Introducing Diploma of Investigative and Forensic Accounting: A Situation Examine in Lebanon


DIFA, Diploma of Investigative and Forensic Accounting, is getting acceptance because of to its significance in experiencing corruptive small business methods and fiscal theft. Having said that, the absence of Forensic Accounting (FA) is still found in countries of opaque enterprise techniques. Furthermore, only handful of universities across the planet are introducing DIFA, hence a big function has to be finished to get rid of the light-weight on the significance of the diploma in the initially location and then offer it as an formal diploma with classes relating to FA whether or not in universities or economical institutions.

The key concern lies in the actuality that Forensic Accounting is neither supplied in universities as a diploma, nor at financial establishments to detect fraud and make lawful court stories. In many universities of Canada and the United States, the DIFA, is remaining bundled in the curriculum in buy to recruit new students and offer abilities set for profession progression by means of growth of a specialized area of interest. 1 of the goals of the Alliance for Excellence in Investigative and Forensic Accounting (Alliance), recognized by the Canadian Institute of Chartered Accountants (CICA), is to develop and take care of a specialist certification program. This diploma is intended as a thorough program for someone who wishes to practice in this location. CPA, CFA, CIA are illustrations of certificates granted in Lebanon, having said that, no diploma is offered associated to Forensic Accounting. Thus, it could be a diploma provided in instructional establishments that grant CPA or any other certification related to auditing or accounting.

Additionally, the significance of adopting FA in the universities’ accounting curriculum is highlighted primarily that its demand from customers for it is growing slowly. These adoption has a big probable to enhance students’ competencies and competencies and could be utilised as a veritable source from which fraud could be mitigated. Contemporary graduates can as perfectly attain the DIFA method that provides a broad array of information and capabilities to have out economical investigations. This assortment features accounting, audit, income tax awareness, fraud information, know-how of regulation and guidelines of proof, an investigative mentality and significant skepticism, knowing of psychology and enthusiasm, and solid interaction skills (Stott, 2005).

The application focuses on expertise and skills that can be greatest taught and examined in man or woman: such as handling a confront-to-deal with meeting with a shopper, interviewing skills, and testifying in court docket as an pro witness. DIFA supports accountants with the understanding and skills wanted to bridge the gap among present quantification designs and ideas and different litigation contexts (Stott, 2005).

Based mostly on descriptive studies of survey final results conducted in Lebanon, becoming a nation of opaque business methods, to recognize the certificates that a forensic accountant have to have showed that:

  • 59.09% of the respondents thought that a forensic accountant should have a DIFA
  • 31.82% proposed that CPA is the wanted certification (Qualified Community Accountant)
  • 20.91% imagined that CFA is the proper a single (Chartered Money Analyst)
  • 10.00% pointed out other varieties of certification.
  • 2.12% of the respondents did not discover it vital to have any certification to grow to be a forensic accountant.

Additionally, the relation between occupation and the respondents’ view about the kinds of certifications that a forensic accountant need to possess was also analyzed. The next breakdown demonstrates the percentages of respondents who proposed that DIFA is the essential certification dependent on position occupation.

  • 69.10% of the respondents functioning in banking or insurance policies
  • 51.60% of the respondents doing the job in finance
  • 72.70% of the respondents functioning in schooling
  • 80% of the respondents working in administration

Nevertheless, most of the respondents in the accounting field thought that CPA is the form of certification that must be possessed by the forensic accountant with a 77.10%. Folks functioning in accounting usually have a tendency to pursue a CPA degree for the support it gives in this area.

In addition to the earlier mentioned, the relation amongst encounter and the respondents’ feeling about the varieties of certification that a forensic accountant will have to possess was also analyzed. The success, based mostly on people who opt for DIFA as the desired certificate, have been as follows:

  • most respondents with much more than two years’ practical experience thought that DIFA is the necessary certification to exercise FA
  • 51.90% of respondents with 2 years’ knowledge and less thought that DIFA is the required certification to apply FA
  • 68.80% in between 2 and 6 yrs of practical experience thought that DIFA is the essential certification to apply FA
  • 55.40% of all those with considerably less than 2 many years or no practical experience at all thought that CPA is the style of certification that ought to be possessed by the forensic accountant.

