Forensic Accounting

What Is Forensic Accounting?

If you turn on the news today, you will likely see a story related to fraudulent activity. As criminals and
scammers adapt to a world that revolves around the internet, committing fraud has become far easier.
According to the Global Fraud and Identity Report, 33% of businesses experienced more fraud losses
than they did in the prior year.

Thankfully, people with excellent numerical skills are seeking employment as forensic accountants.
Forensic accountants use their auditing abilities combined with investigative skills to determine what
causes suspicious financial activity. Businesses use this information as credible evidence in trials and/or
to recover losses from a scam.

Because of their important role and difficult work, forensic accountants generally receive lucrative
salaries. The Association of Certified Fraud Examiners reports that the median salary received by
certified forensic accounts is above $100,000. With a growing need, lucrative earning opportunities, and
an opportunity for analytical people to exercise their problem-solving skills, this field remains a top
choice for many students. Continue reading this guide to find out more about forensics and see if this
career is a good match for you.

What Forensic Accountants Do

Forensic accountants examine data to determine where missing money has gone and how to recover it.
They may also present reports of their financial findings as evidence during hearings, where they often
testify as expert witnesses. This work serves an important purpose at public accounting and consulting
firms, law firms, law enforcement agencies, and insurance companies.

The role a forensic accountant plays in each of these settings varies. Each firm deals with money in
different ways, and scammers target organizations based on their duties. Some accountants work on a
broader fraud cases, such as those working at law enforcement agencies or law firms. Accountants
working in more specific fields, such as public accounting or insurance, typically focus on specific types
of fraud, such as insurance fraud. Forensic accountants working at some agencies are more likely to
testify in court.

Because a forensic accountant’s job is crucial for financial security and safety, the position requires
certain competencies. The next section discusses the skills and prerequisites a forensic accountant needs,
as well as how they apply to different cases.

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Forensic Accounting and Its Applications

Before you earn a position as a forensic accountant, you must earn certification as a public accountant and
obtain 1-3 years of experience in the field. After earning these prerequisites, individuals should possess
strong knowledge about general accounting, which can be combined with specialized knowledge to
handle a variety of cases.