Diff: 2
LO: 1-2
AACSB: Analytical Thinking
3) Write a short note on career opportunities for forensic accountants in both the private and public sectors.
Answer: The forensic accounting profession offers great variety of opportunities, including roles for individuals with different skills and talents. The private sector offers many such roles. Various companies and organizations require forensic accountants for the post of internal auditors and compliance officers. CPA firms and consulting firms need highly skilled professionals to play the role of external auditors, valuation analysts, expert witnesses, consulting experts, and fraud investigators. In insurance companies, forensic accountants can use their knowledge to work as claims examiners or fraud investigators. The public sector also offers a wide spectrum of careers to choose from. Forensic accountants can pursue a career in law enforcement (state and federal) as documents examiners, digital analysts, forensic analysts (FBI), or special agents (FBI). Regulatory agencies (for example, Federal Reserve or SEC) require talented professionals to act as financial analysts and examiners. Internal revenue services give scope for careers as tax examiners, tax specialists, tax compliance officers, internal revenue agents, and criminal investigators. Government accountability offices are in need of financial analysts, financial auditors, and criminal investigators.
Diff: 3
LO: 1-6
AACSB: Analytical Thinking
4) Write a short note on value of critical thinking for forensic accountants.
Answer: Critical thinking is a necessary skill for any type of investigation, research, or scientific inquiry. The analytical processes employed by forensic accountants are based on a scientific approach. This involves (1) identifying a question, (2) gathering sufficient relevant data, (3) analyzing the data, (4) drawing conclusions, and (5) communicating results. In this context, critical thinking serves as a guiding frame to preserve the integrity of the scientific process. Various threats to the integrity of this process are manifested in the concept of "blind spots." Blind spots are caused by mistakes in reasoning, human irrationality, biases, distortions, and self-interest. Exercising critical thinking can help in the detection of blind spots.
Diff: 2
LO: 1-4
AACSB: Analytical Thinking
5) List the major areas of the body of knowledge covered in the Certified in Financial Forensics (CFF)
Exam and Accredited in Business Valuation (ABV) Exam.
Answer: Areas covered in CFF Exam:
1 - Professional responsibilities and practice management
2 - Fundamental forensic knowledge
3 - Specialized forensic knowledge, such as fraud, business valuations, computer forensics, and economic damages calculations
Areas covered in ABV Exam:
1 - Qualitative and quantitative analysis
2 - Valuation analysis
3 - Related topics, such as defining the engagement and professional standards
Diff: 1
LO: 1-5
AACSB: Analytical Thinking