Forensic Accounting - A Basic Guide

While traditional accountants are hired to simplyunderwriting concerns.
look at the numbers, forensic accountants areForensic accounting is one of the fastest growing
hired to look beyond the numbers. For thisaccounting fields, and it has generated an
reason, they must possess considerableincreased amount of public attention because of a
knowledge of accounting, auditing, investigative,proliferation in white-collar crimes like money
and legal practices. These professionals arelaundering, fraud, and embezzlement. The
indispensable in assessing whether or not financialaccounting scandals at Enron in 2001 generated
statements and other accounting records reflectsignificant media coverage, and accountants have
reality. They also play a key role in mitigating thebeen actively involved in tracing global terrorist
risk of future fraudulent activities byactivities since the 9/11 terror attacks.
recommending and implementing stringent systemA bachelor's degree in accounting is required for
controls through various types of enterprise riskemployment as a forensic accountant, and many
management and audit committee advisoryin the field have earned CPA certification as well.
services. They are typically offer their clientsThere are even Certified Fraud Examiner (CFE)
expert witness testimony and discoveryand Certified Forensic Accountant (CrFA)
assistance during trials as well.certifications available for those wishing to pursue
They are often hired to work on corporatethis career field. These accountants are employed
mergers and acquisitions (valuating business assetsin private corporations, police departments, banks,
and verifying inventories), divorces (determininglaw firms, insurance companies, and government
equitable income distribution and child supportagencies such as the IRS, the FBI, and the CIA.
payments), and personal injury claims (calculatingThe salary range in forensic accounting varies
economic damages and losses). Other commonwidely from $30,000 to $150,000 in annual
assignments for them include investigatingcompensation. They are also known as
matters such as identity theft, employee theft,investigative accountants, fraud investigators, and
securities fraud, bankruptcy claims, andforensic auditors.