Decade ago, when we started Certified Forensic Accounting Certification, we faced this question very often. What salary can a forensic auditor draw ? or How much money can a certified forensic auditor make investigating frauds? Then, we had no clue. But as the days went by, the profession evolved.

In 2009, Our research was published in Hindustan Times. Additionally, in this research we first estimated the salaries of forensic accountants. It was a gross estimate of the salary in those days.

Now, Salary depends on the role of a professional in organisation. Roles vary somewhat based on the position and employer, but most of the forensic auditors use their forensic auditing and accounting expertise to help prevent, detect and prosecute the financial crimes.

The aspiring forensic auditors can choose this field as it is an exciting career option in the diversified cluster of industries and as well as the public sector agencies. Let us understand the package of forensic auditor’s salary.

What skills forensic auditors have ?

The forensic auditor often enjoys the varied responsibilities and duties assigned to him. He is generally detailed oriented and ethical. Depending on their position, employer and context, these professionals may gather as well as analyze the data, provide security consulting to the clients. The forensic auditor is mainly appointed to investigate in the fraud that has taken place as well as to find the evidence of proof of the investigation.

The job of forensic auditor is a very detailed oriented. The scope of forensic accounting and forensic audit is increasing day by day. The recent times have proposed opportunities for individuals to rise to power and cash their fortunes through multiple means.

The movement of these enormous sums against their services has been possible thanks to the advanced banking facilities. However, these transactions still pose a significant threat of tax fraud, embezzlement, and false claims over resources, and cyber-attacks.

The rising cause of concern has led to coming up with several safety measures that promise greater security for these processes.

People have introduced programs and software to fend off cyber attacks from hackers and ensure that a clear trail of the money gets presented at every step of the transaction. It enables the banks to avoid scams and to satisfy the clients regarding the protection of their assets.

Now days the business ecosystems are becoming complex due to the rising number of business investigations, frauds that are taking place in the business. The need for transparency and the accountability is crucial and the demand for forensic accounting is increasing day by day. So forensic accounting or auditing is looked as a career option as it is flourishing day by day.

Salary of forensic auditor is increasing

In last one decade, after our research on salaries, the salaries of Certified members are growing significantly. Today, some of our members draw eight figure salaries.However, that is not the trend, they are simply exceptional.

Now, every accounting firm in the country has forensic accounting departments. Within these sections, there may be sub-differentiation, for instance, some forensic accounting experts may specialize in insurance applications, personal injury declarations, and fraudulence, construction or royalty audits.

For starting your career as a Forensic Auditor you must first have a relevant experience of around 2-3 years so that he or she will have somewhat basic knowledge about the forensic audit domain.

The starting package for a forensic auditor offered with the relevant experience is Rs. 5 Lakhs per annum in India. Internationally, the country that provides a higher salary are mostly developed nations like the United States, Singapore, etc. Entry-level forensic accountants usually hold an accounting or criminal justice bachelor’s degree with a specialization in forensic accounting.

Some positions require professional certifications or master’s degrees, as well. Forensic accountants or auditors may be finance graduates and pursue forensic accounting credentials such as Certified Forensic Accounting Professional (CFAP). As the forensic accounting goes mainstream, the need for specialized forensic accountants Stock Market Fraud, Certified Anti Money Laundering Expert (CAME).

As the process in every organization is technology driven, almost every organization has its Risk Assurance Department. This department works hand in hand with the third party forensic auditors. In short, where there is a chance of accounting or auditing fraud there the forensic auditor comes in limelight.

Why CFAP is important?

The employers not only recognize experience but also qualification. Such qualification design to provide deep knowledge in accounting and investigation. All the candidates who hold CFAP also need to comply with the code of ethics. Code of Conduct is primary assurance of integrity of a CFAP. It helps in maintaining the quality of the work. By becoming a forensic auditor one will require a deep education in accounting and investigation skill higher than any auditor or accountant.

Conclusion

There is immense future in forensic accounting and auditing as a distinct “specialized area” consulting. The rising level of financial irregularities that are taking place, the requirement for forensic auditors is bound to significantly step up in the recent times. As well as there is a scarcity of qualified and experienced forensic auditing skill sets in India, it makes it a prized and valuable career option to pursue.

Even, An audit means a formal examination of an organization’s or an individual’s accounts or financial situation. Public accounting firms conduct an audit that provides comfort to an organization’s financial statement. Let us understand the distinction between a forensic audit and an audit.

What is the Qualification of Forensic Auditors?

For becoming a forensic auditor one must opt for the CFAP course. On completion of the course, the person will be  able to do the investigation of forensic audit as a forensic auditor

A number of clients ask what is the main difference between a forensic audit and a normal audit. It applies where there is an investigation of skills involved to examine, analyze and report on the financial information in a manner that is suitable to the court of law. Besides, the internal and external auditor performs the audit, keeping in mind the certain set of standards that are established. Forensic audit services are usually necessary when a dispute has risen.

The number of forensic activities and ambiguous financial activities has been increasing all over the world day by day. Fraudulent activities expose businesses and organizations. Forensic auditing is been now established itself as a dynamic and strategic tool in combating corruption and financial crimes and fraud through the investigation and resolving allegations of fraud and embezzlement that are taking place. The definition of forensic audit keeps on changing in response to the growing needs of corporations. Simply, it means the use of accounting, auditing, and investigative skills to assist in legal matters.

Basics of Audit

However, any organization can examine and evaluate financial statements by doing an audit.  The objective of the audit is that the intended user shall get information regarding the financial statements that are true and fair. Even, audits often fail to detect fraud that is below the materiality level of the auditors who are performing the engagement.  “Generally Accepted Auditing Standards” shall follow while doing the audit.

One of the main differences between both of them is that the audit gives you the guarantee that the financial statements that have been checked are true and fair and are reasonable and a forensic audit helps to analyze and investigate a certain set of transactions if any fraud has occurred. Audits may establish a materiality threshold whereas the forensic audit does not have any limitation regarding the threshold.

What is a Forensic Audit?

A forensic audit is an examination and evaluation of a firm’s or individual’s financial records to derive evidence that can be used in a court of law or legal proceeding. This could be in relation to a trial or some form of mediation. Certified Forensic Accounting Professionals (conduct most of the forensic audits and forensic examinations.

How to determine if you need a forensic audit or a normal audit?

To determine the need for an audit or a forensic audit/examination, consider the following: The organization may need an audit if:

• Ethical Lapses have occurred
• Requirement of specialized expertise
• The organization doesn’t follow the existing policies and procedures.
• Compliance with laws and regulations is a significant burden
• Occurrence of IT data breaches

On the other hand, the organization may need a forensic audit if:

• Suspicious Fraud and theft
• The entity doesn’t own the accounts which are under your entity’s name.
• Reconciliation procedures result in timing difference
• A whistle-blower hotline identified issues such as assets stolen or other defalcations.

Additionally, an auditor plans his work in a way that allows him to focus on gathering sufficient objective, verifiable evidence to support his report.  To obtain the information he needs, an auditor investigates documents and traces documentation.  The auditors confirm certain information such as bank balances or vendor and customer accounts with the appropriate third parties.

Conclusion

However, the forensic auditor and a normal auditor use the same accounting and auditing skills which require special knowledge for conducting different types of engagements that are required to go through as evidence that will give a true and fair view. For that reason, it is necessary to put forth to the clients regarding the difference and understanding of how the audit takes place as well as understanding the client’s needs and providing them with proper advice on the different types of engagement that takes place.