Why is a Forensic Accountant Essential For Fraud Investigation?

The economy continues to face the ever growingSo can it be the case that an accountant can deal
burden of fraud. It is estimated to cost us manywith fraud as effectively as the police? It is
billions every year. Most people believe that theimportant to compare like with like in this case
police are there to protect us from the problemand two issues must be considered first:
but if the truth is known they have nowhere near1. Many frauds are investigated by police
enough resources for this job on their own.constables who do not have any financial training.
Many believe that the first line of defence against2. Most forensic accountants offer a range of
a fraud is the police. Investigating fraud is one ofservices and are not specialist fraud practitioners.
many responsibilities held by the police, along withBut if you look at a forensic accountant
other regulators such as the Financial Servicesspecialising in fraud and a trained police financial
Authority and the Serious and Organised Crimeinvestigator, the better person to investigate
Agency.fraud is not obvious.
Crimes need to be reported to the police, andOne definition of fraud is stealing using deception.
fraud is a crime. The various police forces aroundThe fraudulent activity is often carried out within
the country will have a fraud squad or Economicbusiness records. Therefore, substantial accounting
Crime Unit of some description, but these havecompetence is needed to unpick a fraud. Then
been dwindling in size over recent years. Theagain, it is not just a matter of analysing records
economic down turn and harsh cuts on publicwhen conducting a fraud enquiry. It includes
sector spending means that this picture will onlyforensic document analysis, interviewing witnesses
become worse.and managing other investigators. It requires a
This is why when you report a fraud to the policeworking knowledge of relevant laws and legal
they may try to refer you to one of the otherprocedures. It requires precision and an enquiring
agencies or even ask you to consult with amind, together with a robust approach.
specialist forensic accountant in order toPut simply, the best fraud investigators need to
investigate the fraud. They don't have enoughhave the skills of the police and the abilities of the
available officers to pursue every fraud reported,accountant - and anybody who does will be in
which is why they often ignore the smaller ones.great demand over the coming few years.