Are you drawn to the accounting field but want to build extra excitement and intrigue into your career? You’re in luck: The field of forensic accounting offers compelling professional challenges, excellent salaries, and the personal satisfaction of knowing your work makes a difference.
A forensic accounting career can be rewarding, but it’s far from easy. This accounting niche takes the inherent complexity of accounting and adds a layer of investigative challenge. To shed light on this field and its many nuances, we’ve compiled a deep dive into all things financial forensics—what it is, why it matters, and why a master’s degree in accounting is so vital to success in this field.
What Is Forensic Accounting?
Forensic accounting is a high-stakes practice that draws on accounting, auditing and investigative procedures to reveal instances of financial misconduct or irregularities that might be interpreted as misconduct. This blend of accounting and investigation provides in-depth insight into a variety of financial activities.
The Corporate Finance Institute (CFI) defines this practice as “the investigation of fraud or financial manipulation by performing extremely detailed research and analysis of financial information,” adding that this calls for a “team of specialized accountants that act like detectives trying to solve a mystery.”
The Role of Forensic Accountants
The role of the forensic accountant is constantly evolving, especially as new challenges and technological solutions emerge. Forensic accountants are generally tasked with gathering and analyzing extensive information about financial activities. As the Association of Certified Fraud Examiners (ACFE) explains, forensic accountants can expect to blend “accounting knowledge with investigative skills in various litigation support and investigative accounting settings.”
Forensic Accounting Careers
Forensic accounting is an exciting, empowering and potentially lucrative career field that many passionate individuals find compelling. Its draw lies, in part, in the ability to use accounting principles and processes to make a meaningful difference on a wide scale. Forensic accountants get to see the results of their hard work and draw satisfaction from the knowledge they’ve done their part to protect their communities and improve the economy at large.
Industries Employing Forensic Accountants
Forensic accountants work in a variety of settings and sectors. They are employed by many prominent government agencies, such as the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Some forensic accountants work at the state or municipal level.
While federal and state forensic accounting jobs can be highly rewarding, many professionals prefer the corporate sector, where there are plenty of opportunities for advancement. Some forensic accountants or auditors find employment with major corporations, while others work as consultants.
Aspiring accountants may be surprised to discover that this role is increasingly sought after by major law firms, as forensic accountants are often required for litigation support. Many forensic accountants serve as expert witnesses during major court cases, and they may also be involved in legal discovery for cases related to healthcare fraud, nonprofit organizations, and real estate and construction.
Forensic Accounting Career Outlook
Good news: Forensic accounting enjoys a positive career outlook, prompted, in part, by the many challenges inherent to increasingly prevalent and sophisticated levels of cybercrime. While these opportunities are best tackled upon obtaining a master’s degree in accounting, there is no denying the strong demand in this niche.
The Bureau of Labor Statistics highlights a job outlook of 4% across the overarching professions of accounting and auditing, but this can vary dramatically from one niche to the next. While targeted forensic accounting projections are not available from the BLS, a variety of industry experts believe this field is about to see significant expansion.
A report from Zion Market Research reveals yearly growth at a compound annual growth rate (CAGR) of 6.5 percent. On a global scale, this growth is thought to be partially sparked by concerns surrounding fraud in the banking, financial services, and insurance (BFSI) sectors.
Forensic Accounting Job Titles
While the title “forensic accountant” may attract much of the attention, there are many compelling career paths that call for a blend of accounting and investigative skills:
- Forensics accounting investigator. Responsible for identifying problematic billing trends and evaluating fraud risk, forensics investigators conduct comprehensive analyses of financial data. These investigators often work closely with auditing teams and must be capable of clearly and concisely communicating financial data with a variety of clients and stakeholders. This role may also be referred to as forensic financial investigator.
- Forensics, valuation and litigation support. Many forensic accountants or auditors are employed by law firms, where their research is integral to litigation and compliance matters. These professionals play a vital role in the legal discovery process, with common cases involving billing disputes, lost wages and lost profits.
- Special agent. In this federal role, professionals with accounting expertise help trace transactions and uncover hidden assets. When equipped with diversified financial abilities, these agents can make significant contributions to the crime-solving process, playing heavily into everything from cybersecurity to counterintelligence.
