In order to make an educated career choice, you must first understand the scope of which a profession operates in. If technical jargon and confusing words make it difficult for you to understand what exactly forensic accounting is all about, you are not alone! This guide delves into the specifics about forensic accounting to give you a straightforward and comprehensive guide to what this profession is all about.
Breaking It Down
Many difficult to understand terms and professions can easily be dissected, helping you to gain a better understanding of the term. The word forensic means “suitable for use in a court of law”. Accounting is a “systematic recording, reporting, and analysis of financial transactions of a business”. So, plainly put, forensic accounting is the recording, reporting, and analysis of financial transactions of a business that is suitable for use in a court of law.
Job Description
Forensic accountants can have a number of duties. However, they all relate to financial issues that must be examined in court. Some specific duties include litigation support, dispute resolution, and investigation.
Forensic accountants perform investigations when criminal matters have occurred within a business. This can include internal theft, bribery, insurance fraud, money laundering, falsification of financial statements, and securities fraud. Many of these investigations are considered “white collared crimes”, relating to the business world and their financial accounts. Once the investigation is complete, other actions may be taken, such as law suit or criminal prosecution.
During litigation support, a forensic accountant presents factual information about financial issues related to the litigation. They may also be responsible for defining the amount of damages that are sustained by members involved in legal disputes before the case is presented to the court.
In dispute resolution, a forensic accountant can be used as an expert witness. They may be responsible for presenting necessary evidence to the court. This evidence can be used in the resolution of a financial dispute.
Skills Required
As with any profession, it is helpful to have a number of skills that you are naturally good at. These skills play a vital role in the profession. Skills that are helpful for those that wish to pursue a career in forensic accounting include persistence, ambition, organization, and great attention to detail. You must also have investigative skills and be able to effectively relay information to others that do not have basic accounting knowledge. Because you spend a large amount of time working with numbers, the ability to and enjoyment of working with numbers is a vital skill to those that wish to pursue a career in forensic accounting. Most of all, you must enjoy things like logic and research.
Education
Generally, a bachelor’s or master’s degree is required for forensic accounting careers. This is usually supplemented by additional courses related to forensic accounting. As this profession continues to grow in popularity, more and more colleges are redesigning their programs to accommodate this growing field. Some schools are even adding additional courses to assist those who would like to specialize in certain fields like fraud cases and insurance claims.
Licensing
Forensic accountants can also be knows as Certified Public Accountants or Certified Fraud Examiners. It is generally required Certified Public Accountants meet their state’s licensing requirements and successfully passed the Uniform Certified Public Account Examination. Certified Fraud Examiners are also members of the Association of Certified Fraud Examiners and they are required to complete the association’s certification requirements.
Career Opportunities
Forensic accountants have a number of opportunities available to them. They are in great demand throughout the country. Some opt to open their own accounting firm while others choose to work for professionals such as lawyers, banks, insurance companies, or other large corporations. There are even career opportunities that include working with the police department, government agencies, and court systems.
Intriguing Facts and Earning Potential
SmartMoney Magazine counted forensic accounting as one of its “ten hottest jobs” in their article “AccountingWeb US” on May 16, 2002. On February 8, 2002, U.S. News & Wolrd Report designated forensic accounting as one of the eight most secure career tracks in the United States. The potential earnings for a forensic accountant are over $100,000 per year.
Although it may sound like a forensic accountant’s job is centralized around money, it is much more. Since September 11, forensic accountants have played a major role in tracing terrorists all around the world. More than just a person that crunches number, forensic accountants are detectives. It is one of the fastest growing professions in the U.S. and opportunities are available everywhere. If you are looking for an exciting career that will utilize your love for mystery and numbers, you might consider a profession in forensic accounting.