The employment outlook for forensic accounting is very good. Forensic accountants are called upon to investigate cases involving missing money. They generally work in areas where they can help solve crimes. As the financial regulations rise, so does the demand for forensic accountants. The increase in fraud and computer cases also makes forensic accountants a valuable commodity. Here is an overview of forensic accountants and the career.
See our ranking of the 30 Top Affordable Master’s in Accounting / Master of Accountancy Degree Programs.
What is a Forensic Accountant?
Forensic accountants are certified public accountants (CPAs) who use their accounting knowledge and investigative skills to examine financial documents for discrepancies. They examine and investigate financial records that may be used as evidence in police or court cases. They’re used in many types of cases, including divorce, business disputes, insurance claims, fraud and personal injury claims, among others. Forensic accountants are usually individuals who enjoy working with numbers and have a desire to solve problems or discover missing items.
The duties of a forensic accountant are similar to those of a regular accountant yet very different. An accountant is hired to go through and audit a business’s financial records to determine the profits, loss and overall worth. A forensic accountant is hired to investigate the reason behind the numbers. For instance, an accountant may determine that money is missing, but the forensic accountant is the one who discovers why it’s missing and by whom.
Career Outlook for Forensic Accountants
Because forensic accounting is a sub-specialty of accounting, the U.S. Bureau of Labor Statistics (BLS) does not have a specific category for forensic accountants. However, the bureau does predict that accountants overall should see an employment growth of 10 percent from 2016-2026. The increase in white collar crimes continues to put out a demand for forensic accountants. Forensic accountants may find jobs in many areas. The Federal Bureau of Investigation (FBI) is typically a popular employer for forensic accountants. Accountants nationwide earned an average annual wage of $77,920, according to a May 2017 report by the bureau. Various factors can affect the wage potential, including work experience, education, employer, and location.
How to Become a Forensic Accountant
To become a forensic accountant, an individual must have a bachelor’s degree in accounting or a related field. Some candidates choose to earn master’s degrees in business administration with a focus on accounting or internal auditing. To earn the CPA credential and become licensed, the candidate must have at least 150 semester hours of college courses, which is accomplished by earning the master’s degree or the bachelor’s degree plus 30 additional credits. The candidate must then pass a 4-part CPA exam. Once the accountant becomes a CPA and gains some work experience, he or she may pursue advanced education specific for forensic accountants.
The National Association of Forensic Accountants also offers training programs and certifications for CPAs who want to expand their education and become forensic accountants. Forensics has become such a popular area within the accounting profession that many colleges and universities now offer forensic accounting as a major rather than just a specialized area or concentration of accounting.
Almost any time we turn on the news, we hear of some crime involving theft or fraud taking place. Cases like this are where forensic accounting proves to be beneficial, which is why the employment outlook for forensic accountants is so good.
