What is the Institute of Forensic Accountants of Pakistan (IFAP)?
The Institute of Forensic Accountants of Pakistan (IFAP) is the Country’s Leading Accounting professional Institute dedicated to empowering Forensic Accounting, Forensic Auditing, Forensic Investigation and Fraud Examination professionals to drive the business performance. The Institute of Forensic Accountants of Pakistan (IFAP) provides a dynamic forum for forensic accounting professionals to develop and advance their career its certification.
The Institute of Forensic Accountants of Pakistan (IFAP) is a unique Pakistani venture to meet the global challenges of growing menace of frauds and white-collar crimes in business establishments. The IFAP was setup in the year 2009 by those, who have been in the field of Forensic Accounting, Forensic Investigative, Forensic Auditing, Fraud Examination and its allied areas/subjects and have themselves sniffed out investigated and prosecuted scores of frauds and white-collar crimes.
The IFAP is promoted with the objective to educate business establishments, to prevent, detect and investigate frauds and white-collar crimes and promote anti-fraud education to actively combat the growing menace. The IFAP also provides education on intricacies and practical aspects of Forensic Accounting, Forensic Investigative, Forensic Audit, Fraud Examination and imparting education on new emerging issues on aligning new business methods and technology with existing process, with primary objective to put in place the right and meaningful controls and practices to prevent any wrong. In nut shell the IFAP provides complete Anti Fraud Education to promote Fraud Risk Management Strategy for prevention, detection, investigation & prosecution of frauds and white-collar crimes at all corporate, as a single point destination.
Q.When I can admit at IFAP?
Ans. We have two intakes (January and July) in a year. You can choose any intake to get admission at IFAP.
Q.What does a Forensic Accountant do?
Ans. Forensic Accountants are currently in great demand, with the public need for honesty, fairness and transparency in reporting increasing exponentially. These Forensic Accountants need accounting, finance, law, investigative and research skills to identify, interpret, communicate and prevent fraud. As more and more companies look for forensic accountants and professional organizations offer certifications in the area, it is becoming evident that the forensic accountant has a skill set that is very different from an auditor or a financial accountant. A forensic accountant uses his knowledge of accounting, law, investigative auditing and criminology to uncover fraud, find evidence and present such evidence in court if required so, A forensic accountant can be used in any of the following areas:-
- Shareholder/partnership disputes
- Personal injury claims/accidents
- Business interruption/insurance claims
- Employee fraud
- Divorce/bankruptcy
- Professional negligence
- Financial statement fraud
- Retained by lawyers, law enforcement, banks and companies
Apart from knowledge of accounting, law and criminology, a forensic accountant also needs to be familiar with corporate financial planning and management. He also needs to have computer skills, good communication and interview skills. Forensic Accountants are financial management professionals who integrate accounting expertise with advanced management skills to drive business performance inside organization. They serve as trusted partners to executive in all areas of an organization, offering the expertise and analysis necessary for sound business decisions, planning and support. They advise the management in all financial issues to improve the overall performance of the organization.
Q.Who are IFAP’s Members?
Ans. In Pakistan IFAP members are today’s leaders, managers, and decision makers in Forensic Accounting, Forensic Auditing, Forensic Investigation, Fraud Examination, Management and Finance. They are dedicated to Continuing Professional Development (CPD), achieving highest levels of professional certification and supporting each other in their commitment to professional excellence. IFAP members represent organizations of all sizes and structure, including family-run businesses, private firms, not-for-profit organizations, academic institutions, small and large publicly traded companies and multi national corporations.
Q.Who are IFAP’s Members?
Ans. In Pakistan IFAP members are today’s leaders, managers, and decision makers in Forensic Accounting, Forensic Auditing, Forensic Investigation, Fraud Examination, Management and Finance. They are dedicated to Continuing Professional Development (CPD), achieving highest levels of professional certification and supporting each other in their commitment to professional excellence. IFAP members represent organizations of all sizes and structure, including family-run businesses, private firms, not-for-profit organizations, academic institutions, small and large publicly traded companies and multi national corporations.
Q.I am a non-business graduate. How likely is that I will be able to qualify IFAP Program?
Ans. There is no pre-requisite that to pursue IFAP Program a student should be a business graduate. In our Forensic Accounting profession we members from different disciplines like Science, Philosophy, Leather Technology, Economics, Mathematics and Arts etc. They qualified in an amazing short period compared to even a business graduate.
Q.How many students are passing final level in a year?
Ans. Basically passing final year depends on only student examination performance. In every year, average 60-70 students are passing.
Q.What is the overall purpose of the Institute of Forensic Accountants in Pakistan’s disciplinary process?
Ans. To protect the integrity of the “Forensic Accountants” designation and the public interest by ensuring that members comply with the Institute’s high technical, professional and ethical standards.
Q.When does the Institute takes disciplinary action?
Ans. The Institute investigates complaints about members and, where it believes there has been a breach of the Institute’s standards and regulations, disciplinary action may be taken. A member who has been subject to criminal action, some forms of civil action (particularly involving dishonesty or negligence), been dealt with by a regulatory body or who has been become insolvent is also liable to disciplinary action.
Q.What is occupational fraud?
Ans. Occupational fraud is essentially defined as taking advantage of an occupational situation to attain personal enrichment by intentionally misusing or misapplying an organization’s resources.
Q.What type of person is most likely to commit occupational fraud?
Ans. Employees are most likely to be the perpetrators (39.7%) which are closely followed by Managers (37.1%). Owners/Executives are the perpetrators in 23.3%) of the cases.
