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Forensic accounting is a specialized field within accounting that combines financial expertise with investigative skills to help solve crimes. If you're skilled in audits and accounting and have an interest in criminal justice, forensic accounting could be the perfect career for you. Forensic accountants work for insurance companies, federal law enforcement agencies, and cybersecurity teams, assisting in the detection of financial crimes. They often serve as expert witnesses in court cases involving embezzlement, money laundering, and organized crime. Some forensic accountants even hold security clearances and work within the intelligence community.


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What is a Forensic Accountant?

A forensic accountant is a financial professional who applies accounting skills to investigate and solve financial crimes. These experts analyze financial records, detect fraudulent activities, and uncover financial misconduct such as embezzlement, money laundering, and corporate fraud. Forensic accountants often work with law enforcement agencies, insurance companies, or private firms to trace illicit financial transactions and provide valuable insights for legal cases. They may also serve as expert witnesses in court, presenting their findings in complex financial disputes. Forensic accountants can specialize in areas like cybercrime investigations or corporate governance and even hold security clearances to work within intelligence agencies.

Steps to Become a Forensic Accountant:

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Step 1 - Earn a Degree

Once you've decided that forensic accounting is the field for you, it's important to start mapping out your academic path. First, you'll certainly need to complete a bachelor's degree in accounting. Look for a fully accredited accounting department with credentials from either the AACSB or ACBSP. At a minimum, your program should have regional accreditation.

Keep in mind that accounting departments can prepare students for different careers. Some are focused on creating Certified Public Accountants (CPA) while others are focusing more on accounting technology and the IT aspects of the field. You should look for programs that offer forensics courses. You might also look for a school that has a criminal justice degree program. A minor in criminal justice can help inform your practice as a forensic accountant.

Step 2 - Gain Experience

While you are working toward a degree in forensic accounting, you should consider accruing experience. You might be able to find a part-time job working in an accounting firm. Look for one that makes a practice in forensics. Alternatively, you can seek out an internship with law enforcement. For instance, you might be able to find an internship program with the Federal Bureau of Investigation, the Department of Homeland Security, or your state's Bureau of Investigation. Some larger towns may also employ forensic accountants who can serve as your mentor.

In fact, the FBI has an Honors Internship Program for undergraduate students to apply to. You'll need to maintain a GPA of 3.0 for the duration of the program. The FBI also requires that your SAT scores be 1500 out of 2400 on the old exam and 1000 out of 1600 on the new version. You'll also need to pass a background check and provide references. If you can complete this program you can surely have your pick of entry-level positions.

Step 3 - Obtain Certifications

To stand out in the field of forensic accounting, obtaining relevant certifications is essential. The most recognized certifications are the Certified Fraud Examiner (CFE) and Certified in Financial Forensics (CFF). These credentials validate your expertise in detecting and investigating financial crimes like fraud and embezzlement. They also demonstrate a commitment to the field, boosting your credibility with employers and clients.

Earning these certifications typically requires passing exams that cover areas such as financial analysis, legal concepts, and investigative techniques. Additionally, maintaining these certifications often involves continuing education, ensuring that you stay up-to-date with the latest developments in forensic accounting practices. These certifications can significantly enhance your career prospects and open doors to higher-paying job opportunities.

Step 4 - Pursue Continuing Education and Specializations

To stay competitive in the evolving field of forensic accounting, it’s important to pursue continuing education and explore specialized areas of the profession. You can enroll in advanced courses, workshops, or online training programs that focus on areas like cybersecurity, anti-money laundering, or financial fraud investigations. These specializations can help you develop expertise in high-demand areas and increase your value in the job market.

Many forensic accountants also choose to pursue additional degrees, such as a master's in forensic accounting or an MBA with a focus on finance, to further enhance their skills. Specializing in niche areas like financial investigations for the government or corporate governance can lead to more career opportunities and higher earning potential. Ongoing education ensures you remain knowledgeable and adaptable in a rapidly changing field.

What Does a Forensic Accountant Do?

A forensic accountant uses the knowledge and skills they accrued in the study of accounting to investigate possible financial crimes. On a day-to-day basis they might spend time collecting evidence from their client or from their fellow law enforcement agents. Forensic accountants can consult with companies who may suspect embezzlement or other theft. On the other hand, they may work with other investigators to uncover crimes such as tax evasion, money laundering, or embezzlement. In fact, the Federal Bureau of Investigation is a large employer for forensic accountants. When you work with them you might help bust organized crime rings, corrupt politicians, or terrorists who use international wire transfers to shuffle funds around the globe.

On typical days, forensic accountants are hard at work in offices. They work on computer spreadsheets and even pouring over paper receipts to create a larger financial picture that helps support the team's case. Even if the crime in question isn't financial, a forensic accountant can help establish patterns in a criminal's life. Sometimes forensic accountants even go into the field to talk with witnesses or suspects. The information that these accountants uncover can sometimes take cases in whole new directions and thus ensure that the laws of the nation are enforced.

