Forensic Accountants as Fraud Buggers Case Study

Forensic Accountants as Fraud Buggers - Case Study Example A forensic accountant must be equipped with investigative skills. These skills are important in gathering, evaluating and analyzing accounting data and audited information from business organizations (Ramaswamy, 2010). It is through these skills that a forensic accountant will be able to determine possible discrepancies and loopholes within audited accounting data and information (Carnes & Gierlasinski, 2001; DiGabriele, 2008). The effectiveness of a forensic accountant is measured by the ability to apply investigative skills to interpret accounting information and financial evidence to back misappropriation of resources within a business organization or company (Fleming, Pearson, Riley & Richard, 2008). Fraudsters within companies and business organizations often devise methods of embezzlement or fraud that are hard to detect. It is in this regard that a forensic accountant must have effective investigative skills to detect accounting problems which would not be determined by ordina ry auditing and accounting approaches (Bawaneh, 2011). Investigative skills also allow a forensic accountant to adhere to the ethics and regulations that govern investigations of criminal cases. Computing or technical skills are required for an effective forensic accountant. This is due to the fact that contemporary companies and business environments have adopted and implemented information technology methods in accounting and finance (Fleming, Pearson, Riley & Richard, 2008).... This is due to the fact that contemporary companies and business environments have adopted and implemented information technology methods in accounting and finance (Fleming, Pearson, Riley & Richard, 2008). Through computing skills, a forensic accountant is able to retrieve, analyzed and report financial evidence in electronic formats (Topping, 2008). More importantly a forensic accountant must be able to apply computer software and applications and other computer assisted tools to detect fraud or embezzlement of resources within companies (Fleming, Pearson, Riley & Richard, 2008). Modern business organizations are characterized by what is referred to as white collar crime in which technology is used to defraud or embezzle resources and hide evidence. It is in this sense that computing skills of a forensic accountant become significant (Carnes & Gierlasinski, 2001). Litigation skills area also required for effective forensic accountants. These skills are significant in the role of a forensic accountant as an arbitrator or mediator in legal accounting problems. These skills are also important because they enable forensic accountants to be effective experts and credible consultants who could be used by companies to detect and report fraud or embezzlement of resources. Through litigation skills, forensic accountants are able to evaluate damages and losses and find ways of resolving disputes among the disputants (Topping, 2008). Other important skills of a forensic accountant include analytical and forensic skills. Effective forensic accountants must have analytical skills that will empower them to determine the importance of the gathered financial evidence in reporting fraud (DiGabriele, 2008). Through analytical skills, forensic accountants analyze and professionally