Forensic accountant

A career as a forensic accountant will suit you if you're looking for a specialist role that requires an investigative approach to accountancy

As a forensic accountant, you'll use your accountancy skills to investigate financial discrepancies and inaccuracies such as fraudulent activity, financial misrepresentation, or misconduct and disputes.

The role involves a combination of accounting, auditing and investigative skills. You will conduct detailed investigations to uncover information, identify irregularities in financial documents and reports, calculate the exact losses, and trace and recover illegitimate funds. You'll provide reports of your findings, offering reconstructions and insights into how activities were carried out, and will also provide evidence at court as an expert witness.

A common misunderstanding is that forensic accountants spend much of their time carrying out research in order to uncover criminal activity. In reality, they can perform a range of work, such as:

• fraud, regulatory and cybercrime investigation
• commercial litigation
• dispute resolution
• resolving and settling insurance claims
• financial risk management
• loss of profits calculations
• business interruption
• matrimonial work
• personal injury
• professional negligence
• valuations.

Companies also employ forensic accountants to focus on preventative activities, which aim to minimise the risk of financial problems and enhance their reputation for good practice.

Responsibilities

As a forensic accountant, you'll need to:

• deliver forensic accounting and investigation services to a range of clients
• conduct background research on the economy, businesses and individuals
• perform forensic research to trace funds and identify assets for recovery
• extract data from financial records
• create and manipulate spreadsheets
• conduct forensic analysis of financial data
• prepare detailed calculations and business valuations
• assess the potential impact on profitability, value or income
• undertake interviews to uncover and verify information
• prepare forensic accounting reports from financial findings
• collaborate with colleagues and other professionals related to your area of work
• prepare analytical data for court and collaborate with legal teams to help with mediation and settlement negotiations
• attend court where required to give expert testimony
• understand the wider economic and legal implications of a case
• travel abroad, when necessary, to conduct investigations
• help with business development and marketing.

At a more senior level, you may need to:

• manage a portfolio of clients and projects
• manage and deliver audit assignments
• lead and develop a team of staff.

Salary

• Starting salaries for trainee accountants can vary considerably depending on the location, sector, size and type of firm. As a graduate you can expect to earn around £25,000.
• With three years' of forensic accountancy experience, salaries can range from around £40,000 to £55,000. This can increase up to around £85,000 as you gain more experience and move into senior and managerial roles.
• Salaries for forensic accountants in very senior positions such as director can rise to in excess of £100,000.

Salaries vary depending on a range of factors, including the location, type and size of company/organisation you work for. Other factors that can affect salary include your skills, experience and level of responsibility.

Salaries can be enhanced through company benefits such as bonuses, profit-sharing schemes, medical insurance, pensions and car allowances.

Income figures are intended as a guide only.

Working hours

Working hours vary but are typically 9am to 5pm, Monday to Friday. However, you may need to work extra hours on occasion to meet deadlines.

There may be some opportunities for hybrid work.

What to expect

• The demand for forensic accounting services has grown in recent years as companies want to demonstrate their commitment to financial reform and avoiding scandal.
• Jobs are available in most areas throughout the UK but are more commonly found in cities and large towns.
• You will need a high level of attention to detail and commitment to conduct in-depth investigations. The work can be laborious, but uncovering information vital to the outcome of the case can also be incredibly rewarding.
• You may need to travel during the working day to visit clients' premises. Travel abroad may be necessary as investigations can start in the UK, but may lead to international sources.

Qualifications

You can get into forensic accountancy with a degree in any subject. A degree in accountancy, or a related subject such as finance or economics, can give you a good foundation to work from, but isn't essential.

You will need to train as an accountant before specialising in forensics. This typically involves undertaking in-depth accountancy training and completing an accountancy qualification such as ACA or ACCA from a recognised professional accountancy body

There are also some finance graduate schemes that include study for an accountancy qualification as part of the training.

It's also possible to take an accountancy apprenticeship, which combines practical on-the-job experience with study for a recognised accountancy qualification. They can also offer a fast track to chartered accountant status.

Find out more about how to become an accountant.

Once qualified, you will usually gain some accountancy experience before specialising in forensics. You can do this by moving into a financial analysis, tax, insolvency, commerce or auditing role.

