Regulatory tightening creates demand for senior roles in forensic functions
Synopsis
The article discusses the growing importance of forensic roles in corporate governance, spanning various domains such as finance, compliance, law, and technology. It highlights the diverse backgrounds of senior forensic professionals, including accounting, law enforcement, IT, and industry-specific experience. These professionals typically possess a blend of practical experience, analytical skills, and communication abilities to detect, investigate, and prevent financial crimes.
May 2, 2024
Forensics is an emerging area of interest as companies of all sizes and in all sectors now give more importance to corporate governance.
There are forensic roles in domains such as finance, compliance, law and technology.
Amit Meher, Partner & Leader (West)-Forensics, BDO India, says senior forensic professionals often come from diverse backgrounds.
Accounting and auditing is a prominent one as many forensic auditors start their careers as accountants, auditors or financial analysts. They gain experience in financial reporting, taxation and auditing before specialising in forensic auditing. They are generally chartered accountants (CAs) or have professional certifications such Certified Fraud Examiner (CFE).
Backgrounds of senior professionals
The legal profession is also a good place to train for forensic roles, says Meher. Attorneys with experience in litigation, corporate law, white-collar crimes or regulatory compliance are valuable when it comes to interpreting regulations and providing testimonies in court.
A lot of former law enforcement officers are ideal candidates for forensic roles. Meher says investigators from organisations such as the Securities and Exchange Board of India (SEBI), Serious Fraud Investigation Office (SFIO), Economic Offences Wing (EoW) and other financial crimes units already have expertise in spotting and pursuing financial crimes. They can easily investigate and gather evidence in a corporate setup.
The forensics specialist at BDO India says even IT professionals and data scientists are good candidates if they have skills in digital forensics, data mining, cybersecurity and financial data analysis. They can help uncover digital evidence, analyse large datasets and develop tools to streamline the investigative process.
Professionals with experience in specific industry operations, corporate finance or investment banking also have an understanding of business operations and financial markets, which can be beneficial when investigating complex transactions and identifying fraudulent activities, he says.
Regardless of their background, senior forensic auditing professionals generally possess a combination of practical experience, strong analytical skills and communication abilities to detect, investigate and prevent complex financial crimes, as well as provide expert testimony and advisory services.
Large corporations generally have dedicated forensic audit teams within their compliance departments to proactively identify and mitigate financial risks.
Sectors that tend to hire experienced audit professionals
Law firms with a focus on white-collar crimes, frauds and corporate investigations often hire these experts to provide expert testimony, conduct independent investigation, and support legal teams in complex cases. Banks, investment firms, insurance companies and other financial institutions often require senior forensic auditors to monitor and investigate financial crimes, fraud and irregularities. Accounting and consulting firms that specialise in forensic accounting and investigations hire senior forensic auditors to support their client engagements.
Experts say as regulatory oversight and corporate governance requirements continue to evolve, the need for seasoned forensic auditors is expected to remain strong across industries.
[The Economic Times]
