Skills Required for a Forensic Accountant

Detective skills and accounting skills merge in the job of forensic accountant.

Forensic accounting combines the analytical skills of a detective with the number crunching skills of an accountant. The forensic accounting profession began to take on greater importance following a series of financial scandals in the early 2000s. The American Institute of Certified Public Accountants notes that there is a high demand for forensic accountants to deal with financial collapses of corporations, increased white collar crime and growing occurrences of occupational fraud.

General Job Description

Forensic accountants combine accounting and investigative skills to provide litigation support. They interpret financial evidence and are often called upon to be expert witnesses in court cases involving breach of contract, employee theft or securities fraud. Private companies, such as banks, law firms and insurance companies regularly employ forensic accountants. They also work in the public sector for government agencies or police departments. For instance, after the terrorist attack on America in 2001, the CIA and the FBI hired a team of forensic accountants to follow determine how the terrorist obtained the money they used to finance their attacks. This information aided aided in their capture.

Assignment Examples

Forensic accountants work on n a wide variety of cases, ranging from divorce to embezzlement to homicide. In cases of divorce, forensic accountants help with the process of dividing monetary assets by locating funds and evaluating the value of the property of the parties in the divorce case. In embezzlement or business fraud cases, they aid in tracing and recovering missing funds. In homicide cases, they assist the police in investigating the finance trail to discover criminal motive or to determine the spending habits of a fugitive.

Skills Needed

Those who seek a career in forensic accounting often enjoy solving complicated number puzzles or brainteasers. They persevere without becoming distracted through the study of intensive, detailed documents over long periods of time. Forensic accountants must work well under the pressure of pending deadlines and they must be able to communicate effectively in a wide variety of settings. According to the Forensic Accounting Department of California State University, analytical skills, legal knowledge and proficiency with numbers all necessary skills to have as the determination to put together many small elements in order to create a big picture. Also needed is the confidence to perform independently as part of an investigative team.

Training

Most forensic accountants earn a bachelor's degree in accounting and become Certified Public Accountant. Many also train in such areas as criminal justice or law enforcement. Earning a graduate degree in business administration with a concentration in accounting helps make a person more marketable as a forensic accountant. It can also be beneficial to become a Certified Fraud Examiner.

Effects

A forensic accountant received the credit for helping authorities apprehend the famous gangster Al Capone in 1931. A conviction on tax evasion charges brought his violent crime spree to an end thanks to the efforts of Internal Revenue Service accountants. Novels and TV series sometimes focus on forensic accounting, bringing attention to a field once thought of by many as tedious and boring.

References

• Young Money: Forensic Accountants
• The Forensic Accountant: Characteristics and Skills