September 27, 2005
Forensic Technology Turns Accountants Into Sleuths
by Kate McCann

A career change may soon be in store for some accountants. And while the job description still includes long hours of number-crunching, there’s also the opportunity to do a little detective work.

According to Edward Goings, director of forensic technology at KPMG, accountants are now a key element in solving criminal cases. Though the word “forensics” may evoke images of bloody crime scenes covered with fingerprinting dust, the dirty work in forensic technology involves analyzing complex computer tricks, sneaky hidden programs and complicated pathways that Goings describes as “not glorious or glamorous.”

In his Sept. 21 talk for the 2005 Lyceum Series at the McCombs School of Business, Goings described his work in forensics and how it affects the business community. At KPMG-Chicago, Goings recovers digital evidence and analyzes the forensic data of client companies for use in court. He has a background in criminal law and previously worked as a computer crime investigator in the U.S. Air Force Office of Special Investigations.

As corporate embezzlement and electronic crimes become more common and receive more media attention, Goings believes that the importance of forensic accounting will also grow.

The causes of cyber crime include greed, financial advancement and revenge—with revenge accounting for the majority of crimes. Anyone could be the perpetrator, he explained. “You never know who’s sitting behind that terminal hacking into systems for spite or fun.”

The role of the accountant in computer forensics—the acquisition of data from electronic sources—does not necessarily require accountants to be computer experts. Rather, they team up with computer-savvy investigators to pore over financial documents and records. The accountant alerts the forensic technology team to unusual behavior on the financial side.

“Certified public accountants are the first people that we go to when investigating embezzlement,” he said.

In his interactive presentation, Goings led the audience through a complete investigation, outlining the process of searching for clues and discovering evidence of “unscrupulous behavior.”

In short, he advised that electronic media are rarely secure and said that anything could be tracked, recorded and “put on the front of the Wall Street Journal.” Despite precautionary measures such as firewalls, passwords and other security devices, Goings said, humans will always find a way to commit a crime if they are determined.

“No matter how many locks are on your front door, I can eventually find a way to break in,” he said.

Accountants and forensic technology experts are the ones who will catch those people. They use factual information and expertise to uncover the needle in the haystack and form “a true team” when paired. Accountants and forensic technology experts act as watchdogs for the corporate world. “We’re here when people’s integrity fails,” Goings said.

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