Forensic accountant and investigator

Dennis Parsons says his job calls for an open mind. Picture / Amos Chapple

Name: Dennis Parsons
Age: 50
Role: Forensic accountant and investigator for Indepth Forensic, Hamilton.
Working hours: 50-60 hours a week
Average pay: $120,000-$200,000. Higher in Auckland, $150,000-$250,000.

Qualifications and Institutions: Bachelor of Commerce (Accounting) University of Auckland; ICANZ (Institute of Chartered Accountants NZ) Practising Certificate; Certified Fraud Examiner; International Association of Financial Crimes Investigator, Australian Institute of Professional Investigators.

Career prospects: There is growing interest in and need for forensic accounting skills from Government departments, such as the Commerce Commission, Securities Commission, Police, Customs and large corporations such as telecommunications.

Describe what you do:

Forensic accounting combines accounting, auditing and investigative skills. We primarily deal with assignments from barristers or legal counsel requiring accounting investigative skills. It can be anything from reviewing a set of accounts to determining recklessness, carelessness or unacceptable accounting treatment, to accounting investigations concerning allegations of criminal behaviour.

Why did you choose this line of work?

I took a Government department job that involved investigative work and found I was good at it and enjoyed it. Doing tax returns doesn't give me satisfaction but successfully examining financial records to determine theft or appropriation or impropriety does.

What kind of clients do you have?

Clients range from small businesses to major corporations and Government departments. Needs may range from an individual who believes an employee has stolen $10,000 to complex counter-claims of millions between corporations.

What sort of training or experience do you need?

As far as formal qualifications go, the minimum you need is an accounting degree and ICANZ membership. Then I'd say at least three to five years of experience in the sector preferably in auditing before doing a more advanced degree, like a MBA or specialised degree in the area of accountancy. I believe La Trobe University in Melbourne offers good qualifications in this area. I think it is appropriate to do further study in conjunction with a job that exposes you to law enforcement such as the Serious Fraud Office, Securities Commission, Registration of Companies, Commerce Commission or police. Forensic accountants need some sort of enforcement exposure to learn about criminal behaviour. 

What skills or qualities do you need?

Forensic accountants need to have the ability to ask questions, listen and sort out the wood from the trees. You have to be able to communicate with a range of people. One day it could be Joe and Mary from the corner shop and the next day a QC.

You need an inquiring mind and to be able to work things through systematically. You also need to be open and flexible in your understanding of how things happen. You can't have a shut mind in this role.

Most satisfying side of the job?

The most satisfying side is when a client's position is vindicated. A satisfying moment recently was telling a client we had the $25,000 we'd been pursuing for her for five years.

She had been wrongfully dismissed and the employer lied and was caught out. The court awarded her $25,000 but the employer then went into liquidation, sold all his assets and moved away. We tracked him down. Often the dominant party can use delaying tactics and their more substantial finances to put layers in front of them while the small guy struggles. So that sort of result feels good.

Most challenging part?

Going to court is definitely the most challenging part of the role. The buck stops at court. As expert witness you get cross-examined by counsel and you have to be on top of your game. You're thinking on your feet all the time, there is no back-up, no file to go to recheck.

If you make a mistake they will crucify you. It is important to be honest about what you don't know as well. But it is exciting as well.

Any advice to someone wanting to do the same thing?

You can make a good income out of forensic accounting and it is a challenging area but you have to put the hours in and there is always work you don't get paid for immediately, if not at all. The girl that was wrongfully dismissed couldn't afford to pay me until we'd secured the money for her and then we only charged a nominal amount. However, I believe we have a moral obligation and that it is a way to give something back to the community.

How do you define success in this job?

When you walk away on finishing a job and believe that something good was achieved.