Forensic accountants typically work in one of three kinds of organisation: the Big 4, specialist forensic accounting firms, and in-house at large multinationals.

What do they do exactly? According to Louise Bridge, business director in the public practice division of Hays recruitment in London, they get behind the figures to scrutinise accounting-related disputes from every conceivable angle.

�Forensic accountants combine accounting, auditing and investigative skills,� says Bridge. �Except in fraud cases, usually there is no right or wrong answer. It�s a battle of wits and interpretation.�

Forensic accountants can be involved in everything from matrimonial cases, when wealthy husbands hide assets in offshore bank accounts, to dodgy shoe polish sales � really. Last year Kessler International, a New York City-based forensic accounting firm, helped Sara Lee Corporation pursue an alleged case of shoe polish fraud after a rival imported fake Kiwi brand polish from China. It�s big business: in 2004 an estimated 6% of US annual revenues, worth $660 billion, were lost to fraud.

�It�s not always a company needs a forensic accountant, but when they do, they need them to be good,� says Kathy Downs, a division director at Robert Half in Florida.

Forensic accountants are paid well for their expertise. Downs says US professionals typically earn 15% to 20% more than standard auditors. In the UK, recruiters say partners working in the forensic accounting divisions of the Big 4 can earn premiums of 20% or more.

UK: Senior forensic accountants cash in

Forensic accountants in the UK are typically ACA or ACCA qualified and get a kick out of dissecting complex technical data. There are no special qualifications for UK forensics, but this doesn�t stop them earning more than standard auditors � but only for senior positions.

Matthew Leedhman, a manager for Michael Page finance in London, says top forensic accountants in the Big 4 can earn significantly more than their auditing counterparts. �At partner level the premiums are enormous,� he says. �Clients like to use well known people with a proven track record. �500,000 for a top forensic in a Big Four firm is not unusual.�

At a junior level, the premiums for being a forensic accountant are less substantial. A salary survey released this month by Hays found typical salaries for forensic accountants with two years post-qualification experience in public practice range from �26,000 in Leeds to �44,000 in London. This is distinctly similar to pay for standard auditors.

Bridge at Hays says junior forensic accountants can sometimes earn more working for a specialist forensic firm, such as Kroll. Some forensic specialists are trying to lure newly qualifieds away from doing audit in the Big 4, says Hays. They will pay as much as 10% more to do so.

US: CFE or bust

If you want to be a forensic accountant in the US, it�s a good idea to have the Certified Fraud Examiner (CFE) designation.

The Association of Certified Fraud Examiners (ACFE) says forensic accountants with the CFE qualification earn an average 28% premium over those without. Last year it studied the pay of 3,750 US anti-fraud professionals, and found the premium was even greater in public practice and consulting. Average salaries for non-CFE qualified accountants in accounting and consulting were $82,800; CFE qualified accountants in similar roles earned an average of $118,300.

Brian McShane, a consultant in the Connecticut office of Michael Page, says newly qualified CFEs can earn $65,000 to $70,000 in their first four years of work. In their next four years, he says salaries might rise to $110,000.

Thereafter, the sky�s the limit. McShane says directors of fraud accounting in large multinationals are on $150,000 plus. The ACFE found average US salaries for CFE-qualified executive-level independent fraud consultants are $175,300.

Some, but not all, US forensics accountants have the CPA qualification as well. However, those who do are typically paid more than those who don�t, says McShane.

Reader comment:

I knew it, I knew it, I should have gotten the ACFE CFE but several darn recruiters around here told me if I did I would not be marketable. They also stated I would scare the heck out of their client firms with the belief I would find fraud in every transaction made by the firm.

Well, now in the light of Sarbox 404 maybe I should reconsider it.
B.K.

19 March 2005

Reader comment:

Finally! I know what I want to do after graduation. I am an accounting major, but love detective work, and I am considering furthering my education with a degree in criminal justice in a few years. Now the two have met in Forensic Accounting! Thank you for having services that show you a broader perspective of the job market, especially for someone like me that doesn't live in the metropolitan area where there is a vast array of jobs.
C.W.

19 March 2005