What is forensic accounting

A part of our economic difficulties today involve the illegal activities of embezzlement and fraud. Forensic accounting experts are hired to analyze and track financial transactions by using their accounting skills.

What is Forensic Accounting?

Forensic accounting is a financial analytical way to discover fraud and embezzlement activities, and it’s about following the money flow to prove these illegal activities have taken place and are used in legal proceedings by examining tax and business records. Forensic accountants also prepare expert witness testimony for civil and criminal cases. Forensic accountants can be hired as a Certified Forensic Accountants or Certified Fraud Examiners.

Who employs forensic accountants?

  • Many companies and government agencies need forensic accountants
  • Public accounting firms
  • Law enforcement agencies
  • Lawyers
  • Governments organizations
  • Insurance companies
  • Financial institutions
  • Private investigators
  • Private firms

How Do You Become a Certified Forensic Accountant?

Several steps have to be taken to achieve this, such as:

  • Attend a degree program; the degree may be a Bachelor’s or a Master’s in accounting depending on the job.
  • Gain some experience in a related field
  • Study, take and pass the Uniform Certified Public Accountant (CPA) Examination.
  • Research and apply for an open position as a forensic accountant.
  • Complete an interview.
  • Get hired initially as a forensic accountant and receive formal training.

Forensic Accountant Training

Most forensic accountants quite often start as certified public accountants. Forensic accountants must also possess other skills such as good oral and written communication. Once a job placement has been established, the training requirements will depend on the type of business you are conducting. For example, if you were to be employed by a law enforcement agency, you would need to gain knowledge on embezzlement and fraud, and the proceeds of crime. An insurance company position would require insurance claims knowledge. Forensic accountants are carefully trained to look beyond the numbers dealing with the reality regarding business.

Learning the techniques of testifying in court is extremely important to prove an illegal activity has taken place. Forensic accountants are capable of auditing a multitude of financial crimes.

Benefits of Choosing to be a Forensic Accountant

There will always be a need for several industries to hire a forensic accountant. The salary of a forensic accountant is substantial. This type of career can lead to a very comfortable lifestyle.

Accounting skills can be put to use for personal financial tracking. Family and friends can also benefit from having a forensic accountant in their life. This type of career also presents the opportunity of learning much about law, insurance, and business ethics. Many different career paths can be followed as a forensic accountant; the sky’s the limit. This type of work also keeps the brain active, which is an excellent asset to your health.

How Much Do Forensic Accountants Cost?

The cost to hire a forensic accountant can vary. Some factors include the complexity of the work, the economic region they work in, the type of company or official government agency they work for, etc. Most forensic accountants ask for a three to four thousand dollar deposit. Examples of forensic accounting are:

  • Tax fraud
  • Divorce
  • Bankruptcy
  • Money laundering
  • Breach of contract
  • Securities fraud
  • Business evaluation
  • Post-acquisition disputes
  • Computer forensics

Are Forensic Accountants in Demand?

Thirteen percent job growth is predicted by the Bureau of Labour Statistics; others have estimated an even higher job demand predicting a 20 percent growth, due to increasing financial regulations.