Furthermore, the surveys performed answered the question no matter whether the respondents approve that the DIFA should be included in the Lebanese university plans. It demonstrates that:

  • 97.88% of the respondents acknowledged possessing a DIFA in the universities
  • 2.12% of them failed to acknowledge getting a DIFA in the universities

This is specially crucial given that most of the Lebanese individuals are in the phase of pursuing their instructional levels of which the best proportion is learning finance.

Supporting the success of the surveys, interviews were also executed to know about the style of certificates that a FA should keep. Most respondents authorised that there must be a certification granted to a forensic accountant. This can be illustrated by what the accounting supervisor at “Malia Team Multinational Organization” (with 5 a long time of experience) said by stating: “It must be taught in universities and the enterprise entrepreneurs need to request in their vacancies for an accountant with a selected certifications these kinds of as DIFA”

The interviewees’ answers pressured that it need to be released in all universities and instructional establishments top to a certification (DIFA), and candidates really should have know-how and a diploma in accounting and auditing. As a single interviewee, a lover at Bureau d’Analyse et de Revision Comptable (BARC) for auditing and taxation (with 33-36 a long time of working experience) places it: “It is a way to reduce corruption this is why I specify that it must be taught in universities mainly because I strongly concur that it is carried out”. Relating interviewees’ suggestions to include things like FA in college courses, the head of audit section at “specialist auditors” (11 several years of practical experience) states: “FA is significant for dishonest strategies, it can be introduced in universities“.

Interviewees gave distinct responses and tips about what is necessary to conduct Forensic Accounting. 1 interviewee coded that: “There are unique teaching courses these types of as CPA and there are special systems for accredited money forensic and DIFA”(Associate of an audit and taxation organization “Bureau d’Analyse et de Revision Comptable with 33-36 several years of encounter). Consequently interviewees assumed that a forensic accountant ought to be an experienced auditor or has a deep know-how in regulations the sort of certification desired could be CPA (accredited general public accountant), or have a license in accounting, a certification or a diploma from the LACPA (Lebanese Affiliation of Qualified Public Accounting). For occasion the head of the audit division at specialist Auditors indicated that: “Of course you want to have a license in accounting and probably CPA, for illustration in our LACPA Lebanese affiliation of certifies public accounting it’s possible you can get this diploma there”.

Other interviewees explained that FA should really clearly have a diploma in accounting in addition to the needed encounter to be equipped to detect suspicious acts, or have a BA degree with problems related to fraud and disclosure, CPA is a additionally, or it’s possible have CFE. A lecturer and former companion at KMPG (with 15 to 17 a long time of experience) commented on this make a difference by declaring: “On the instructional stage the very best certification would be CFE if any one would like to be included in that topic he must go for these types of certification specialised in fraud assessment”.

If anybody seeks to be involved in this domain he will have to go for this sort of certification specialised in fraud evaluation. Others mentioned that FA now has CPA or prolonged encounter. On top of that, a forensic accountant, as an auditor have said: “really should have investigative capabilities and you should do the suitable teaching in order to be skilled”. Other interviewees also famous that a forensic accountant should have investigative competencies and undergo appropriate teaching in order to be competent or be a licensed accountant with certain abilities and expertise the certifications needed are an accounting degree or a regulation diploma considering that the forensic accountant may possibly have to testify in courts. Or have a official instruction in fraud certifications could be CPA or CFE.

Yet another vital assertion coded from the interviewees is that “To become a forensic accountant, you want to be a accredited accountant with selected techniques and encounter, the certifications wanted are accounting diploma or law degree considering that the forensic accountant could testify in courts” (Accounting Manager at Malia Team, with 8 yrs of expertise).

In other terms, FA accountants should be accountants in the initially place, no specialized certification, but need to be associated in teaching workshops or seminars that assistance enrich his expertise and skills, or be an accountant or audit with expertise about applicable legislation. An accounting degree is sufficient but it would be far better if he could get classes in investigative accounting if they are obtainable in Lebanon. In addition they ought to have a diploma in accounting with a profound knowledge and analytical skills a certification would be a furthermore these as CPA or any other certification in accounting and auditing discipline.

