How to Become a Forensic Accountant Online

Learning how to become a forensic accountant could be a great career choice for you if:

• You have a passion for researching financial crimes
• You want to work with law firms, government agencies, and corporations to fight financial fraud

Forensic accountants play a critical role in uncovering digital evidence to be used in trials. But becoming a forensic accountant is more than just knowledge of a balance sheet. Here’s what you need to know:

Forensic accountants are trained to analyze financial transactions and records. They also know how to interpret them for legal proceedings. They meticulously provide accurate information that will stand up against different opinions of data.

In this article, we’ll cover all you need to know about a forensic accountant. Read on to learn about the salaries, statistics, and more helpful information about this career.

Article Navigation: How to Become a Forensic Accountant Online | How Long Does It Take To Become a Forensic Accountant? | Types of Online Forensic Accounting Degrees | Accreditation | Become a Certified Forensic Accountant | CFE Requirements | Career Overview | Finding a Job as a Forensic Accountant | Work Environment | FAQs | Find a Forensic Accounting Degree Online Today

8 Steps to Become a Forensic Accountant Online

If you want to know how to become a forensic accountant, here are some steps you can take:

1. Enroll in one of the best bachelor’s degrees in accounting online that the AICPA approves. Concentrate on forensic accounting and fraud investigation areas if you want to specialize.
2. Inexperienced job seekers should choose programs that provide career experience or part-time work in accounting-related fields.
3. Consider an affordable, accredited master’s in forensic accounting online that will fulfill the educational requirements for CPA licensing.
4. To become a CPA, you need to complete the requirements. This means two years of experience in accountancy-related work.
5. Register for the CPA examination six months before you want to take it.
6. Pass the CPA exam.
7. Search for a forensic accounting work position or get certified as a forensic accountant.
8. After you are hired, complete on-the-job training.

How Long Does It Take To Become a Forensic Accountant Online?

If you’re wondering “how hard is it to become a forensic accountant?” the following will give you an overview of what to expect. Knowing how to get into forensic accounting will allow you to plan accordingly.

To begin with, the time it takes to become a forensic accountant varies. Generally, it depends on your education, professional experience, and the credentials you pursue. Here’s a general timeline:

Bachelor’s degree (4 years): Most aspiring forensic accountants start with a bachelor’s degree in accounting, finance, or a related field. Some colleges offer specialized online forensic accounting degree programs.

Professional experience (1-3 years): Since you’ve earned your bachelor’s degree, gain relevant work experience. Pursue this in accounting or auditing before shifting to forensic accounting. This experience can qualify you for professional certifications. Also, it helps develop a deeper knowledge of financial systems and processes.

Professional certifications (a few months to 1 year): You don’t need a special license to work as a forensic accountant. However, you may wish to pursue the Certified Fraud Examiner (CFE) credential designation after you complete your education. A CFE designation may boost your income by 30% compared to those without the designation. Other certifications include:

• Certified Forensic Accountant® Credential (CRFAC®)
• Certified in Financial Forensics (CFF) credential. Offered by the American Institute of Certified Public Accountants (AICPA).

The preparation and exam process for certifications can take several months. Overall it depends on your level of experience and commitment.

Master’s degree (optional, 1-2 years): Pursue a master’s degree in forensic accounting, accounting, or a related field. This graduate degree enhances your knowledge and career opportunities. It’s not generally required. However, can be beneficial. Particularly for those seeking senior or specialized roles.

It takes around 5 to 8 years to become a forensic accountant. That includes time spent on education, professional experience, and certifications. But this timeline can vary based on your experience and career goals.

Types of Online Forensic Accounting Degrees: Which is Best?

Online Bachelor’s in Forensic Accounting

An online bachelor’s degree in forensic accounting is a common route to becoming a forensic accountant. A forensic accounting program provides a strong foundation in accounting principles and procedures. Also, criminal justice topics like law, evidence, and fraud analysis.

If you already work in accounting, law enforcement, etc., consider pursuing a certificate or diploma in forensic accounting instead of a full degree. These shorter programs take less time than a four-year degree. Plus, they give you the specialized knowledge to start your career as a forensic accountant.

