Everything You Need for Becoming a Forensic Accountant
Are you finally on the threshold of life where you have to make a career choice? Or are you looking to make a career change and shift your focus to becoming a forensic accounts career that works better for you, both mentally and financially?
In any case, making a career choice in a business field is no easy feat. It requires a lot of research, decision-making, and personal exploration. If you have an inclination towards careers involving finance and law enforcement, or can’t choose one between them, why not merge those two together and become a forensic accountant?
Let’s find out what a forensic accountant is, how you can become one, forensic account job description, salary, and a number of other information snippets that will help you make an informed decision. Interested? We have got you covered.
Let’s get started!
Who is a Forensic Accountant?
Forensic accountants gather evidence of potential fraud and investigate other illegal financial activities.
A forensic accountant is a professional who looks for evidence of a crime and investigates on behalf of financial institutions, insurance companies, and law enforcement agencies. The field of forensic accounting generally encompasses two broad areas:
Litigation Support
Litigation refers to the factual presentation of issues regarding existing or pending litigation. Forensic accountants, in this case, calculate the damage sustained by parties involved in a legal dispute and also aid them in resolving the disputes before they reach the court. If that fails and the dispute reaches court, a forensic accountant may also testify as an expert witness, which is what sets them apart from a normal accountant.
Investigation
Forensic accountants investigate and collect evidence for criminal matters such as identity theft, securities fraud (which may also include falsified financial statements), employee theft, or insurance fraud. But investigation may also take place in civil matters. For instance, a forensic accountant may be responsible for searching for hidden assets in a divorce settlement case.
What Does a Forensic Accountant Do?
A forensic account is responsible for collecting and interpreting financial data and investigating financial transactions to aid proceedings in collaboration with law enforcement. They may work on
- Litigation Cases Such As Breaches Of Contract,
- Nonviolent Financial Claims,
- Personal Injury Lawsuits,
- Insurance Claims, Or
- Matrimonial Disputes.
However, the particular cases a forensic accountant works depends upon their area of specialization. For instance, they may work with government agencies, law firms, accounting firms, or corporate risk management agencies.
Specialized financial forensic accountants have a variety of job responsibilities, ranging from finance and accounting to systemic investigations. Following are a few responsibilities that may be listed in a financial forensic accountant job description
- Collecting evidence and uncovering fraud
- Participating in investigations or conducting interviews
- Evaluating financial records
- Investigating and identifying financial evidence
- Testifying their findings in front of a court of law
- Reporting their findings and pieces of evidence according to established procedures
- Ascertaining the accurate value of assets
- Collaborating with law enforcement in place of their domain of employment
How to Become a Forensic Accountant?
Becoming a forensic accountant may sound overwhelming, but not when you take a look at this guide broken down into easy steps!
1. Get An Undergraduate Degree
Forensic accountant education requirements may depend upon their specialization. Still, they are generally required to have a minimum of a bachelor’s degree in accounting, or a related field to attain prowess in basic and advanced accounting methods. But the undergrad accounting degree must be an accredited accounting university by the Association to Advance Collegiate Schools of Business (AACSB). Some of the common forensic accountant courses you may take during your undergraduate studies include the following:
- Auditing
- Managerial Accounting
- Principles of Accounting
- Microeconomics
- Cost Accounting
- Macroeconomics
- Taxation
- Business Communication
You can take up elective courses in fraud and criminal investigation to gain expertise in forensic accounting specialization. You can also choose to minor in a domain like criminal law or criminal justice, but some schools also offer accounting degrees with a forensic accounting certification.
2. Attain Certified Public Accountant Credentials
Passing the Certified Public Accountant (CPA) examination works great in finding a good-paying accountant job. Administered and scored by the American Institute of Certified Public Accountants, this standardized test consists of four parts, each lasting about four hours. But don’t fret, because you don’t have to take them all together.
These four sections encompass auditing and attestation, financial accounting and reporting, concepts and regulation, and business environment. Although the test is relatively elaborate, it is highly effective in preparing you for the high-level accounting work that a forensic accountant position entails.
