In recent years, forensic audits have become more than an examination into a company’s financial records to identify suspect entries. Increasingly, they involve apprehending suspects, conducting more thorough investigations and other sleuthing activities more commonly thought of as the domain of detectives. As a result, you’ll see more forensic auditors building bigger teams beyond the realm of professional accountants.
As such, the industry is showing more demand for people with specific skills, especially former law enforcement agents. The large accounting firms are attempting to persuade former officials from the Central Bureau of Investigation (CBI) and Intelligence Bureau (IB), as well as police personnel. Rohit Mahajan, head of forensic services at Deloitte Touche Tohmatsu India, points out that the company already employs a number of former senior police officials, CBI employees, IB officials and former regulators as team members.
National Leader of the EY Fraud Investigation & Dispute Services, Arpinder Singh, adds: “The experience they bring to the table in terms of their understanding of the law and how evidence is to be gathered is important, as many of the assignments end up involving courts or a police station…we look for retired officials or those who may have quit under VRS [voluntary retirement scheme].”
Effects of Larger Auditing Teams In India
The result of forensic auditors building bigger teams is that the accounting practices of large businesses have improved. Government regulation has also affected companies’ books, such as the New Companies Act, which mandates strict safeguards against fraud. Team members aged 60-65 are brought in as advisers, while officials in their mid-40s are hired as full time managers to work alongside traditional accounting professionals.
Dinesh Anand, Leader of Forensics and Risk Advisory Services at Pricewaterhouse-Coopers India, has witnessed forensic auditors building bigger teams. “Their investigative techniques and methods of identifying fraudsters have added great value to our clients. On many complex engagements, the combination includes ex-law-enforcement officials, along with forensic accounting specialists and forensic technology experts. This has been a successful model in solving complex investigations. We are always on the lookout for good people with such skill sets.”
More proof of this phenomenon is the growth in the workforce. From 2010 to 2014, EY’s forensic services practice in India grew from 30 members to 450. Pricewaterhouse-Coopers India stands to add 75 members to its current team of 150 people, while Deloitte has tripled its forensic services personnel.
Meanwhile, there is evidence that people with forensic backgrounds are in demand in other parts of the globe. The trend of recruiting former government agents to handle forensic accounting investigations has proven to be popular worldwide. In the United States, for example, many former C.I.A. members have been brought on board at the larger forensic auditing companies.
In India, companies turn to a pool of chartered accountants whose education includes a Master’s Degree in Business Administration, as well as forensic specialty certifications like Certified Forensic Investigator and Certified Fraud Examiner. However, industry sources report that demand of forensic auditors building bigger teams outpaces supply, resulting in many businesses investing internally to offer training programs for the needed skill sets.
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Veriti Consulting LLC provides various fraud and forensic accounting services for individuals and businesses across the United States. Veriti is also a licensed private investigation agency. If you would like to learn more about the various fraud and forensic accounting services we offer call 855.232.4410 or contact us via email.
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