How to Become a Forensic Accountant

Forensic accounting is the use of accounting to detect fraud through the inspection of financial statements. According to dictionary.com, forensic means "pertaining to, connected with, or used in courts of law or public discussion and debate." It follows, then, that forensic accounting is a form of investigation that will yield financial evidence that can be used in court to prove a case.

Clients may hire forensic accounting services to check on their own employees, if they suspect fraud or check on another company that they may be interested in merging with or buying. There are many forensic accounting jobs available, both in the private sector and in government entities, such as the IRS, SEC, and the FBI.

Degrees in Forensic Accounting

You do not need a degree in forensic accounting to work as a forensic accountant, but you do need some general accounting education. Most undergraduate accounting programs are not tailored to a specific type of accounting, and although there are some masters of forensic accounting degrees available, you are better off with a master's in public accounting from a reputable university than trying to get a master in forensic accounting from a school without a good reputation.

Certain accounting classes may help you in a career as a forensic accounting, such as a course in the analysis of financial statements. Some universities offer at least one specific forensic accounting course as part of their more general accounting degree.

Some firms will hire college graduates directly into their forensic accounting programs, while other firms prefer for first-year accountants to begin in their Audit department, and move to forensic accounting when they have more experience.

Certificate in Forensic Accounting

The AICPA, a professional accountants' organization, has approved a forensic accounting certificate. You can study for and take an exam to receive the Certified Financial Forensics (CFF) qualification. Other certificates exist, such as that for Certified Fraud Examiner (CFE), which is promoted by the Association of Certified Fraud Examiners. Generally, in order to qualify for certifications, you need a certain amount of professional experience in the subject.

Forensic Accounting Salaries

According to the Bureau of Labor Statistics, the average annual accountant salary in May 2006 was $54,630, with the top 10% earning over $94,050. The average starting salary for an accountant holding only a bachelor's degree was $46,718 in 2006, while starting salaries for accountants with master's degrees was $49,277.

Sources:

Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2008-09 Edition, Accountants and Auditors, on the Internet at http://www.bls.gov/oco/ocos001.htm

Association of Certified Fraud Examiners, Membership and Certification: Become a CFEhttp://www.acfe.com/Membership/qualifications.asp

AICPA: Forensic and Valuation Services Centerhttp://fvs.aicpa.org/