Forensic Accounting vs Auditing

 

The field of accounting operates with many specializations, and forensic accounting and auditing are two of the most common. Although forensic accounting and auditing seem similar specialties, there are significant differences between the two job functions. Forensic accountants specifically search for fraudulent activity within organizations; auditors verify that companies comply with federal regulations and organization policies. Companies in need of accounting assistance must understand the difference between the two specialties.

Located in Aurora, Illinois, SDC CPA specializes in providing adjusters and attorneys global investigation and accounting services dedicated to crime, fidelity (employee dishonesty and employee theft), lack of faithful performance and commercial surety insurance claims. SDC CPA forensic auditors and accountants assist in legal processes and technical defense of a criminal, commercial, civil, administrative and judicial nature, through adversarial investigative applicability that includes knowledge and methodologies of Forensic Auditing, Forensic Accounting, Law, Theory of Evidence, Chain of Custody and Criminalistics, thus helping to promote the interests of the client.

Forensic accounts job duties

According to SDC CPA extensive research, fraud and other white collar crimes cost companies billions of dollars a year. In an effort touncover and prevent fraudulent activity and theft, companies employ forensic accountants. Forensic accounting analysis consists of analyzing financial documents to look for illegal activity within an organization, specifically white collar crimes. Forensic analysis is comprised of supportive litigation resolution, investigation, and dispute resolution. Some of the criminal activities that forensic accountants look for include fraud, money laundering, and embezzlement. If a person within an organization is found guilty of a crime, the forensic accountant tasked with finding the crime will likely have to testify in court.

Qualifications for a Forensic Accounting Career

Forensic accountants typically possess at least a bachelor's degree in accounting or a related field. Analysis and communication skills are very important to be successful as a forensic accountant. Individuals must understand the corporate laws and regulations surrounding the accounting industry. Many employers want to hire individuals who hold the Certified Fraud Examiner designation. To meet certification requirements, candidates must possess at least a bachelor's degree in any field or two years of fraud-related work experience. Candidates must pass a four-part 500-question multiple-choice exam administered by the Association of Certified Fraud Examiners.

SDC CPA accounting professionals bring focused and specialized experience and expertise in claims investigation and evaluation as well as risk evaluation and loss control to employee dishonesty, liability, professional liability, and commercial surety coverages at a reasonable cost. Their experience and expertise enables the insurer to achieve its goals of prompt, fair claims investigation and resolution while also effectively managing costs.

 Duties of forensic audit

The audit is divided into two main specialties: public audit and internal audit. Public auditors work for accounting firms that are hired to audit the financial statements of public and private companies. The Securities and Exchange Commission (SEC) requires all public companies to undergo an audit by a designated or individual CPA accounting firm. The public auditors' files report to the SEC on the results of the audit. Internal auditors work for private and public companies and are in charge of analyzing the internal controls of the organization to prevent fraud. External and internal auditors can analyze the company's products, services, operations, and processes. Auditors do not look at all of a company's financial records, but rather a sample size.