The proliferation of forensic accounting

I had the pleasure of being a guest speaker last week at a university in Denver.  I presented to students enrolled in a forensic accounting course on the topic of litigation services and expert testimony.  The audience, consisting mostly of graduate students, was highly engaged during the presentation.

Certainly, I see a strong level of interest in the field of forensic accounting, not just within the professional world, but also within colleges and universities.  Contrast this with when I was in school.  Although it doesn’t feel like a long time, when I finished my university studies in 2005 there seemed to be less talk within the business school of forensic accounting careers.

Today, forensic accounting is a multi-billion dollar industry and its growth is expected to continue for the foreseeable future.

Where to begin

During my presentation, I could sense the eagerness of the students to find their career fit within forensic accounting.  At the completion of the discussion they asked me how I would recommend they tap into the field.  Of course, I was happy to respond because I was in their shoes at one point in my career and I’ve always appreciated meaningful career counsel.

First, I believe those interested in this field should find out what type of industry or practice-area they are most interested in.  It could be financial services, manufacturing, technology, communications, etc.  Next, I recommend they build a strong foundation in whatever industry or practice-area they choose by gaining at least a few years of diverse experience.

If they still desire to be a forensic accountant once they establish a strong foundation, then I recommended they search for the right fit with patience, relying as much as possible on their network of contacts.

Experience is critical

Unfortunately, too often I think college graduates do themselves a disservice when they seek to jump right into forensic accounting without any real-world experience.  Of course, this isn’t always the case, but I have worked with enough junior professionals within the industry to make this observation.

I make the following case to illustrate my point.  Auditors are trained to approach their work with “materiality” in mind.  Those in criminal justice approach their work with “beyond a reasonable doubt” in mind.  Statisticians often approach their work with “statistical significance” in mind.  Forensic accountants, on the other hand, may or may not approach their work with these concepts in mind.  Truly, the application of concepts or principles depends on the facts and circumstances of a case.

For this reason, I believe a forensic accountant should have sufficient experience so that he or she can appropriately apply professional judgment, no matter the circumstance.

With ever-changing regulations and increasing complexity of the world we live in, I believe the role we forensic accountants provide will become increasingly valuable.