Who can Become a Forensic Accountant? And what is the Career Path to Become a Forensic Accountant?
Nowadays, as most processes in organizations are technology-driven, almost all of them have established their own Risk Assurance Departments. This department works closely with external Forensic Auditors. To be a Forensic Accountant, it is not mandatory for one to be a Chartered Accountant/CPA. An ideal forensic team comprises of professionals from many industries, including Chartered Accountants, Engineers, MBA’s, MBE’s, Lawyers, and other professionals.
In many organizations, a separate Forensic Audit Team is part of the in-house staff. However, when this is not the case, specialized third-party Forensic Accountants/Auditors may be employed to provide due diligence and fraud analysis. Forensic services have a much broader range than merely examining accounting records or financial statements, and include services such as Business Intelligence, Investigations, Asset Tracing, Anti-Bribery Measures, and more.
Forensic accounting, or investigative accounting, is an area of accounting that draws on accounting, auditing, and investigative skills to detect fraud and provide legal evidence for use in court. It is an increasingly attractive profession for those who want to combine their knowledge of accounting with investigative techniques. In India, forensic accounting is becoming a lucrative career choice with growing job opportunities available. Forensic accountants in India are expected to be familiar with Indian accounting and auditing standards and laws, as well as general principles of accounting. They should be well-versed in advanced Excel, PowerPoint and other computer programs used to review and analyze financial data.
Additionally, they should have an in-depth understanding of fraud detection methods and techniques. The Career Path to Become a Forensic Accountant in India To become a forensic accountant in India, you need to pursue a combination of academic and professional qualifications. Here is the career path for the same:
- Academic Qualifications: You should pursue a Bachelor’s degree in Commerce or equivalent from a recognized university or institute in India. Many universities and institutes also offer specialized courses and degrees in Forensics, Fraud Examination and Investigation.
- Professional Qualifications: It is important to obtain certifications from professional bodies for being eligible for forensic accountant role in India. These include Certified Fraud Examiner (CFE) from Association of Certified Fraud Examiners, Certified Forensic Accountant (Cr. FA) from the Institute of Certified Forensic Accountants, Certified Valuation Analyst (CVA) from the National Association of Certified Valuators and Analysts etc. Having qualifications such as CA, CPA and CMA, would be an added advantage.
- Experience: Gaining experience in the field of forensic accounting is equally important. You can gain experience through internships, part-time jobs or research projects. You can also start your own consultancy firm providing forensic accounting services, if you have sufficient experience and financial resources. Once you have the required qualifications and experience, you can start applying for freelance or full-time positions of forensic accountants in various organizations like legal firms, financial firms and banks, management consulting firms, accounting firms, audit and assurance departments, companies etc.
These professionals investigate fraud, investigate suspicious financial transactions, uncover money laundering activities, monitor financial compliance of the companies, conduct audits and prepare reports for the Internal Audit departments and other stakeholders. Specialists in this field are crucial in preventing and detecting economic crimes across the world. Forensic accountants typically get paid very well in India and experience great job satisfaction as a professional.
The profession also provides the opportunity to develop an impressive portfolio of skills that span a broad range of industries, from banking to law enforcement. More and more young professionals in India are considering forensic accounting as a potential career, and the industry is expecting more growth in the near future.
In a nutshell, Forensic Accountants have the potential to expose instances of Accounting Fraud and this brings a challenge to the table. As new modus operandi are often employed by perpetrators of fraud, the Forensic Accountant must strive to find the most effective means of investigation. Far from being boring and mundane, many find the role of a Forensic Accountant/Auditor to be both stimulating and rewarding.
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Disclaimer: Neither this article nor the information contained herein shall in any way be construed as forming a contract or shall constitute professional advice required before acting upon any matter. CA Sharad Kumar Sharma has taken all due care in the preparation of this article for accuracy in its contents at the time of publication. However, no liability shall be accepted by him in the event of any direct, indirect or consequential damages arising out of or in any way connected with the use of this article or its contents.
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