Jasz
VIP Contributor
The most important skill that a forensic accountant needs is the ability to read and interpret financial statements. For example, if you are analysing a company's balance sheet, the first thing you need to do is to understand what everything means. This will allow you to look for any issues with the financial statements and make sure that everything is correct before moving on.
If you are analysing an income statement then it is important that you understand what is included in it and how much revenue the company has generated from its operations. If there are any discrepancies then they should be analysed further to see whether they can be explained by any external factors such as expenses or costs related to these operations.
The second essential skill is being able to analyse how businesses make decisions based on their financials. For example, if a business makes a decision on how much stock it should purchase then this can affect their results negatively if they end up with more than they need at the end of the year or if they don't stock up enough at all.
If you are analysing an income statement then it is important that you understand what is included in it and how much revenue the company has generated from its operations. If there are any discrepancies then they should be analysed further to see whether they can be explained by any external factors such as expenses or costs related to these operations.
The second essential skill is being able to analyse how businesses make decisions based on their financials. For example, if a business makes a decision on how much stock it should purchase then this can affect their results negatively if they end up with more than they need at the end of the year or if they don't stock up enough at all.