What is Forensic Accounting?

Forensic accounting is the field practice of accounting, which investigates whether firms commit financial fraud. The forensic accountant's role is to analyze and reconstruct financial records to identify fraudulent transactions, then to examine how these transactions occurred to reveal any potential fraudulent activities undertaken by a company. In essence, a forensic accountant helps the company to fight crime.

There are many jobs available for forensic accountants today. For starters, one can go into this profession as an employee. This kind of job would require a bachelor's degree, master degree, or Ph.D. In addition, some companies may hire you on the spot, which could be done after you have passed a rigorous interview process. Nevertheless, most employers prefer to hire an employee with a bachelor's degree.

If you want to work in the forensic accounting field but are not eligible for the above-mentioned positions, you could try private financial forensics auditing firms. These firms are typically hired after an individual has graduated from college and is already working. They are very small firms that hire individuals to perform small jobs that only cover a few areas. The majority of these private firms are run by single individuals who work alone. These companies are usually highly competitive and most employees are given the chance to grow in their chosen profession.

There are also many firms which hire certified public accountants to work in their various departments. Certified public accountants (CPA) are required to have a bachelor's degree from an accredited school; pass the CPA exam; and be licensed by the United States Securities and Exchange Commission (SEC). To be eligible for work with such firms, CPAs must pass the exams and receive the necessary licensing.

After becoming a CPA, individuals can continue to work in the accounting field as an assistant to an accountant or as an independent accountant. They can also start their own firm that specializes in forensic audits, financial disputes, and other economic damages audit cases. There are several companies that hire and train individuals for this line of work. Some forensic auditors work in a government office.

Many individuals are interested in this line of work because they enjoy working with fraud. Fraud is a serious subject that requires high attention to detail and the skill to analyze complicated financial records. Individuals who become forensic accountants must be excellent at uncovering fraud within governmental agencies and law enforcement agencies. These highly confidential financial records must be able to show how an act occurred that brought harm to the entity being suspected of fraud. If not, then the individual conducting the investigation can potentially face severe legal repercussions.

A career in forensics will require an individual to undergo specialized training to prepare them for this type of work. During this time, the prospective forensic accountant will learn how to perform an exhaustive examination of documents and computer files. They will be taught the technical aspects of how these documents were altered, deleted, and combined to create financial statements. This technical knowledge is necessary when it comes to interpreting and deciphering these highly confidential records. Digital forensics is becoming more important as crime continues to increase in society.

An individual who would like to pursue a career in forensic accounting may have some previous education. High school students may be able to find internships at local law enforcement agencies or government agencies. College students may be able to find scholarships to help cover their educational costs. It is also possible to become self-employed and conduct your own investigation on file that can help you in your future job.