According to Toby J. F. Bishop, CFE, CPA, FCA and president and chief executive of the Association of Certified Fraud Examiners based in Austin, Texas, forensic accountants have training and experience in many areas. These can include determining damages in contract disputes, intellectual property infringement, environmental claims and estate and family disputes. Some also have qualifications as economists and statisticians involved in the complex modeling of damages.

�The field continues to grow, particularly as more small firms establish practices to serve their local communities,� he says. �It�s a fairly mature market that continually reinvents itself to address those areas of practice most in demand.�

Chicago-based Don Svendson, Midwest regional managing partner for financial advisory services at Deloitte and the Midwest practice leader for the firm�s forensic and investigative services practice, says the demand is wherever the large companies are (�Pretty much every city in the country�), as well as in smaller cities with manufacturing plants.

To break into the field, Svendson says that in addition to an accounting degree and a CPA designation, you should have between two and four years of accounting and auditing experience. However, technical computer experience and a law enforcement background are also useful. Many forensic accountants, he says, �have a combination of two, maybe all three� areas of expertise. For example, Svendson says, he�s a CPA who spent 25 years with the white-collar crime investigation unit of the Royal Canadian Mounted Police before joining Deloitte.

�Some situations need a strong technical accounting background. Some situations need a strong law-enforcement issues background. If you have both of those skill sets wrapped in one package, that�s great,� Svendson says. He adds that the ability to work as part of a team is critical.

Larger forensic accounting engagements tend to go to larger, brand-name accounting firms, Svendson says. �Seek out reputable firms that have forensic accounting practices,� he advises.

The Pay Trail

Starting salaries, Svendson says, can range between $50,000 and $60,000. After that, �It depends on how well you�ve progressed. Six-figure salaries are not unusual, and they go much higher the higher up you get.�

According to the second annual compensation survey released in mid-July by the Association of Certified Fraud Examiners, in 2004 practitioners who held the CFE (Certified Fraud Examiner) credential earned 28% more than their credential-lacking colleagues in comparable positions. �This premium was more evident in base compensation for CFEs, with a 23% higher base salary and a 9% premium in average bonus,� the survey says.

Of course, in addition to job function, type of industry and level of seniority, company size and location can affect compensation. However, the survey says, �The northeast consistently offers higher compensation than the national average, as do companies with annual revenues of $500 million or more.�

Obtaining the credential involves passing a four-part, 10.5-hour exam that covers law, financial transactions, investigation, criminology and ethics, says the ACFE�s Bishop. �Typically people will study for the exam part-time while working as auditors, attorneys, law-enforcement personnel or other professionals. Their personal experience is critical to understanding the theory and practicality of the best practices [in the field],� he says.

The CFE exam is based on the Fraud Examiners� Manual and the Corporate Fraud Handbook, both published by the ACFE. For further information, visit www.CFEnet.com.

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Reader Comment:

I am a CPA and an Attorney residing in New Jersey. I found your article on forensic accountants most interesting.
Can you please advise where I may find positions for forensic accountants in New Jersey?
Marc
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Are there schools which specialize in or have particularly good programs in forensic accounting?
P.N.

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I am responding to your article regarding Forensic Accounting. Please forward information regarding schools which provide forensic accounting degrees. Thanks,
Thomas Phillips

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How do I find companies hiring for these types of positions? I live in Chicago and would be definitely interested in this. Where is a good place to start? Can you suggest some companies?
Thanks in advance -
Jim

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I am currently in undergraduate school pursuing a degree in accounting. I am beginning to start looking for graduate schools and would like any information you have on schools with good programs in this field and preferably that offer degrees in this field. Please send any information you have on the subject. LAB

I read your July 19, 2005 article called 'Forensic Accountants Follow Trail of More Jobs, Pay'. I am very interested in this as my career destination.

For starters, I have a Bachelors Degree in Management of Criminal Justice and am currently pursuing a Masters Degree in Business Administration with a specialization in Accounting. I have a designation to become a Certified Public Accountant. According to your article, I would also have to pass a CFE test to be a member. What other certifications would I have to do?

After getting my degree, would I also have to go to a specific school that specializes in Forensic Accounting? If so, could you suggest where?

How can I find companies who are hiring for this type of position? Can you suggest any? I currently live in Fort Wayne, Indiana, but am willing to relocate if I have to. Obviously, I am not done with my degree yet, but it would be nice to talk to someone to prepare for this destination.
CM

I would like to pursue a career in forensic accounting. How would I find companies that are hiring in the Dallas/Fort Worth area?

If readers would like to respond to queries such as these, please send your suggestions to us via email and we will forward them to the individuals concerned. Thank you.