When financial records don’t add up, forensic accountants are often the ones called in to figure out why.
Forensic accounting is the practice of reviewing financial records to investigate fraud, embezzlement, money laundering, and other financial crimes. These professionals combine accounting knowledge with investigative skills to uncover what really happened.
Fraud examination is closely related to forensic accounting, but it has a narrower focus. While forensic accounting covers a wide range of financial investigations, fraud examination centers specifically on identifying, investigating, and helping prevent fraud. In practice, the two fields often overlap.
Forensic accountants examine financial records for irregularities, inconsistencies, and signs of misconduct. Depending on the case, their work may include:
Some forensic accountants work for accounting firms, corporations, insurance companies, or financial institutions. Others work with government agencies or law enforcement.
One reason forensic accounting appeals to many students is that the work can vary so much from case to case. Forensic accountants may investigate crimes such as:
Other types of financial crimes include:
Wondering what it takes to become a forensic accountant or how they help solve financial crimes? We’ve got answers to the most common questions about this field below:
What’s the difference between forensic accounting and fraud examination?
While the two are closely related and often overlap, forensic accounting is a broader field that involves the investigation of financial discrepancies and disputes, often for legal purposes. Fraud examination is a more specialized area that focuses on detecting, investigating, and preventing fraud. Many professionals are trained in both areas.
What qualifications do you need to become a forensic accountant?
Many forensic accountants hold a Certified Public Accountant (CPA) license and some also pursue a Certified Fraud Examiner (CFE) credential. A bachelor’s degree in accounting or a related field is typically required, and many forensic accountants pursue a master’s degree in accounting or business to deepen their expertise and advance their careers.
Where do forensic accountants typically work?
Forensic accountants work in a wide range of settings, including public accounting firms, law enforcement agencies, insurance companies, government organizations, and large corporations. Some also work as independent consultants or expert witnesses in court.
What types of crimes do forensic accountants investigate?
They investigate financial crimes such as embezzlement, insurance fraud, money laundering, tax evasion, bribery, securities fraud, and corporate misconduct. Their work often plays a critical role in legal proceedings and regulatory actions.
Whether you’re interested in forensic accounting or another accounting path, The University of Texas Permian Basin offers online programs designed to help students build strong accounting knowledge and career-ready skills. Options include:
Not sure which is the right fit for you? Contact us with any lingering questions, and when you’re ready, your application is just a click away.
Sources:
https://www.investopedia.com/terms/f/forensicaccounting.asp
https://www.investopedia.com/terms/w/white-collar-crime.asp#toc-money-laundering
Other articles you may be interested in:
When you hear the word “accountant,” who comes to mind? Someone balancing spreadsheets and filing taxes? If so, you’re on the right track. But there’s more to it. Within the field of accounting, one credential stands apart: the Certified Public Accountant (CPA). While both accountants and CPAs manage finances, advise clients, and ensure the accuracy…
Picture this: You’re a junior accountant, and your manager asks you to tweak a report to make the numbers look better. The request sounds harmless enough—just a small tweak—but you know it’s not above board. Now you’re stuck. Do you follow orders and risk crossing an ethical line, or do you push back and risk…
You’ve always been an analytical thinker. A problem solver. Maybe a math whiz, too. There’s a career that matches your strengths. Certified Public Accountants—or CPAs—excel in these qualities. Let’s explore why a CPA is no ordinary accountant and what it takes to become one. Want to Be a CPA? Here’s What You Need to Know …