In previous articles, you read about qualifications needed to be a forensic accountant, types of fraud cases they analyze and help investigate, and tools and techniques they use for analysis. What opportunities does the field of forensic accounting hold? This month’s article emphasizes several areas of growth in this field. I will examine several subsections of forensic accounting, which may or may not involve fraud, and their potential growth in the forensic accounting field.

Hatch (2023) found that forensic accounting is an area of high interest among accounting majors as well as nonaccounting majors! When asked to rank different fields of accounting, accounting majors ranked forensic accounting first. Nonaccounting majors ranked accounting involving law enforcement assistance (a type of forensic accounting) first! This research also found that students’ interest in taking a forensic accounting course was high among both accounting and non-accounting majors.

Tax accountant – Forensic accountants are uniquely qualified to assist in tax disputes. They understand IRS procedures and regulations and have knowledge of tax fraud schemes.  DiGabriele et. al. (2024) found that tax fraud covers a large area of accounting practice. Valuation work may be needed in considering estate and gift taxes. Research findings conclude that courts use analysis by forensic accountants in settling cases.

Litigation specialist – Forensic accountants assist attorneys if the case needs quantification, for example, on damages incurred. The forensic accountant also can testify as an expert witness in discussing proper methodology for the calculation of damages or compensation. In insurance claims, forensic accountants determine and quantify losses. They may assist in trademark and patent claims. They can also uncover hidden assets in divorce cases. (Mert, 2022).

Computer forensics - New areas in the forensic accounting continue to emerge because of increased technology, and computer forensics is one of the fastest growing subspecialities in forensic accounting. Because of this, many forensic accountants have also acquired IT skills and certifications to increase their value in this area. Almost every company today has an online presence, so engagements in computer forensics include investigating data breaches, testing client controls for network attacks and protection of personal identification information (PII), use of AI tools in fraud detection, and extracting and securing digital evidence in investigations (Kearns, 2015).

As the research has shown, students find the field of forensic accounting to be a fascinating area of accounting. In recent years, I have seen a rise in the number of students who are specializing in this area of accounting in their degrees.  Personal and business valuation services have grown, and the accounting profession has responded, with several organizations offering certifications. Civil litigation claims remain high, requiring financial analysis support for attorneys. The forensic accounting field has also evolved in response to fraud prevention and antifraud legislation. Additionally, accounting fraud continues to occur despite legal regulations, so I think the future of forensic accounting looks bright!

*You may want to look up the following references in the PG Library; they have some interesting information about forensic accounting!

References

DiGabriele, J. A., Antinozzi, H. S., Russo, C., & Kunz, P. W. (2024). Taxation and Forensic Accounting: Informing Research and Practice. Journal of Forensic Accounting Research, 9(1), 213–233. https://doi.org/10.2308/JFAR-2023-021

Hatch, L. (2023). Who Is Interested in Forensic Accounting? Journal of Accounting & Finance (2158-3625), 23(2), 111–127. https://doi.org/10.33423/jaf.v23i2.6091

Kearns, G. S. (2015). Computer Forensic Projects for Accountants. Journal of Digital Forensics, Security & Law, 10(3), 7–34.

Mert, İ. (2022). Investigation Techniques, Methods, Types, and Increasing Impact of Forensic Accounting in Digital Period. Journal of Finance Letters / Maliye Finans Yazıları Dergisi, 118, 13–32. https://doi.org/10.33203/mfy.1084274

In case you haven’t noticed, the forensic accounting field has many areas of specializations. There are many paths you can follow. Do you want to focus on accounting, valuation, or investigating? This month, we will explore several certifications that are available in this field.

INVESTIGATIVE:

CFE - You can obtain the Certified Fraud Examiner certification through the Association of Certified Fraud Examiners. Membership in the ACFE (including student memberships) includes the Fraud Examiner’s Manual. The exam questions are drawn exclusively from this manual, so you have all materials needed to study for the exam!

CAFS - The Certified Anti-Fraud Specialist certification is one of the certifications available from the Association of Certified Anti-Money Laundering Specialists. The CAFS certification consists of five modular certificate courses, combining theory with real-world application followed by an exam. This certification is especially suited for fraud prevention careers in banks and non-bank financial institutions.

Registered Forensic Investigator (RFI) - The American Board of Forensic Accounting (AFBA) offers this certification. Requirements include two years of applicable experience and a bachelor’s degree. The exam covers the same material as the Certified Forensic Accountant credential (see below), also offered by the ABFA.

ACCOUNTING:

AICPA – CFF – The Certified in Financial Forensics certification is offered by the American Institute of Certified Public Accountants.  You must first hold a Certified Public Accountant license. This shows that you have a solid foundation in accounting principles.

ABV – The Accredited in Business Valuations certification is also offered by the AICPA. You must also have a CPA license to pursue this certification. The AICPA website outlines the additional requirements for this certification, including appropriate experience and passing a two-part exam.

CRFAC – The American Board of Forensic Accounting (ABFA) offers the Certified Forensic Accountant certification. Prerequisites include a CPA license and two years of accounting or auditing experience in addition to taking the exam.

CFB – If you do not hold a CPA license, you may pursue the Certified Forensic Bookkeeper, offered by the ABFA. Like the RFI requirements, the exam also covers the same material as the Certified Forensic Accountant credential.

Professional organizations that sponsor these certifications offer not only educational and training opportunities but also networking opportunities so that you can interact with others who share your field of interest in forensic accounting. As you can see, the investigative certifications provide a faster path to becoming a forensic accountant!

References

American Board of Forensic Accounting, www.abfa.us

American Institute of Certified Public Accountants, www.aicpa.org

Association of Certified Anti-Money Laundering Specialists, www.acams.org

Association of Certified Fraud Examiners, www.acfe.com