Any time fraud, theft, or other financial crimes occur, the individual or business suffering the loss requires someone to step in and “follow the money.” That’s where forensic accountants come in. They determine the full extent of financial crimes and their origin.
If you’ve been considering a career in this exciting field, read on for a comprehensive exploration of forensic accounting, the different career options available, and the education necessary to get started.
What Is Forensic Accounting?
Forensic accountants apply their accounting skills to investigate financial crimes. They must understand the financial reporting related to a crime and its relevance in a broader business, legal, and investigative context.
The term “forensic” isn’t exclusive to accounting roles. It simply describes the use of specific techniques to detect a crime. For instance, there can be forensic scientists, forensic psychiatrists, and forensic social workers, to name a few.
Forensic accountants are similar to traditional accountants and finance professionals, but their job duties require looking beyond the numbers to determine if and how a crime was committed. Typical duties of a forensic accountant include:
- Assisting with arbitration and mediation of fraud claims
- Conducting criminal investigations
- Examining records related to corporate bankruptcy claims
- Preparing expert witness reports and presenting them in court
- Reviewing financial reports and other evidence to trace funds and verify losses
- Assessing ill-gotten gains and other damages caused by financial crimes
- Interviewing and interrogating claimants and those accused of theft and fraud
Situations Requiring a Forensic Accountant
The forensic accountant’s role in investigations is critical because many types of fraud and theft require complex analysis of financial transactions, including those dating back several years.
Scenarios typically requiring a forensic accountant include:
- Embezzlement
- Employee theft
- Identity theft
- Insurance fraud
- Falsification of financial and tax statements
- Money laundering
- Securities fraud (such as Ponzi schemes)
- Family disputes and divorces
Forensic accountants also support legal cases, as individual and business victims typically file lawsuits to recoup their financial losses. Therefore, financial accountants often work with attorneys and law enforcement to build cases and resolve disputes through the court system, arbitration, and mediation.
Is Forensic Accounting a Fit For You?
Although a forensic accounting career isn’t for everyone, it could be an excellent fit for anyone excited by the prospect of helping organizations and individuals research and investigate financial misdeeds.
Forensic accounting may be the perfect choice for you if you possess any of the following interests and qualifications:
- Currently working in accounting or auditing, or want to change careers into the field
- Proficient in accounting software or want to learn
- Excellent attention to detail
- Strong mathematical skills and an interest in analyzing data
- Proficient in explaining complex accounting concepts to non-experts
- Ability to “connect the dots” when reviewing past and present accounting transactions
- Ability to adapt quickly to the twists and turns of investigations
Forensic accounting can also be a lucrative career choice. According to Indeed, forensic accountants earn an average base salary of $83,638. Depending on your qualifications, years of experience, and education level, you may even earn more.
Possible Forensic Accounting Career Paths
Forensic accounting is a growing field likely to yield plenty of employment opportunities well into the future. The US Bureau of Labor Statistics (BLS), which includes forensic accounting professionals in the "accountants and auditors" category, predicts a 4 percent job growth in the field through 2032.
Opportunities for forensic accountants span across the private, public, and nonprofit sectors. You could work in independent practices, law firms, accounting firms, risk management firms, and government agencies such as the FBI, IRS, and The Department of the Treasury.
Here are some of the job opportunities you could pursue:
- Asset recovery specialist: Evaluate asset values associated with property repossessions and seizures related to bankruptcies and foreclosures,
- Financial forensic consultant: Advise companies on detecting and preventing financial crimes, such as employee theft and cybercrimes.
- Fraud examiner: Investigate fraud cases for businesses and government agencies.
- Litigation support specialist: Provide expert analysis, recommendations, and testimony in financial dispute cases.
- Forensic auditor: Conduct thorough forensic audits to uncover financial reporting misrepresentations and other accounting “red flags.”
- Compliance officer: Help organizations adhere to financial regulatory requirements and limit opportunities for theft and fraud.
- Fraud prevention specialist: Proactively protect high-value assets from theft and fraudulent actions.
Forensic Accounting Education Options
Whether you’re exploring a career change or already working in the accounting field, you can prepare yourself with a variety of education and certification options. Most employers require forensic accountant candidates to possess at least a bachelor’s degree in a relevant field. However, with additional education and certifications, you can set yourself apart from other candidates and pursue roles with greater responsibility and impact.
MVNU Online offers affordable online degree options to help you jumpstart your forensic accounting career. For example, the Bachelor of Business Administration (BBA) in Finance includes coursework in business accounting, risk and insurance fundamentals, and financial markets.
If you already have a bachelor’s degree, the online Master of Business Administration (MBA) in Accounting is an excellent choice. It offers a traditional MBA curriculum and nine credit hours of advanced accounting courses. The program also includes fraud and forensic accounting coursework, facilitating a deeper dive into accounting record fraud, embezzlement, and other financial crimes. Through case studies, class assignments, and instructor-led discussions, you can expect to improve your accounting knowledge and skills in the following areas:
- Identifying financial crime evidence
- Working with claimants, law enforcement professionals, and court systems
- Conducting financial analysis
- Applying and explaining accounting procedures and findings
With MVNU Online, you’ll get a quality education and support to take the next step in your career. As you learn more about forensic accounting, our Career Development Center advisors can help you explore employment options, revise your resume, and prepare for the next big interview.
Forensic Accounting Certifications
In addition to earning a degree that provides a solid education in accounting and financial transactions, you can pursue professional certifications. Certifications aren’t required in forensic accounting, but you may find they complement your degree and open up new career paths.
The Certified Public Accountant (CPA) designation is the most popular certification for forensic accountants. Licensing requirements vary by state, but they typically include a bachelor’s degree plus additional coursework found in the MBA curriculum, including economics and finance. Not all forensic accountants are CPAs, but it is a common requirement for those working in public accounting firms. Other certification options include:
- Certified Fraud Examiner (CFE)
- Certified in Financial Forensics (CFF)
- Accredited in Business Valuation (ABV)
- Financial Risk Manager (FRM)
- Financial Modeling & Valuation Analyst (FMVA)
Get Ready to Launch Your Forensic Accounting Career
Now that you have a clearer picture of forensic accounting, the different career paths, and the education programs that can prepare you for work in the field, it’s time to get started! MVNU Online’s BBA and MBA programs offer the optimal mix of business and accounting coursework to prepare you for a career as an auditor, fraud examiner, compliance officer, or other forensic accounting role. Plus, you can pursue your online degree while you work and manage other responsibilities.
Invest in yourself and your new career in forensic accounting! Contact us to learn more.
