Background of CSMFA
Certified Stock Market Forensic Accountant (CSMFA) is the specialization of Forensic Accounting certifications developed by Riskpro.
Globally there are very few certification programs that focus on stock market fraud. The nature and types of securities frauds are completely different and the scope of frauds ranges from insider trading to complicated trade matching schemes.
The financial statement is the base of any investment. Whether retail or institutional - investors look at the balance sheets and profit and loss accounts. There is big money involved in the stock markets. Manipulating the financial statement helps the companies to beat analyst expectations. This results in an artificial upward movement in share prices. Hence, the identification of financial statement fraud is a crucial aspect of stock markets.
Additionally, the Certified Stock Market Forensic Accountant is an arbitrator, investor, broker, trader, regulator or merchant banker, or any investment professional or Information Technology consultant who has undergone training to become an expert in the stock market fraud domain.
This certification is neither a Famous Frauds Project, nor is it about investment fraud examples. The course curriculum also includes forensic auditing related to the financial and capital market sector, litigation support, and investigative accounting.
Moreover, this certification program is one of the foremost certifications focusing on the capital market fraud domain.
Certified Stock Market Forensic Accountant
Certified Forensic Accounting Professional is a designation designed and marketed by Riskpro Learning in association with NSE Academy.
Stock Market Frauds is the third specialization under the Certified Forensic Accounting Professional course after the Information Technology and Insurance specialization. This is a useful certification for professionals looking to understand the gamut of stock market fraud in the financial sector. Stock market fraud classification covers the frauds in the primary markets ex: Prospectus frauds, IPO frauds, and secondary market frauds like Dabba Trading and synchronized trading. It elaborates on the stock market's illegal practices.
Typically, the Certified Stock Market Forensic Accountant is an arbitrator, investor, broker, trader, regulator, merchant banker, investment professional, or Information Technology consultant who has undergone training to become an expert in the stock market frauds domain, forensic auditing related to a financial and capital market sector, litigation support and investigative accounting.
Importance of CSMFA
In India, the Harshad Mehta scam, and Ketan Parekh fraud are the biggest scams that shook Indian stock markets. In early 2020, the Securities Exchange Board of India announced that it will refer all the cases related to forensic investigations to stock exchanges in addition to its forensic accounting teams. This development has opened the door of opportunities for forensic auditors to conduct investigations into the books of accounts of listed companies. On-going stock market illegal practices widen the scope of Certified Stock Market Forensic Accountants' services.
This program is created keeping in mind the ever-changing nature of the frauds in Indian stock markets over the last few decades. With the advent of technology, the nature of fraud in the stock markets is changing. When investors earn a good amount of profits in the stock markets they are tempted to diversify and start hunting for other investment options. Ponzi schemes, Mis-selling of investment products, and Pump and Dump schemes are investment fraud examples.
As the trades have become digital the nature of fraud in Indian stock markets has changed dramatically. Communication has become simple and the spreading of news or rumors and manipulating sentiments is becoming a common phenomenon.
Additionally, corporate failures teach us that most stock market frauds start with financial statement manipulations, hence this is one of the integral aspects of the curriculum.
Financial Statement fraud is the focus area of this course. This course is in the recorded video format and is divided into five sub-topics. Additionally, this course offers discussions around the J-score. It also discusses techniques for manipulating revenues.
Moreover, the syllabus on Stock Market Forensic include
- Classification of Stock market frauds
- Global case studies on stock market frauds in addition to domestic
- Insider trading and laws
- IPO Scams
- Frauds by the promoters
Scalping, parking, or churning techniques are also inherent aspects of the course. This material also discusses the Mauritius treaty and its impact on the stock markets and has covered the basics of laundering in stock markets.
Additionally, you can also download the Application form for the Certified Stock Market Forensic Accountant (CSMFA). After making the payment online, kindly send the completed application form to the office of Riskpro Learning.
The list above is just illustrative and there are 8 chapters that discuss the stock market fraud in depth.
For more information on this certification program
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