Forensic Accounting in Practice

Forensic Accounting in Practice

Determine the most important 5 skills that a forensic accountant need to possess and evaluate the need for each skill.

Forensic Accounting is a profession in which combines investigating, auditing skills with accounting. Forensic Accounting can also be defined as, the use of accounting , auditing, and investigative skills in legal matters. (Houck et. al. 2006). The American Institute of Certified Public Accountant (AICPA) recognized forensic accounting service as, collect, analyze, and evaluate evidential matter and to interpret and communicate findings in the courtroom, boardroom, or other legal or administrative venue. Forensic Accountants possess a complete different skills set than those of traditional accountants. And I believe that the most important skills they need to possess are.

1- Analyzing: The first and most important skill a forensic accountant should posses is being analytical. It is the ability to study intensive, detailed, large amount of documentary evidence, to detect any fraud or financial crime. Forensic accountants often solving complicated number puzzles by analyzing financial statements, financial ledgers or financial reports. Forensic accountants are trained to look beyond the numbers and analyze, interpret and make judgment. Forensic accountants should be able to see the three elements of fraud present themselves, the three fraud elements is also called the fraud triangle, they are: Opportunity, Pressure and Rationalization. (Kassem, R.,& Higson A. 2012). Forensic accountant should possess the knowledge and expertise to analyze financial documents or to work under circumstances where financial information has been destroyed. Forensic accountants often develop a computerized applications to assist the analysis and presentation of the evidence.

2- Evaluating: Forensic accountants are known for their whistle blowing ability. Whistle blowing is the term used to mean...