How To Make A Career In Forensic Audit?

Forensic auditing is increasingly becoming one of the key components for lenders and even investors during the lifespan of any investment amid a significant jump in financial frauds and regulatory obligations in recent years.

As a result, the role of forensic auditors is also becoming very crucial and offers a lucrative opportunity for chartered accountants (CAs) and other professionals.

What Is A Forensic Audit?

A forensic audit is an examination and assessment of the financial records of an organization, or person to bring out facts that can be used in legal proceedings.

The global forensic accounting market, which was valued at $5.13 billion in 2021, is likely to touch $11.68 billion by 2031, growing at a CAGR of 8.8%, according to the market research and consulting firm Allied Market Research.

The projected growth creates immense opportunities for CAs to delve into forensic audit.

The big 4 firms -- Deloitte, KPMG, PwC and EY -- as well as other audit and consulting firms such as Grant Thornton and BDO are also increasingly raising bench strength to tap the growing opportunities.

The scope for forensic audit will also become significant as the Institute of Chartered Accountants of India (ICAI) has made the Forensic Accounting and Investigation Standards (FAIS) mandatory, starting from 1 July 2023.

How To Become A Forensic Auditor?

To become a regulatory empaneled forensic expert in India, a forensic expert must follow certain steps and criteria set by regulatory bodies such as the ICAI, the Securities and Exchange Board of India (SEBI), and the Reserve Bank of India (RBI).

Here are the general steps that a forensic expert in India can take to obtain regulatory empanelment:

Obtaining Professional Certification

• A CA can become a globally recognized forensic expert by obtaining a degree in forensic accounting, forensic science or a related field. One can also look at obtaining a professional certification such as Certified Forensic Accounting Professional (CFAP), Certified Forensic Accounting and Fraud Detection (CFAFD), and Certified Fraud Examiner (CFE).

Clear Empanelment Examination

• Some regulatory bodies may require an empanelment examination to test the knowledge and expertise of forensic experts. Experts must pass the examination to be empaneled.

Apply For Empanelment

• Forensic experts can apply for regulatory empanelment by submitting their application along with their qualifications, experience, and other relevant documents to the respective regulatory bodies. The application process and requirements may vary depending on the regulatory body.

Adhere To Regulatory Guidelines

• Empaneled forensic experts must adhere to the guidelines and standards set by the regulatory body. They must maintain their professional conduct, ethical standards, and quality of work.

Forensic audit field is constantly evolving and therefore, it is crucial that one stays updated on the latest techniques, tools and regulations.

Networking with other professionals in the field of forensic accounting and forensic science will be immensely beneficial and provide opportunities to learn about the ongoing and upcoming developments.

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