Determine the most important six (6) 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...

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Abstract
The present research paper is on the Forensic Accounting and the Forensic Accountants.
The paper focuses on the skills and technical knowhow that a forensic accountant should be
acquainted with. Thereafter, the application of the knowledge and skills obtained should be
applied to the business. It also focuses on the legal aspects of the forensic accountant
epresenting in the court room. The legal responsibility which is must in the case of forensic
accountant is also discussed. Finally, the role of forensic accountants is evaluated on the basis
of three case studies being explained and the role of accountants played in the individual cases.
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Introduction
Keeping of books or keeping records of the finance transactions of the company is
accountancy or accounting. In other words the financial statements of the company that is seen
in money terms of the economic resources which are managed by the company or is under the
management. There are certain principles of accountancy which are to be followed in
accounting or auditing. Accountancy is also known as book keeping. These records or
transactions are maintained by the employees of the organization who are known as chartered
accountants.
The accountants of the organization use their skills of accounting, auditing and their
investigating talents for conducting an examination into the financials statements of an
organization; this is known as Forensic Accounting. The prepared statement is hence now
suitable for court.
In simple terms the word „Forensic‟ means to match up with the standards and
expectations of a court of law. Forensic is also used for Forensic Science, Climatology etc. The
primary skills of a forensic accountant includes a capability of understanding the legal
procedure of accounting, the manner of conducting a investigation, conducting financial
analysis and all the other procedures of accounting which is framed and is accepted by the legal
system of the country. A lay man says “Forensic accountants are people who are simply trained
to see beyond the figures in the books and deal the reality of the company and a particular
situation.”
Forensic accounting explains the involvement that results from the actuals. If there is
any litigation in the organization in the books of accounts it is detected and taken care of by
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such accountants. The suitability in the court of law is Forensic. These accountants are also
known as forensic auditors or the investigating officers.
There are accounting departments in mostly all organizations as well as government and other
police agencies; they may also contain specialized accounting officers like insurance claims,
fraud constructions or royalty audits etc.
Detecting a fraud in the company which in terms is known as white collar crime is a
part of accountancy; these frauds were to be taken care of by the internal and external auditors
of the company during the regular audits. But these audits are limited in the hands of the
auditors to check in the limitations of the accounting principles and the company‟s policy.
Hence there is a new category of accounting for substantiating the frauds of the companies who
detect the same. These are known as forensic accounting. The accountants with investigating
skills have the ability to respond immediately to situations but are equally critical. They share
the financial information clearly and concisely in the courtroom. They have a good experience
in forensic and investigation field, experts in witnesses and litigation consulting. (Forensic
Global)
Forensic accountants work in areas like:
 Investigations of criminal and civil issues;
 Preparation of evidence and review of the same;
 Expert reporting;
 Proof of evidence and affidavits to take actions;
 Evidence in court to prove litigation as required;
 Expert determination or alternatives if any for the fraud;
 Resolution in the dispute as the situation requires;
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 Fraud prevention and awareness strategies or guidance and support in insolvency
Skills of a Forensic Accountant – (Fa
ell)
Forensic accounting is a detailed and investigating accounting so an accountant needs
certain experience and special skills for the same, they are
 Analytical
 Patience or persistence skills
 Organization or detailed oriented
 Accounting skills
 Investigation skills
 Communication skills
“Forensic accountants must have an analytical personality to perform well in the job.
According to the American Institute of CPAs, a group of lawyers, CPAs and forensic
accountants they rated being analytical as the most important characteristic for an individual to
have in the field. This characteristic helps the accountant analyse financial documents to find
e
ors and evidence in a legal case” (Kelchener, 2010)
Guessing is not part of the process, but playing investigator is essential to ensure the legal
proceedings are fair and unbiased from all ends. Investigation is the act of determining that
employee theft, securities fraud, identity theft, and insurance fraud have actually occu
ed.
Analytical
The personality of the accountant must be analytical to perform well and accordingly in
his work. As per the American Institute of CPAs, a group of lawyers and forensic accountants
have rated that being analytical is the most important characteristic which an individual should
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pursue or have in this field. With the help of this characteristic the accountant analyses the
financial documents in a better manner to find the e
ors or frauds in the books of accounts and
also evidence for the legal case.
Patient and Persistent
Patience and persistence is important in every person in any kind of work as it helps the
person to work in a better and efficient manner and think calm and wise. A Forensic accountant
must have extra patience and persistence like a true investigator. Investigations in the financial
crimes may require long hours of analysis and study in order to uncover financial frauds and
crimes and to understand how and when they were done. There is always complexity in the
documentations...