Interviewees also documented that the certification that could be held by forensic accountant to observe FA is CPA given that it is perfectly recognized because it is obtainable in lots of academic establishments. Just about all respondents conferred a substantial diploma of worth for introducing FA in the educational sector in the financially corrupted countries.

Just about all respondents believed that FA should really be taught in universities as a program or a graduate major or as circumstance scientific tests in an audit connected training course. Tips also incorporated that FA could be a specialty in instructional institutions that grant CPA or any other certification linked to auditing or accounting.

Respondents and interviewees also advised introducing FA via workshops and seminars with the guidance of authorities and skillful forensic accountants. They also showed acceptance for on the net educational systems since DIFA is not out there in most financially corrupted international locations when it is available in the Usa. Consequently on-line instruction could shorten the distance to men and women who simply cannot depart work and are fascinated to be specialized in forensic accounting.

The members also proposed that the personnel and supervisors, who are responsible for the financials of the firm, really should be educated and submitted to an intensive education to establish their abilities to allow them to detect fraudulent routines in the business.

In sum, DIFA is created to give a wide range of expertise and skills to have out economic investigations. Worker and management fraud, theft, embezzlement, and other economic crimes are raising, as a result accounting and auditing personnel will have to have schooling and techniques to understand all those crimes. In addition, high-visibility company scandals, such as Enron and WorldCom, reveal the require to much better prepare entry-degree accounting graduates and working towards CPAs in the locations of fraud avoidance, deterrence, detection, investigation, and remediation, Houck et al., (2006). Universities and academic institutions, as will be talked over later on, participate in a critical part in introducing DIFA and other FA relevant courses, certificates and diplomas. These official certificates can deepen the students’ expertise and sharpen their abilities in Forensic Accounting by way of trainings under the supervision of an seasoned forensic accountant, collaborating in various international conferences, looking at applicable journals, publications and other literature.

  1. Universities:

Universities enjoy a constituent function in introducing FA due to the fact they can regulate the components that could be taught to the pupils. Introducing it as a diploma, Forensic Accounting could be one particular of the majors that exist in universities the analyze proved that there are some educators who are proficient in the area because most of them did their doctorate degree in the United states and British isles. Thus it could be an undergraduate or graduate degree in the universities.

About the programs, Forensic Accounting could be offered as a system in the college rather of being a big it could be bundled as part of accounting, CCE, Regulation or any other major but tailored for each specialty.

With regards to the circumstance studies, in scenario FA is not deemed as a significant or offered as a course, it could be highlighted by circumstance scientific tests in which the students review lots of intercontinental fraudulent scenarios and the strategies and the logics that ended up made use of by forensic accountants to detect and expose the fraud.

  1. Educational Establishments:

Instructional Establishments entire the position of the universities by covering the hole when some of the classes and levels are not granted by the universities they would be obtainable in academic institutes or academies. The major course of steps that could be taken by these establishments is granting DIFA which need to be an formal certification provided to the experts that want to exercise Forensic Accounting in their nations. Yearly or regular periods must be introduced by means of specialised suggests of promoting. Moreover, the certification could be incorporation with the federal government the place accredited accountants performing in their departments and institutions could be sent to get it from a reliable academic establishment. This certification ought to be formally acknowledged and certified from the ministry of education and learning, finance, and justice. The syndicate should hire experienced forensic accountants capable of finding out, analyzing, suggesting policies, and instruction some others.

Houck, M., Kranacher, M., Morris, B., Riley Jr, R., Robertson, J., & Wells, J. (2006). Forensic accounting as an investigative device. CPA Journal. Aug2006, Vol. 76 Difficulty 8, p68-70. 3p,

Taha, N. (2014). Forensic Accounting in Countries of Company Opacity (1. Aufl. ed.). Saarbru�cken: LAP LAMBERT Tutorial Publishing.

Stott, M. (2005). “The Purpose of Investigative and Forensic Accountants and their Worth in Retaining and Enforcing the Integrity of Canada’s Capital Markets”


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