What is Forensic Accounting?

Forensic accounting essentially encompasses three major areas, which are: investigation, dispute resolution and litigation support.

Investigation is that act that determines whether or not certain criminal matters like securities fraud, identity theft, employee theft, and insurance fraud has actually occurred. A major part of a forensic accountants job would be to recommend certain actions that can be taken to minimize any future loss or risk. Not only does investigation occur in criminal cases, it can also take place in civil cases too. For instance, it is the duty of the forensic accountants to search for hidden assets, if any, in divorce cases.

Litigation support on the other hand involves presenting factual evidence of economic issues that are related to any pending or existing litigation. In such a case, it is the duty of the forensic accountant to quantify damages that could be sustained by the parties involved in any legal disputes. Forensic accountants also help by resolving disputes, during courtroom proceedings. If a dispute is brought to the courts notice, the forensic accountant can testify as a witness.

The world of forensic accounting involves grasping the seriousness of a situation and looking way beyond mere numbers. It is more than just your regular accounting or basic detective work. Because it has such unique elements, it is an unusual combination that has been and will always be in demand as long as the human race exists. Who wouldn’t want to enter such a career that offers everything from excitement and financial rewards to stability?

How to become a Forensic Accountant?

The way to get started with forensic accounting is to earn a Bachelor’s degree in a field like accounting. This Bachelor’s degree is a regular four-year course that is available at most universities and colleges, and many universities are now offering this Bachelor’s degree as long distance learning program online.

Your next step would be to get prepared for the Certified Public Accountant exam in order to become a CPA. There are many online preparatory courses that are available to assist you in passing your exam.

Once you clear the CPA exam and earn a Bachelor’s degree in accounting, you can formally start practicing as a forensic accountant. However, in order to get started in the best way in the field (and of course, to earn the best salary) you should also consider going to graduate school. These days, a Masters Degree in Forensic Accounting is also available in two forms – as the traditional Masters degree and as a MBA program with a focus on Forensic Accounting. Earning this graduate degree will serve many purposes – one being that it can further train you to work in the field and will also serve to fulfill the educational requirements that are required for you to maintain your unique CPA status.

Apart from this, you will also be able to find extra coursework in other areas like criminal justice and law enforcement, which can be of great help, and legal training will also be of use. In addition, you could also go ahead and pursue a CFE accreditation or a Certified Fraud Examiner accreditation from the Association of Certified Fraud Examiners. This accreditation is nationally recognized and is very similar to the CPA exam.

Lastly, you could also pursue a CrFA accreditation or a Certified Forensic Accountant accreditation. This is a relatively new accreditation in the field of forensic accounting and most forensic accountants don’t have it, giving you an edge over the rest. While the industry continues to grow and expand, however, this accreditation may also become standard.

Yes, forensic accountants are experts that use a unique combination of experience and education to apply auditing, accounting and investigative skills in order to uncover the truth, assist in investigations and form legal opinions. If this sounds interesting to you, then you should seriously contemplate making Forensic Accounting your career – you will never regret it!