Bus 508 Assignment 3
FORENSIC ACCOUNTING IN PRACTICE
AYESHA KAPOOR
DR. MARGARET BUCKMAN
BUS-508-CONTEMPORARY BUSINESS
18TH AUGUST 2013
The most important five skills that a forensic accountant needs to possess and the need for each skill. Forensic accountants are a breed of accountants who play a role of accountants, auditors and investigators of possible fraudulent cases in a company. Forensic accountants work towards looking into the financial statements of the company and helping them prevent fraudulent cases by straightening their accounts. They work in the investigations and at times appear in the court as a witness in the fraud cases. Forensic accountants play a vital role in identifying malpractices by the managers in the company. (James, 2010). A good forensic accountant is not good just because he/she is good in numbers. A forensic accountant should possess the skills of implementing his/her knowledge to its best and find accurate results, under the GAAP. The five major skills required by a forensic accountants are as follows: (Cited by Davis C., Farrell. R., Ogilby S., American Institute of Certified Public Accountants, 2010)
1). Analytical- A forensic accountant needs to possess the analytical skills as they need to analyze an accounting problem or issue to take corrective steps towards resolving it. A forensic accountant can only give solution and be a witness to the financial records if he/she can analyze it correctly. Hence the need to be analytical in a forensic accounting engagement is the initial and the most important overall skill without which other skills will not develop.
2). Inquisitive- An accountant should always enjoy complicated puzzles and brain teasers. This helps in ensuring that there is vast interest in solving crimes and finding the truth. A forensic accountant should be intrinsically motivated to find challenging cases and work towards solving them. This skill of a forensic accountant helps in promoting efficiency as the accountant is
AYESHA KAPOOR
DR. MARGARET BUCKMAN
BUS-508-CONTEMPORARY BUSINESS
18TH AUGUST 2013
The most important five skills that a forensic accountant needs to possess and the need for each skill. Forensic accountants are a breed of accountants who play a role of accountants, auditors and investigators of possible fraudulent cases in a company. Forensic accountants work towards looking into the financial statements of the company and helping them prevent fraudulent cases by straightening their accounts. They work in the investigations and at times appear in the court as a witness in the fraud cases. Forensic accountants play a vital role in identifying malpractices by the managers in the company. (James, 2010). A good forensic accountant is not good just because he/she is good in numbers. A forensic accountant should possess the skills of implementing his/her knowledge to its best and find accurate results, under the GAAP. The five major skills required by a forensic accountants are as follows: (Cited by Davis C., Farrell. R., Ogilby S., American Institute of Certified Public Accountants, 2010)
1). Analytical- A forensic accountant needs to possess the analytical skills as they need to analyze an accounting problem or issue to take corrective steps towards resolving it. A forensic accountant can only give solution and be a witness to the financial records if he/she can analyze it correctly. Hence the need to be analytical in a forensic accounting engagement is the initial and the most important overall skill without which other skills will not develop.
2). Inquisitive- An accountant should always enjoy complicated puzzles and brain teasers. This helps in ensuring that there is vast interest in solving crimes and finding the truth. A forensic accountant should be intrinsically motivated to find challenging cases and work towards solving them. This skill of a forensic accountant helps in promoting efficiency as the accountant is
References: Crumbley, D.L., Heitger, L.E., & Smith, G.S. (2007). Forensic and Investigative Accounting. London: CCH Davis C., Farrell. R., Ogilby S., American Institute of Certified Public Accountants, 2010, Characteristics and Skills of Forensic Accountants. James A. (2010) DiGabriele, “Applying Forensic Skepticism to Lost Profits Valuations,” Journal of Accountancy, Retrieved 12 Sep 2012,http://www.journalofaccountancy.com; Mark, N. (2011). Forensic Analytics: Methods and Techniques for Forensic Accounting investigations. New York. John Wiley & Sons Rusell, L. & Gordon, V. (2010). Intellectual Property: Valuation, Exploitation, and Infringement Rights. Hoboken, N.J. Wiley Stuart, P. (2006). A Moral Theory of White Collar Crime. Oxford. Oxford University Pres