Forensic Accountants and Auditors

People have used accounting and bookkeeping procedures for as long as they have engaged in trade. Records of accounts have been preserved from ancient and medieval times.

Modern bookkeeping dates back to the advent of double-entry bookkeeping, a method of tracking the impact of transactions on both a company's assets and profitability. Double-entry bookkeeping was developed in medieval Italy. The earliest known published work about this system was written in 1494 by an Italian monk named Luca Pacioli. He did not invent the system, but he did summarize principles that remain largely unchanged today.

Records preserved from 16th century Europe indicate that formulations were developed during that time to account for assets, liabilities, and income. When the Industrial Revolution swept through the world in the 18th century, accounting became even more sophisticated to accommodate the acceleration of financial transactions caused by mechanization and mass production.

In the 20th and 21st centuries, accounting has become a more creative and interesting discipline. Accountants now use computers to perform many routine computations, as well as artificial intelligence (AI)–powered software that allows them to more quickly evaluate data and obtain new insights. The use of these and other technologies allow accountants to spend more time interpreting the results and providing higher-level analyses. “In the short to medium term, AI brings many opportunities for accountants to improve their efficiency, provide more insight and deliver more value to businesses,” according to Artificial Intelligence and the Future of Accountancy, a report from the Institute of Chartered Accountants in England and Wales. “In the longer term, AI raises opportunities for much more radical change, as systems increasingly take over decision making tasks currently done by humans.”

Many accountants now hold senior management positions within large organizations. They assess the possible impact of various transactions, mergers, and acquisitions and help companies manage their employees more efficiently.

While people have probably investigated financial records for as long as people have kept accounts, forensic accounting did not emerge as a distinct area of specialty until quite recently. The increased litigation and white-collar crime that emerged in the 1980s (and continues today) has contributed to rapid growth in this field.