Forensic Accounting as a Career
Description of the Job
Forensic accounting utilizes accounting, auditing, and investigative skills to examine the finances of an individual or business. On an everyday basis, forensic accountants need to look beyond the numbers and deal with the business reality of a situation. Forensic accounting is frequently used in fraud and embezzlement cases to explain the nature of a financial crime in court.
Fast Facts
- Number of hours per week40-45, with spikes of 50-60
- Average starting pay$55k Nationally, $71k in the bay area
- Amount of travel requiredHighly variable - based on case
Roles & Responsibilities
- Assess losses and potential damage awards
- Apply knowledge of financial accounting practices
- Conduct and assist in external investigations
- Audit internal and external financial documents
- Conduct and assist with internal investigations
- Communicating to business owners, law enforcement, or other employers about the evidence they have found
- Building applications to streamline financial analysis
Skills Needed
- Legal Knowledge: forensic accountants work with legal cases generally, so knowledge about the law is important
- Attention to detail: catching crime or fraud requires examination of close details
- Creative thinking: Need to have the creativity to imagine various scenarios and possibilities and consider whether they are consistent with the evidence
- Interviewing skills: forensic accounts frequently interview people to gather evidence or seek to better understand a situation
- Analytical skills: analytical skills are necessary throughout the process of reviewing documents and numbers and while interviewing people
Steps to Enter The Field
- A bachelor’s or master’s degree in forensic accounting, accounting, finance or a related field is required for forensic accountants.
- Additional education in criminal justice or law enforcement is a plus. Many companies encourage obtaining the Certified Fraud Examiner (CFE) or Certified Public Accountant (CPA)
- The CPA is a rigorous exam that requires a lot of studying, and most professionals work full-time while studying. However, it is possible to finish all 4 exams before starting full-time if you have a gap after graduation
- Accounting-related internships are a great way to get into forensics accounting
Landscape of the Field & Companies in the Field
- Forensic Accountants can be employed by insurance companies, banks, police forces, government agencies, or public accounting firms
- Big 4: The 4 biggest accounting firms in the world. It includes Deloitte, PwC, EY, and KPMG. The workload is generally the highest at these firms, but most people in business will recognize these firms. The Big 4 mostly provides their services to large clients
- Other national accounting firms: these include large, national firms that are not the Big 4. The work is largely the same between all firms, but the Big 4 are much larger and have more name recognition. For example, the Big 4 range from annual revenue of $29 - 48 billion, while Grant Thornton (5th most revenue) only has annual revenue of $6 billion. These include Grant Thornton, BDO, RSM, Baker Tilly, Crowe, Moss Adams, and more.
- Regional / local firms: these are much smaller firms that generally have 1 or a few offices in a specific region. Generally regional firms generally focus more on private clients (companies that aren’t on the stock exchange), so there is less regulation. This may allow one to utilize a larger depth of her accounting knowledge because of the wider focus of the work.
External Resources to Learn More & Develop Skills
- Additional information on forensic accounting: provides additional information on Forensic Accounting, including about the CFE credential (Certified Fraud Examiner)
- Reddit forum about forensic accountants: Provides insights and personal experiences from people who are forensic accountants.
- Best websites for forensic accountants: Includes 5 great websites to learn more about forensic accounting and improve one’s skills in the field
- Best CPA Prep Courses: Investopedia provides the best 5 CPA Prep courses (best overall, best artificial intelligence tools, best value, best price)
Related Careers
- Audit, Risk Advisory, Certified Fraud Examiner, Certified Management Accountant, Certified Tax Preparer, Certified Financial Forensics, Certified Public Bookkeeper
Informational Interviews
Eoin Lyons
Company Name: KPMG
Title: Forensics Associate
Years of Experience: 2
Biography
Eoin Lyons is a Forensic Associate in KPMG's Risk Advisory Solutions practice. Eoin graduated from Santa Clara University in 2019 with a degree in Finance and minor in Economics. Eoin was the Valedictorian of his class.