Forensic Accounting Career Overview

Forensic accountants investigate financial crimes within organizations. They work for organizations in the private and public sectors to improve financial transparency and eliminate financial misconduct and accounting malpractice.

Forensic accountants work closely with financial managers, other accountants, law enforcement, and legal professionals. They work in accounting and legal departments, law and accounting firms, and government agencies. Depending on their experience, they may help organizations develop anti-fraud systems, oversee large investigations, and participate in mediations and court cases.

Discover more about the forensic accounting profession, including its duties, required skills, and career opportunities.

What Does a Forensic Accountant Do?

Forensic accountants use accounting and auditing skills to analyze finances for evidence or risk of crime, such as fraud and embezzlement, or any other financial dispute. They must have an understanding of the law and legal proceedings, along with the accounting principles and financial operations of various organizations.

Primary duties for forensic accountants may include:

Forensic Accounting Areas of Expertise

Forensic accountants can specialize their work through focused education and experience. An area of expertise may improve their employment and earning potential, as well.

Litigation

Forensic accounting litigation specialists provide financial expertise in legal proceedings. They consult and report on many issues, including fraud and embezzlement cases, accountant malpractice, and fraudulent records. They help law enforcement and the courts find hidden assets, make accurate valuations, and determine equitable settlements.

Litigation specialists may work for law firms, accounting firms, or corporations. They typically start by handling certain elements of case research before advancing into lead investigator and expert witness positions.

Common Job Titles

• Fraud litigation specialist
• Forensic auditor
• Litigation support specialist
• Expert witness accountant
• Value and litigation director
• Financial investigations specialist

Nonprofits

Forensic accountants for nonprofit organizations specialize in detecting fraud and corruption related to charitable organizations. They review organizations' taxes to ensure that they qualify for tax exemptions, in addition to investigating donations and internal spending.

They may work for the nonprofit internally or as consultants to identify donor fraud and evaluate any resulting damages. They can also work for industry regulators to ensure financial compliance and transparency.

At the entry level, these specialists may perform audits or assist in the research for a project before graduating into leading investigations and consultations.

Common Job Titles

• Government forensic accountant
• Risk management specialist
• Internal auditor
• Nonprofit financial analyst
• Nonprofit forensic investigator
• Nonprofit auditor

Fraud Investigation

Forensic accountant fraud investigators perform in-depth analysis into internal and external financial crimes affecting organizations. They may assist in the mitigation and response to money laundering threats and activities, bribery and corruption, and financial disputes.

These professionals perform many services, including financial report analysis, damage valuation, regulation consultations and mediations, and crisis management. They may work within organizations' accounting or legal departments or with third-party forensic accounting companies.

Common Job Titles

• Anti-fraud specialist
• Corporate investigator
• Forensic auditor
• Fraud analyst
• Financial crime analyst
• Fraud examiner

Government

Government organizations, including taxation, revenue, and law enforcement agencies, hire many forensic accountants. Such agencies include the IRS, the Department of the Treasury, the FBI, and the Drug Enforcement Agency. Some state and local government departments also employ financial investigators.

Forensic accountants in these roles work to uncover evidence of criminal activity. They also investigate national security threats by tracing the sources of financial support for criminal or terrorist groups.

Common Job Titles

• Forensic auditor
• Investigative auditor

How to Become a Forensic Accountant

The forensic accounting field welcomes professionals from many pathways, but most accountants hold bachelor's degrees in accounting, forensic accounting, or other related fields. Advanced degrees, certifications, and professional experience can improve your employment opportunities.

For example, the certified fraud examiner (CFE) and certified in financial forensics (CFF) credentials promote your ability to perform financial investigations. Bachelor's graduates can pursue the CFE, while the CFF requires certified public accountant (CPA) licensure.

The credentials you pursue will determine your overall timeline, but you should expect to spend at least four years in school and another two years building experience or acquiring certifications.

Forensic Accountant Salary and Career Outlook

What you make as a forensic accountant depends on your education, experience, and location. According to Payscale, the average forensic accountant's salary was $77,590 in Oct. 2024, which is nearly $20,000 higher than the average annual salary for accountants.

Forensic accountants may also earn more depending on their credentials. According to the Association of Certified Fraud Examiners, CFE-certified professionals earned 32% more than non-certified professionals in 2023.

Your industry can also make a big difference. According to the Bureau of Labor Statistics, accountants in software publishing made a median annual salary of $126,250 in 2023, while local government accountants earned $79,220.

Career Spotlight: Jessica L. Hollobaugh, CPA/ABV, CFE

Why did you become a forensic accountant? What initially interested you about the field?

Forensic accounting involves not only understanding financial transactions but also investigating and correlating financial data with non-financial evidence to "follow the money."

In pursuing my career as a forensic accountant, I was interested in stepping away from just the numbers and analyzing the facts and circumstances surrounding the overall transaction.

What education did you need to pursue this career? How did it prepare you for your current role?

After obtaining a BS in accounting and obtaining my CPA license, I pursued a career at Withum, providing tax, audit, and general consulting services to clients throughout a variety of industries before eventually transitioning into forensic accounting and earning my [accredited in business valuation] ABV and CFE credentials.

The accounting expertise that I gained in the early part of my career provided a solid basis for my current role in forensics, where accounting and investigative techniques are intertwined.

What was the job search like after graduating with your degree?

Prior to graduating from college, I undertook an intern position with Withum and was subsequently offered full-time employment.

What does a typical day at work look like for you?

One of the best, but also most challenging, parts of being a forensic accountant is that there is no "typical day." One day, you may be crunching numbers and analyzing financial trends, and the next day, you could be testifying as an expert witness.

What are some of the most rewarding aspects of working as a forensic accountant? Some of the most challenging aspects?

Throughout my career, I have worked on a variety of high-profile cases, each with its own unique issues and challenges. While managing multiple cases, which often have tight deadlines, scheduling and time management is often challenging. But overall, the satisfaction of being part of a team that achieved a positive result makes it all worth it.

What do you think is the most important skill forensic accountants need to succeed?

As we are often "translating" financial evidence for presentation to the courts, it is important for forensic accountants to demonstrate strong written and verbal communication skills and simplify the information being set forth.

What advice would you give to students considering your career?

Seek an internship and get as much experience as possible in all areas of accounting, from taxes to financial statements to general ledger data entry. Being well-rounded and having a solid understanding of accounting concepts is paramount to a forensic accounting career.

Jessica Hollobaugh

Jessica Hollobaugh has almost two decades of diversified public accounting experience. She performs complex forensic investigations to uncover fraud and embezzlement schemes. Jessica specializes in providing forensic accounting, economic damage calculations, professional liability matters, bankruptcy litigation, business valuations, shareholder disputes, and matrimonial litigations to attorneys, corporations, and individuals.

Jessica has served on the New Jersey Supreme Court District VII Fee Arbitration Committee and District VII Ethics Committee. She is recognized as a leader in forensic accounting, having received the AICPA's Forensic and Valuation Services Standing Ovation Award in 2016 and the National Association of Certified Valuators and Analysts (NACVA) 40 Under 40 Award in 2018.

Jessica is a licensed CPA in the state of New Jersey, is a CFE, and holds the ABV credential. She is a member of NJCPA, the AICPA, and the AICPA's Forensic and Valuation Services Group. She has served on the AICPA's CFF examination task force. Jessica is also a member of the ACFE and the ABA's criminal justice and litigation sections. She is an active supporter of the ECBA and the ACDL-NJ.

Questions About the Forensic Accountant Job Description