Forensic Accountancy
- Description
- Tasks
- Skills
- Useful Knowledge
- Entry Qualifications
- Professional Qualifications
- Trends
- Resources
Forensic accountants use rigorous investigative techniques, combined with accountancy skills to sniff out fraudulent activities, uncover money laundering and trace missing assets. Day-to-day work involves interviewing people, studying accounts and, increasingly, examining electronic documents. A courtroom case could hang on one piece of information or document that you uncover. So, you will need to be the type of person that can work methodically through materials, always alert to potentially fraudulent activities. Forensic accountancy, in recent years, has seen a surge in demand for talented investigators. Forensic accountants may be instructed by government organisations, such as the Serious Fraud Office, or an audit client that suspects financial misconduct – for instance insider trading. Expect a great deal of liaison with legal teams and organisations – forensic accountants are often instructed by a solicitor or barrister with regards to fraud or litigation.
Salary
Whilst forensic accountancy positions are only for qualified accountants with experience, it is possible to train as a chartered accountant with school and college leaver qualifications. Please refer to the Financial Accountancy profile. Qualified forensic accountants with limited experience can expect to approximately £30,000 per annum. With the right experience, qualifications and skills you could progress to management roles and earn in excess of £70,000 per annum. This does not include potential bonuses and additional benefits. Salaries will vary considerably based on location and employer.
- Developing/implementing financial crime policies/procedures and risk-based controls to counter financial crime
- Reviewing accounting systems, checking that they are properly set up and working effectively, identifying potential areas of fraud and system weaknesses
- Agreeing communication protocols relating to countering financial crime
- Gathering, analysing and responding to financial crime information from different internal and external information sources, deciding what type of action, if any, is required
- Scrutinising accounts, analysing paper and electronic documents, piecing together information and reporting relevant finds to the forensic team
- Reporting suspicious and non-compliant activity internally or externally to law enforcement agencies, or to the regulator
- Preparing expert reports for court proceedings
- Providing litigation support and assistance in worldwide legal arbitrations
- Accuracy and attention to detail to spot something unusual
- Intellectually inquisitive
- Excellent verbal and written communication skills
- Computer literate with strong numeracy skills
- Ability to present an argument clearly
- Confidence to handle confrontation, present your findings in legal settings and have your opinion questioned
- Lateral thinking
- Tact and discretion
- Enjoy working in a close-knit team
- Organised with good time management skills
- Language skills may also be beneficial, due to the international scope of some forensic work
- Commitment to study and acquire the necessary professional qualifications whilst working
Employers will usually expect candidates to acquire knowledge in the following areas, through training and relevant professional qualifications:
- How to gather, analyse and respond to financial crime information
- Handling requests for financial information from enforcement agencies and which persons or agencies are able to request information
- How to present information to courts or other hearings
Most forensic accountants first train in audit before specialising in forensic accounting, so generally have a good appreciation of the reporting documents being examined, as well as working environments. Some of the larger accountancy and professional services practices offer audit training schemes for people with school and college qualifications, alongside graduate training scheme opportunities. Those joining such schemes would still be required to work towards relevant professional qualifications.
For entry level positions in audit, employers will require candidates to have either:
- A Levels, Scottish Highers or equivalent qualifications such as Business, Administration and Finance (BAF) Diploma, BTEC National Diploma, Welsh Baccalaureate (BAC), SVQ Level 3 or Higher National Certificate (SCQF Level 7)
- For graduate training schemes, usually ask for a 2:1 degree or higher.
Generally, employers encourage new entrants to study towards a Chartered Accountancy (ACA) qualification while under a training contract. The two qualifications most widely recognised and respected in forensic accounting are ACCA and ACA, offered through:
- Association of Chartered Certified Accountants (ACCA)
- ICAEW (Institute of Chartered Accountants in England and Wales)
- Institute of Chartered Accountants of Scotland (ICAS)
- Chartered Accountants Ireland (CAI)
- Chartered Institute of Management Accountants (CIMA)
Trainees then usually specialise forensic accounting. It’s not unusual for employers to request several years of Post Qualification Experience (PQE) before putting candidates into a forensic accounting role.
The International Compliance Association (ICA) also offers qualifications specifically focused on financial crime and money-laundering:
- Certificate in Financial Crime Awareness
- Certificate in Anti Money Laundering Awareness
- Advanced Certificate in Anti Money Laundering
- Graduate Diploma in Financial Crime Prevention
- Graduate Diploma in Anti Money Laundering
Having the Certified Public Accountant (CPA) designation is a minimum requirement for anyone wanting to work in forensic accounting in the US.
New money-laundering and anti-terrorism measures have increased demand for skilled forensic accountants. Most forensic accountants work in the large accountancy firms who have specialist forensic teams. Other employers include boutique accountancy firms. Opportunities for experienced forensic accountants also exist in industry and commerce anti-fraud teams, and the regulatory bodies, including the Financial Services Authority. Forensic accounting departments tend to cluster around the main legal and financial services centres. London is probably the biggest employment centre. However, other major employment hubs include Birmingham, Manchester, Leeds and Glasgow. International opportunities are particularly widespread within the large accountancy firms, and some mid-tier firms. There is high demand especially in Eastern Europe and offshore destinations, for skilled forensic accountants.
