Forensic accounting is a dynamic and challenging field, with diverse cases ranging from financial fraud to asset tracing. Forensic accountants assist their clients in matters such as preventing financial losses, recovering stolen assets and aiding in legal processes.
Forensic accountants are hired to investigate financial discrepancies and irregularities. As a forensic accountant you could be an expert witness - providing your expertise as part of a dispute or litigation - or assist with investigations being carried out for an internal corporate investigation. Forensic accountants dig deep into the financial evidence available before providing analysis for their client, which might involve producing a report, preparing documents for court, or giving evidence as an expert witness.
There are several niche areas a forensic accountant can specialise in, including: business and share valuations; fraud and regulatory investigations; insurance claims; matrimonial disputes; professional negligence; tax investigations.
Qualities/skills needed:
- Meticulous attention to detail
- Analytical thinking and problem solving skills
- Strong written and verbal communication
- Understanding of relevant laws and legal procedures
- Ability to use specialised software to analyse large data sets
- High integrity and impartiality
- Able to manage multiple client engagements
Typical tasks:
- Analyzing financial data to identify discrepancies or patterns
- Carrying out investigations into allegations of bribery, corruption or fraud
- Create financial models to support business valuation assessments
- Providing expert testimony in court
- Producing reports suitable for legal proceedings
- Advising companies on best practices for fraud prevention
Webinars & recordings
ICAEW's
Forensic & Expert Witness community provides events, webinars and training for community members.
Financial fraud - common red flags
This webinar will explain some of the common warning signs that may indicate there is a problem and assist you to detect fraud at the earliest opportunity.
eBooks
The ICAEW Library & Information Service provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.
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Financial governance
Explores the practical realities of corporate governance in public, private, and not-for-profit environments. Part 5 looks at the audit committee's oversight of external audit, internal audit, risk management, technology and cybersecurity. Also covered are directors' responsibilities towards insolvency, fraud and financial reporting issues (mostly related to IFRS).
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BVB insights: data and analysis on UK private company multiples
Independent analysts, from BVB Ltd, have collated and interpreted transactions data involving private companies. The result is an in-depth overview of transaction multiples paid for UK private companies for the year ended December 2023 (previous editions are also available).
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Hands-on financial modeling with Excel for Microsoft 365: build your own practical financial models for effective forecasting, valuation, trading, and growth analysis
Financial modeling is a core skill required by anyone who wants to build a career in finance. This book explores financial modeling terminologies with the help of Excel. Starting with the key concepts of Excel, such as formulas and functions, this updated second edition will help you to learn all about referencing frameworks and other advanced components for building financial models.
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Valuing a business: the analysis and appraisal of closely held companies
Covers different valuation principles and methods.
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Business valuation approaches and methods
A lengthy section including four chapters on the income approach and its associated methods, as well as two chapters each on methods under the market approach and the asset-based approach respectively. Includes a number of practical pointers, from a US perspective.
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Writing the business valuation report
A US-focused chapter on the preparation and issuance of business valuation reports. Includes an overview of the International Valuation Standards business valuation reporting standards, as well as some practical guidelines and consideration of common errors.
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Introduction to valuing stock options
A chapter providing an overview of some models and techniques commonly used in the valuation of options, including the Black–Scholes model, the binomial model, and Monte Carlo simulation techniques.
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Sample report
A sample business valuation report, written from a US perspective.