3. Go For An Advanced Degree Program
Although you don’t necessarily have to go for an advanced degree to land a good forensic accountant job, you are highly likely to get a huge edge with an advanced degree in hand. It is also the best way to stand out from other prospective forensic accountants and expand your professional horizon.
A graduate-level forensic accounting degree will offer insight into tax laws, international business practices, and government regulations at a much more advanced level than undergraduate programs.
4. Get Accounting Experience
Attaining accounting experience through an entry-level position or internship is the best stepping stone to a well-paying position. You can accumulate this experience during your undergraduate or graduate studies, working part-time or on weekends. This practical experience can also aid you in preparing for the COA examination and practicing skills that make a good professional forensic accountant.
Since forensic accounting is not an entry-level position, all employers would expect you to have a taste of the professional world before you apply for this position. Another beneficial aspect of gaining professional experience is simple: connections. These connections can offer you essential career resources for the daunting job search process or simply give you the advice you need. You can also ask a professional accountant to take the role of your mentor so you can continue your success trajectory.
5. Go For Professional Certifications
The only compulsory professional certification that you need as a forensic accountant is the CPA credential. But that does not mean you cannot pursue other certification routes that can augment your knowledge and embellish your resume.
Professional certifications can increase your chances of job security and even lead to a higher earning potential. Some professional certifications you should consider getting include the following:
Certified Forensic Accountant (CFA)
The American Board of Forensic Accounting (ABFA) awards the CFA, and you can get it by passing an exam and meeting particular prerequisites from any school offering a certification in forensic accounting, provided you hold two years of professional auditing or accounting experience.
Certified Fraud Examiner (CFE)
The Association of Certified Fraud Examiners (ACFE) issues this certification to professionals who pass an exam on fraud-related topics. These topics include law and fraud prevention and deterrence, financial transactions and fraud schemes, and investigation.
Top Bachelor’s In Forensic Accounting Programs
Let us take a look at the top forensic accounting bachelor’s degree programs you can undertake to kickstart your career as a forensic accountant:
1. Embry-Riddle Aeronautical University-Prescott
| School Name | Embry-Riddle Aeronautical University-Prescott |
| Program Offered | Bachelor of Science in Forensic Accounting and Fraud Examination |
| Accreditation | Southern Association of Colleges and Schools Commission on Colleges (SACSCOC); Accreditation Council for Business Schools and Programs (ACBSP) |
| Required Credits | 120 |
| Program Length | 4 years |
| Delivery Format | On campus |
| Tuition | In-state: $35,424 |
| Out-of-state: $35,424 | |
| School Type | Private |
| Retention Rate | 83% |
| Admission Rate | 66% |
2. Eastern Oregon University
| School Name | Eastern Oregon University |
| Program Offered | Accounting Major with a Concentration in Forensic Accounting |
| Accreditation | Northwest Commission on Colleges and Universities (NWCCU); International Accreditation Council for Business Education (IACBE) |
| Required Credits | 180 |
| Program Length | 4 years |
| Delivery Format | 100% online (asynchronous or synchronous); on campus |
| Tuition | In-state: $7,515 |
| Out-of-state: $20,160 | |
| School Type | Public |
| Retention Rate | 72% |
| Admission Rate | 98% |
3. Purdue University Global-Indianapolis
| School Name | Purdue University Global-Indianapolis |
| Program Offered | Bachelor of Science in Accounting with an Auditing/Forensic Accountancy Concentration |
| Accreditation | Higher Learning Commission (HLC); Accreditation Council for Business Schools and Programs (ACBSP) |
| Required Credits | 180 |
| Program Length | 4 years |
| Delivery Format | 100% online (asynchronous with synchronous components) |
| Tuition | In-state: $7,920 |
| Out-of-state: $13,356 | |
| School Type | Public |
| Retention Rate | 100% |
| Admission Rate | Not provided |
4. Southern New Hampshire University
| School Name | Southern New Hampshire University |
| Program Offered | Forensic Accounting Degree Online |
| Accreditation | New England Commission of Higher Education (NECHE); Accreditation Council for Business Schools and Programs (ACBSP) |
| Required Credits | 120 |
| Program Length | 4 years |
| Delivery Format | 100% online (asynchronous) |
| Tuition | In-state: $30,756 |
| Out-of-state: $30,756 | |
| School Type | Private |
| Retention Rate | 65% |
| Admission Rate | 88% |
5. University of Northwestern Ohio
| School Name | University of Northwestern Ohio |
| Program Offered | Forensic Accounting Program |
| Accreditation | Higher Learning Commission (HLC) |
| Required Credits | 180 |
| Program Length | 4 years |
| Delivery Format | 100% online (asynchronous or synchronous); on campus |
| Tuition | In-state/out-of-state: $10,566 |
| School Type | Private |
| Retention Rate | 49% |
| Admission Rate | Not provided |
Work Environment for Forensic Accountants
The work environment for forensic accountants depends greatly upon their specialization. In spite of that, they spend most of their professional time working on a computer in an office environment. But you won’t be restricted to an office if you choose to become a forensic accountant; these professionals also have to attend courts to testify for their cases.