As stated earlier, make sure the school you select is AICPA-accredited.

Online Bachelor’s in Accounting

Another necessary degree to have if you want to get into a forensic accounting career is a bachelor’s degree in accounting. An accounting degree allows you to know accounting basics and gives you a strong foundation in math and business. Also, having this can help with another career option since accountants are needed everywhere worldwide.

Online Bachelor’s in Finance

A bachelor’s degree in finance is another option for a career in forensic accounting. Of course, a finance degree may not be directly focused on accounting principles. However, it still provides a strong foundation in financial management, analysis, and decision-making. This knowledge is beneficial for the financial aspects of forensic accounting. For example, detecting fraud, embezzlement, or other financial crimes.

Finance degree programs cover topics such as:

• Financial statement analysis
• Corporate finance
• Investments
• Financial markets

Want to tailor your finance degree toward forensic accounting? Then consider elective courses in accounting, criminology, or criminal justice. Some programs even offer specialized forensic accounting courses or focus.

Upon completing a finance degree, you may need additional certification in forensic accounting. Do this by pursuing the Certified Fraud Examiner (CFE) or the Certified in Financial Forensics (CFF) credential. These credentials demonstrate your expertise in the field and can be a valuable asset to your career.

Online Bachelor’s in Criminal Justice

It is true that you need a degree in accounting or finance to become a forensic accountant. But a degree in criminal justice can be beneficial for this career. Forensic accountants are called upon to investigate white-collar crimes. Having a background in criminal justice provides valuable skills and knowledge in this area.

A criminal justice degree with a focus in forensic accounting is a valuable asset. It combines:

• Core accounting and finance knowledge required for the profession
• Investigative and analysis skills gained from studying criminal justice

This combination of skills and knowledge prepares you well for a career in forensic accounting. This combination of expertise will make you more marketable overall. It could lead to jobs in the field of law enforcement or private investigations.

Not sure if you want to focus solely on accounting or finance? A degree in criminal justice with a forensic accounting focus may be the perfect option for you. This degree provides a necessary accounting and finance foundation. At the same time, it provides a strong understanding of the justice system and processes.

Accreditation for Online Forensic Accounting Programs

To work as a forensic accountant, you’ll need a bachelor’s or master’s in forensic accounting. When you pursue a career in forensics accounting at college, you may also specialize in accounting or finance while adding courses in criminal justice to your curriculum.

No matter which degree you decide on, it’s essential to ensure that the online program meets quality standards set by recognized accrediting agencies. You can determine the quality of a program by researching its accreditation status. This assures that you receive a quality education. In addition, it enhances the integrity of your degree. Specifically, in the eyes of employers and other academic institutions.

AICPA

First, let’s look at the American Institute of Certified Public Accountants (AICPA). The AICPA offers the CFF credential to qualified CPAs. However, the AICPA itself does not accredit academic programs. It does provide guidelines and resources for accounting programs to align with industry standards.

When considering an online forensic accounting degree, look for programs that follow AICPA guidelines. They should incorporate forensic accounting courses that align with the CFF exam’s content. That way, you are prepared for the CFF exam and a career as a forensic accountant.

AACSB

Next, we’ll examine the Association to Advance Collegiate Schools of Business (AACSB). AACSB is a globally recognized accrediting agency for business schools and accounting programs. We recommend choosing a program accredited by the AACSB. AACSB accreditation ensures rigorous academic standards. Also, these programs are peer-reviewed by experts in the field.

AACSB-accredited programs typically offer an extensive curriculum. They include accounting and finance courses, of course. But also, specialized forensic accounting courses. These programs incorporate:

• Real-world case studies
• Industry-relevant projects
• Opportunities for internships or practical experience

These benefits are priceless in preparing for a successful career in forensic accounting.

Become a Certified Forensic Accountant

After acquiring the education and experience needed to become a forensic accountant, you might need to pursue additional certifications to work as one.

