What Is Forensic Accounting? (Education, Careers, and More)

Forensic accounting is the branch of accounting that deals with detecting and preventing financial crimes. As a forensic accountant, you'll use your competencies in accounting, auditing, and investigative techniques to detect and analyse cases of fraud and other financial crimes. If you’re interested in this career, you might like to know that forensic accountants typically earn a median annual salary of £52,706 [1], which is more than the national median salary of £34,963 [2].

Additionally, businesses will likely need professionals with this expertise because, according to BDO, £2.3 billion in fraud was reported in 2023 [3]. Discover more about how forensic accountants use their investigatory and analytical skills to identify different types of financial crime to determine if this career path aligns with your interests.

What areas do forensic accountants work in?

Forensic accountants investigate fraud, embezzlement, and other white-collar crimes. As businesses become more complex, so will their financial investigations. Courts or businesses often ask forensic accountants to present accounting analysis and evidence. You might end up working in one or several of these areas during your career as a forensic accountant:

• Business economic losses and bankruptcy: You’ll collaborate with businesses, creditors, and bankruptcy trustees to investigate possible fraud or mismanagement of assets in business bankruptcies or other situations involving economic losses.

• Family and marital disputes: You’ll liaise with attorneys and clients to investigate cases of possible fraud or misappropriation of assets in divorce or other family disputes.

• Hidden or misappropriated assets: As a forensic accountant, you may search for assets that an individual or business has transferred or concealed.

• Insurance claims: You'll investigate the claims to determine their validity.

• Money laundering: If you identify a financial crime, you may pass on details to the National Crime Agency (NCA) and other law enforcement agencies to investigate. You may also work with them as a local partner.

• Securities fraud: You’ll follow the Financial Conduct Authority (FCA)’s regulations to investigate cases of possible securities fraud.

• Tax fraud: You’ll work with HM Revenue and Customs (HMRC) and local government to investigate cases of possible tax fraud.

Forensic accounting audit procedures

An organisation's financial statements provide an overview of its financial health, but to gather all the necessary details not in the statements, a forensic accountant may conduct an audit. In these cases, a forensic accountant may perform this audit in the form of an investigation. Take a look at the typical process of a forensic accounting audit:

1. Investigation

The forensic accounting investigation's first step is gathering all relevant information. This includes financial statements, tax returns, bank records, and any other documents that could provide information. Once you have all the needed data, it is time to start investigating the numbers. The goal of this phase is for you to identify any irregularities that could indicate fraud or wrongdoing.

2. Reporting

Once the investigation is complete, you’ll report your findings to the client. Depending on the nature of the case, you may share these findings with law enforcement or other regulatory agencies. 

3. Litigation

In some cases, the findings of a forensic accounting investigation can lead to litigation. In such cases, the court may ask you to provide expert testimony or support during the trial.

How to become a forensic accountant

Forensic accounting is a growing field that offers many opportunities for those with the proper skills and forensic accounting education. As you pursue a career in forensic accounting, you'll need to do a few things to begin your journey.

Get a relevant undergraduate degree

A few different types of degrees can lead to a career in forensic accounting. A bachelor's degree in accountancy, economics, finance, or a related field is typically the minimum requirement for entry-level positions. If you’d like to continue your studies in this field, some universities offer a master’s degree in forensic accounting.

Gain professional experience 

After earning a bachelor’s or master’s degree, apply for positions as a trainee accountant to get real-world experience, which can help prepare you for completing an accountancy qualification such as ACA or ACCA. 

Remember that a forensic accountant is not an entry-level position, so employers may expect candidates to have professional experience in areas like auditing, financial analysis, or insolvency. You can search for job openings online, through commercial job sites, and your local or federal government website.

Join the ACCA

Before you can specialise in forensics, you must qualify for and join the Association of Chartered Certified Accountants (ACCA). To begin the ACCA qualification, you will need three GCSEs and two A Levels in five distinct subjects, including maths and English. You also need three years of work experience. Once you begin pursuing the ACCA qualification, completing it typically takes about three to four years.

Become a certified fraud examiner (CFE)

Whilst not required, becoming a certified fraud examiner (CFE) can enhance your resume and show employers you’re dedicated to this profession. To become a CFE, you’ll need to be able to display professional abilities in the field of fraud detection and deterrence, pass a standardised, four-part online exam, and complete 20 hours of continuing professional education (CPE) annually to maintain certification.

What skills do I need to become a forensic accountant? 

You’ll need to develop a diverse skill set in areas like communication, attention to detail, analysis, problem-solving, organisation, and even self-control. Forensic accounting is an advanced form of accounting that focuses on investigating financial crimes. To become a forensic accountant, you need a blend of both technical and workplace skills:

Technical skills

You'll need technical skills in accounting, finance, and information technology. The following are skills necessary to understand financial statements and transactions, use accounting software, and reconstruct financial data. 

• Ability to operate accounting software

• Able to analyse financial documents

• Know how to conduct technical interviews for witnesses or suspects

• Have legal knowledge to review documents 

• Ability to analyse data to identify trends 

• Ability to conduct internal audits 

Workplace skills

To become a forensic accountant, you must also develop various workplace skills to handle data and present findings. Below, you can review some crucial skills to help you succeed as a forensic accountant. 

• Critical thinking

• Detail-oriented

• Excellent communication

• Analytical thinking

Is forensic accounting right for you?

Getting qualified to be a forensic accountant takes time, so before you jump into this career, it's important to assess your interests and define your goals. Doing so will help you determine if forensic accounting is a suitable career path. Ask yourself the following questions:

• Do you have an interest in finance and accounting? 

• Do you enjoy working with numbers and solving complex problems? 

• Are you interested in crime and learning the ins and outs of the law?

Answering the following questions will help you narrow your career path and decide the next steps in your career.

• Do you want to work for a government agency or a private company? 

• Do you want to specialise in a particular area of forensic accounting? 

Job titles of forensic accountants

You have a variety of jobs to choose from within forensic accountancy. The following offers a brief look at a few popular options and the average or median salaries associated with each: 

*All annual base salary data is sourced from Glassdoor UK as of August 2024 and does not include additional pay, such as commission and benefits. 

• Forensic auditor: £33,745

• Financial investigator: £35,037

• Fraud examiner: £29,286

• Fraud investigator: £26,326

• Senior forensic accountant: £48,301

• Forensic accounting senior associate: £44,354

You might also consider some other professions that overlap with forensic accounting, such as the following: 

• Litigation support specialist: £26,618

• Financial analyst: £38,967 

• Anti-money laundering analyst: £31,295

• Asset recovery specialist: £24,498

• Fraud prevention specialist: £26,395 

Learn more about forensic accounting on Coursera

Forensic accounting combines finance and investigation, allowing you to build a career around detecting financial crimes. It requires strong analytical skills and attention to detail and offers opportunities in fraud detection, asset recovery, and more.

Additionally, forensic accounting is a complex and ever-changing field, so gaining specialist knowledge and keeping up with the latest developments is essential. To build your foundational knowledge and stay ahead of trends, consider taking online courses like the Forensic Accounting and Fraud Examination, offered by West Virginia University on Coursera. It can give you a starting point to understand more about forensic accounting. 

Another option for exploring this field more is FinTech Security and Regulation (RegTech), offered by The Hong Kong University of Science and Technology. This course deals with topics like the relationship between regulation and security in the financial arena.

Frequently asked questions (FAQ)