Forensic Accounting

Forensic Accounting in Practice

Contemporary Business

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.

A forensic accountant is trained to uncover white collar fraud. They are trained to be skeptical and reach beyond the surface of a financial statement. The field integrates accounting, auditing, and investigations. Due to the current state of the economy, forensic accountants are in high demand. Forensic accountants, at a minimum, should possess a Bachelor degree in accounting. They should also be a Certified Public Accountant (CPA) and may hold other certifications such as Certified Forensic Accountant (CrFA) and Certified Forensic Accounting Professional (CFAP). The five most important skills that a forensic accountant must possess are as follows:

* Knowledge of financial statements – this skill is imperative to identify abnormal patterns in the accounting data.

* Skeptical and detail oriented – Forensic accountant should not take the statements at face value. Just because the statements appear to be good, there could be information hiding in the details.

* Ethical – Forensic accountants must report the facts. They cannot eliminate information that may be critical to an investigation.

* Proficiency in network systems – Forensic accountants should be proficient with software systems used by the companies they are investigating. This will make it easier to decipher through the data and pull the reports needed for the investigation. It will also aid in accessing risk and recommending internal controls

* Interpersonal and communication skills – These skills are important when interviewing employees to find out more about the item under investigation. It is also important when the data has to be presented in court. The forensic...