Why is a Forensic Accountant Essential For Fraud Investigation?

The economy continues to face the ever growing burden of fraud. It is estimated to cost us many billions every year. Most people believe that the police are there to protect us from the problem but if the truth is known they have nowhere near enough resources for this job on their own Rajasthan Police Constable Result 2021.

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Many believe that the first line of defence against a fraud is the police. Investigating fraud is one of many responsibilities held by the police, along with other regulators such as the Financial Services Authority and the Serious and Organised Crime Agency.

Crimes need to be reported to the police, and fraud is a crime. The various police forces around the country will have a fraud squad or Economic Crime Unit of some description, but these have been dwindling in size over recent years. The economic down turn and harsh cuts on public sector spending means that this picture will only become worse.

This is why when you report a fraud to the police they may try to refer you to one of the other agencies or even ask you to consult with a specialist forensic accountant in order to investigate the fraud. They don’t have enough available officers to pursue every fraud reported, which is why they often ignore the smaller ones.

So can it be the case that an accountant can deal with fraud as effectively as the police? It is important to compare like with like in this case and two issues must be considered first:

1. Many frauds are investigated by police constables who do not have any financial training.

2. Most forensic accountants offer a range of services and are not specialist fraud practitioners.

But if you look at a forensic accountant specialising in fraud and a trained police financial investigator, the better person to investigate fraud is not obvious.

One definition of fraud is stealing using deception. The fraudulent activity is often carried out within business records Rajasthan Patwari Admit Card 2021. Therefore, substantial accounting competence is needed to unpick a fraud. Then again, it is not just a matter of analysing records when conducting a fraud enquiry. It includes forensic document analysis, interviewing witnesses and managing other investigators. It requires a working knowledge of relevant laws and legal procedures. It requires precision and an enquiring mind, together with a robust approach.

Put simply, the best fraud investigators need to have the skills of the police and the abilities of the accountant – and anybody who does will be in great demand over the coming few years.

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