How to Become a Forensic Accountant

Forensic accountants investigate financial misconduct and advise on legal and anti-fraud matters. This field offers aspiring accountants a unique opportunity to investigate corporate fraud in various settings, such as law enforcement agencies and courtrooms.

Forensic accountants take a similar path to traditional accounting roles and need most of the same skills. However, they must also develop investigative and legal expertise. They may enter the field with different degree levels and experience. Explore a typical pathway to the career and what this profession has to offer.

Steps to a Forensic Accountant Career

1. Earn a Bachelor's Degree in Accounting (or Related Field): Most accountants need a four-year bachelor's degree at minimum, usually in accounting. Business administration, finance, and even criminal justice degrees may also help candidates qualify.
2. Take Forensic Accounting Courses: Specialized forensic accounting courses provide unique skills and methods to detect fraud, investigate financial crimes, and understand legal procedures.
3. Consider a Master's Degree: While not mandatory, a master's degree offers more specialization opportunities and prepares accountants to pursue leadership positions. These 1-2 year degrees can also help them earn postgraduate credentials.
4. Gain Experience: Forensic accountants typically need professional accounting experience before they specialize. Professional fraud examination certification requires at least two years of fraud-related experience.
5. Consider a Professional Certification: While not required, professional certification can help in the forensic accounting job hunt. You may pursue specialized fraud or financial forensics certifications or even more general accounting credentials.

Required Education for a Forensic Accountant

Like other traditional accounting careers, forensic accountants usually need a bachelor's degree at minimum. A bachelor's in accounting provides the most relevant education, but business administration and finance degrees with a concentration or specialized courses in accounting or forensic accounting can also prepare you for the career path.

While some careers may accept associate degrees, the lack of specialized material at this level makes it harder to access the forensic accounting field with a lower-level education. Some employers only hire master's graduates or certified professionals.

Along with boosting your job opportunities, advanced degrees can improve your earning potential and career progression. They help qualify you for competitive leadership roles and the competitive salaries that often come with them.

Required Credentials for Forensic Accountants

While the forensic accounting industry does not require specific credentials for employment, professional credentials can help. Many employers prefer candidates with postgraduate certifications, such as certified public accountant (CPA), certified fraud examiner (CFE), and certified in financial forensics (CFF) credentials.

These certifications require a combination of education and professional experience.

Optional Certifications and Degrees

Aspiring forensic accountants can give themselves a competitive advantage with a professional certification like the CPA, CFE, and CFF credentials. These certifications help them stand out to employers and clients as experts. To earn these titles, candidates need to demonstrate that they possess ample experience and specialized expertise.

Here are the requirements for each, though they can vary by state:

• The CPA credential from the American Institute of Certified Public Accountants (AICPA) requires a bachelor's degree and 150 postsecondary credits, at least one year of accounting experience, and a passing score on the Uniform CPA Exam. Each CPA needs to renew the credential every 1-3 years and complete a state-specific number of continued professional education (CPE) credits.
• The CFE credential from the Association of Certified Fraud Examiners (ACFE) requires about five years of education (or equivalent experience), two years of fraud-related experience, and a passing score on the CFE Exam. CFEs must renew their credentials each year and earn at least 20 CPE credits.
• The CFF credential from AICPA requires CPA certification and at least 1,000 hours of forensic accounting experience. AICPA offers a pathway to the Global CFF Credential Exam. A CFF must recertify annually and complete at least 20 hours of continuing professional development.

Required Experience for a Forensic Accountant

Specialized accounting roles like forensic accounting usually require relevant experience. According to the ACFE, these professionals typically need 1-3 years of experience in an area like general accounting.

Junior roles in auditing or financial analysis can be useful for their emphasis on reviewing financial records and ensuring compliance. In addition to entry-level jobs, aspiring forensic accountants may gain experience through internships and practicums.

Depending on the employer, you may qualify for a forensic accounting job with less experience if you have a master's or a specialized degree in the field.

Should I Become a Forensic Accountant?

For people seeking a change of pace from traditional accounting roles, forensic accounting offers a mix of financial analysis, investigation, and legal work. Professionals in this field can pursue work in fraud detection, financial crime investigation, and legal system support.

However, the pathway to this field may require more time and experience than other accounting roles. A forensic accountant often needs a bachelor's degree in accounting at minimum, plus specialized forensic accounting education, between 1-3 years of fraud-related experience, and a professional certification.

Here are some of the pros and cons of forensic accounting:

The Job Hunt

The process of finding a forensic accounting job can begin during your studies, as your professors, internships, and school's career services department all make excellent resources. You can attend job fairs, join professional organizations, and network while you pursue your degree.

After graduating, you can look to accounting-specific job boards for the most recent and relevant job postings. Here are some of the best options:

• ACFE Job Board: ACFE members can access the organization's job board, where they can post resumes and receive job alerts for specialized opportunities.
• Association of Chartered Certified Accountants Careers: This job board hosts opportunities for accounting and finance professionals from around the world. Users can explore career advice and filter tens of thousands of job posts by sector and role.
• American Accounting Association Career Center: The AAA career center offers thousands of accounting job posts to filter by location, focus area, and role type. The AAA also offers career resources and a community network.
• eFinancial Careers: Home to more than 28,000 finance-related job postings, eFinancial Careers allows users to sort opportunities by location, title, sector, and experience. Job-seekers can also learn about companies and industry news.

Upward Mobility

A career in forensic accounting provides you with insight into financial regulations, corporate fraud, and the legal process surrounding financial crime. You can leverage your experience in this field to advance into specialized or leadership roles in the finance field, such as:

Financial Risk Specialist

These professionals help organizations minimize their financial exposure. They analyze the market, company finances, and opportunities to quantify risk and improve decision-making. While financial risk specialists focus more on proactive measures than forensic accountants, both roles investigate risk.

Median Annual Salary (May 2024): $106,000

Financial Manager

Financial managers monitor organizations' financial health and activities. They develop company-wide strategies to help businesses meet financial goals. Financial managers focus more broadly than forensic accountants, but both professions require a deep knowledge of financial regulations and financial management.

Median Annual Salary (May 2024): $161,700

Questions About the Forensic Accountant Career Path