Forensic Accountant Cost
The rise in fraudulent activities in the world today has given rise to the incidence of criminal activities more than ever. This makes it imperative to get a forensic accountant to provide expert analysis on financial valuations across several rising issues regarding finances. This is a specialized area and challenging at that. Let us know more about “Forensic Accountant Cost”.
The accountant investigates incidences of bribery, money laundering, fraud, identity theft, asset misappropriation, security fraud, trade market, compensation disputes, etc.
Cost of getting a Forensic Accountant
Because of the duration of embezzlement and the quality of the source document needed to investigate the event, forensic accountants do not usually quote a set amount as the cost usually depends on the nature and complexity of the given work.
Some charge on an hourly basis between $300- $500.
The cost of preparing a report can change significantly due to the circumstances of every matter and its complexity of it.
Also, the cost is sometimes dependent on multiple years involved in embezzlement, the source documents being destroyed, the fraud concealed, the bank accounts involved, etc.
Forensic Accountant attempts to unveil the truth and assist in a financial investigation
A forensic Accountant attempts to unveil the truth and assist in a financial investigation where necessary. Their services are diverse as their role comes to play across several industries such as fraud investigation, mediation, Court litigation (divorce), etc.
Because of how important their services are, it is best and usually advised to hire one as early as possible as hackers are also intensifying their efforts to escape being detected.
As a result of the increase in company failures, forensic accountants have a huge responsibility to act on signs of mismanagement, fraud, and weak governance to put a stop to the activities of these fraudsters.
Forensic Accountants Responsibilities
They examine dates and financial records to determine where missing money has gone and the process to recover it. They trace and uncover funds stolen. They also conduct interviews, review documents, and crunch numbers. They always find themselves abreast of financial happenings in the industry.
When is a Forensic Accountant needed?
Investigation alone cannot reveal complex business accounts as financial fraud can go undetected without thorough investigation. The need for accountability and transparency is imperative; hence the demand for a forensic accountant is more needed and significant than ever.
Corporations as well as law enforcement agencies including the Federal Bureau of Investigation (FBI) often seek these highly skilled professionals for assistance in helping to uncover and analyze evidence in solving and prosecuting financial crimes.
A forensic accountant is usually needed in the following circumstances:
- To detect unusual development in the accounting and financial systems
- In cases of suspected financial fraud
- In cases of commercial damage suffered by individual or company
- In cases of a Partnership dispute
- In cases of Contract claims
- In cases of valuation
When it comes to unveiling significant financial findings, their role cannot be overstated as it requires time, effort, and expertise to pre-empt and prevent fraudulent activity in any business or organization.6
To become a Forensic Accountant:
- Enroll in an Accounting Program to become a Professional
- Complete Specialized courses in Financial Accounting
- Earn Certification
- Register for a Master’s Program in Forensic Accountancy
Skills needed and required of a Financial Accountant
- The ability to review large volumes of documentation
- The sense of commitment and urgency
- A good understanding of peculiar business methods
- A good financial Accountant should be objective and professional.
- The ability to command
Where do Forensic Accountants find work?
They can work in many types of organizations such as compliance departments of top corporations, financial institutions, consulting firms, insurance companies, and government agencies amongst others.
Steps a financial Accountant goes through in an action:
- Background Research
- Data Collection
- Analysis of terms
- Report Drafting
- Issuance of Report
The methods used for gathering evidence in a forensic audit are; Substantive technique which includes reconciliation and document review, Analytical procedures which entail obtaining comparing data,
In conclusion, the cycle of forensic investigation begins with an investigation when a client employs a forensic auditor who he suspects a deception for his financial activities.
The auditor or accountant as the case may be shall begin by determining what type of fraud is being perpetuated, the time frame in which it happened, how it was concealed, who the perpetrators are, the loss caused by the perpetrators, and the evidence to show the specific fraudulent transactions.
Research shows that the usage of a forensic accountant in corporations is still at a low level due to the high cost of the forensic accounting tools, the money and time involved as well as the requisite skills needed.
These professionals must be well versed in the various methods and strategies for identifying, finding, and preserving evidence of all kinds of financial misdeeds.