Training Required for a Forensic Accountant

West Virginia University director of forensic development Max Houck defines forensic accounting as "the science of using accounting ... to identify and develop proof of money flow." Forensic accountants serve as financial detectives for bankruptcies, divorce disputes, fraud, embezzlement, money laundering, tax scams and cybercrime. The growing need for financial and terrorism-funding investigations led the FBI to create a Forensic Accountant Unit in March 2009. A forensic accountant needs an inquisitive mind, persistence, an aptitude for math, ability to communicate orally and in writing, research skills, education, experience and certification.

Education

The Accountant Salary Data website says no career opportunities in forensic accounting exist without education, making a four-year college degree indispensable. Candidates have two degree options, according to Accounting Crossing.com: a bachelor of science in either accounting or forensic accounting. Accounting majors learn financial, managerial, tax and cost accounting; financial reporting; auditing and accounting information systems in addition to organizational behavior, quantitative methods, information technology, business law and economics. Those majoring in forensic accounting get instruction in general accounting and finance as well as learn court procedures, legal aspects of fraud, business communication, investigative techniques, criminology and research methods.

Certification

The American College of Forensic Examiners International introduced certified forensic accountant (Cr.FA) certification in 2001 that Top Accounting.com recommends for bachelor in accounting degree holders, while the American Institute of Certified Public Accountants (AICPA) established a credential --- certified in financial forensics --- for it members in 2008. Both certifications have certified public accountant licensure as a prerequisite. Most state boards of accountancy require 150 credit hours to qualify for taking the uniform certified public accountant (CPA) exam. The international forensic accounting firm, Matson, Driscoll & Damico, says forensic accountants should have both CPA and certified fraud examiner (CFE) credentials, although the CFE accepts degreed applicants in any major. The CFE exam measures competency in four key areas, according to the Association of Certified Fraud Examiners: fraud examination and investigation techniques, fraud prevention, financial transactions and legal elements of fraud.

Experience

Credentialing requires passing rigorous exams and real-world experience. Professionals seeking the certified in forensic financials designation must have practiced accounting for at least five years prior to taking the exam. Those wanting accreditation as certified fraud examiners need at least two years of experience in fraud deterrence or detection. According to the AICPA, experience in accounting and auditing gives future forensic accountants opportunities to hone intuitive and analytical abilities that make them a "different breed of accountant."

Additional Training

According to the career website Accounting Crossing.com, prospective forensic accountants can benefit from criminal justice coursework and gaining proficiency with computer software. The AICPA believes that, as business turns increasingly to electronic storage and filing, forensic accounting will find electronic discovery a more valuable tool against computer-based fraud. The organization offers a specialized accreditation --- Certified Information Technology Professional.

References

• New York State Society of CPAs: Forensic Accounting Investigative Tool; Max Houck et al; Aug. 2006
• Federal Bureau of Investigation: 2009 Financial Crimes Report
• Accountant Salary Data: Accounting Career; Do You Meet Qualifications of a Forensic Accountant
• Accounting Crossing: Training Needed for Forensic Accounting
• American College of Forensic Examiners International: Certified Forensic Accountant, Cr.FA program
• Top Accounting Degrees: Forensic Accounting: The Science Behind CSI

Resources

• American Institute of Certified Public Accountants: Overview of CFF Credential
• Matson, Driscoll & Damico: Forensic Audit vs. Financial Statement Audits; Thomas Buckhoff; Oct. 2008
• Association of Certified Fraud Examiners: ACFE FAQ
• Association of Certified Fraud Examiners: CFE Qualifications
• AICPA: Characteristics and Skills of the Forensic Accountant; Charles Davis et al; June 2009
• American Institute of Certified Public Accountants: Financial Forensic Accounting Education Series