his paper begins by defining forensic accounting and describing differences between it and traditional
accounting and auditing. The paper then explains the role of forensic accountants. This includes
identifying knowledge and skills forensic accountants are expected to possess. Forensic accountants’
opportunities are described along with the organizations that support their work.
Forensic accountants are viewed as a combination of an auditor and private investigator. Knowledge and
skills include the following: investigation skills, research, law, quantitative methods, finance, auditing, accounting
and law enforcement officer insights. Investigation skills will be covered later in the paper. Organizational behavior
and applied psychology knowledge and skills are essential.
Forensic accountants have been employed by the Federal Bureau of Investigation (FBI), Central
Intelligence Agency (CIA), Internal Revenue Service (IRS), Federal Trade Commission (FTC), Homeland Security,
Bureau of Alcohol, Tobacco and Firearms, Governmental Accountability Office (GAO) and other government
agencies. The focus is on what is referred to as white collar crime. This is why financial and other skills are
required.
Outside of government employment, big employers of forensic accountants include financial intermediaries
such as banks and insurance organizations plus divorce attorneys. Forensic accountants often testify in civil and
criminal court hearings. In this capacity, they are serving as expert witnesses. They do not testify as to whether fraud
has occurred. This is the court’s decision. The expert witness presents evidence. Forensic accountants have a
number of organizations that support their work.
Here is the list of key organizations that support forensic accountants work along with the URL to access
them: Association of Certified Fraud Examiners (
http://acfe.com); American College of Forensic Examiners
(
www.acfei.com); Association of Certified Fraud Specialists (
www.acfsnet.org); National Litigation Support
Services Association (
www.nlssa.com); National Association of Certified Valuation Analysts (
www.nacva.com);
American Institute of Certified Public Accountants (
www.aicpa.org); and The Institute of Business Appraisers
(
www.go-iba.org) .