Forensic accounting is a sub-category of accounting that involves examining accounting records to ensure all operational procedures are followed correctly. Forensic accountants can either be self-employed or work for larger accounting firms. Freelance forensic accountants usually work for a large accounting firm for a few years before starting their own business.
Litigation support, as the name implies, involves helping lawyers or attorneys in a lawsuit. Often a breach of contract can cause a specific amount of economic damage. When a lawyer hires a forensic accountant, it is the accountant’s job to determine just how much economic damage occurred by examining the accounting records. Someone who has a forensic accounting job may also have to testify as an expert witness in the eventual trial or deposition.
In contrast, investigative accounting typically involves criminal matters rather than civil matters. If a law enforcement agency is investigating instances of employee theft, embezzlement, or fraud, they may hire a forensic accountant to examine the records for evidence of wrongdoing. Just like in litigation support, someone who holds a forensic accounting job in a criminal investigation may be required to testify in court.
One of the primary tasks of forensic accountants is to investigate and analyze financial evidence. To do this, they may have to work with computer programmers to develop programs to help them analyze the data more rapidly. After gathering the data, they must summarize their findings in reports. At the request of an attorney, they may also need to make visual aids to help a jury better understand the data collected.
The most important skills for someone pursuing a career in forensic evidence is a high degree of mathematical ability and attention to detail. Accounting records, especially for those of large companies, are extremely complex, and therefore require a forensic accountant to very closely examine the extensive number of financial transactions.
While many universities now offer degrees in forensic accounting, many forensic accountants simply have degrees in accounting. Stronger candidates may have a master’s in accounting or a Certified Public Accountant license.
In addition to a degree, most forensic accountants have a certification title, such as a Certified Fraud Examiner or Certified Financial Forensic Accountant. Accounting firms also look favorably upon membership in American College of Forensic Examiners or other similar professional organizations.
Because forensic accounting careers involve as much legal work as accounting work, many accounting firms prefer to hire forensic accountants with at least some legal experience. Forensic accounting evidence will be highly contested by the opposing attorney in a trial or deposition, so it is imperative that a forensic accounting understand any possible objections to the gathered evidence before it is presented.
