The growing incidence of fraud in businesses and government entities are worrying developments that has thrown all hands on deck. In the forefront of the fight are the auditors and other fraud fighting professionals. Business communities as a whole are all looking up to auditors to help reduce this alarming rate at which fraud and economic crime is growing.
Some people say that huge frauds and misappropriations cannot be perpetrated without the knowledge of accountants in any financial circle. Well, this is their own opinion, what I say is that accountants and auditors ought to read the hand writing on the wall before it escalates into frauds.
Losses associated with frauds are larger than losses associated with every other variable that can cause businesses to lose money put together. I am here today to give you tips on what you need to know as an auditor in order to be reasonably prepared to assume the role of a fraud fighter.
- You must have vast knowledge of the operation of fraudsters: there is no how you can effectively combat fraud and fraudsters if you are not conversant with their mode of operations. You must put on a lion wear if you want to go for lion hunting. Fraud fighting is not a precision science that one needs to apply a formula and get what he or she wants.
- You must teach people around you how to handle frauds: there is no doubt that one of the best way to fight fraud is to educate the unsuspecting members of the general public about the greatest economic threat of our time. It is therefore the duty of auditors as fraud fighters to give out this education to the public for free.
- You must have good knowledge of IT infrastructures: as most of the frauds and other economic crimes performed in this age and time are perpetrated through computers and other IT infrastructures. Auditors must have good knowledge of this principal tool of fraud.
- You must understand the difference between auditing and fraud examination: most auditors have this mind set that frauds or irregularities has to be material before it will be given attention. This is not the case in fraud fighting, in fraud fighting; any fraud is material as what seemed to be immaterial fraud is always like iceberg that will eventually lead to a whole lot frauds.
- You must have analytical skills: fraud examination is a combination of analytical skill and other non-quantitative skills. Because most frauds are concealed in numbers. You must be friendly with figures for you to be a successful fraud fighter.
- You must have good knowledge of accounting and auditing: accounting is the language of business and frauds are committed in the business community. For you to do well in the field of fraud fighting, you must understand the language of the game.
- You must have good communication skills: fraud fighting involves a lot of communications and therefore require people with good communication skills to effectively perform your duty as a fraud fighter.
- You must the ability to speak and write in foreign language:
- Good understanding of law and provisions of the law is a compulsory requirement
- You must hone your interviewing skills, knowledge of psychology, and criminology: human behaviour-al skills and other life building skills are must for any auditor that wants to find his beat in the fraud fighting world. Studying people and their behaviour is very difficult that no one can claim to have accurate prediction of people are up to. You have to put in more effort for you to make headway in this aspect.
There is no better time for you to become a fraud fighter than now as fraud and its ugly effects on businesses is threatening to send many businesses parking. Auditors with the right designation in fraud fighting are in hot demand today.
There are many frauds fighting association around today but, the most popular and respected on is the ACFE (Association of certified fraud examiners). Anybody can join the body as associates but will not be full members until you right and pass their exam.