Chartered Accountants handle the finances in an enterprise. They are also responsible for planning and forecasting the monetary future of an organisation. These professionals also rescue it from the irregularities and financial misappropriations.
Becoming a Chartered Accountant begins with joining of a CA Foundation course after completing your under-graduation. Colleges like Hamstech offer this course to enable students to perform well in the tests. This will help them be ahead of others in the CA main course.
With the inter CA course, you get trained in all the basic subjects such as Accounting, Business Law, Statistics and Business Economics. These make you well-versed with the subjects that concern a typical business.
Thinking of how Chartered Accountants bring themselves to save the companies from frauds, we will check some types of frauds they can find and stop.
After qualifying the CA IPCC course, the candidate steps into the core course of Chartered Accounting. He/She gets better at handling finances, builds corporate performance, realise the corporate vision and are responsible for financial management and strategic planning.
Fraud in Financial Statements
After auditing the records of a company, a Chartered Accountant can see what irregularities and frauds have been committed with its finances. These frauds include overstating business revenue, its earnings and assets. Understating liabilities or hiding them are also typical practices of fraud.
Misappropriation of Assets
This can get complicated as it might involve financial crimes like pilfering cash before bringing them into business accounts. To solve such frauds, great expertise is required which only a trained CA can have. Other assets of the company can also be taken into manipulation and concealment. Typical examples are skimming accounts receivable, fake billing practices, tampering, mishandling of payrolls and creating fake or duplicate expense reimbursement or inventory.
Theft of Intellectual Property
When ethics are forgotten, leaking confidential trade information and stealing intellectual property happens. With his/her skills and knowledge, a Chartered Accountant can unearth this form of corporate crimes.
Frauds in Banking, Healthcare and Insurance Sectors
With bogus business insurance claims, fraudulent bankruptcies and false health insurance claim increasing in the corporate world, the Chartered Accountants is very important to counter them.
The skills of a Chartered Accountant are vital for the well-being and growth of a business. Their role in saving enterprises from frauds is as important as their contribution to streamline the development of a business.