How To Become a Forensic Accountant: Skills & Career Path

To become a forensic accountant you need to complete a Bachelor of Science in accounting program that emphasizes forensic accounting knowledge with concentrations and elective courses.

Earning a forensic accounting degree provides graduates with the necessary skills to detect, investigate, and prevent financial crimes. Forensic accountants are crucial to law enforcement and the legal processes regarding financial transactions and fraud prevention.

Steps to Becoming a Forensic Accountant

To become a forensic accountant you need to complete educational requirements with a degree program and demonstrate your knowledge by becoming a certified forensic accountant.

1. Enroll in an Accounting Bachelor's Degree Program

Enrolling in a bachelor's degree is the first step toward a forensic accounting career. It is important to explore different accounting programs to see which one best aligns with your goals. While registering for classes, you should make sure to choose courses that focus on forensic accounting.

2. Obtain a Bachelor's Degree in Accounting

Many Bachelor of Science in accounting degrees offer a forensic accounting concentration. The coursework gives students a firm understanding of accounting principles by covering topics from financial accounting to asset valuation. Obtaining a degree qualifies you to begin working in entry-level accounting roles like staff accountant.

3. Earn a Forensic Accounting Certification

Becoming certified in financial forensics is an optional but highly recommended step. Earning a certification emphasizes your advanced level of skills and helps you stand out as a job candidate. Accounting professionals with licensure have access to higher-paying roles.

The American Board of Forensic Accounting offers certification exams to forensic accountants who meet the education and accounting experience requirements. Earning a forensic accounting certification is especially helpful if your degree is in a related field like finance or business administration because it can prove you have a firm understanding of forensic accounting.

Certified Forensic Accounting Exam

The CFA exam tests your comprehensive knowledge of forensic accounting techniques and earns you licensure that demonstrates your ability to apply forensic accounting principles to financial fraud investigations. When you apply to take the certified forensic accounting exam you need to complete all five sections in 30 days.

The five sections are:

• practice and theory
• fraud
• litigation
• cyber
• valuations

4. Consider a Master's in Forensic Accounting

While it's not a requirement for every forensic accounting job, after gaining professional experience you may decide to further your education with a master's degree. Doing so can help you acquire more advanced accounting skills which can benefit you in your career as a forensic accountant.

What Are the Responsibilities of a Forensic Accountant?

Forensic accountants are key players when it comes to investigating financial crimes. They work with organizations to ensure they comply with legal standards and offer support in legal proceedings for financial crimes. Forensic accounting positions have responsibilities that range from detecting fraud to preventing it in the future.

Forensic accountant responsibilities include:

• serving as an expert witness and providing testimonies in legal cases
• conducting fraud investigations
• auditing and analyzing financial records for irregularities
• aiding law enforcement agencies with financial crime investigation
• preparing reports for legal proceedings
• analyzing insurance claims for accuracy and compliance
• managing and reporting data for financial institutions

Necessary Skills To Be a Forensic Accountant

Excelling as a forensic accountant in accounting firms and government agencies involves the combination of many skills that are necessary for developing fraud deterrence strategies and maintaining financial integrity.

Forensic accountants need to possess the following skills:

• investigative skills
• critical thinking skills
• clear written and verbal communication skills
• understanding of laws and regulations

Career Paths for Forensic Accountants

Earning a forensic accounting degree provides graduates with the necessary skills to analyze financial data to identify financial crimes and the strategies to prevent them in the future.

Fraud Examiner

Fraud examiners use investigative techniques to prevent fraud in organizations. Their role involves examining financial records to identify signs of fraud. Forensic accountants can choose to take the CFE exam and earn the certified fraud examiner (CFE) credential. The CFE credential offered by the Association of Certified Fraud Examiners (ACFE) showcases your in-depth knowledge of identifying and handling fraud.

Internal Auditor

Internal auditors play a key role in detecting financial discrepancies and ensuring regulation compliance within organizations. They perform audits to assess internal operations and financial statements to verify they are reporting accurately and legally.

Compliance Officer

Compliance officers are responsible for ensuring companies are complying with financial regulations. Aside from auditing, they develop compliance programs to help employees adhere to legal standards and prevent violations. They are crucial to maintaining an organization's ethical and legal integrity.

Financial Analyst

Financial analysts examine financial data to identify fraud and other illegal activities like money laundering and embezzlement. Their expertise provides critical insight into investigations. Financial analysts can work with law enforcement agencies, like the FBI, to uncover financial evidence for criminal investigations. They also work with consulting firms and public accounting firms to provide litigation support and advice for preventing financial issues.

FAQs About How To Become a Forensic Accountant

Forensic accounting covers many aspects of finance in varying settings. These common questions can give you a better understanding of what becoming a forensic accountant entails.

Is It Worth It To Become a Forensic Accountant?

It is worth it to become a forensic accountant if you are interested in a career that combines accounting with investigation. The Association of International Certified Professional Accountants (AICPA) lists financial forensics as the fastest growing accounting specialty, making it a worthwhile degree to obtain.

Forensic accountants are in high demand and there are opportunities to apply your skills in a wide range of settings from insurance companies to law enforcement agencies. According to the U.S. Bureau of Labor Statistics (BLS), accounting and auditing jobs are expected to grow by 4% between 2022 and 2032.

Do You Need To Be a CPA To Be a Forensic Accountant?

You don't need to be a certified public accountant (CPA) to be a forensic accountant but many choose to get the credential to access more opportunities. Taking the CPA exam and earning a CPA credential qualifies you to handle financial reports and file claims with the government. Certified public accountants have higher earning potential due to their proven expertise.

What Are Popular Degree Specializations for Forensic Accountants?

Degree specializations help forensic accountants in various roles by giving them advanced skills to adapt and excel in their careers. Since this field entails a range of job responsibilities, specializations emphasize an accountant's technical knowledge and proficiency in different aspects of forensic accounting.

Popular forensic accounting specializations are:

• financial analysis
• auditing
• fraud examination
• tax law
• criminal justice
• cybersecurity

How Long Does It Take To Become a Forensic Accountant?

Earning a bachelor's degree takes four years to complete when studying full-time, or less if you choose an accelerated program. The degree allows you to start gaining professional experience as a forensic accountant right after graduating.

Becoming a certified forensic accountant requires 4,000 hours of on-the-job experience, which generally equates to about three years of experience, before you qualify to take the exam.