The Career Path of a Forensic Accountant   by Nasreen Haque

in Finance / Accounting    (submitted 2010-02-16)

With much of the world's financial arena in a turmoil with white collar crime rampart and embezzlement and security fraud an every day occurrence, the need for forensic accountants has never been greater. Forensic accountants deal with criminal and often complex financial dealings to determine what illegal activities have transpired. They work hand-in-hand with corporate lawyers and other law enforcement authorities while an investigation is occurring and often appear as an expert witnesses at many highly publicized trials. In addition, since the September 11 attacks at the World Trade Centers in New York City, forensic accountants have played major roles in tracking terrorists in every part of the world.
Careers in forensic accounting can be interesting as well as lucrative. There are many businesses that have added forensic accountants to their list of employees both nationally and internationally.
A forensic accountant must first obtain a bachelor's degree (in the US) in accounting. Anyone in the accounting business must have a thorough understanding of Generally Accepted Accounting Principles and laws related to them. Most accountants specializing in forensics have a few years of basic accounting training before they go on to study forensic accounting practices. To become a certified public accountant, a student must pass the CPA or Certified Public Accountant prerequisite examination. Most firms require this certification before they hire. There are also other federal and state requirements that must be met for eligibility as well as a commitment to maintain the CPA status through continuing education courses. Those who go on to become forensic accountants usually earn a master's degree in business with an emphasis on forensic accounting. Typical courses accountant students must take to fulfill forensic requirements include criminal law, business law, psychology and sociology, information systems and communications.
Forensic accounting training is provided by many organizations including the Association of Certified Fraud Examiners and the American College of Forensic Examiners International. They require that an accountant have a basic degree of experience and education in the accounting field, program participants must pass examinations given by the organizations. If the exams are successfully passed, certification is granted that proves a forensic accountant has met standards and has the necessary training to qualify to work in the field.
Regardless of the positions forensic accountants hold, they must be extremely discreet in their investigations. Whereas most accountants conduct audits for the company's benefit, forensic accountants are looking for indications that something illegal is going on. They rely on court records and other internal databases to reveal criminal activity and evidence of fraud that goes beyond simply looking at numbers. They investigate everything from credit and bank statements to e-mails and memos to put together an accurate account of an institutions or person's financial activities. They also interview those being accused as well as other who are involved to gain clues that could lead to prosecution of the guilty parties involved. Once all the information is gathered, a forensic accountant will file a report summary that includes an action plan and details surrounding the investigation. This information may have to be presented in a court of law to explain the case at hand. In these cases, a forensic accountant will use spreadsheets, charts, graphs and an oral presentation to state the facts.