blowing ability. Whistle blowing is the term used to mean reporting of frauds or suspected frauds. This is usually made to superior authority in an organization. As an accountant employed to fit into the position of forensic personnel, it is your duty to always look for signs of fraud and blow whistle to help uncover the fraud.
Fraud detection, deterrence and prevention: there is no how fraud and other financial crime can be successfully perpetrated without being noticed by the accountants. The position of the accountant as information measurement professional places him or her at the heart of every information that comes in and goes out of a business entity. Forensic accountants employ the various internal control technique, auditing and information systems management skills acquired during the course of their training to read the handwriting before others could see it. Forensic accountants should be able to see the three elements of fraud present themselves and work to ensure that they either disappear or are made redundant. The three fraud element is also called the fraud triangle. They are; opportunity, pressure and rationalization.
The best way to fight fraud is to lookout for any sign that tells you when the fraud triangle is present.
Again, the institution of reasonably sound internal control is the surest way to detect, deter and prevent frauds and financial crimes. Therefore, forensic accountants should endeavor to set up internal control system and monitor it to ensure proper implementation.
Educating management: it is part of the duty and responsibility of forensic accountants to constantly educate the general public. Information on what to do in order to prevent and deter fraud should be spread by forensic accountants.
Forensic accountants are the backbone of fraud fighting profession. The importance of their services cannot be overemphasized. We all need them to save our already threatened business world and the global economy at large. I would like to point out one thing; forensic accountants and fraud examiners are not the same thing. Although the difference between forensic accounting and fraud examination is just a tiny line, it is good you know it. Both professionals are out to fight crime but, from different perspective. A fraud examiner is called in when fraud has been suspected while a forensic accountant is the one to suspect fraud and then figure out how, when and how it was perpetrated. I really wish not to bother you with this distinction but, would be giving you incomplete information if I don’t.
You too can join the forensic accountants and fraud examiners to make this fight against fraud and other misappropriations work. Together, we can achieve a relatively fraud free society!