It might also be useful to undertake further study in forensic accountancy. It's possible, for example, to take a Masters degree in forensic accounting either full time, part time or via distance learning.

Search for postgraduate courses in forensic accountancy.

Skills

You'll need to have:

• a methodical and logical approach to work
• meticulous attention to detail
• the ability to analyse and interpret complex data
• research and investigative skills with the ability to look beyond face-value
• creative thinking and problem-solving skills
• interpersonal and communication skills to convey technical and complex financial information in easy to understand language
• report writing skills
• organisation and time management skills
• IT proficiency, particularly in Excel
• integrity and impartiality
• project management skills
• the ability to negotiate confidently
• self-control and the ability to keep your composure when giving evidence in court.

Work experience

It may be difficult to get work experience specifically in forensic accountancy, but any experience in accountancy is useful. Experience in internal audit, risk assessment and tax can also be useful.

If you're successful in obtaining a summer internship with a large accountancy firm, you may have the opportunity to spend time in their forensic department as part of the rotational internship programme.

You could try sending speculative applications to forensic accountancy firms to ask about work experience or work shadowing opportunities. You can find firms to contact through the Institute of Chartered Accountants in England and Wales (ICAEW) - Find A Chartered Accountant. Make sure you research the firm first and send a targeted CV and covering letter.

If you're unable to get work experience due to the sensitive nature of the work, you could ask for an information interview to find out more about the role and how current forensic accountants started out.

Find out more about the different kinds of work experience and internships that are available.

Employers

Most of the large accounting firms, along with some smaller firms, have specialist forensic accounting departments. You could also work for an independent consultancy.

You can also work for a variety of other employers in the public and private sector, including:

• banks and other financial institutions
• government departments and agencies
• insurance companies
• law firms
• police forces
• risk management firms.

Alternatively, you could consider working for yourself and setting up your own forensic accountancy business. You will usually need experience in forensic accounting and a good network of contacts before considering self-employment.

Look for job vacancies at:

• ACCA
• eFinancialCareers
• GAAPweb
• ICAEW

Jobs are also advertised on professional networking sites such as LinkedIn.

You could also register with a specialist recruitment agency, such as Michael Page.

Professional development

When you move into a forensic accountancy role, you are likely to receive on-the-job training and mentoring from more senior team members to develop your skills.

As a qualified accountant, you must undertake continuing professional development (CPD) throughout your career to keep your skills and knowledge up to date. You'll also need to keep track of technical developments and changes in legislation. You can do this by attending courses and conferences, undertaking research and reading the trade press.

You will need membership of one of the accounting professional bodies, such as the ACCA (the Association of Chartered Certified Accountants) or the ICAEW (Institute of Chartered Accountants in England and Wales). They provide both general and specialist support, resources, training, events and news. The ICAEW, for example, has a specialist Forensic & Expert Witness Community.

It can also be useful to have membership of a professional body related to forensic accountancy. These can include:

• Association of Certified Fraud Examiners (ACFE)
• The Academy of Experts
• Expert Witness Institute

As forensic accountants are often asked to present their findings in court, membership of organisations such as the Expert Witness Institute can be useful. It acts as a voice for the expert witness community, supporting experts from all professional disciplines and lawyers who use the services of experts.

The Institute of Certified Forensic Accountants (ICFA), a global professional body committed to the development of forensic accounting, offers the Level 7 Diploma in Forensic Accounting. On successful completion of the Diploma, you are awarded Certified Professional Forensic Accountant (CPFAcct) status. For more information, see Brentwood Open Learning College - Forensic accounting courses.

Career prospects

Career prospects are generally good and there is an increased demand for forensic accountants due to the rising awareness of fraud and financial misconduct.

As a forensic accountant, you will have already decided to specialise in a particular area of accountancy. There are opportunities to specialise further, however, by working in a particular area of forensic accountancy such as insurance or risk management, fraud, crime or loss of profits.

With experience, you can progress to a more senior role within a team or department. This may include line management or team leadership responsibilities. At the highest levels in major companies and firms, there will be occasional openings for roles at forensic director level. If you work in private practice, it may be possible to gain a partnership.

It's possible, with experience and a strong network of contacts, to branch out into self-employment by setting up their own independent firm.