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Skills to Acquire

  • Auditing:
    To uncover financial wrongdoing you need to have top-level auditing skills to determine when and from where the money disappeared. You'll need a keen eye for detail that knows which leads to follow, even if they initially seem irrelevant.
  • Macro Vision:
    That is, you need to be able to see each case with a wide-angle lens and then dive into the details.
  • Intuition:
    While much of accounting relies on hard facts and what is provable, you'll also need to have a strong intuition that helps lead your analytical mind. When you are able to detect new patterns and uncover new leads, you will be a true addition to any crime fighting team.
  • Communication:
    As a forensic accountant, you'll need to be able to communicate often complex financial matters to the rest of the investigators. You may also be called as an expert witness in court and there you'll need to remain cool when the opposition's attorney tries to rattle you and undermine your testimony.
  • Computing Skills:
    You may need to design small applications in order to sort through the data you collect. Computer modeling may enable you to detect patterns of spending or deposits that lead to the conviction of a thief.


Forensic Accountant Career & Salary

Where Might You Work?

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Forensic accountants can work in a variety of environments. After all, fraud can strike in any industry and at any level. Thus, you can start your career working for a public accountancy, consulting firm, law firm, state or federal law enforcement, the insurance industry, financial institutions, and government agencies, among others. Forensic accountants also work with private investigators to track down lost funds and to discover hidden money.

Since much fraud and theft is taking place via computer networks, you might also find work alongside cyber security experts. If you can detect an unexplained loss, you can work with the information security team to figure out where the information or funds disappeared to. Your keen eye for details and ability to conduct audits can be of great help in trying to uncover a compromised computer network.

If you have an entrepreneurial bent, you can likely convert your forensic accounting skills and experience into an independent consultancy. You will probably want to achieve a certification in forensics or fraud prevention to bolster your credentials. If you can pass the AICPA CPA exam you don't have to become licensed but can use the CPA certificate to prove your accounting skills.

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Career Outlook

Forensic accountants are seeing their field expand more each day. As companies and governments become more vulnerable to cyber-attack and as criminals become cleverer in general, it's vital to have a strong field of forensic accountants to help catch the bad guys. Furthermore, the financial system is increasingly online, and transactions are harder to track given encryption technologies.

Though there is no specific job category dedicated to forensic accountants, the US Bureau of Labor Statistics (BLS) tracks auditors and accountants. Those professionals are reported to earn a median salary of around $72,000. Meanwhile, Payscale.com reports that accountants have an average base salary of $79,880.

As for growth in the field, the BLS is projecting a 4% growth rate for accountants and auditors in the years between 2023-33. However, if you apply your auditing skills to the IT arena, your career might fall under the umbrella of cyber security, which is projected to add 30% more workers in the next ten years or so. That field's professionals are also said to earn a median salary of over $99,000.

Jobs

Forensic accountants have a wide range of career opportunities across various industries. These professionals are often employed by law enforcement agencies, government bodies, accounting firms, and financial institutions, where they help uncover financial fraud, embezzlement, and other criminal activities. Some forensic accountants work as consultants for private firms, offering expert analysis on financial disputes, or serving as expert witnesses in court cases related to financial crimes.

In addition to traditional accounting firms and law enforcement, forensic accountants can find work in cybersecurity firms that specialize in financial crimes, or with insurance companies investigating claims of fraud. Some also work for government agencies, such as the FBI or IRS, specializing in criminal investigations. With experience and specialization, forensic accountants can pursue high-level roles such as fraud examiner or financial forensic analyst, making this field both dynamic and rewarding.


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Frequently Asked Questions

Advancing From Here

Once you have established yourself in forensic accounting you will find that you have a lot of upward mobility ahead of you. If you are in a public accounting firm, you might branch out and form your own forensics department that caters to certain types of client, such as litigation support in divorce cases. You could also amass a few years of experience, compounded by certifications such as CFE or CFA. Note that even forensic accountants can benefit from passing all or part of the CPA examination.

Another way to advance is by returning to school for a graduate degree. You could pursue a technology degree which would perhaps open doors in information security (cyber security). You can also consider a Master of Business Administration, which would help you reach the C-suites as CFO or perhaps Chief Security Officer (CSO).

What is the difference between a forensic and certified public accountant?

A certified public accountant is in charge of basic accounting services like tax advising. Forensic accountants dig through financial data and accounting records to find evidence of financial fraud.

How many years does it take to get into this field?

It will generally take around four to six years to become a forensic accountant. Most forensic accountants need to have a bachelor's degree that will take around four years to complete. Additional certifications may be required and these usually take about a year to complete.

What are certified fraud examiners?

Fraud examiners are responsible for detecting and deferring possible fraud. Certified fraud examiners help protect financial data and financial records.

What is the job outlook in this field?

Forensic accounting jobs are expected to increase by 7% by 2030.

Where do these specialists work?

Forensic accountants work at law enforcement agencies, financial institutions, consulting firms, insurance companies, and consulting firms specializing in financial records

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