Is a Forensic Accounting Degree Right for Me?

Forensic accounting is a field of accounting that specializes in examining financial records and financial data to find evidence of white-collar crime. Forensic accountants need to have accounting skills and investigative skills.

These skill sets can be obtained through a forensic accounting degree program. Keep reading to learn more about forensic accounting degrees and find out how to determine if a forensic accounting major is right for you.

What Is a Forensic Accounting Degree?

Forensic accounting degrees prepare students to work in the field of forensic accounting. They cover general accounting and auditing fundamentals as well as investigative skills.

Some schools offer forensic accounting as their own degree program, but many provide forensic accounting as a specialization within an accounting degree. These are usually offered as bachelor's degrees, which take an average of four years of full-time study to complete.

What Does a Forensic Accounting Major Study?

Forensic accounting majors gain a strong foundation in accounting principles and learn investigative skills to identify and prevent cybercrime and fraud. Coursework often covers topics like:

• fraud examination and auditing
• detection and prevention of fraudulent financial statements
• methods and techniques for fraud investigation

Some forensic accounting programs offer internships to give students real-world experience investigating financial and white-collar crime.

Why You Should Consider a Degree in Forensic Accounting

Many students find financial accounting a fascinating area of study, but there are other reasons you may want to pursue a degree in financial accounting. Below, we've listed a few factors that should be considered when considering a degree in forensic accounting.

Investigate a Range of Financial Crimes

While forensic accounting may seem like a niche field, forensic accountants may investigate a multitude of financial crimes. These include:

• embezzlement
• insurance fraud
• money laundering
• securities fraud
• tax fraud

Some forensic accountants specialize in a specific type of financial crime, while others investigate multiple types of crime.

Ability To Become a Certified Fraud Examiner

The Certified Fraud Examiner (CFE) certification is a credential offered by the Association of Certified Fraud Examiners (ACFE). Holding this certification shows that you're trained in fraud examination and can help you land jobs or earn promotions.

To obtain the CFE credential, you must meet the eligibility requirements, including a degree and a certain amount of accounting experience. You'll also need to pass an exam.

Another credential you can pursue is the Certified in Financial Forensics (CFF) credential from the Association of International Certified Professional Accountants (AICPA). However, this credential requires you to be a Certified Public Accountant (CPA).

Work For a Variety of Employers

Many different employers hire forensic accountants for a variety of reasons. Some common industries include:

• Accounting firms: Some accounting firms have forensic accountants on staff who can serve as consultants or do external audits of financial institutions.
• Government agencies: Government agencies, like the IRS, may hire forensic accountants to investigate crimes, such as tax fraud.
• Insurance companies: Insurance companies sometimes hire forensic accountants to investigate insurance claims and potential fraud.
• Law enforcement agencies: Law enforcement agencies at the local and national levels, like the FBI, will employ forensic accountants to help them investigate financial crime.
• Law firms: Law firms may also hire forensic accountants to act as expert witnesses or provide litigation support.

Additionally, private businesses and nonprofit organizations will sometimes keep forensic accountants on staff to do internal audits. This means you have multiple options for your forensic accounting career.

Make a Difference

Forensic accountants investigate situations in which people or businesses take money that doesn't belong to them. Sometimes that money belongs to large corporations, financial institutions, or the government, but sometimes it belongs to individuals.

Some forensic accounting jobs focus on issues like identity theft and scams. By helping law enforcement solve these cases, forensic accountants can help victims regain their lives.

Enter an In-Demand Field

The U.S. Bureau of Labor Statistics (BLS) doesn't have information specifically for forensic accountants, but it does show data for general accountants and financial examiners. In both cases, it predicts job growth.

The BLS estimates that jobs for accountants will grow by 4% by 2032, which is about average. For financial examiners, it predicts a growth of 20% in the same time frame.

Job Opportunities for Forensic Accounting Degree Majors

Graduates with a degree in forensic accounting can pursue multiple career paths. In addition to working as a forensic accountant, some of the most common forensic accounting career paths include:

• external auditors: outside accounting professionals who come in to audit a business's financial records
• financial examiners: ensure that financial institutions are in compliance with financial rules and regulations
• fraud investigators: focus specifically on financial crimes involving fraud
• internal auditors: audit a business's financial records, but they are employed by the business itself
• litigation support specialist: helps law firms find and understand the financial evidence they need for their cases

As mentioned, these roles are available with various employers, including government agencies, law enforcement, accounting firms, and more.

Forensic Accounting Degree: Questions To Ask Yourself

If you're still not sure if forensic accounting is the right major for you, there are a few questions you can ask yourself to help you decide:

• Will a degree in forensic accounting help me meet my career goals?
• Do I have a firm grasp of statistics and economics, or can I gain this knowledge?
• Am I willing to pursue the additional education needed to earn my CPA credential, if necessary?
• Would I be comfortable testifying in court if necessary?