No doubt there is a certain demand for experienced accountants throughout the country in the commercial, private and government sectors, but there is an even greater need for specialized number crunchers with the unique skill set suited to forensic accounting jobs. Professional auditors and accountants with the right backgrounds and experience provide immeasurable benefits to government agencies, corporations, and law enforcement professionals during investigations that require audits of financial records and accounts, such as cases where fraud or embezzlement is suspected. These mathematical detectives are deployed to locate missing funds, find errors or fraud indicators in extremely complicated accounting and tax records, and trace cleverly concealed accounts held by tax evaders.
What is so Special About Forensic Accounting?
Forensic accounting jobs differ quite a bit from typical accounting jobs due to the integrity and attention to detail required to perform investigative financial audits. A forensic accountant does not only work with numbers and figures. He or she must have highly developed problem-solving and investigative skills and the tenacity to complete difficult and time-consuming projects. A single audit may delve into historical records that span several decades or cross international borders. This task requires meticulous analytical and mathematical skills and extensive knowledge of historical accounting methods combined with technical proficiency using the most current industry-standard software.
The usefulness of forensic accountants is not limited to criminal investigations. Many companies hire these “bean counting” dynamos for the purpose of preventing fraud or loss of funds that may lead to subsequent tax audits and investigations. These professional auditors review the company’s accounting procedures and records to pinpoint weaknesses that may facilitate fraud or accidental losses.
What Forensic Accounting Jobs are All About
Needless to say, a freshly certified accountant just out of college is not likely to be the best candidate for such a position. Those with established accounting careers and extensive auditing experience will be more likely to have the skill set required of a forensic accountant. Some of the skills and competencies desired of a forensic accountant include:
- A thorough understanding of domestic and international financial laws and regulations
- Knowledge of several different reporting systems used in the industry
- A keen eye for fraud indicators in both company and employee financial records
- Highly developed written and oral communication skills
This list of attributes is just a small sample, and the position will require a specific level of formal education and certification. Anyone considering this field should keep in mind that he or she must develop and maintain an impeccable reputation for professionalism and personal integrity. This means that all of one’s personal and financial affairs must stay in good order. Employers, especially government agencies, will perform extremely stringent background checks on applicants to make sure they are trustworthy before allowing them access to sensitive records.
Education Required for Forensic Accounting Jobs
Of course, just having a clean record and the desired mathematical, analytical, and creative qualities is not enough to land a forensic accounting job. These professionals have resumes boasting college degrees and certifications related to their particular field. Before one begins courses towards his or her forensic accounting degree, the student will need to earn at least a Bachelor’s degree in traditional accounting and obtain credentials as a Certified Public Accountant or Certified Fraud Examiner. Afterwards, the accountant may supplement his or her education with a Master’s degree or graduate certificate through one of many forensic accounting programs offered by numerous accredited universities. In many cases, the coursework can be completed online.
Some schools offer stand-alone forensic accounting certificate programs that focus on fraud detection and investigation as well as data analysis. Students also learn about ethics, criminology, interviewing procedures and legal issues related to fraud. Depending on the type of position the student seeks; he or she may also study financial investigation of organized crime and money laundering, conspiracy or terrorism, and drug trafficking. These in-depth courses are reserved for students who have the required experience and educational prerequisites. A prospective student should conduct a thorough search and evaluate different programs to find one that meets his or her goals.
Best US States for Forensic Accounting Careers
Considering the strict requirements of a forensic accountant position, one should expect a comparable salary. It is widely advertised that these professionals can easily earn a six-figure annual wage, but one should not expect such compensation right away. A typical starting salary will be in the $40,000 to $60,000 range. While forensic accounting careers pay quite well, the salary can range greatly according to the recipient’s level of expertise and job responsibilities, and the job location is always a factor as well. Some US states pay higher wages than others, while certain areas will have more openings and career advancement opportunities. Below is a list of the best US states in which to pursue opportunities in this career field.
States with highest job prospects:
- Washington, DC: highest percentage of employed accountants per capita
- Florida: Tallahassee employs 20 forensic accountants per 1000 residents
- Colorado and Delaware: 10-13 accountants per 1000 residents
Highest potential earnings:
- New York: offers the highest median salary in the US at $87,000-$88,000
- California: $85,000 median salary
- Maryland and Massachusetts: $83,000 median salary
Whether it is the thrill of catching a thief or the challenge of inspecting complicated financial records that makes an auditing career sound sexy and intriguing, an individual must possess a very specific set of skills and personal qualifications as well as a solid educational background to be considered for such a position. Forensic accounting jobs are demanding as well as lucrative, and one must be certain that he or she is ready to perform the meticulous and time-consuming tasks required of a master auditor. For those ready for this challenge, this career path can lead to highly coveted positions in private companies, law enforcement or government agencies and legal firms throughout the country.