These are typically voluntary but could increase your marketability.

CFE Certification

Certified Forensic Examiner is an advanced designation offered by the Association of Certified Fraud Examiners, which shows that an individual has met all forensic accounting requirements necessary for this credential.

These requirements include passing three exams with at least 75% within two years after completing their program.

Enrolled Agent Status

Enrolled Agent Status allows accountants who practice national taxation before the Internal Revenue Service (IRS) or similar agencies offering federal tax consultation services.

They can represent clients before the IRS during audits and appeals hearings, negotiate settlement agreements and prepare any tax-related documents.

Certified Public Accountant Certification (CPA)

CPAs must pass an exam administered by their state board of accountancy and are required to continue their education to maintain licensure. If you want to specialize in forensic accounting, you must become certified as a CPA.

Becoming a CPA will show employers you have the proper skills and knowledge needed for the job. Additionally, pursuing other certifications such as the CFE can help set you apart from other applicants and demonstrate your commitment to the field.

CRFAC Certified Forensic Accountant Credential

Next up is the CRFAC (Certified in Financial Forensics Credential). The CRFAC is a prestigious certification for forensic accountants offered by the ACFE. Here are some key facts about this program:

• Demonstrates an accountant’s expertise in financial forensics. For instance, fraud prevention, detection, and investigation
• Considered a respected and valuable asset in the industry
• Available to all accountants seeking further knowledge and skills in forensic accounting
• Provides training on advanced topics in forensic accounting. Think data analysis and expert witness testimony
• Can help enhance forensic accounting job outlook and career advancement in the field.

To earn the CRFAC credential, candidates must meet the following requirements:

• Be a member in good standing with the ACFE.
• Possess a minimum of two years of experience in financial forensics.
• Complete the required CRFAC application process. That includes submitting record of education and experience.
• Pass the CRFAC exam, which covers various areas of financial forensics. Areas include fraud prevention, detection, investigation, and remediation.

Earning the CRFAC credential can help you stand out as a forensic accountant. It showcases your expertise and commitment to fighting financial fraud.

Certified Internal Auditor Credential (CIA)

The Institute of Internal Auditors (IIA) offers the Certified Internal Auditor (CIA) credential. CIA is a globally recognized certification for internal auditors. It’s not specifically focused on forensic accounting. But earning the CIA designation can enhance your career prospects as a forensic auditor. It demonstrates your expertise in internal auditing and control systems.

To become a CIA, candidates must meet the following requirements:

• Hold a bachelor’s degree or equivalent from an accredited college.
• Possess a minimum of two years of internal audit experience or equivalent.
• Complete the required CIA application process. The process includes submitting records of education and experience.
• Pass the three-part CIA examination. This exam covers internal audit basics, practice, and business knowledge for internal auditing.

CIA certification further demonstrates your competence and dedication to the field. Also, other relevant credentials like the CPA or CFE, can do the same.

CFE Requirements

CFE Credential Benefits

The Certified Fraud Examiner credential is for those who specialize in preventing fraud. Obtaining the CFE credential offers several benefits, including:

Enhanced credibility: The CFE designation demonstrates your expertise in fraud examination. It typically increases your credit among colleagues, clients, and employers.

Expanded job market: CFEs are in high demand in industries such as government, law enforcement, and private businesses.

Professional networking: As a CFE, you become part of a global community of anti-fraud specialists. Networking and learning from experts in the field will help you build connections and your career.

Access to resources: Included with the ACFE membership cost is access to a wealth of resources. In this case, training materials, research, and publications related to fraud analysis.

Increased earning potential: CFEs enjoy higher salaries compared to their non-certified counterparts. This gap reflects the value of their specialized skills and knowledge.

Certified Fraud Examiner Exam

The CFE Exam is a crucial component of the certification process. It assesses your knowledge and understanding in four main areas:

1. Fraud Prevention & Deterrence
2. Financial Transactions & Fraud Schemes
3. Investigation
4. Law

The exam consists of 400 multiple-choice questions and is offered online. Candidates must score at least 75% on each section to pass the exam. Before attempting the exam, candidates must first meet the following eligibility requirements:

• Be an ACFE Associate Member in good standing.
• Possess a minimum of a bachelor’s degree or equivalent from an accredited institution.
• Have at least two years of experience in a field related to fraud examination.
• Agree to abide by the ACFE’s Professional Ethics Code.

