Want to be Bond? James Bond ...

Forensic accounting ... a career that involves being a detective with numbers. You have to be sharp, curious and have a high level of tenacity to take it up, writes Dr Amrita Dass.

What is Forensic Accounting?

Forensic accounting involves looking beyond the numbers and grasping the substance of situations.  It's more than accounting ... more than detective work ... it's a combination that will be in demand for as long as human nature exists!

Forensic Accountants are trained to look beyond the numbers and deal with the business reality of fraud. Thus it is mainly used to identify malpractices in a company's accounts.

What do I have to do?

Forensic accounting uses accounting, auditing, and investigative skills to assist in legal matters.  It encompasses two main areas - litigation support, investigation and dispute resolution. 

Litigation support represents the factual presentation of financial issues relating to existing or pending litigation.  In this capacity, the forensic accounting professional quantifies damages sustained by parties involved in legal disputes and can assist in resolving disputes, before they reach the courtroom.  In the courtroom, the forensic accountant may testify as an expert witness. 

Investigation is the act of determining whether criminal matters such as employee theft, securities fraud (including falsification of financial statements), identity theft and insurance fraud have occurred.  As part of the forensic accountant's work, you may recommend specific action that can be taken to minimise future risk of loss.  Investigation may also occur in civil matters. 

An important decisive factor is the ability to respond immediately and to communicate financial information clearly and concisely in a courtroom setting. A forensic accountant must be open to examining all alternatives, scrutinising the fine details and at the same time seeing the big picture.  

What should I study?

Commerce graduates can easily take up forensic accounting. First study chartered accountancy, then specialise in forensic accounting. The forensic accountant's prior audit and accounting experience will be of tremendous assistance.  

But ultimately, it is only through working with experienced forensic accountants on various cases that one develops the skills of a competent forensic accountant.

What next?

With the growing complexity of the business environment and the increasing number of business-related investigations, forensic accounting professionals are increasingly asked to assist in the investigation of financial and business related issues.

Forensic accountants work in most major accounting firms and are needed for investigating mergers and acquisitions, and in tax investigations, economic crime investigations, all kinds of civil litigation support and specialised audits. 

Forensic accountants work throughout the business world, in public accounting, corporations and in all branches of government.

Leading organisations

- Lancers Network Ltd. based in Delhi is one of India's leading corporate investigators engaged in corporate intelligence, risk mitigation, fraud detection, and litigation support.

- KPMG

- PricewaterhouseCoopers has a global network of audit and assurance firms. It helps companies improve their corporate reporting and provides assurance that their systems are operating effectively within a well-controlled environment.

Where should I study?

The Chartered Accountancy course is conducted by the Institute of Chartered Accountants of India, which has its headquarters in New Delhi, five regional offices ( Kolkata, Kanpur, Chennai, Mumbai and New Delhi) and 81 branches under these regional centres.

To become a member of this institute, a candidate needs to pass the final examination of the institute.

Address: Indraprastha Marg, New Delhi - 110002
Website: www.icai.org

Educational institutions abroad that offer a forensic accounting course:

- George Washington University, Washington, D.C., USA
Website: www.gwu.edu

- The Florida Atlantic University School of Accounting, Boca Raton, Florida (AACSB and SACS accredited). The Florida Atlantic School of Accounting consistently ranks in the top 10 in the US for its CPA (Certified Public Accountant) exam pass rates.

- College of Business and Economics, West Virginia University, Morgantown, Virginia, 26506-6025, USA
www.wvu.edu

- Department of Accounting, Indiana University, Bloomington, USA
www.indiana.edu

- Champlain College, Burlington, Vermont, USA.
www.champlain.edu

- Davenport University, Indiana, USA
www.davenport.edu

- Keller Graduate School of Management, DeVry University, Phoenix, Arizona, USA
www.keller.edu

- British Columbia Institute of Technology, Burnaby, British Columbia, Canada www.bcit.ca

- Charles Stuart University, NSW, Australia
www.csu.edu

- University of Wollongong, Sydney, NSW 2522 Australia
www.uow.edu.au

- The writer is the head of the Institute for Career Studies based in India.