Investigative Accounting Profession: Role of a Forensic Accountant versus Forensic Auditor
The field of forensic accounting is seeing rapid job growth, with a median annual pay of $73,560 according to the Bureau of Labor Statistics. With the increasing demand for forensic accountants, here's a guide on the steps to become one in the United States.
1. **Earn a Bachelor's Degree** Obtain a bachelor's degree in accounting or a closely related field such as business or finance. A degree program accredited by the Association to Advance Collegiate Schools of Business (AACSB) is often preferred. Courses should cover accounting fundamentals, auditing, taxation, business ethics, and economics.
2. **Gain Relevant Internship or Work Experience** Pursue internships or entry-level positions in accounting to gain practical experience. Specialized experience in forensic accounting, fraud detection, or auditing is highly beneficial.
3. **Pass the Certified Public Accountant (CPA) Exam** Passing the CPA exam is typically a prerequisite because forensic accountants usually must be licensed CPAs. Requirements to sit for the exam vary by state but often include completing 150 credit hours of education, which can be fulfilled by a master's degree or extended undergraduate studies. The CPA exam tests knowledge in financial accounting, auditing, regulation, and business environment concepts.
4. **Obtain State CPA Licensure** After passing the CPA exam and fulfilling experience requirements (commonly 1-3 years of professional accounting work), apply for CPA licensure in your state to become a licensed accountant.
5. **Pursue Additional Forensic Accounting Certifications** To specialize further, pursue certifications such as the Certified Fraud Examiner (CFE) or credentials offered by the American Board of Forensic Accounting (ABFA), like the Certified Forensic Accountant (CFA). These certifications require meeting education and experience criteria, and passing additional exams focused on forensic accounting techniques and fraud investigation.
6. **Consider Advanced Degrees** Many forensic accountants earn a master's degree in forensic accounting or a related field to deepen their expertise, fulfill CPA credit requirements, and enhance career prospects.
7. **Apply for Forensic Accounting Positions** With the CPA license and forensic certifications, apply for jobs in forensic accounting. These roles often exist in law enforcement agencies, accounting firms, legal firms, corporations, and government agencies.
Following these steps ensures a solid foundation in accounting while developing the specialized skills and credentials necessary for a career in forensic accounting. Prospective students should seek institutions that offer a forensic accounting emphasis or a variety of electives in fraud examination and forensic accounting while assessing accounting programs.
With the rise in corporate fraud, forensic accounting is a new and high-demand field. Some organizations prefer forensic accounting applicants with master's degrees or graduate certifications. Graduates with a bachelor's degree in forensic accounting are qualified for entry-level careers in the profession. Job responsibilities for forensic accountants can include conducting forensic research, preparing analytical data for lawsuits, and giving witness testimony. The Bureau of Labor Statistics anticipates an increase of 96,000 accountant positions between 2020 and 2030.
- To expand one's expertise in the field, consider enrolling in courses related to digital forensics, forensic archaeology, or other specialized areas within forensic science as part of a continuous self-development and education-and-self-development journey.
- As the field of forensic science continues to evolve due to technological advancements, staying up-to-date with the latest tools and methodologies through career-development opportunities and ongoing education is essential for forensic accountants seeking to advance their careers and remain competitive in their chosen profession.
- After establishing a career in forensic accounting, consider leveraging professional experience to pursue teaching roles at institutions offering degree programs in accounting, finance, or business, thereby sharing knowledge with future forensic accountants and contributing to the learning and growth of the next generation of professionals in the field.
