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Forensic Accountant: Inspector of Financial Records

ABSTRACT

Forensic Accountant author describes/gives an aspect of forensic accountancy and about its profession, based on certain surveys of foreign and state studies. The author focuses on identifying what forensic accountancy is, how it reached its current state, and its scope in India and foreign countries. The author will also provide relevant information on forensic centers and degrees to be taken, an organization that certifies as a forensic accountant.

Keywords: Forensic Accountancy, Corporate Companies.

Introduction

When we hear the word forensics first we get an image of crime scenes, cyber network, anatomy, etc. But none about business, logistics, commerce. Forensic accountancy by definition is the art and science of investigating people and money; in other more elaborate words they are the FBI’s who don’t wear dark sunglasses with tinted windows in the cars and those who don’t interrogate people with bright light in a dark room or anything. They don’t sit around computers analyzing spreadsheets and analyzing data; they do involve in fieldwork like investigators do and also involve a traditional analysis of documentations like a traditional accountant does. The specialty that comprises forensic accounting includes several disciplines, some people are surprised to learn that it includes fraud investigations & prevention services. It also includes litigation support & expert testimony work where individuals who are specialized as accountants testify court on business claims & damages different aspects that require the expert opinion in accounting matters, business valuations where we value the business in the context of estates, and estate planning merges and accusations various context there and then lastly the practice also include insolvency and reorganization work which were troubled business or maybe on the verge of bankruptcy and need special accounting assistance and management assistance relative to pre-bankruptcy filing sometimes forensic accountant do what’s called insolvency options with the court and things of that nature. Sometimes a company or individual has directly employed them says government agents to do the work, but most of the time the clients are those who file.

A scene from the movie The Accountant (Google)

DESCRIPTION 

There was forensic accounting in the past but it wasn’t forensic accounting actually, it had other things too. Forensic accounting became what it is now by all means from the beginning of the last 30 years. Forensic accountancy is not and descriptive as other branches of forensics. One thing to become a good successful forensic accountant is 1st to think differently, be you! First, because while handling certain cases a certified forensic accountant has to go to the courtroom, there will be lawyers in opposition, a forensic accountant has to think differently and be able to show the court why he is right. Take an example, an individual who has multiple abilities who are not well trained can be a good forensic accountant according to a finding released by a renowned American forensic accountant in cases of perception to become a forensic accountant you have to need a Ph.D. level of understanding of business ship you have to go through what is marketing, finance, taxes is. For a degree, take a bachelor’s in commerce then masters in accountancy from a reputed university or college or colleges which give fine knowledge on basics. Get an MBA as said from a reputed college, then go for CA (chartered accountant) CPA (certified public accountant) if you want to work or the resident United States. Then work as CA/CPA for a couple of years, then as I told you, go back and gain a Ph.D. level of knowledge. One important thing is that you have to be physically fit, this is a job you have to go for fieldwork, and sometimes you might get physically hurt by corporate syndicates who you are working against, this isn’t happening always but there is a grim chance. I would suggest that person who wants to become a forensic accountant should have some background in any martial art or sports that involve in physical fitness. Another thing is that a forensic accountant should be able to travel time, what I meant is that the individual should be able to go through cases which has a long age of 10 to 80 years, having a law which is way different from what is it from now likewise cases in future which also will have some different laws as of now. You have to an Einstein to understand each piece, to place it in the right place in your brain to work out. A Ph.D. level of knowledge, good physical state, ability to time travel all definitely make an excellent forensic accountant.

Analyzing sketch, (courtesy Google)

RISE OF FORENSIC ACCOUNTANCY; CURRENT & FUTURE.

The need for forensic accountancy started industrialization and capitalistic rise in Great Britain, United States. Since 1830, auditors (people similar to forensic accountants) mainly focused on fraud in companies operating in public and private sectors. Forensic accountancy proved its importance after WW II and from there it flourished throughout the world, especially in developing countries. Forensic accountancy became desperately needed in large corporate companies for litigation support, business claims, and damages. Incorporate countries and unions such as the United States and European Union, each company have their own forensic accountant; understanding the financial figures and explanations presented by them is their main priority. On the other side, in developing countries such as India, white-collar crime is also on the rise along with corporate companies. Since it just started to rise there is an acute shortage of qualified forensic accountants who have adequate technical knowledge of accountancy. But the fun part is that in a country like India, the need for a forensic accountant would be more for managing fraud cases involved politicians. Since India, a country that has many rising companies still follows the old British judiciary system, and it is expensive to bring the matter to court and to hire expert advocates. India has a rising economy, so in the beginning, it will be difficult for an existing forensic accountant to cop up with new tech, but the future of forensic accountancy is bright in India; because of the COVID-19 pandemic, most of the corporate companies will shift manufacturing units from China to India which help in need of a forensic accountant and its rise. Since this field becomes more important than other ground field investigations. The title forensic accountant is expensive but when since its need rises there will be more institutions (government/deemed) that will provide facilities to make forensic accountants. So, the future of forensic accountancy is bright in India.

(Courtesy Google)

CONCLUSION

Forensic accountancy is a rising branch of forensic in India that is deeply rooted in European countries and in the United States. They play a crucial role in finding crimes, helping corporate companies. Being a forensic accountant is difficult. 1st have a bachelor’s degree in commerce then masters in accountancy then have MBA then be CA/CPA work for two years then know about corporate companies like the back of their hands. They have to crack cases, sometimes dated back to 10 to 80 years or more. They should be able to make cases to pieces and arrange them together in every way to prove the case. Forensic accountants serve the companies who hired them by finding frauds, help to track down the money manipulated, altered, help to litigate support, help to testify in court. As many corporate companies come to India, demand for forensic accountants up-rises and started in helping to exist forensic accountants to stabilize and to study new situations of corporate frauds & ways in which frauds use to monopoly taxes and financial assets from companies.

References

  1. TEDX Erasmus University
  2. Businessstandard.com(n.d)July2016,from http://WWW.buisnessstandard.com/article/management/forensic_auditor_course_catching_up_in_india
  3. www.researchgate.nrt.overview
  4. www.accountingtoday.com

Author: Shyaam Mohan

Shyaam Mohan is a reader by day and writer by night. He writes a hypothesis on the cosmos which is a very interesting field for him and used to write quotes, poems, occasionally in his diary. Shyaam has a distinct perception of society and its interaction with nature. Not that easy to understand him. Now he is pursuing BS. Forensic Science & Criminology (1ST year) from Srinivas Institute of Medical Sciences & Research Center, Mukka, Mangalore, Karnataka.

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