Demand Soars For Forensic Accountants
Despite volatility on Wall Street, the accounting industry is rapidly expanding. The catalyst behind this hiring surge: the adoption of Sarbanes-Oxley back in 2002. Over the past five years, business dealings have become more complicated, corporate financial reporting has received increased scrutiny and the battle against fraud has become a greater priority. A Deloitte spokeswoman says recruitment at the firm has grown 15% since SOX was passed, according to the WSJ. PricewaterhouseCoopers also reports that hiring has doubled from fiscal 2002. Although the focus on compliance has introduced greater challenges for corporate controllers and CFOs, it has also presented a wealth of opportunities for forensic accountants. Now, from options valuation issues to disclosure failures relating to subprime debt exposure, the field is booming. Executive search firm, A.E. Feldman, says that CPAs looking for opportunities in business valuation and litigation services, including forensic and investigative accounting jobs, are in a prime position to capitalize on the huge demand.
In the post-SOX world, more active enforcement of the Foreign Corrupt Practices Act, anti-money-laundering rules, and increased scrutiny of corporate financial reporting is a reality.Forensic accountants often settle shareholder lawsuits or detect corporate malfeasance, utilizing a combination of auditing and investigative skills. Allan Koltin, Chief Executive of PDI Global, told Financial Week that the field is currently the hottest area in the profession. “I think the industry has probably quadrupled in the last seven years, and over the next decade, anything forensic or investigative will remain hot,” he says.
Audit firms are getting the lion’s share of the business, Financial Week reports. Aside from The Big Four, second-tier firms such as Grant Thornton, BDO Seidman and RSM McGladrey all have forensic divisions that investigate accounting blowups or provide support services for litigation situations. Opportunities also exist at independent firms that are free of client conflicts because of other audit or consulting work they perform for companies.
Competency and credentials, however, are critically important in this field. According to A.E. Feldman, CPA’s looking for opportunities in business valuation and litigation services must add other relevant credentials including an ABV, JD, CVA or CFA. Many CPAs who specialize in forensic accounting also add CFE or certified fraud examiner to their list of qualifications. This designation has emerged as the “gold standard” in the area of fraud. These certifications not only open doors for qualified candidates, they also command higher salaries.
But the proper credentials are only part of the equation for job seekers. A.E. Feldman’s Managing Director of Accounting Recruiting adds that law firm contacts are helpful for accountants in valuation and litigation services. Since this field involves non-recurring business, candidates who come armed with a network of lawyers and established relationships with law firms may gain the upper hand.
