Forensic Audit Interview Preparation Guide
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Forensic audit related Frequently Asked Questions by expert members with job experience as Forensic Audit. These questions and answers will help you strengthen your technical skills, prepare for the new job interview and quickly revise your concepts

29 Forensic Audit Questions and Answers:

1 :: Tell me what do you need to succeed in financial accounting jobs?

First, you need to have a desire to investigate. Naturally, you’re also going to need a degree and background in accounting and finance. While you don’t have to be a CPA for this role, having that expertise could set you apart from the competition when you’re applying for jobs, especially if you also have a background in investigation.
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2 :: How do you conduct an investigation of a company, for instance?

In one case I was involved in, we did a complete surveillance of the premises after the CEO of a major company said he suspected there was a misappropriation of funds occurring. The surveillance cameras showed employees concealing tools, materials and other items. We could have stopped there, but in my experience, if there is one type of irregularity, there are usually others. I looked at the records thoroughly and found a number of other issues, including employees who were illegals as well as missing funds. As a result, we were able to uncover a plethora of issues occurring at the business and enable to company to prosecute those responsible for the missing items and funds.
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3 :: What is a forensic audit?

A forensic audit is an independent financial investigation that is designed to look for concrete evidence of fraud or mishandling of funds. Simple financial audits only evaluate whether an organization’s financial statements fairly and transparently represent its financial standing. A forensic audit goes several steps further to trace the chain of funds and uncover possible fraud. This is similar to the purpose of a forensic criminal investigation. Because of the depth of a forensic audit investigation, its findings are admissible in civil court as evidence.
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4 :: What is Forensic Accounting?

You have encountered the two terms before, separately at least; and never have you imagined that they can be put beside each other.
It is kind of weird when you think of private investigators in a crime scene all holding calculators instead of magnifiers and cameras. And it's even weird to see a bookkeeper trying to prepare quarterly financial statements with knives and elastic gloves! Well, the term is really not that troublesome.
The term "forensic" means "relating to courts of justice or public disputes" or "suitable for use in a court of law". Forensic accounting involves the use of accounting expertise in court and litigation cases, fraud investigation, claims and dispute resolution, and other areas that involve legal matters.
Unlike the popularly dramatic forensic setting that focuses on extraction of DNA and bullet trajectory calculation, forensic accounting deals with financial and corporate crimes such as fraud.
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5 :: Tell me why was a forensic audit started?

There have long been questions about potential fiscal mismanagement and fraud regarding WCCUSD’s $1.6 billion bond program, leading to a grand jury investigation and an ongoing SEC and FBI investigation. In the spring of 2015, Dennis Clay, a project analyst with the District for 11 years who worked on the bond program, came forward as a whistleblower alleging tens of millions of dollars of mismanagement and providing documentation to support his claim. These allegations led the School Board to establish the Dennis Clay Subcommittee and to hire a forensic auditing firm.
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6 :: What is certified Forensic Accountant (Cr.FA)?

The American College of Forensic Examiners International (ACFEI) grants the Cr.FA credential also to CPAs who meet their certification requirements.
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7 :: Tell me what's the difference between forensic accounting and auditing?

While the two may seem similar, a forensic accountant actually uses auditing as part of his or her process. Forensic accounting is an investigative methodology to follow the money or the proceeds, conducted under the premise that the results may be utilized in a court of law.
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8 :: Tell me have you or are you prepared to appear in court as a witness? What skills did you bring to that situation?

I have appeared as an expert witness in a bankruptcy case. It is essential to have all of the information needed, so I had to look specifically into all the details required, including all of the assets listed, accounts, financial records and other matters. It is also necessary to do a thorough investigation to ensure all parties are providing up-to-date and accurate data. In addition, I am aware of the need to communicate information precisely in the courtroom setting and how crucial it is to be clear under a substantial amount of pressure.
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9 :: What Forensic Accountants Do?

Due to the recent cases of fraud and finance related crimes, the need for fraud deterrence and detection has been intensified. This is the reason forensic accounting continues to enjoy a rapidly increasing popularity in the world of business and finance.
Forensic accountants perform two main types of services: investigation and litigation support.
Investigation involves the examination of potential and actual evidences that could suggest the existence of fraudulent activities and the pertinent information associated in them.
In litigation support, forensic accountants provide assistance in a given case, primarily related to the calculation or estimation of economic damages and related issues. Forensic accountants also present evidences and act as expert witnesses in court rooms where they provide valuable points that are useful in deciding over fraud and related cases.
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10 :: Explain me the process of locating the financial information you need for a specific case?

In my work, I have to take a unique approach to each case. Rather than taking a standardized approach to finding information, the key is to locate the people or organizations that will have the right data. In the case of fraud, for instance, it means tracking out where that individual organization is likely to conceal information. This sometimes requires thinking outside of the box or trying to put myself in the situation of the person. He or she might be hiding assets in another account or with relatives, as happened in one case I dealt with. In each situation, I need to zero in on what is required and what that person or company might do.
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