Forensic accounting combines accounting with information technology to analyze financial data and find legally valid evidence. Forensic accountants may work on mergers and acquisitions, serve as advisers, or testify in court cases. They need to be detail-oriented, persistent, and organized, and may hold a bachelor’s or master’s degree in accounting. Experienced forensic accountants are in high demand and may work for accounting firms, lawyers, insurance companies, banks, or government agencies.
Forensic accounting, sometimes referred to as investigative accounting, is a unique career field that combines accounting with information technology. A forensic accountant uses sophisticated computer programs to analyze financial data and find evidence that would be legally valid during a court proceeding.
Forensic accountants are often asked to review the financial records of mergers and acquisitions. They may also serve as advisers to a corporation’s audit committee or work to resolve shareholder disputes within a company.
Objective verification is the main objective of forensic accounting. For this reason, many accountants who specialize in forensics are asked to testify in court cases as expert witnesses for the prosecution or defense. They may work on civil and criminal court cases. In a civil case, the accountant may be asked to calculate economic damages that occurred as a result of a breach of contract or to provide information about a case based on a claim of professional negligence. In a criminal case, a forensic accountant may be asked to present evidence of insurance fraud, identity theft, money laundering, embezzlement, price fixing, stock market manipulation, or other related crimes.
To succeed as a forensic accountant, you must be detail-oriented, persistent, ambitious, and highly organized. Forensic accounting also requires a great deal of creativity, often having to explain complex financial concepts to an audience that lacks basic accounting knowledge.
A forensic accountant typically has a bachelor’s or master’s degree in accounting supplemented by additional coursework in forensic accounting. However, as the field continues to grow in popularity, many colleges and universities are redesigning their accounting programs to provide additional education for students interested in forensic accounting careers. In fact, some schools are adding courses to help students specialize in insurance claims, fraud cases, or other specialized areas of accounting.
A forensic accountant may also be known as a certified public accountant or certified fraud examiner. A Certified Public Accountant has met their state’s licensing requirements and has successfully passed the Uniform Certified Public Accountant Examination. A certified fraud examiner is a member of the Association of Certified Fraud Examiners and has completed the rigorous certification requirements of this professional association.
Experienced forensic accountants are in high demand around the world. Forensic accountants may own their own accounting firms or be employed by lawyers, insurance companies, banks, or large corporations. Police departments, courts, and government agencies also offer many career opportunities for forensic accountants.
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