Forensic, CPA.

• Position: Career info

the Jeopardy response to the chuc is: "What is forensic accounting?"

When considering a career in forensic accounting, getting the insight of CPAs experienced in the field is beneficial, especially since this specialization is generally not taught in undergraduate accounting programs, T'his piece is intended to be an overview of forensic accounting as a career choice and not meant to address all aspects of this discipline.

Forensic accountants are often called to respond to serious matters, such as suspected embezzlement, alleged labor law violations, a claim that accounting rules were not followed, a shareholder dispute arising from alleged mismanagement or a lawsuit has been filed. A forensic accountant's expertise is required to calculate economic damages and testify at deposition or trial.

Definition

The AICPA's Forensic and Valuation Services defines forensic accounting services as "the application of specialized knowledge and investigative skills possessed by CPAs to collect, analyze and evaluate evidential matter, and to interpret and communicate findings in the courtroom, boardroom or other legal administrative venue."

Unlike traditional accounting services, forensic accounting projects arc non-recurring engagements; therefore, forensic accountants have no "buss season.'" I he unpredictability is both a pro and a con, but nevertheless is one of the reasons forensic accounting is an exciting field.

Clients and Projects

As the definition suggests, forensic accounting comprises two major services:

1. Litigation related; and

2. Investigative that involves a business or not-for-profit entity.

A fbrcnsic accountant's client is generally:

* An attorney, or team of attorneys, who the forensic accountant selves as a consulting expert and testifying expert; or

* An entity such as a nonprofit organization or a business, where the forensic accountant is retained to investigate, confirm the existence of and quantify an anomaly such as an embezzlement or accounting errors. Regulators, like the SEC (or FI )IC can also clients. A few examples of projects involving attorney-clients where the forensic accountant is retained by either plaintiff or defense attorney s include: wage and hour litigation; calculation of economic damages arising from business interruption or personal injury; breach of contract; patent infringement: accountant malpractice; construction disputes; and securities litigation.

Characteristics and Skills

What qualities make a...