Archive for July, 2011
Far from the usual monotonous stereotypical accounting job, forensic accounting is more similar to the work of a private investigator with a financial twist. Since the September 11th tragedy, forensic accounting has played a major role in pursuing terrorist all over the world.
Forensic accounting is not a new profession. A type of forensic accounting can be traced as far back as 1817 to a court decision related to a bankrupt estate. A Scottish accountant distributed a circular to advertise his proficiency in arbitration support in 1824. In the late 1800s and early 1900s, articles discussing expert witnessing, awards, and evidence arbitration began to appear. A partner in an accounting firm in New York City, Maurice E. Peloubet, is thought to have been the first to print the phrase “forensic accounting” in 1946 in an article.
Here are some more interesting facts about forensic accounting:
1. Forensic accounting helped Elliot Ness finally put Al Capone behind bars for by charging him with tax fraud.
2. A job in forensic accounting requires a bachelor’s degree in accounting and usually Certified Public Accountant (CPA) certification. Certification as a Certified Forensic Accountant (CrFA) or a Certified Fraud Examiner (CFE) may also be helpful. Forensic accounting certification is best from accredited schools.
3. Most forensic accountants typically earn between $30,000 and $60,000 a year at the beginning of their career. At superior levels, especially in the private sector, forensic accountants can earn as much as $125,000 to $150,000 a year with just a few years of field experience.
4. Forensic accounting requires legal knowledge to be able to identify potential fraud and strong investigative accounting abilities. In addition, they also possess communication skills necessary to be convincing. Forensic accountants must be remarkably curios, skeptical, observant, persistent, and be able to think creatively.
5. Forensic accountants go anywhere investigative accounting is required, which can range from private corporations or organizations that help companies take care of fraud, or the suspicion there of, to government agencies such as police departments, the CIA or the FBI.
6. Forensic accountants must have the skills of both an accountant as well as a private investigator with analytical abilities, including knowledge of accounting procedures and proper practices.
Forensic accounting just a bunch of paperwork and solving equations, it is much more in-depth than that. It involves looking beyond such things and understanding situations. Forensic accounting surpasses simple accounting work and detective business; it is a mixture that will surely be in demand for as long as humans walk the earth.
The nature of the work that a forensic accountant does offers the experience of a lifetime in addition to a number of different opportunities to discover new things every day. Not only do you have the benefit of not being tied down to single assignment or location, but you also get to travel around the world for your job.
Dena White often writes about program requirements and course expectations for a master of accounting degree.
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