Since they frequently collaborate with law enforcement agencies to evaluate and analyze financial evidence, they may have to travel to meet agents wherever they are in the field. These professionals may also travel to crime scenes on particular occasions to collect evidence, information, or paperwork or simply to interview suspects.
Forensic accountants typically work full-time. They may seldom work overtime hours, but that, too, depends upon their specialization.
Which Sectors and Industries Are Forensic Accountants In Demand?
Government Agencies
Forensic accountants are usually in high demand in federal, local, and state agencies to ensure regulatory compliance, investigate financial crimes, and offer expert testimonies during legal proceedings.
Law Enforcement
Several law enforcement agencies, including the local police departments and the Federal Bureau of Investigation (FBI), employ forensic accountants to help in the investigation of white-collar offenses and financial crimes. Becoming a forensic accountant for the FBI is a lucrative job, but it requires you to pass particular examinations apart from holding the necessary forensic accountant degrees.
Public Accounting Firms
Public accounting firms usually employ forensic accountants to offer litigation support, provide fraud investigations, and regulatory compliance services to different clients across varying industries.
Financial Institutions
Forensic accountants are naturally in high demand in financial institutions that require them to manage risk, detect and prevent fraud, and ensure regulatory compliance.
Nonprofit Organizations
Charitable and nonprofit organizations may hire forensic accountants to ensure compliance with legal and regulatory requirements, maintain donor trust, and guarantee proper financial management.
Corporations
Large corporations offer employment positions to forensic accountants across various industries to support litigation efforts, investigate potential fraud, and maintain robust internal controls.
Consulting Firms
Consulting firms may offer limited employment to specialized forensic accountants to establish their practice or offer forensic accounting services on a contractual basis.
How Much Does A Forensic Accountant Make?
Although the Bureau of Labor Statistics does not clearly stipulate the salary range for forensic accountants. It does state that auditors and accountants make a medium amount of more than $77,000 a year, with the maximum salary spectrum ending at $144,750 a year. It also anticipated a 7% change in employment between 2020-2030.
Forensic accountants remain in high demand, quite similar to the other kinds of accountants in the U.S. In fact, the Bureau of Labor Statistics expects a 6% job growth in accounting occupations. It is also worth noting that the employment rate of auditors and accountants is directly proportional to economic growth. A growing economy would require more and more professionals to review, manage, and record financial records.
Necessary Skills for Forensic Accountants
Becoming a forensic accountant requires not just educational degrees and professional experience but also a well-defined set of soft and hard skills that can help you excel in the domain. The following are some of the pivotal hard skills forensic accountants must have to land a high-paying job in the field:
- Generally Accepted Accounting Principles
- Knowledge of Financial Reporting Requirements
- Generally Accepted Auditing Standards
- Knowledge of Tax Law
Here are some soft skills you should develop if you are looking to become a forensic accountant:
- Attention to Detail
- Intelligence Gathering
- Creative Thinking
- Integrity
- Effective communication skills
Summing Up
Becoming a forensic accountant is a lucrative career choice with numerous employment prospects in varying fields. So if you have an interest in law enforcement but are not ready to give up a career in finance, amalgamate the two, and you have a new prospect: forensic accounting!
A number of popular degrees and schools around the globe can help you land a well-paying position in forensic accounting. So make sure that you look into your options and do your homework to make an informed decision for your future!
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