The profession of accounting features a variety of specializations, and forensic accounting is one of those specializations. Forensic accountants often participate in legal proceedings, and their investigations are for use in disputes and litigation. Sometimes referred to as forensic auditors, forensic accountants may work in criminal cases or civil cases, and their services may be required by a variety of government agencies, private businesses, and non-profit entities. Forensic accounting is a fascinating profession because it combines the numbers approach to accounting alongside an investigative view of financial records.

Salary

The salary of an accountant may vary depending on the accountant’s specialization, as well as whether the accountant has any professional certifications. According to the Bureau of Labor Statistics (BLS), accountants and auditors with a bachelor’s degree may expect to earn a median salary of $63,550. That salary works out to a little over $30 an hour. This salary is appreciably higher than the average for all occupations, which comes in at $34,750. With a certification from the Association of Certified Fraud Examiners (ACFE), salary expectations may increase by 22%, according to statistics from the ACFE.

Beginning Salary

The overall salary range for forensic accountants varies significantly, according to PayScale. The low end of the pay rate sits right around $42,000, and experience in the industry will increase a forensic accountant’s salary appreciably. In addition to a starting salary, some forensic accountants may also benefit from bonuses of up to $10,261, as well as profit sharing up to $9.933, on average. It’s important to discuss pay rate and potential bonuses before accepting an offer of employment as every job won’t offer bonuses or the highest starting salary possible.

Key Responsibilities

In addition to the skills necessary to work as an accountant, forensic accounting requires additional knowledge beyond the classic toolkit of the working accountant. Depending on the type of project in which a forensic accountant is engaged, his or her responsibilities may include analyzing and interpreting financial statements, testifying in a court of law regarding the results of an investigation, detecting fraud, tracing assets, and auditing the evidence.

A forensic accountant must also understand the rules of evidence and civil procedure as they impact testifying in court, as well as how to engage in electronic discovery. In addition, a forensic accountant’s responsibilities go beyond electronic and paper records with the occasional need to interview witnesses and engage in conflict negotiation and resolution. A forensic accountant must understand accounting and be able to wear the “hats” of a variety of other professions.

Necessary Skills

Some of the most important personality traits for a forensic accountant include being analytical, detail-oriented, ethical, and inquisitive. Forensic accountants must know how to research and create a detailed history of financial transactions, as well as have the ability to apply accounting knowledge that will be used in litigation or legal proceedings and disputes.

Forensic accountants must also be aware of state and federal regulations guiding fraud investigations and must be able to compile reports on findings. Legal knowledge is particularly valuable to forensic accountants because of the connection of the profession to civil and criminal proceedings. Some forensic accountants even go on to law school to further their careers because of the profession’s relationship with the legal realm.

Degree and Education Requirements

At a minimum, a forensic accountant must possess a bachelor’s degree to work in the industry. Accounting degrees with a focus in forensic accounting are best; however, related degrees in finance and business may also provide a path into forensic accounting. Students in an accounting bachelor’s degree program may want to consider getting a minor in criminal justice or taking classes on law enforcement and the legal system. Many companies prefer that applicants also obtain certification as Certified Fraud Examiners (CFE), as well as obtain status as a Certified Public Accountant (CPA).

Rewards and Challenges of Forensic Accounting

Due to the specialized nature of forensic accounting, the focus is a valuable one for accountants who want to enter the job market with a valuable skill set. Forensic accounting is an interesting profession because it combines mathematics and accounting with investigative procedures, which is often more exciting than traditional accounting. Accountants who enjoy solving problems and handling research will thrive within the profession.

The nature of forensic accounting may require that accountants be knowledgeable and prepared to participate in court settings, which may be a stressful experience for some accountants. Depending on whether an accountant is comfortable with responsibilities like testifying in court and interviewing witnesses, the job could entail some stress that an ordinary accountant wouldn’t necessarily experience.

Getting Started

Along with an interest in mathematics and accounting, the best way to begin a career in forensic accounting is to make sure training features a forensic accounting component or is entirely focused on the study of forensics. For accountants with a bachelor’s degree, a master’s degree in forensic accounting may offer the training required by employers to work as a forensic accountant.

In some cases, a student may possess a degree in related fields like finance or business and be able to move into work as a forensic accountant with further, specialized study. Those seeking work as a forensic accountant may also find additional classes on topics like criminal justice and law enforcement valuable. In addition, a student should prepare to seek out professional certification as a CPA or with the ACFE.

Related: Saved by the Bill: The Rise of Forensic Accounting [Infographic]

Future Outlook

Some of the areas where forensic accountants may find work include investigations for fraud prevention, detection, and response, as well as bankruptcy, insolvency, and reorganization. Forensic accountants may also work with cases that deal with economic damages, financial misrepresentations, valuation, and family law. Major audit and accounting firms like the “Big Four,” as well as independent accounting firms often employ forensic accountants. Law firms and investigative companies may have a forensic accountant on staff, as well as a variety of private firms and government departments tasked with fraud investigations.

As a profession, forensic accounting may appeal to anyone who enjoys mathematics and wants a job that requires an accountant reach beyond the basic skills of a traditional CPA. The BLS expects the general accounting profession to experience average growth when compared to all professions with 13% more accountants and auditors added to the economy in the next decade. Regarding a specialization in forensic accounting, CNN Money recently pegged the profession as one of the best jobs in America.