Digitisation of the global economy has its fair share of challenges and opportunities. Unfortunately for forensic accountants, the challenges outweigh the opportunities. The recent spikes in fraudulent activities within companies mean their jobs are becoming more daunting. As a result, forensic accounting professionals must prepare for the future by adopting new practices and expanding their abilities. Here are the top trends and technologies that will shape the future of forensic accounting globally.
Forensic Accounting and Cybersecurity
In the modern economy, forensic accounting and cybersecurity work in tandem. Therefore, forensic accountants knowledgeable in cybersecurity will create a more robust workforce for most companies in future. With the costs of data breaches up by 13%, forensic accountants in Melbourne must be equipped to identify hacks and data breaches. As a result, companies will save costs and economic and reputational damages without involving a vast team of cybersecurity and accounting experts. Additionally, forensic accountants educate firms about data breaches and how to prevent them to avoid future risks.
Artificial Intelligence (AI)
Artificial intelligence is rapidly penetrating all industries, including forensic accounting. Forensic accounting relies on data entry, and AI is perfect for improving speed and precision in data entry. Auditors will easily convert thousands of financial data pages into digital formats within a few hours. Artificial intelligence, through machine learning, quickly points out anomalies to speed up investigations. In addition, forensic auditors will always be ahead of the criminals before they make a move.
Preventive Forensic Accounting
Forensic accountants are regularly called to investigate financial crimes upon suspicion of fraudulent activities. However, this is set to change with the growth of preventive accounting. The spike in cybercrimes and corporate fraud indicates the need for professionals to prevent them. A preventative forensic accountant will analyse vulnerable accounts more exposed to fraud and help them strengthen their systems and internal controls. In addition, forensic accountants in Melbourne work with cybersecurity experts to target hackers and stay on track with their activities.
Big Data Analytics
Data analytics is among the pillars of the modern-day business sector, and forensics would benefit from it. Data analytics is crucial for identifying patterns to streamline investigations. In future, forensic accountants are expected to be well-versed in data analytics to grow their careers. Besides, big data provides unlimited access to a sizable amount of unstructured data that is daunting to analyse manually. This trend aims at increasing speed and precision to cut costs and control fraud.
As the demand for forensic accountants surges, they must explore business development. These professionals will learn to integrate technical knowledge with sales and people skills to grow a broader client base. The bigger a business advisor in Sydney grows, their value increases among organisations seeking forensic services. It is only through business development that forensic accountants will learn how to pitch and levy their services to clients without over/under-pricing as per market standards.
Currently, navigating the forensic accounting field is exciting and challenging. Various firms are trying different technologies and practices to determine their effectiveness in preventing fraud. Besides, human input is still in high demand, which presents a learning opportunity for future accountants. Companies must therefore prepare for business disruption as things change for the better.