Forensic accounting Archives

THE IT AUDITOR

As opposed to balance sheets and financial data, an IT auditor ensures a company’s technology and information systems are secure, efficient, and reliable. IT auditors are typically responsible for IT audit projects, which may include independent IT audit reviews and co-sourced internal audit projects. Audits are wide ranging, covering IT general controls, applications controls, governance reviews etc.

Key skills and knowledge

Actively listen and participate in discussions to quickly understand the context and provide recommendations.
Be curious and ask questions to the auditee and within the team, to brainstorm and identify unexpected risks.

Advice for CPAs

You don’t have to have a degree in engineering or computer science. Having a basic knowledge, interest and being willing to explore technologies is a good starting point.
Always stay on top of the latest technology trends and emerging risks.

Q&A with Caton Chong

Caton Chong is IT Audit Manager in Cathay’s Group Internal Audit team.

What does a typical day look like for you?

A typical work day is full of meetings and discussions. Like other auditors, we need to work with and coordinate different stakeholders in the company. While a major contact point would be IT, we also work with the other business auditors and functions to identify the IT elements in the business process, as well as suggest relevant IT risk and control areas for further review.

What did you study at university?

I studied Business Administration at university, double majoring in Information Management (Information System Auditing) and Accountancy. Certified Information Systems Auditor (CISA) is a key certification for all IT auditors. If you want to advance in other technology areas, additional qualifications could be considered. For example, Certified Information Systems Security Professional (CISSP), Certified in Risk and Information Systems Control (CRISC), and Certified Ethical Hacker (CEH).

What are the challenges of your role and work?

Communication with non-IT background stakeholders on technology risks and issues. Providing more explanation, illustrations, and examples is often needed.

What are the opportunities of your work?

As we know the business operations, controls, and technologies, we act as the bridge between the auditors and business units to provide innovative solutions in another angle.
We participate in digital transformation and process automation projects by helping to embed IT risk and control management.

How did the QP prepare you for this role?

It gives me “the big picture” and helps me to respond quickly to issues in my daily work, e.g. accounting treatments and its corresponding system and interface controls.

THE DIGITAL ACCOUNTANT

Digital accountants leverage data and technologies such as artificial intelligence (AI), blockchain and robotics to focus more time on value-added activities and strategic decision-making. They advise organizations about technology enabled business transformation. With a good understanding of the nature and mechanics of technologies and cloud-based solutions, and also the business risks involved (such as cybersecurity and data privacy), digital accountants stand at the unique intersection of tech and accounting to provide valuable insights to businesses.

Key skills and knowledge

Data analysis.
Being inquisitive.
An understanding of IT platform solutions.
Knowledge of the latest digital and technology trends.

Advice for CPAs

Develop your digital savviness.
For those interested in the loyalty space, use different loyalty programmes to get a feel for each programme’s value proposition and the different rewards, and evaluate them from a member’s point of view to see what makes them successful (or not).

Q&A with Jason Wong

Jason Wong is Head of Finance of yuu Rewards, Hong Kong’s leading loyalty programme, launched by DFI Retail Group.

What does a typical day look like for you?

My team and I spend the first week of the month on month-end management reporting including key operational metrics (e.g. membership growth, member engagement and programme partner performance) for senior leaders, with support from our analytics team. The rest of the month is spent working alongside yuu Rewards leaders to help the programme achieve its strategic objectives. This could range from assessing and structuring new partnership deals with our business development team to measuring returns on marketing campaigns. I also prepare for and attend meetings, from regular meetings with DFI Retail Group leadership to ad-hoc meetings with legal, HR etc. My days can be busy but I do my best to make time to develop and nurture our young and motivated team of finance business partners.

What are the challenges of your role and work?

DFI Retail Group is a big organization so stakeholder management requires time to build relationships and patience.
Juggling my time between the different business units and priorities to provide finance support to other digital initiatives within the group.

What are the opportunities of your work?

Our finance team works very closely with our analytics team because, especially in the digital space, the financial story is much more powerful when combined with data. For example, our revenues are somewhat dependent on the number of yuu points issued and redeemed for a given month, so finance needs to understand the movements and drivers.
My team also provides finance support for early-stage digital initiatives. It’s great to not only be part of that journey but help set up systems and processes that will benefit those who come after us.
Taking an active role in business decision processes such as vendor selection, technology investments and organizational structure.

THE FORENSIC ACCOUNTANT

Forensic accountants assist courts, lawyers and clients to understand complex financial and accounting issues, and present that information, to identify illegal financial activities such as financial fraud, embezzlement, extortion and more. For forensic accountants, leveraging technology and data analytics is critical to performing thorough corporate investigations and compliance reviews.

Key skills and knowledge

Communication skills.
Analytical skills.
Attention to detail – one small detail can make a big difference on the outcome of an investigation.

Advice for CPAs

Have a genuine interest in working with numbers and the process of problem solving.
Have a mindset of continuous learning to keep abreast with the latest accounting standards and trends.

Q&A with Summer Li

Summer Li is Senior Manager with Alvarez & Marsal’s Dispute and Investigation Team.

What does a typical day look like for you?

My job is project-based, and each day can be different – I typically kick off my day going through emails and catching up on the latest status of each project. Following that, I set out the tasks I need to complete during the day. For an investigation project, I would plan and design work procedures, conduct interviews, review accounting documents such as the bank statements and general ledgers, and prepare a report summarizing all the findings and recommendations. At the end of the day, I usually provide management or clients with an update on the findings or the latest developments.