CFE Certification Cost

The cost of obtaining the CFE certification varies depending on your membership status with the ACFE and the selected exam preparation method. The typical costs include:

• ACFE Membership: The annual membership fee ranges from $25 for student members to $195 for professional members.
• CFE Exam Prep Course: The ACFE offers a self-paced, online exam preparation course for $ 849.60 (members) or $1,062 (non-members). This course includes study materials and access to the CFE Exam.
• CFE Exam Fee: If you choose not to enroll in the CFE Exam Prep Course, you must pay a separate exam fee of $796 (members) or $995 (non-members).

Keep in mind that these costs may be subject to change, and additional fees may apply to international candidates. Be sure to consult the ACFE website for the most up-to-date pricing information.

What to Expect After You Become a Forensic Accountant

Forensic accounting is a specialized field of accounting that involves:

• The inquiry, analysis, and explanation of financial information
• Detecting, preventing, or resolving cases of financial fraud, embezzlement, or other financial misconduct

Forensic accountants are trained to:

• Use their accounting, auditing, and analysis skills
• Analyze financial records
• Trace assets
• Identify disparities
• Provide expert opinions for use in legal proceedings. Or, to assist institutions in enhancing their internal controls and compliance measures.

That is the basic forensic accountant definition. Learn what they do in the sections below.

What does a Forensic Accountant do?

What is a forensic accountant, and what do they do? The following provides an in-depth look at what you can expect in this field:

Examining financial fraud: They explore financial records and transactions to identify signs of fraudulent activities. For example, embezzlement, insider trading, or money laundering. An anti-money laundering (AML) investigator’s salary is roughly $81,410.

Litigation support: They act as expert witnesses in court cases. Also, they provide consultation to legal teams regarding finance matters. They can quantify economic damages and assess the financial impact of contract disputes. Or, evaluate the financial aspects of divorce.

Dispute resolution: Forensic accountants assist in resolving disputes between parties. They do this by providing an unbiased analysis of financial facts. Then they present their findings in a clear manner.

Business valuations: Forensic accountants can determine the value of a business or specific assets for various purposes. For instance, acquisitions, divorce settlements, or partnership disputes.

Bankruptcy and insolvency: Forensic accountants assess the financial health of a company facing bankruptcy. Generally, they identify fraudulent transfers and assist in the recovery of assets.

Compliance and risk management: They may help institutions in a variety of ways. One way is by evaluating and improving internal controls. They might also assess risk management processes, and compliance with financial regulations.

Cybercrime investigations: Because of cybercrime, forensic accountants work with the CISA on cases. These include digital fraud, like tracing cryptocurrencies used in illicit activities. Also, examining data breaches that result in financial losses. The average CISA salary is about $77,250.

Forensic Accounting Qualifications

Hard Skills

Accounting Expertise: The experience requirements vary depending on your job and employer. Some entry-level forensic accounting jobs may accept recent graduates. Nevertheless, employers search for certified accountants with accounting experience. Therefore, a solid foundation in accounting principles, tax laws, and financial reporting is crucial. You typically need a degree in accounting or a related field. Afterward, the CPA or CFE certifications can greatly enhance your ability.

Criminology Knowledge: CPAs or CFE candidates require at least two years of public accounting experience. However, some states accept industry or government accounting knowledge instead. Work experience for CFEs can include:

• Fraud detection
• Deterrence in accounting and auditing
• Criminology and sociology
• Loss prevention
• Law

Furthermore, knowing the psychology behind crime will help you identify suspicious patterns and behaviors.

Computer Science and Information Technology: Proficiency in accounting software programs, such as Microsoft Excel, QuickBooks, etc., is essential. Also, knowledge of databases, programming languages, and data analysis tools. For example, SQL, Python, or R. These enable you to process and analyze large datasets efficiently.

