How A Financial Investigator Works

How A Financial Investigator Works

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Many different jobs can be caught under the umbrella title of a financial investigator. It is a very generalised term applied to people who delve into the numbers and they of course include accountants. But they can also include police investigators, insurance loss adjusters and many others who are involved in tracing how money moves around.

Somebody who investigates fraud and other criminal activity involving money needs additional skills when compared to an accountant who simply audits the books or prepares a tax return. This sort of financial investigation can never be routine because each circumstance is very different. A perceptive approach is needed and a good investigator will be able to think laterally, reaching into the mind of the thief to comprehend the criminal activity.

A financial investigator will often need to interview persons connected to a fraud or crime and that can often mean speaking to the suspected fraudster as well. Good interviewing technique is essential and this is best obtained by experience, though a lot of useful pointers can be picked up from high quality training. A good example of training is to learn that an interview plan is needed before the interview, so that you know what you are looking to find out.

However, the bulk of financial investigation work comes down to examining the records of the financial activity. Understanding accounting records needs accountancy skills, but the investigator does not necessarily need to be an accountant. It is often said that accountants make good financial investigators, but good financial investigators will not necessarily make good accountants! Financial investigators definately need an accountancy background together with a strong sense of numeracy. The public sector authorities are often criticised for authorising hundreds of accredited financial investigators without drawing on the more expensive and experienced accountancy resources necessary for most complex investigations.

A financial investigator will need to understand the best way to approach each new case. This will mean finding out what outcome is required and a preliminary understanding of the issue. There is no sense in carrying out an exhaustive examination of every aspect of a business's finances if the owners simply require enough evidence to safely dismiss a member of staff who is suspected of stealing.

The best financial investigators need accounting skills, but that is the end of the dusty bean counter image. A grounding in investigation law is needed together with the ability to interview and handle evidence. Tenacity is needed, as well as resisting threats and insults from those trying to escape interview. Having a calm approach and a strong nature will assist a good investigator to get the answers he wants before being faced with the less glamorous job of sorting through the financial details.

About the Author:
Mark Jenner is a forensic accountant who specialises in fraud investigation. He is a financial investigator who works for the police and other public sector organisations as well as individuals and private companies.



Article Originally Published On: http://www.articlesnatch.com


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