12-20-2024
When people picture accountants, they usually imagine professionals in suits crunching numbers. But there’s a fascinating other side to the field: forensic accounting.
Forensic accountants often begin as auditors or tax accountants but step into investigative roles where they examine businesses for legal proceedings. Unlike traditional accountants, forensic accountants investigate potential fraud and misconduct. They stand out in their unique ability to specialize in skills such as fraud detection and litigation support, unlocking a whole new set of opportunities in the accounting field.
Forensic accounting spans a wide range of specializations. Whether it's financial theft, securities fraud, tax evasion or economic damages, there's a niche to suit the interests of every aspiring forensic accountant.
The journey to becoming a forensic accountant begins with earning a bachelor’s degree. Most forensic accountants major in finance, accounting or a related field to build a strong foundation in the discipline. Many pursue a master’s degree with a strong curriculum in forensic accounting. Some pursue a master’s in criminal justice or build experience in law enforcement. Some forensic accountants without a CPA specialize further by earning a certification in forensic accounting. Either path requires an investment of more education
Accountants who choose to pursue the Certified Fraud Examiner (CFE) certification are required to be members of the Association of Certified Fraud Examiners (ACFE) and must pass the CFE exam. An ACFE membership provides networking opportunities and pathways for training and career acceleration resources.
Alternatively, pursuing a CPA license is a reliable route since forensic accountants often hold both the CFE and the CPA.
The Daniels School of Business Master’s of Accounting (MSA) offers courses for students who want to pursue forensic accounting. It also prepares graduates with a broad array of advanced accounting skills and access to Becker’s CPA Exam Review course. Daniels School MSA students have an impressive first-time pass rate of 88% and 100% of our graduates pass within two years of graduation.
A master’s degree positions graduates for job roles and networks to succeed in a specialized and competitive field. Upon becoming a CPA, accountants gain a higher earning potential. Payscale lists the average base salary as $79,678 per year.
Learn more about accounting opportunities at the Daniels School of Business.
To succeed as a forensic accountant, it's important to hone certain skills. Forensic accountants' jobs require them to go beyond number sleuthing to interview diverse individuals to sniff out evidence. Strong interview skills help investigators maintain decorum while eliciting needed information.
Being detail-oriented and having specialized accounting skills allows forensic accountants to be thorough in their investigations and look for small disparities that signal bigger patterns of fraud. Forensic accountants must scrutinize, interpret and analyze data for anomalies to piece together financial crimes and fraud.
These skills are critical to communicating their findings and conclusions clearly both orally and in writing.
Forensic accountants work in law enforcement, the FBI, state securities boards, financial institutions, accounting firms or other branches of the federal government. Depending on your preferred industry, you can anticipate your salary and compensation to alter. For example, at most Big Four accounting firms you can expect your earnings to range from $80,000 to $140,000. On the other hand, if you work for the federal, state or local government, your earnings can range between $55,000 to $90,000 a year.
As forensic accounting becomes increasingly popular, the industry is seeing emerging trends. There is a shift from traditional to digital investigations, as data analytics, artificial intelligence and machine learning technologies make forensics more efficient. There is also higher demand for forensic accountants with software skills.
The Bureau of Labor Statistics projects a 6% increase in accounting roles with over 130,000 new job openings, with forensic demand climbing as the global financial fraud problem reaches $2 trillion dollars. Forensic challenges have become increasingly complex, including cryptocurrencies enabling money laundering and exploitation of blockchain technologies. Employers are now seeking accountants with abilities to leverage data science techniques.
If you would like to receive more information about pursuing a business master’s at the Mitch Daniels School of Business, please fill out the form and a program specialist will be in touch!
