Career Profile: Forensic Accounting

Feel a certain kinship to Sherlock Holmes? If so, forensic accounting may be the field for you. These nose-to-the-ground financial investigators seek out fraud and fiscal crime during their nine-to-five, and enjoy one of the most stable career outlooks the field has to offer. 

Imagine an employee is embezzling loads of money from his employer. The employer brings on a specialist to investigate and gather evidence against the employee, who is fired and taken to court. Fraud is proven, and the exemployee goes to jail. It’s not the plot of the latest bestselling thriller—it’s the life of a forensic accountant, and they’re in higher demand than ever. With white-collar crime costing businesses billions, forensic accounting has moved into the spotlight as a white-hot career.

What is forensic accounting?
Forensic accounting is part ace accounting, part auditing, part investigation. These accountants may also be known as Certified Public Accountants, Certified Fraud Examiners, or investigative accountants. It’s a kind of accounting that’s suitable for legal review; information must be gathered thoroughly, correctly and methodically. They may review records for business mergers, work on audit committees or resolve shareholder disputes. Since a forensic accountant must be objective, they are often called on to testify in court about their findings.

What does a forensic accountant really do?
Accountants can work on almost anything—divorces, bankruptcy, corporate acquisitions or major fraud. They can work anywhere investigative accounting is needed, from private corporations to government organizations such as the IRS, police, the FBI or the CIA. They also work at public accounting firms, law firms, banks and insurance companies. Forensic accountants may also help develop fraud prevention strategies or analyze existing prevention systems for problems or weaknesses.

How much training is involved?
Forensic accountants usually have a bachelor or masters degree in accounting plus additional courses in forensic accounting. As the field continues to grow, many colleges and universities are changing their accounting programs to include more courses on forensic accounting. Accountants are generally expected to have CPA certification, and it’s helpful to become a CFE (Certified Fraud Examiner) or CFA (Certified Forensic Accountant). This may sound like a lot of certification, but rewards for hard work are big—forensic accountants often earn six-figure salaries. After a few years in the field, many develop specific expertise that increases their demand and, therefore, their pay.

What makes a good fit?
In addition to education and certification, great forensic accountants need a certain skill and knowledge base to be successful. They need to be curious, have a sharp eye for detail, communicate clearly and effectively and love research and analysis. They also need a sense of business savvy, strong professionalism and personal presentation.

Many accounting firms are boosting their forensic services. Although the training and certifications may be a lot of work, it pays off for accountants seeking a rewarding and stable career they love.