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1. Forensic Accounting
Mr. MUSTAQ MULLA,
M.Com NET and K-SET,
Co-Ordinator of P G Section,
KLE’s SCP Arts, Science and DDS Commerce College, Mahalingpur.
mustak.mulla44@gmail.com
Meaning, Definition, Requirements to Become a Forensic Accountant, Essential Skills; Fraud Schemes -
Skimming, Lapping, Creating Ghost Employees, Using Shell Companies, Shrinkage of Inventory,
Management of Embezzlement, Security Fraud, Uncovering the Truth; Forensic Accounting Methods,
Auditing and Forensic Accounting; Creative Accounting.

2. Forensic accounting is a special practice of accounting where a financial
professional, known as a forensic accountant, audits and investigates
information and prepares it to be used in court. Learning about the basics
of forensic accounting and the duties of a forensic accountant can help
you determine if this career is a good fit for you. In this article, we discuss
what forensic accounting is, how it is used and the steps and skills needed
to become a forensic accountant.
Introduction of Forensic Accounting

3. Key takeaways
• Forensic accounting uses accounting and investigative
methods to evaluate potential financial crimes.
• Forensic accountants specialize in tracing funds,
assets and explaining financial situations.
• Forensic accounting is used in a variety of circumstances,
including court cases, criminal investigations,
and insurance fraud.

4. Who uses forensic accounting?
Forensic accounting is used by law enforcement
government agencies, independent adjustment firms,
insurance companies, banks and businesses of all sizes.
Large accounting firms often have their own forensic
accounting department, while other firms are entirely
dedicated to providing forensic accounting services.

5. How forensic accounting is used
Forensic accounting is used in circumstances where deeper analysis is required, including:
• Litigation support : Forensic accounting is used in litigation when the total value of someone's
losses needs to be determined. The court system may use a forensic accountant to help resolve
disputes over settlements by having a forensic accountant quantify the damages the plaintiff
sustained. They may even be asked to testify as an expert witness regarding the total losses the
plaintiff sustained to help the court determine a fair settlement in a case.
• Criminal investigations : Forensic accounting is commonly used by law enforcement in criminal
investigations. A forensic accountant can help discover whether a crime occurred and if criminal
intent was likely. Some examples of when this could be used are securities fraud, money
identify theft, insurance fraud, employee theft or falsification of financial statement information.
• Insurance : Forensic accounting is often used to help with insurance claims. For example, a forensic
accountant may be asked to determine the total damages that resulted from a car accident,
malpractice claim or another type of case.

6. What is a forensic accountant?
Forensic accountants examine, explain and outline intricate financial and business matters. A forensic accountant's job duties
include:
1. Assessing losses and potential damages 2.Identifying assets
3. Tracing funds 4. Recovering assets
5. Researching and writing reports, including due diligence review 6. Testifying in a court of law
7. Preparing visual aids to support trial evidence 8 Auditing financial documents
9. Gathering analytical data for litigation
10.Assisting in alternative dispute resolutions
11. Staying current on the financial industry and market changes
12. Developing computer applications to manage collected information

7. How to become a forensic accountant
If you're considering this niche within the accounting world, here are the basic steps to become a
forensic accountant:
1. Obtain a bachelor's degree : All forensic accountants are required to have at least a bachelor's
degree in accounting, forensic accounting, finance or another closely related subject. Coursework
should include statistics, economics, finance, marketing and business administration.
2. Earn a master's or PhD degree : A master's degree or PhD in forensic accounting can increase your
employment opportunities and earning potential. This may be particularly beneficial for aspiring
forensic accountants who didn't obtain a bachelor's degree in accounting. A master's degree also
allows you to meet the eligibility requirements for earning your Certified Public Accountant
(CPA) certification.
Related: Types of Accounting Degrees
3. Obtain a CPA certification : Forensic accountants are usually CPAs. The Certified Public Accountant
(CPA) certification requires accountants to complete a certain number of hours beyond a bachelor's

8. 4. Gain experience
Look for an entry-level position in forensic accounting or another accounting
to allow you to gain experience as an accountant. Most forensic accounting firms
require that you have up to three years of prior experience in a general accounting
profession.
As you pursue a forensic accounting career, consider building expertise in a specific
area such as:
•Bankruptcy and insolvency
•Business valuations and audits
•Fraud and criminal investigations
•Insurance claims
•Matrimony disputes

9. 5. Consider additional certifications
To be more competitive in the job market and increase your earning potential, you may want to
other certifications, such as:
•Certified in Financial Forensics (CFF) offered by the American Institute of CPAs (AICPA)
•Certified Fraud Examiner (CFE) offered by the Association of Certified Fraud Examiners
American Board of Forensic Accounting offers several certifications, including:
•GFA Government Forensic Accountant (ABGOV)
•Certified Cyber Security Accountant (CCSA)
•Certified Forensic Bookkeeper (CFB)
•Certified Forensic Accountant (CRFAC)
•Certified Forensic Auditor (CRFAU)
•Diplomate of the American Board of Forensic Accounting (DABFA)
•Fellow of the American Board of Forensic Accounting (FABFA)
•Forensic Intelligence Specialist (FIS)
•Licensed Healthcare Auditor (LHA) Registered Forensic Investigator (RFI)

10. Forensic accountant skills
To be successful in their roles, forensic accountants need to develop certain skills, including:
•Critical thinking skills: As a forensic accountant, you need to look at everything critically, particularly since
fraudulent activity isn't always easy to detect.
•Communication skills: Strong written and verbal skills are required as forensic accountants write reports and
communicate them in writing and orally. They may also act as expert witnesses and need to be able to
complex information to a jury.
•Analytical skills: Analytical skills are necessary when reviewing documents and interviewing people. Forensic
accountants need to be able to review the information available to determine what kind of financial crime may
have taken place.
•Interviewing skills: Forensic accountants often have to interview people to better understand the information
they're reading in documents. A good forensic accountant can put the person they're speaking with at ease to
obtain the information they need. Active listening skills are critical for effectively interviewing people.
•Attention to detail: To detect financial irregularities and note small discrepancies, forensic accountants must
have strong attention to detail. They also need to be able to carefully document the steps they take in their
investigation.
•Problem-solving skills: Forensic accountants need to be adaptable and able to effectively solve problems. An