- Supervisory accountant or forensic accounting manager. In this senior role, experienced professionals are tasked with overseeing and guiding teams of forensic accountants. Supervisory accountants may interact extensively with corporate clients. This job may also involve extensive market research, valuation reports and collaboration with various department heads and executives.
How to Become a Forensic Accountant
A world of potential awaits in the exciting field of forensic accounting, but this path is far from easy. It takes years of training to prepare for an accounting career. Even with the requisite skills and credentials, you’ll face fierce competition when you pursue the most in-demand roles. Still, there are a few reliable steps you can take to position yourself for success in forensic accounting, as we’ve highlighted below:
Pursue a Master’s Degree in Accounting
A graduate-level degree is a must for finding employment in forensic accounting. Due to the high-stakes nature of this role, only candidates with demonstrable expertise can expect an interview, let alone a job offer. High-level accounting and investigative skills are essential, as are people skills like communication and collaboration.
A quality Master of Accountancy (MAcc) program provides a thorough overview of the numerous concepts and skills that comprise forensic accounting. A robust curriculum should include challenging coursework that delves into accounting data analytics, information systems and advanced auditing.
Better yet? Pursue a concentration in forensic data analytics. This track provides a deeper dive into the technological solutions many of today’s forensic accountants and auditors use daily, including databases, data warehouses and data mining.
As you pursue your MAcc, be mindful of opportunities to apply newly mastered accounting concepts in practical settings and situations. Real-world experience will make it easier for you to tackle the many challenges bound to come your way as you enter the complex field of forensic accounting.
Accounting internships are particularly advantageous, as they provide ample opportunities to synthesize advanced accounting concepts, build professional connections, and potentially even uncover exciting job opportunities.
Specialized Programs in Financial Forensics
We’ve already touched on the value of a forensic accounting concentration when seeking a master’s degree, but this is not the only source of specialized training. Many aspiring accountants seek more targeted training, whether through degree concentrations or credentialing programs. Such expertise should be prominently displayed on forensic accounting resumes, as employers want to know that candidates are skilled not only in accounting but also investigative procedures.
Forensic Accounting Certifications
A master’s degree in accounting provides a strong start, but a graduate degree can be amplified with the right certifications and other credentials. These are compelling from the employer’s perspective, as they reveal a deep commitment to the field of forensic accounting. Certified job candidates are, in effect, proving they have mastered critical accounting, investigative and cybersecurity skills. Certifications worth seeking include:
- Certified Fraud Examiner (CFE). Offered by the Association of Certified Fraud Examiners (ACFE), the CFE designation conveys a level of professional credibility that can otherwise be difficult to gain. Identified by Robert Half as “one of the most marketable credentials today,” the CFE is widely regarded as the industry gold standard. The required exam is rigorous, therefore, and calls for extensive self-study.
- Certified in Financial Forensics (CFF). As an excellent opportunity from the renowned American Institute of Certified Public Accountants (AICPA), the CFF credential can convey expertise in a variety of financial forensics essentials, such as fraud detection, financial statement misrepresentation, and even expert witness services. This credential is uniquely difficult to obtain because a CPA license is required in addition to passing the necessary exam.
- Certified Forensic Accountant (CRFAC). The American Board of Forensic Accounting offers a comprehensive financial forensics credentialing solution that covers fraud, valuations, cybersecurity and more. CRFAC is a great complement to professional development efforts and can serve as a valuable differentiator when seeking the most in-demand forensic accounting jobs.
- Master Analyst in Financial Forensics (MAFF). Available through the National Association of Certified Valuators and Analysts (NACVA), the MAFF aims to meet the strong demand for forensic accounting in financial litigation. This specialized credential was once known as the Certified Forensic Financial Analyst and has long been a trusted means of conveying a blend of advanced accounting, auditing and investigative skills.
- Certified Anti-Money Laundering Specialist (CAMS). Depending on your career goals, it may be worth your while to seek the CAMS credential from the Association of Certified Anti-Money Laundering Specialists. This is a common path among aspiring forensic accountants drawn to anti-money laundering (AML) and combating the financing of terrorism (CFT).
Prepare for a Future in Financial Forensics With UTC’s Master’s Degree in Accounting
The University of Tennessee at Chattanooga offers a well-regarded Master of Accountancy (MAcc) program that provides a powerful first step toward your dream career in forensic accounting. Reach out to learn more about the MAcc and our forensic data analytics concentration, or apply today.
