Do you suspect discrepancies or errors on your company or organization’s financial records? If so, you may be on the hunt for assistance from a fraud accountant. But wait – is this the type of help you require? A lot of people who deliberate between paying for these services and waiting for something to transpire could be confused about the difference between forensic accounting and auditing. Despite the fact that these job roles are two specialty areas of practice that look for understated liabilities and overstated assets, the duties and qualifications could be quite dissimilar.
The Job Duties of a Forensic Accountant
Typically, forensic accountants could deal with all areas of financial fraud, so this could relate to white-collar crimes, theft or any kind of fraudulent activity. Embezzlement, professional negligence and money laundering are examples of cases a forensic accountant will deal with regularly. Should the person you hire detect a problem, he or she may need to testify in a courtroom. Alternatively, the accountant will pass evidence onto attorneys or present the information in front of administrative review panels.
The Job Duties of an Auditor
A wide range of internal risk management and financial auditing will be carried out by an auditor, which demonstrates the difference between forensic accounting and auditing. It’s not just the internal side an auditor will focus on but also, external financial audits for public sector organizations and commercial companies. The key activities of someone in this field include safeguarding assets, analyzing spreadsheet data, communicating with managerial staff, making sure regulations are adhered to, preparing reports and putting together financial statements.
The Qualifications of a Forensic Accountant
In order to hire a forensic accountant who is capable of reviewing and investigating financial evidence, aiding with legal proceedings and determining how accurate documented figures actually are, you must first assess their qualifications. To succeed in this industry, communication skills are a must, as is a clear understanding of the accounting industry as a whole.
The Qualifications of an Auditor
When an auditor holds an accounting degree, this professional will have a strong advantage over other auditors who don’t have one. Governmental bodies, private businesses and charities will notice the difference between forensic accounting and auditing by paying attention to the qualifications and background experience the auditor boasts. Gaining the right qualifications can take anywhere between 3-5 years and the auditor must have covered all areas of the certified public accountant (CPA) examination.
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