How To Have A Career In Forensic Accounting
Forensic Accounting is mainly concerned with the detection and spotting of financial fraud in any business. It requires the skill of analyzing the faults in the auditing and help in conducting the legal procedures.
Investigating fraud and embezzlement in an individual financed business or a firm requires a forensic accountant. Forensic Accountant help in establishing financial crimes in the court, fighting white-collar crimes, forensic accountants are needed by the insurance industry to get damages from claims.
About Forensic Accounting
Forensic accountants aid in solving complex and financial business matters. Financial evidence is collected by them to further compile and help developing computer applications in restoring and easy retrieval of the saved documents for any criminal proceeding or other fraudulent activities.
Some popular forensic accounting professionals are Joseph Brazel a professional skeptic which is a great quality for this field, Robert Bush/man earned his CPA title in 1975 and has been working as a forensic accountant since then. Some other well known forensic accountant includes David Parker, Glenn E. Sumners Thomas Tolleson, Mary Jo Kranacher.
Eligibility To Become a Forensic Accountant
To become a Forensic Accountant the basic requirements are:
- A Bachelor’s degree in Forensic Accounting or
- A Master’s degree in the Forensic Accounting
- A Certified degree in (CFE) Certified Fraud Examiner
How to Become a Forensic Accountant
To become a forensic accountant one needs to have a knowledge of his /her own interpersonal communication skills, analytical abilities to solve problems, ideas about white-collar crimes, money laundering, telemarketing fraud, and financial statement frauds. There is a lack of awareness among the youth regarding this career, there is a huge demand for forensic accountants.
A candidate with a graduate degree and with at least one year of experience in any nationalized banks, cooperatives financial institutions, and non-banking financial institutions can apply for the (CBA) Certified Banking Forensic Accountant Examination.
At least a bachelor’s degree is needed by a Foreign Accountant to qualify for entry-level positions. Sometimes employers also prefer a bachelor’s in a related business specialty, accounting, and finance a master’s degree is also preferred at times.
The license of a (CPA) Certified Public Accountant and (CFA) Certified Fraud Examiner is a job requirement for most organizations.
Top Institutes offering Forensic Accountancy in India
- Institute of Certified Foreign Accountants
- The Institute of Chartered Financial Analysts of India University (ICFAI)
- The Institute of Chartered Accountants of India New Delhi
Forensic Accountant Entrance Exams
- CBFA( Certified Banking Forensic Accountant ) entrance exam
Career Opportunities in Forensic Accounting
Employment sectors include Forensic Accounting, Law Enforcement Agencies, Government Organizations, Insurance Companies, and Forensic Accounting Divisions.
A student can become an ICE agent claims investigator, legal consultant, financial detectives, government accountability officer the FBI, and the CIA.
Employment Sector / Industry for Forensic Accountants
Potential job opportunities include federal agencies IRS The Internal Revenue Service), The Department of Defence, The Government Accountability Office the state and local both. CPAs can work as fraud examiners in reviewing financial documents and resolving civil disputes.
List of Forensic Accounting/ firms include Deloitte ,PWC ,KPMG, Pipara and/ Co. LLP, Haribhakti and Co. LLP, Grant Thornton LLP, Ernst, and Young CBIZ, Mc Gladrey, Chetan Dalal Investigation and Management services, etc
Jobs In Forensic Accounting
- Law enforcement
- Major Corporates
- Banking, Brokerage
- Financial Services Industry
- Valuation in Litigation
- Forensic Data Analyst
Salary of a Forensic Accountant
This field provides a satisfactory salary along with ample job growth.
According to the Bureau of Labor Statistics, a forensic accountant earns an average salary of $70500 per annum. The BLS has created above 90K accountant employment since 2018-2028.
It seems to be a well-paid job, in this field experienced professionals may earn up to $150000 and above, the salary of employees depends on years of experience and the size of the entity. Location acts as a major factor in the pay scale. Non- profit organizations pay more than small-scale businesses and individualistic firms.
Study materials for foreign Accountants
24 credit hours in the bachelor’s degree of the required field of accounting is needed. The following books are used for the study of forensic accounting:
- Taxmann’s Audit Decoded by C.GPipara
- Bharat’ Forensic Audit by C.A Kamal Garg (insolvency professional)
- Student’s Handbook on Forensic Accounting by Apoorva Joshi
- Loophole games (A /Treaties on text avoidance strategy lies by Smarak Swain.
- Financial Investigation and Forensic Accounting by George A Manning
- Fraud Auditing and forensic ACCOUNTING/ BY Tommie W.Singleton and AARON J. Singleton
Pros and Cons of Forensic Accounting
- It is an innovative field to work in
- Provides gratification
- Satisfactory salary
- Helps to fight organized crime
- Identification of huge money transaction
- Liberty of tax planning
- No rigid format
- Positive public image
- Fraud detecting
- Initiates problem-solving attitude
- Develops a goodwill
- Verbal attacks of lawyers
- Lack of Rigid format
- Irrelevant data at times
- Constant Reconciliation
- Lacks Originality
- Accounting ignores the qualitative element
- Accounting may lead to window dressing
FAQs about Forensic Accounting
What is Forensic Accounting?
Forensic Accounting is a combination of testimony and investigation skills applied to resolve business personal disputes. It involves the knowledge of accounting and business.
What does a Forensic Accountant do?
A Forensic accountant helps in reviewing financial evidence and serving as evidence to the court for resolving financial frauds.
In which kinds of dispute a Forensic Accountant consulted?
Professional malpractice Fraud and white-collar crime Consequential loss Shareholder and partnership disputes Breach of professional and personal contacts Divorce and separation proceedings Business Valuation
Benefit of a Forensic Accountant over a general accountant?
A number of benefits is there in hiring a specialist forensic accountant over an accountant: Independence: Forensic accountants do not undertake the work of accounting, audit, or tax/ work for clients with forensic accounting. Specialization and work experience: wide professional knowledge.