What Is Forensic Accounting? Investigating This Specialty

Forensic accounting is an exciting and highly specialized field that combines accounting, investigative skills, and legal knowledge to uncover financial fraud, analyze financial records, and assist in legal disputes. Whether it’s tracking down embezzled funds, detecting fraudulent transactions, or serving as an expert witness in court cases, forensic accountants play a critical role in maintaining financial integrity. 

In today’s world, where financial fraud and corporate scandals frequently make headlines, forensic accountants are in high demand. Businesses, law firms, law enforcement agencies and government bodies all rely on these specialists to detect and prevent financial wrongdoing. But what do forensic accountants do exactly, and how can you pursue a career in this fascinating field? Let’s dive in. 

Understanding Forensic Accounting

Forensic accounting is often described as the intersection of accounting and investigation. Unlike traditional accountants, who focus on preparing financial statements and ensuring compliance with tax laws, forensic accountants are financial detectives. They analyze financial data with a keen eye for anomalies, working to uncover fraudulent activities, resolve disputes, and even assist in criminal investigations. 

Many industries rely on forensic accounting, including: 

• Corporate finance: Detecting internal fraud and misappropriation of funds 
• Law enforcement: Investigating financial crimes such as embezzlement and money laundering 
• Insurance companies: Examining claims for potential fraud 
• Government agencies: Tracking financial misconduct in public organizations 

Key Responsibilities of a Forensic Accountant

Forensic accountants handle a wide range of responsibilities, including: 

• Investigating financial fraud and misconduct: Identifying irregularities in financial records that indicate fraudulent activity 
• Analyzing financial records for litigation and disputes: Assisting in legal cases involving financial matters 
• Tracing hidden assets: Helping in divorce cases, bankruptcy proceedings and corporate disputes 
• Providing expert witness testimony: Presenting findings in court to support legal claims 
• Assisting in insurance claims: Verifying financial details related to claims and identifying fraud risks 

Skills and Qualifications Needed for Forensic Accountants

Forensic accountants need a unique mix of skills and qualifications to excel in their field: 

• Accounting and auditing expertise: A strong foundation in financial principles and auditing techniques 
• Legal knowledge: Understanding of laws and regulations related to fraud and financial crimes 
• Analytical thinking: The ability to spot inconsistencies in financial data and uncover patterns of fraud 
• Attention to detail: A forensic accountant must be meticulous when examining records 
• Professional certifications: Many forensic accountants pursue certifications like: Certified Fraud Examiner (CFE), Certified Public Accountant (CPA), or Certified Internal Auditor (CIA) 

Real-World Applications of Forensic Accounting

Forensic accounting plays a crucial role in real-world financial crime investigations. Some well-known examples include: 

• Corporate fraud cases: The Enron scandal, where forensic accountants helped uncover one of the largest corporate frauds in history 
• Ponzi schemes: Bernie Madoff’s infamous investment fraud was exposed through forensic accounting techniques 
• Embezzlement cases: Detecting and tracing funds stolen from companies or government agencies 
• Money laundering investigations: Unraveling complex transactions used to disguise illegal funds 

How to Become a Forensic Accountant

If forensic accounting sounds like a career you’d love, here’s how you can get started: 

1. Earn a degree: A bachelor’s degree in accounting, finance or forensic accounting is typically required 
2. Gain experience: Many forensic accountants start as auditors or accountants before transitioning into forensic roles 
3. Obtain professional certifications: Earning a CFE, CPA or CIA credential can significantly boost career prospects 
4. Pursue a master’s degree: Specializing in forensic accounting through a graduate program can provide advanced training and open up more opportunities 

Explore the University of Scranton's Forensic Accounting Program

If you’re serious about a career in forensic accounting, choosing the right educational path is key. The University of Scranton offers a specialized Forensic Accounting track within its Master of Accountancy (MAcc) program, designed to prepare students for the complexities of financial investigations and fraud detection. 

If you’re considering a career in this fascinating field, pursuing this specialized master’s degree in forensic accounting is an excellent step toward achieving your professional goals. With expert instruction, flexible online learning, and preparation for top certifications, it’s a smart investment in your future. 

Ready to start your forensic accounting journey? Check out the program today and take the first step toward a career in financial investigation.