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Forensic accounting involves examining records to look for evidence of financial crimes. In this career, there can be opportunities to investigate crimes related to fraud, tax evasion, embezzlement or other forms of financial theft or misdeeds. Specialized accountants in this field are often called upon to serve as expert witnesses in court or provide reports and organize evidence for criminal or civil legal proceedings.

What does a forensic accountant do?

Forensic accountants read financial statements and look into financial records and transactions to find irregularities. They may work on cases involving money laundering, fraudulent tax returns, insider trading and other white-collar crimes.

These accounting specialists can work on criminal cases as part of an investigative team. They generally work in an office setting where they assess financial data and gather evidence to aid other investigators and legal prosecutors. Lawyers also might work with these specialized accountants on civil cases.

Here’s a look at some of the duties one may perform in this career.

• Evaluating financial activities – The main duty is to assess an organization’s or individual’s financial records to find any evidence that may be related to criminal or civil crimes.
• Finding nonfinancial evidence – They sometimes look at nonfinancial information. They might review someone’s social media posts or interview witnesses to find evidence of major purchases, hidden assets, unrecorded transactions or other signs of an extravagant lifestyle.
• Defining financial patterns — Forensic accountants often look for patterns in a person or company’s financial records. They then isolate transactions that do not fit within this established pattern. 
• Deciding on compensation — These accountants may also be called upon in civil cases to help determine fair compensation for a plaintiff.

These are the primary duties of most forensic accountants, though the exact nature of the job can vary from place to place. 

This career is often associated with law enforcement, but there is also work in other areas for private employers.

Here are examples of industries where someone in this role might find work

• Government agencies, such as the FBI
• Insurance companies and private firms that perform audits on behalf of insurance companies
• Local, state or federal law enforcement agencies
• Investigative contract work for accounting firms
• Nonprofit organizations that review agencies and companies for financial fairness
• Banks and other financial institutions that require someone to evaluate evidence of financial wrongdoing, assess risk, perform internal audits and ensure compliance with regulations

Regardless of their specialization, these accountants work in a similar setting to those in other accounting specialties. They rarely work in the field and spend most of their time in an office.

Forensic accountants acquire technical and specialized skills. This career also requires honing soft skills, which can be developed throughout a lifetime and in the early days of a career.

Here are just some of the soft skills needed to succeed in this career:

• Investigative and auditing skills — A forensic accountant must understand the principles and procedures for performing an audit. They also need the knowledge and ability to assess financial data and find patterns and irregularities.
• Attention to detail — These accountants must be able to look for information in large amounts of data, so they need to be able to pay attention to small details and discern subtle discrepancies in financial reports.
• Analytical skills — These skills are needed to assess the legitimacy of each transaction and find proof of financial wrongdoing using nonfinancial evidence.
• Communication skills — Findings need to be communicated to lawyers, other investigators, or company stakeholders and decision-makers. They also might have to serve as an expert witness in court cases and explain findings in a nontechnical way for a judge and jury to understand.
• Logical thinking skills — Those in this role should be able to think critically and compare evidence and information from different sources systematically and logically.
• Problem-solving skills — Problem-solving skills are needed to find ways to locate data that’s not readily available through publicly available reports and that subjects may be actively trying to hide. Unlike many other accounting specialties, this one requires thinking outside of the box.

Although the number of skills needed to be a successful forensic accountant might seem overwhelming, most of them can be honed during undergraduate and graduate studies. 

Becoming a forensic accountant

Most students studying this field start by pursuing a degree in accounting to understand the principles of accounting before beginning to hone investigative skills. However, an education journey doesn’t stop here. Many forensic accountants also have to pass a licensure and certification test.

Education

Before considering a forensic accounting career any further, take a look at the required education journey. Because of the technical skills needed for this job, entry-level positions require at least a bachelor’s degree in accounting. There may also be a specialized undergraduate program in forensic accounting.

While the undergraduate degree is the minimum requirement for most employers, some positions require additional education. For this reason, consider a Bachelor of Science in Business program with a Financial Planning Certificate, or even a Graduate Finance Certificate.

Earning a bachelor’s degree can take up to four years or more, with up to two more years for a master’s degree. Subjects studied include:

• General accounting principles and practices
• Common financial reports and data
• Fraud examination
• Auditing
• Investigating techniques

Students need to pass an exam In each subject. To successfully pdo that and become a responsible student, regular class attendance will be required along with being able to study effectively at home.

Of course, studying at home is easier said than done, and typically involves advanced exam preparation practices. This may require reviewing study material weeks before exams instead of the last-minute studying that many students fall victim to. 

Certifications and licensure

Technically, a professional certification to start a career as a forensic accountant. is not needed. However, some employers, such as law enforcement agencies, may require professional certification or licensure. Such accreditations can also help with career advancement and getting better entry-level positions.

There are two key accreditations that forensic accountants can pursue.

• – A CPA is a state license to practice accounting. While it is not necessary for every job, some state agencies require it for the forensic accountants they employ. It may also be required for some senior positions.
• – A CFE has fraud prevention, detection and deterrence expertise. CFEs are trained to understand complex financial transactions, recognize the warning signs that indicate fraud, and know the methods for resolving fraud allegations.

CPA requirements can differ from state to state, and law enforcement and government agencies may have certification requirements for all forensic accounting applicants.

Being a forensic accountant could be a good career if you have math-related skills or naturally hold soft skills like analytical thinking or problem-solving. You also need the desire to work on investigations as part of a legal or law enforcement team. And you'll need an accounting degree. ������ý offers online degree programs, including an online accounting degree.