Question

What skills do you possess that would make you a good forensic accounting expert?

Answer 1

Forensic accounting represents an area of finance that combines detective skills and financial acuity. These accountants dig into financial reports, locate financial transactions and figure out what really happened at various companies. To be successful, a forensic accountant needs to develop several qualities.

Analytical

Forensic accountants need to be analytical. As they review financial reports and source documents, they need to analyze the validity of each transaction and determine if the company recorded the transaction fairly. In some cases, the documentation will not support the numbers on the reports. The forensic accountant needs to analyze where the numbers on the reports came from and whether the company accurately reported those numbers.

Detail Oriented

A forensic accountant needs to be detail oriented. Reviewing financial reports and the supporting documents requires looking at large quantities of numbers. At each step, the numbers from the supporting documents need to match the numbers on the financial reports. The forensic accountant needs to compare these amounts and note any inconsistencies. This requires seeking out the detailed information for each transaction and investing time to compare the details with the final totals.

Persistence

Persistence plays an important role in the life of the forensic accountant. In some cases, the financial reports lack the supporting documentation. The forensic accountant needs to continue requesting that documentation and finding the source of the data reported. Without the supporting documentation, the forensic accountant cannot draw conclusions regarding the validity of the numbers. She needs to continue requesting the documentation, becoming more assertive if necessary, until she can make a solid conclusion.

Inquisitiveness

Gaining the information necessary to investigate financial reports comes from asking questions. Inquisitive forensic accountants get answers. As the forensic accountant reviews the numbers on the financial reports, he needs to ask the staff questions regarding each number reported. The more questions he asks, the better he’ll understand why they reported the numbers that appear on the financial reports. If the staff members fail to answer his questions, he needs to continue asking other staff members or supervisors.