Cyber Security Skills: Financial crimes increasingly involve digital components. Knowing cybersecurity principles, digital forensics, and encryption methods will be advantageous. Consider taking courses or pursuing certification in these areas.

Legal Knowledge: You must know laws and regulations related to financial crimes and legal processes. This information helps you collaborate with attorneys and law enforcement. Also, consider coursework, a law degree, or the Certified in Financial Forensics (CFF) credential.

Soft Skills

Critical Thinking: It’s essential to have the ability to analyze complex financial data. Also, identify anomalies, and draw logical conclusions.

Communication: Strong written and verbal skills are vital. You must present your findings to stakeholders, such as attorneys, judges, and executives. This includes the ability to convey complex information in a clear and concise manner.

Attention to Detail: The accuracy of your work is critical in forensic accounting. Meticulousness and a keen eye for detail are essential.

Problem-Solving: Forensic accountants must approach problems from different angles. They must find creative solutions to uncover financial irregularities or fraud.

Collaboration and Interpersonal Skills: You’ll often work with attorneys, law enforcement, and other professionals. The ability to build and work effectively in a team is crucial.

When crafting your resume, emphasize these hard and soft skills. They showcase your capacity for a forensic accounting role. Include specific examples of your experience and achievements to demonstrate your expertise in each area.

Applying to Forensic Accounting Jobs

Forensic accountants specialize in identifying and analyzing financial discrepancies. Like, fraud and other white-collar crimes. They use their expertise to investigate financial records, uncover fraudulent activities, and provide expert testimony in legal proceedings. Typical job duties of a forensic accountant include:

• Analyzing financial records and statements for disparities.
• Investigating possible cases of fraud, embezzlement, or other financial crimes.
• Collaborating with law enforcement agencies, attorneys, etc., during investigations.
• Preparing reports and presenting findings to stakeholders.
• Providing expert testimony in court proceedings, arbitration, or mediation.
• Assessing and recommending improvements to internal controls and risk management processes.
• Conducting due diligence for mergers, acquisitions, or other transactions.

Best websites to find forensic accountant jobs

• eFinalcialCareers
• American Accounting Association
• Association of Certified Fraud Examiners
• Indeed
• Linkedin
• iHireAccounting
• Accounting Jobs Today
• Accounting Crossing
• Association of International Certified Professional Accountants
• CareersinAudit

Work Environment for Forensic Accountants

Forensic accountants may work for other financial companies such as public accounting firms, insurance businesses, or banks.

How To Become a Forensic Accountant for the FBI

Forensic accountants can testify in court as expert witnesses in fraud or embezzlement cases because of their distinct talent set. And, they may also collaborate with law enforcement during investigations. Forensic accountants are sometimes employed directly by the Federal Bureau of Investigation (FBI).

The forensic accountant’s working environment can be demanding. The following will give you an idea who hires forensic accountants, as well as where do forensic accountants work:

• Forensic accountants may also work in several areas in the fight against financial fraud, including detection, investigation, and prosecution. These experts can perform regulatory compliance, financial analysis, case accounting investigation, and litigation support.
• Firms frequently employ forensic accountants to guarantee regulatory compliance and prevent fraud by enhancing security in the corporate world.
• Forensic accountants may follow money trails and prevent employee wrongdoing in their investigations. Forensic accountants frequently discover fraudulent claims in the insurance sector. In contrast, bankers and financial experts may look at various white-collar offenses, including money laundering and embezzlement.
• Some law firms employ forensic accountants to assist with litigation support: offering expert witness testimony or counsel on bankruptcy, malpractice, and contract disputes are typical.

Average Salary of a Forensic Accountant: How Much Do Forensic Accountants Make?

According to BLS.gov salary data, forensic accountants earn an average of $77,250 per year, with a range of $47,970-$128,970 between the lowest and highest earners.

