A Broad Role of a Forensic Accountant

Forensic accounting requires a mix of accounting, auditing and legal skills.

Forensic accountants help attorneys and insurers resolve disputes involving complex financial information, such as lost earnings or injury compensation entitlements. They are employed by forensic accounting consultancy firms, or by banks, police authorities and government bodies. Familiar with legal concepts and processes, they are often called upon as expert courtroom witnesses and need a mix of accounting, auditing and legal investigation skills. Salaries range between $30,000 and $60,000 at entry level, rising to over $150,000 with experience, according to Investopaedia: "Uncovering a Career in Forensic Accounting."

Skills Required

Ability to work to deadlines is critical.

In addition to being a qualified accountant/auditor, a forensic accountant needs excellent research, analysis and report writing skills in order to uncover and then present salient facts and figures instrumental to a legal case. Presenting or omitting key issues or calculations can be critical in determining the perceived success or failure of a case in the courtroom, and clients' fees can also be dependent upon the sizes of settlements gained.

The forensic accountant also needs flawless communication skills and should be a confident public speaker, as she will sometimes present oral evidence in court. She recognizes that her principal duty is to the court and always expects her assertions to be challenged and cross examined. She may consider taking additional training in mediation and arbitration. She must be tactful and diplomatic and able to work under pressure and tight deadlines.

Duties

Software analyses and IT are part of the forensic accountant's job.

Duties center on appraising and summarizing financial and business information in an accurate and unbiased way, utilizing the forensic accountant's specialist knowledge of the relevant legal system and its applicable rules. The forensic accountant will spend much of his time investigating and evaluating detailed financial submissions offered by his client, whether this is an attorney, police authority or other public body, in order to support the prosecution or defense. However, he will also be required to comment on reports and assertions put forward by the opposing party in a case.

He will use software to analyze any financial data presented, creating logical, clear and compelling visual outputs for the presentation of evidence. Sometimes the forensic accountant will need to spend time devising or amending analytical software according to specialist or unusual calculations required on a case. The forensic accountant must present well-researched collections of supporting evidential documents and spend time attending court as an expert witness in legal proceedings when a case comes to trial.

Types of Work

Losses are calculated after motor vehicle accidents.

Typical case types investigated by a forensic accountant are matrimonial disputes, fraud investigations, business interruptions involving loss of profits, partnership and trading disputes, professional negligence claims and personal injury claims following a workplace, industrial or road traffic accident.

Training

A forensic accountant has usually trained in law or general accounting to degree level and progressed into an auditing role at a large accountancy practice before specializing in forensic accounting. However, some of the larger forensic accountancy practices now offer the chance to train in forensic accounting in house from graduate level.

Career Progression

Although some prior general accounting and auditing training will be of considerable help in the financial calculation side of the profession, only hands-on time spent alongside experienced forensic accountants will deliver the necessary insights to become skilled in the more challenging legal nuances and to advance in the profession.

This is a sector in which profile is important. Professional memberships, successful high-profile cases in which a forensic accountant acted as expert witness, published contributions to advances in forensic accounting practice and number of years' experience within specialist areas will all combine to determine perceived success and standing in the profession.

References

• Network of Independent Forensic Accountants
• New Accountant USA
• Institute of Certified Forensic Accountants
• Investopaedia: Uncovering a Career in Forensic Accounting

Resources

• "A Guide to Forensic Accounting Investigation"; Thomas W Golden; 2006