Stimulus spending: opportunities for accountants?

CPAs, especially those knowledgeable about forensic accounting, may benefit from the government's economic stimulus spending program.

In May 2008, the AICPA Governing Council approved a new credential--Certified in Financial Forensics (CFF)--in response to the rising demand for forensic accounting services. The credential combines specialized forensic accounting expertise with the core knowledge and skills that place CPAs among the most trusted business advisers. The CFF encompasses fundamental and specialized forensic accounting skills that CPA practitioners apply in a variety of service areas, including bankruptcy and insolvency, computer forensics, economic damages, family law, fraud investigations, litigation support, stakeholder disputes, and valuations.

Market demand

During November and December 2007, the AICPA polled 150 law firms. Three-quarters of the respondents said they expect a forensic accounting expert to have a specialized credential. Fifty-nine percent of those polled said they prefer a CPA, and they would value the combination of the CPA license and the AICPA's credential over other combinations.

The market for forensic accounting services is expanding for many reasons. Currently, the demand for these services is expanding as a result of government stimulus spending. This spending has introduced opportunities for fraud and corruption, according to risk consulting company Kroll Inc. in its latest Global Fraud Report. Kroll believes that corruption connected to stimulus spending could cost $500 billion worldwide.

In announcing the report's availability, Kroll cited domestic media headlines that coincidentally predicted the growth of fraud and corruption at home and abroad. For example, FBI Director Robert Mueller announced that corruption and fraud tied to stimulus spending may be the "next wave" in financial fraud cases. Reuters reported that Mueller said in a speech to the Economic Club of New York that his agency had 1,300 securities fraud cases, including many Ponzi schemes, and that the agency is investigating more than 580 corporate fraud cases.

Kroll also cited the trial of Louisiana Congressman William Jefferson, who is accused of bribery. Readers may recall Jefferson allegedly being the perpetrator of the "cold cash caper." In a raid on Jefferson's home, the FBI found $90,000 wrapped in aluminum foil and hidden in a freezer. The significance of Jefferson's trial, according to Kroll, is that it is the first time that...