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I have heard of a fairly new field in accounting called Forensic Accounting. However, I have not met anyone working on this particular area of accouting. Can anyone tell me ( those working on the field) what has been your experience like? Also, can you elaborate in regards of opportunity growth, who are the major employers of foresinc accountants, salary, and whether or not CPA certification is a requirement?
I did a six month rotation in the forensic accounting unit at a Big 4 firm, so I know a little bit about it.
One thing you should know, it's a tiny business. In my office, we had 2,000 accountants, only 4 practiced forensic accounting full time. When they got a big project that was labor intensive, they borrowed staff from the regular audit pool. So it isn't a place where a lot of people go into.
Anyways, the projects that I worked on were basically a major insurance fraud and a ponzi scheme. We basically reviewed hundreds of boxes of documents tracing the cash flow and writing reports where everything went. It was very laborious and tedious work. I believe much of the work in now done on computers and computer and network specialists substantially assist the forensic accountants.
The directors and partners reviewed our reports and they testified in court. They tended to have CPA's or similar credentials, as it lended them more credibility in front of a jury or judge.
Outside of the accounting firms, the biggest employer for forensic accountants that I remember was a place called Kroll. From what I remember, they mostly hired former agents from the FBI or other law enforcement agencies.
If you can't get into a forensics practice or in the FBI, other jobs that are similar include being a litigation support consultant, an internal auditor, or an insurance or banking examiner.
Thanks a lot for your insight. I can tell that not many people practise this particular field, based on the amount of replys. So in your opinion the route, career wise, is be hired by the FBI and then move on to a private accounting firm? Also, can be said that the small amount of accountants in this field is because salaries are not as attractive as other areas?
Thanks a lot for your insight. I can tell that not many people practise this particular field, based on the amount of replys. So in your opinion the route, career wise, is be hired by the FBI and then move on to a private accounting firm? Also, can be said that the small amount of accountants in this field is because salaries are not as attractive as other areas?
Thanks again.
The reason there is a small amount of accountants in this field is because there is a very small amount of paying clients in this field. The reason why you hire a foresenic accountant is because something went terribly wrong, you are trying to figure out what happened, and you are typically trying to limit your liability. That stuff only happens once in a blue moon.
I actually do think the FBI is a great place to work and start a career in the field. It would give you great credibility. The trouble is getting in, as they get hundreds of applicants for every opening. It's much easier to get a job at PWC, than the FBI.
Other places to start include FINCEN (it's the Treasury Dept.'s money laundering unit), and any gov't agency where you work as a fraud investigator (not just an auditor or regular accountant). Off the top of my head, I think the IRS's criminal division, the GAO, and Inspector General Offices are good places to start. I'm sure you can get other ideas from your careers services office or your professors.
For private businesses, Kroll or its competitors, large acccounting firms with forensic accounting units, and boutique accounting firms with large forensics practices would probably be the best places to start. If you can't get into one of those, then an internal audit department or any audit firm would be better than nothing.
I'm a student and I really wish to become a Forensic Accountant. I want to major in Accounting and throughout my college visits the Accounting professors told me that in order to become a Forensic Accountant you need to pass the CPA and CFE exam. Good Luck!
I'm a student and I really wish to become a Forensic Accountant. I want to major in Accounting and throughout my college visits the Accounting professors told me that in order to become a Forensic Accountant you need to pass the CPA and CFE exam. Good Luck!
Jess
Get your BBA or BS in Accounting. Take a minor in computer science. Go to law school. Get a job as a white collar prosecutor in a local prosecutor's office. Three years. Enter a big CPA firm as a partner or principal. Your fastest route to a $600,000 salary. Seven years total and there you are. Or, if you can't go to law school, get the BBA with a minor in computer science and go to work for a federal or state investigative agency. FBI, IRS Postal Inspection, SEC, or their state equivalents. Then on to the CPA firm or hang out your own shingle.
I think Forensic Accounting as a discipline is a great example of the disconnect that occurs between college students and programs, and what is going on in the field. West Virginia University (http://www.be.wvu.edu/fafi/ - broken link) has a post-graduate certificate in Forensic Accounting that I've heard good things about; and in my own humble opinion seems like a good bet. A certificate is all you need; plus the program is geared towards current CPAs. WV has ties to the FBI in the region as well. On the other hand, Florida Atlantic University's heavily marketed program seems like a quick and dirty way for people to call themselves some sort of specialist...when there is nothing in the program that will really prepare them to be such (you can get in without an accounting or business background....really ).
Before I even got my bachelor's degree, I worked for a CPA that got a forensic accounting project that an attorney friend passed onto him. The previous poster was right...it was going through boxes and boxes of bank statements....performing data entry on them into a database, and running reports to try to determine the flow of money. Any respectable accounting degree with give you enough instruction in the areas of creating/interpreting fianancial statements, auditing, and finance in order to allow you to do basic forensic accounting work. Also, like the previous posters said, forensic accounting work isn't nearly as commonplace as your standard small business accounting and tax preparation services.
I think that it is great to specialize. But get the basics (CPA) first, and then go from there!
Forensic Accounting is not a new field, although more schools may be marketing specific programs with that title. It's all about marketing and making schools more money.
As mentioned above, I'd apply to the various federal agencies for a job. Maintain a very high GPA. Practical accounting experience is always a plus. Don't think it is an exciting job--you're just crunching numbers all day like any other accountant--it's just that your numbers are being prepared for litigation.
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