What did you study at university?

I studied accountancy at university. While it is not mandatory, it is common for a forensic accountant to have a CPA qualification or certifications in fraud investigation, such as Certified Fraud Examiner (CFE).

What are the challenges of your role and work?

Working on multiple projects simultaneously, ensuring all timelines are met.
Explaining complex concepts or findings to clients in a concise and clear manner.
Staying up to date with the latest accounting standards. As a forensic accountant, it is essential for me to have a good grasp of the accounting standards in order to identify any irregularities or anomalies in financial statements.

What are the opportunities of your work?

Fraud activities associated with AI have been increasingly emerging. Forensic accounting services would be needed to help to recover the assets and to minimize losses.
Hong Kong Stock Exchange will mandate all the Hong Kong-listed companies to make climate-related disclosures in their ESG reports starting from January 2025. A forensic accountant could provide companies with a toolkit to navigate the complexities of ESG reporting and compliance. Therefore, the demand for forensic accounting services in this area is expected to increase.

THE SUSTAINABILITY MANAGER

Sustainability managers collaborate with different business functions to drive forward sustainability strategy and initiatives within a company or organization. With robust knowledge and comprehension of environmental, social and governance (ESG) topics, standards, frameworks, regulations and best practices, they identify opportunities to integrate sustainability into business strategy and daily operations.

Key skills and knowledge

A solid understanding of ESG topics, standards, frameworks, regulations and best practices.
Strategic thinking and problem-solving.
Stakeholder engagement and communication.
Project management and presentation.
Data analysis and reporting.

Advice for CPAs

Have a strong sense of curiosity as sustainability is constantly evolving.
Foster a collaborative mindset.
Educate yourself by pursuing a sustainability Master, courses, or certifications such as the EFFAS Certified ESG Analyst (CESGA) or CFA ESG Investing Certificate.

Q&A with Perlie Wong

Perlie Wong is Sustainability Manager at Jardine Matheson Limited.

What does a typical day look like for you?

My workdays are typically filled with meetings with different stakeholders, including meetings with group businesses to discuss their sustainability strategies, initiatives, challenges, and opportunities; cross-business meetings to exchange knowledge and perspectives on sustainability; brainstorm sessions or progress meetings with colleagues or external consultants on projects; and updates to senior management on the progress of different workstreams. Before starting the day or during lunch, I read sustainability-related news from news apps, LinkedIn, subscribed newsletters, etc. I also join various online webinars or listen to podcasts to learn about the emerging trends and market developments.

How did the Qualification Programme (QP) prepare you for this role?

I utilize financial accounting and reporting principles to ensure the completeness and accuracy of ESG data. Also, my knowledge and experience in enterprise risk management helps me understand the similarities and differences between climate and traditional risk management. This allows me to develop strategies that bridge gaps and integrate climate risks into the overall enterprise risk management process.

What are the opportunities of your work?

Collaborating with various business functions has provided me with valuable insights on how sustainable practices can be integrated into existing processes.
Engaging with senior management and participating in strategy discussions has bolstered my strategic thinking abilities.
From a business perspective, businesses operating within the same value chain can join forces and exert influence on industry associations, develop sustainable industry standards, and drive changes in customer behaviour. Collective actions create positive environmental and social impact to the business and the community towards a low-carbon economy.

THE ENTREPRENEUR

With their comprehensive knowledge on corporate finance, tax, auditing, and the world of business, accountants are well-equipped to become entrepreneurs – go getters who are willing to take risks and seize opportunities to bring ideas to fruition.

Key skills and knowledge

Strong people skills. These skills are needed for building trusted relationships with others in order to secure different resources. It is important for hiring and managing a team, and creating an environment that will allow them to succeed.

Advice for CPAs

Be passionate and persevere. Entrepreneurship comes with a lot of unforeseeable challenges, as the market can change very quickly. You need to be prepared to fail and embrace those failures as learning opportunities.
Always connect with stakeholders and to gain valuable feedback.
Be adaptable. You have to be willing to pivot and change course based on changing conditions.

Q&A with Victor Pang

Victor Pang is Co-founder at Dress Green, which provides upcycling services to different organizations and individuals by hiring elderly, housewives and new immigrants.

What does a typical day look like for you?

No day is typical. Most of my time is spent on calls, meetings and messaging with colleagues, clients, prospects and business partners. Substantial time is also spent on preparing budgets and proposals for prospects. Sometimes, I conduct workshops, attend exhibitions, business networking, and other marketing events. At month-end, I arrange payroll, prepare financials and milestone reports for the funders, and review monthly external communication materials like e-newsletters.

What are the challenges of your role and work?

Limitation in financial resources is one of the key constraints, especially in the first few years when there is uncertain and unstable cash flow. There are fixed costs like rent and salaries that need to be paid to support the operation of the business. This brings a lot of pressure.
Scaling and growing the company. A considerable amount of my time is spent planning strategies to scale and grow the business, enhance production capacity, and build the team to handle the growing business, all while maintaining the quality of products and services. As it is difficult to grow the business alone, I have also spent time connecting with industry players for collaborations in order to leverage each other’s resources and facilitate business growth.

What are the opportunities of your work?

Meeting and connecting with all kinds of people, from potential customers and partners, to industry experts, investors, and government officials.
Attending exhibitions, conferences, and business events both locally and internationally.
Giving presentations and pitches to diverse audiences, which pushes me to continuously develop my communication skills.
The learn-by-doing experiences, which allowed me to develop various skills – from digital marketing to understanding employment regulations and ESG.