Q.What are the basic categories of occupational fraud?
Ans. The three basic categories of occupational fraud are (1) fraudulent financial statements, (2) misappropriation of assets and (3) corruption (bribes, kickbacks).
Q.Which types of organizations are most likely to be victims of occupational fraud?
Ans. Small businesses are especially vulnerable to occupational fraud. The median loss suffered by organizations with fewer than 100 employees was $ 200,000.
Q.Why do people commit occupational fraud?
Ans. The most commonly cited behavioral red flags were perpetrators living beyond their apparent means or experiencing financial difficulties at the time of the frauds.
Q.Which fraud schemes are most often committed by accounting personal in an organization?
Ans. Check tampering followed by billing are the most common accounting related schemes.
Q.How are occupational frauds most often initially detected?
Ans. Occupational frauds are almost half the time detected by a “tip”.
Q.What is the best approach to protecting an organization’s assets from occupational fraud?
Ans. Organizations can protect their assets through identifying and correcting weaknesses in their internal control structures.
Q.What type of professional is best suited to assist organizations with fraud prevention and identification?
Ans. Forensic accountants are often called upon to assist organizations of all sizes and from a wide range of industries to help prevent fraud as well as identify fraudulent activity.
Q.How is subject information disseminated to students throughout the course?
Ans. For all subjects other than the Research Project, assessment will be in the form of research projects, essays, presentations and examinations. Students will also be involved in role playing exercises such as interviewing subjects as part of a forensic investigation and defending as expert report in a court room simulation. These activities will form part of the assessment in the respective subjects. The Research Project will require submission of a major piece of written work (approximately 10-12-000 words) based on original research in a specialized area selected by the student and approved by the Program Coordinator and Subject Coordinator.
Q.What is Litigation Support?
Ans. “Litigation Support”, provides assistance of an accounting nature in a matter involving existing or pending litigation. It deals primarily with issues related to the quantification of economic loss resulting from a breach of contract.
Q.What is investigative Accounting?
Ans. “Investigative Accounting” is often associated with investigations of criminal matters. A typical investigative accounting assignment would be an investigation of employee theft. Other examples include securities fraud, insurance fraud, kickbacks and proceeds of crime investigations.
Q.How can Forensic Accountant be of assistance?
Ans. A Forensic Accountant can be of assistance in various ways, including:
- Investigative Accounting
- Litigation Support
Q. What types of assignments does a Forensic Accountant perform?
Ans. Forensic Accountants become involved in a wide range of investigations, spanning many different industries. The practical and in-depth analysis that a Forensic Accountant will bring to a case helps uncover trends that bring to light the relevant issues. Detailed below are various areas in which a Forensic Accountant will often become involved:
- Criminal Investigations
- Shareholders’ and Partnership Disputes
- Personal injury Claims/Motor Vehicle Accidents
- Business Interruption/Other Types of Insurance Claims
- Business/Employee Fraud Investigations
- Matrimonial Disputes
- Business Economic Losses
- Professional Negligence
- Mediation and Arbitration
What would be a typical approach to a Forensic Accounting assignment?
Ans. Each Forensic Accounting assignment is unique. Accordingly, the actual approach adopted and the procedures performed will be specific to it. However, in general, many Forensic Accounting assignments will include the steps detailed below:
- Meet with the client
- Perform a conflict check
- Perform a initial investigation
- Develop an Action Plan
- Obtain the relevant evidence
- Perform the analysis
- Prepare the Report
Q.Who retains a Forensic Accountant?
Ans. Forensic Accountants are often retained by the following groups:
- Lawyers
- Police Force
- Insurance Companies
- Government Regulatory Bodies and Agencies
- Banks
- Courts; and
- Business Community
Q.What should I consider when retaining a Forensic Accountant?
Ans. The following issues should be considered on retaining a Forensic Accountant:-
- The experience and qualifications of the Forensic Accountant.
- A Forensic Accountant should be retained as early as possible in order to obtain maximum benefit. The assistance that a Forensic Accountant can provide early in the process can be significant in reducing the overall cost and maximizing the benefit. If retained early, a Forensic Accountant can assist with the Examination for Discovery, identify additional areas of damages, assist with settlement negotiations and provide a preliminary assessment of the quantum of damages;
- If a Forensic Accountant is engaged as an expert witness then he or she should be given access to all of the relevant documentation. If restrictions are imposed upon the scope of the investigation there may be an impact upon the acceptance of the findings; and
- In situations where counsel is involved, the Forensic Accountant should be retained by counsel so that the privilege which exists between the client and counsel will be extended to the work product of the Forensic Accountant.
Q.What characteristics should a Forensic Accountant possess?
Ans. A capable Forensic Accountant should have the following characteristics:-
- Curiosity
- Persistence
- Creativity
- Discretion
- Organization
- Confidence; and
- Sound professional judgment.
A Forensic Accountant must be open to consider all alternatives, scrutinize the fine details and at the same time see the big picture. In addition, a Forensic Accountant must be able to listen effectively and communicate clearly and concisely.
Q.Where can I find more information about IFAP?
Ans. Visit www.ifap.org.pk for detail information about IFAP. Alternatively you can call IFAP contact Director (Education) on +92-51-235-5056, Fax: +92-51-235-5056 or Cell: +92 300-531-3597, email: [email protected] or visit our Head Office # 1, First Floor, Selex Centre, Markaz G-10, Islamabad.
Reference site: www.ifap.org.pk