Forensic Accounting Salary

Location, sector, role, and qualifications determine the forensic accountant salary. The BLS notes that the most significant pay difference by location is seen in Chicago, New York, and Washington, D.C.

Education and experience also influence salary rates. According to the BLS, a bachelor’s degree in forensic accounting receives $61,930 per year.

First, let’s look at electrical and electronics engineers employed in the area of digital evidence. They can earn an average annual salary of $101,780. Tax examiners and revenue agents may investigate financial fraud for government agencies. This government accountant salary is $56,780.

Forensic accountants employed by the FBI receive salaries of roughly $70,000 per year. But it depends on their level of education and experience.

Check out the table below. It illustrates the average forensic analyst salary of accountants depending on their experience levels.

A fraud investigator salary averages $59,380, according to BLS.gov.

Benefits of Being a Forensic Accountant

Being a forensic accountant has plenty of benefits. They include:

• Work in several industries, including public accounting, corporate accounting, government, and law enforcement.
• Investigate financial crimes, such as embezzlement, money laundering, and tax evasion.
• Earn a higher salary than other accountants.
• Help people and organizations by uncovering evidence of financial wrongdoing.
• Job security and stability.
• Provide forensic accounting services that are transactional or compliance-based.
• Work in most countries – Forensic accountants often work as consultants for companies or organizations in different countries.

Drawbacks of Being a Forensic Accountant

Forensic accounting careers can have their drawbacks. Some of them include:

• Forensic accountants are under-appreciated – Many people do not understand what forensic accountants do and how vital their work is.
• Long working hours – Forensic accountants sometimes work long hours because they have assignments that require a lot of time to prepare and finish. These may include court cases or reports for clients.
• Forensic accounting can be dangerous because they investigate and provide testimony against criminals.
• Forensic accountants sometimes have to testify in court.
• The salary of a forensic accountant isn’t as high compared to other careers with similar education requirements and years spent in school/training for that field.
• There is little room for advancement or promotion since most companies hire on experience rather than educational background.

FAQs

Is specialization in forensic accounting possible?

Forensic accountants can specialize in many areas of interest. For example, they might work with the government to investigate fraud cases by analyzing financial statements and company records. Forensic accountants can also specialize in computer forensics, bankruptcy fraud, insurance claims, and personal injury.

Is being a CPA necessary to become a forensic accountant?

Yes. You need to obtain your CPA license to work as a forensic accountant. Certifications such as the CR.FA, CFE, or CFF can help you find work by allowing you to specialize in particular areas of study.

What is the typical work week for a forensic accountant?

Forensic accountants work 40 hours a week. When preparing for a court appearance or trial and during tax season, overtime is frequently necessary.

How many years does it take to begin a forensic accountant career?

Becoming a forensic accountant can take 4 to 6 years, or longer, depending on what you want to do.

Is forensic accounting hard?

Forensic accounting requires commitment and dedication. If you are considering becoming a forensic accountant, it’s essential to understand that you need to be very detail-oriented. It takes time, learning, and years of experience to master and become an expert in this field.

What is the difference between CPA and forensic accounting?

A forensic accountant utilizes accounting, auditing, and investigative skills to conduct investigations in case of theft or fraud.

A CPA (certified public accountant) is a respected financial adviser who has completed the rigorous CPA Exam and has met job experience criteria before being authorized.

Become a Forensic Accountant with an Online Degree Today

Choosing a career as a forensic accountant offers numerous benefits. Think about the chance to work in a specialized field that combines accounting, finance, and law. As a forensic accountant, you’ll play a crucial role in uncovering financial fraud. You’ll even assist in legal proceedings. This unique career path offers mental stimulation and also the potential for job growth and security.

Do you want to begin your journey in forensic accounting or related fields? GetEducated is an invaluable resource. This platform provides information on accredited online programs in all relevant areas. You can find the best program to suit your needs and career goals by exploring the options available.

Whether you’re interested in pursuing a degree in accounting, finance, or criminal justice, GetEducated will help you. Start your journey today! Make informed decisions about your educational path. Unlock the potential of a rewarding career in forensic accounting today!