From investigating fraud to auditing internal controls, forensic accountants are responsible for a wide range of assignments that require a diverse set of skills and impeccable attention to detail. Learn how the accounting field has adapted to the 21st century and how the latest technological solutions are being applied.
Digital is here to stay
The job of a forensic accountant has been radically changed by the advent of technology. Instead of paper, most companies run on a digital backbone and actually discourage employees from printing in order to save money. This means that forensic accountants are responsible for gathering, analyzing and making sense of electronic data.
Forensic accountants process company data to calculate financial ratios and determine legal damages. Many experts also attempt to discover data that has been deliberately deleted.
A forensic accountant might:
- Search for deleted files,
- Analyze suspicious activity on company servers,
- Identify relevant electronic files within a company’s network, and
- View suspected perpetrators’ social media accounts.
Cloud-based storage solutions and a shift to remote work requires forensic accountants to look outside the traditional confines of a company’s digital perimeter.
Preparing for the future
Believe it or not, artificial intelligence (AI) will play a significant role in the future of forensic accounting. Because accountants harness huge amounts of data to do their jobs, expenses associated with an investigation can add up.
Machine learning enables accountants to deliver cost-effective services by analyzing data faster and flagging suspicious records. AI can also review a set of contracts for words that indicate risk. AI also becomes more accurate over time
Other technologies
Predictive analytics, blockchain, robotics and bots are also expected to play a role in the future of forensic accounting. But regardless of specific tools, the goals — to uncover fraud and legal disputes — remain the same. Contact us for help navigating these issues.
Please reach out to your trusted Smolin professional with any questions or concerns