These investigators track down criminals using DNA samples, fingerprints, bloodstains, photos and other clues. So at first, you may wonder how the word ''forensic'' could ever be joined with the word ''accounting.'' It's not as if you've seen accountants working with the other investigators at a crime scene. However, it really depends on the type of crime.
Forensic accounting is probably the fastest growing area of accounting today. It is an accounting career that is both exciting and financially rewarding. ''Forensic'' means ''suitable for use in a court of law'', and it is to that standard and potential outcome that forensic accountants generally have to work.
In sum, forensic accounting is the specialty practice area of accountancy that utilizes accounting, auditing, and investigative skills to assist in legal matters. It encompasses - litigation support, investigation, and dispute resolution.
Litigation support represents the factual presentation of economic issues related to existing or pending litigation. In this capacity, forensic accountants quantify damages sustained by parties involved in legal disputes and can assist in resolving disputes, even before they reach the courtroom. If a dispute reaches the courtroom, the forensic accountant may testify as an expert witness.
Investigation is the act of determining whether criminal matters such as employee theft, securities fraud (including falsification of financial statements), identity theft, and insurance fraud have occurred. As part of the forensic accountant's work, he or she may recommend actions that can be taken to minimize future risk of loss. Investigation may also occur in civil matters. For example, the forensic accountant may search for hidden assets in divorce cases.
Forensic accountants may be involved in both litigation support (providing assistance on a given case, primarily related to the calculation or estimation of economic damages and related issues) and investigative accounting (looking into illegal activities).
All larger accounting firms, as well as many medium-sized and boutique firms, have specialist forensic accounting departments. Within these groups, there may be further sub-specializations: some forensic accountants may, for example, just specialize in insurance claims, personal injury claims, fraud, construction, or royalty audits.
Forensic accountants are needed for investigating mergers and acquisitions, in tax investigations, economic crime investigations, specialized audits and even terrorist investigations.
A forensic accounting career is well paying. Most forensic accountants begin their career making between $48,030 and $74,000 and often work their way up to salaries well into the six figures. It is not uncommon for a forensic accounting salary to rest between $125,000 and $150,000, with the ability to earn even more.
In addition to strong accounting skills and legal knowledge, forensic accountants must have remarkable curiosity, attention to detail, persistence, and the ability to think creatively and communicate effectively. Analytical and research skills are also crucial.
You'll need to earn a bachelors degree in accounting and are generally expected to have CPA certification to begin a forensic accounting career. It is also beneficial to become a CFE (Certified Fraud Examiner) or a CrFA (Certified Forensic Accountant).
