Field of Forensic Services Remains Hot
Forensic services have become one of the fastest-growing practice niches among CPA firms. Accountants are in constant demand as expert witnesses and in other litigation support capacities. Now as the economy plummets, forensic accounting remains one field that is expected to grow.
Exacerbated by the credit crisis and economic slowdown, accounting jobs in the fields of fraud and litigation as well as forensic accounting are opening up. In fact, AICPA research shows that CPAs represent 94% of forensic experts hired over the past two years. Executive search firm, A.E. Feldman, says that CPAs with expertise in forensic services are in a prime position to capitalize on the surge in demand.
Continued Growth in Accounting
Right now, accountants are poised to play a key role in helping to rebuild the economy, and that means opportunities for accounting jobs will continue to expand, according to AccountingWeb. Echoing this view, the U.S. Department of Labor has predicted continued growth in accounting for the foreseeable future.
The report quotes Michael Brown, a CPA and instructor at DeVry University’s Keller Graduate School of Management in Fort Washington, PA as saying, “Following the 1929 crash that led to the Great Depression, accountants took a critical role in helping to implement the regulations created by the then newly formed Securities and Exchange Commission. Just as at that time, today much damage has been done to the public’s confidence in our financial system. Just like in the 1930s, accountants will have to lead the way in restoring that confidence by working to provide information that people can understand and, more importantly, believe in.”
One of the key areas that will continue to expand is forensic accounting adds Andrew Hildebrand, CPA and Dean of business programs at DeVry University’s Fort Washington campus. One way to gauge growth in the field of forensic accounting is the fact that in the last five years, the number of fraud examiners certified by the Association of Certified Fraud Examiners has jumped a staggering 64%, from 15,148 to 24,797. The American Institute of Certified Public Accountants (AICPA) also started issuing certifications in Financial Forensics back in June 2008. Already it has 2,900 members with the CFF credential.
A number of firms continue to expand their forensic services practices. Most recently, CBIZ Tofias, a leading provider of accounting and audit services, recently announced the addition of Carl Jenkins, CPA, as a new Managing Director. Jenkins is charged with the task of leading the expansion of its Valuation, Litigation & Forensic Accounting Group.
What’s helping to drive this growth? According to Hildebrand, right now people are simply looking for answers. “When businesses start going under, especially the big-name companies, people want to dig into why it happened,” he explains.
Forensic Accountants Tackle Fraud, Economic Uncertainty
Forensic Certified Public Accountants utilize accounting and auditing skills, while also applying investigative skills to uncover what actually took place in a particular financial setting or transaction. Forensic accountants conduct investigatory accounting work in preparation for prosecution and litigation. In doing so, they identify evidence of irregularities in financial statements and non-financial records and build compelling cases for what that evidence shows. Forensic accounting requires familiarity with criminal and civil law as well as hundreds of techniques from statistics to psychological profiles.
Now amid the financial crisis, forensic accountants have become an integral part of the “recovery teams” organized by CPA firms to help financially troubled clients navigate through uncertain times. Two recent examples include J.H. Cohn LLP, one of the top 15 accounting and consulting firms in the U.S., and accounting firm WithumSmith+Brown. J.H. Cohn announced the formation of the Client Economic Recovery Team (CERT) - a new multidisciplinary group of experts assembled to support, advise, and assist financial institutions and public corporations affected by the rapidly evolving financial environment. Similarly, WithumSmith+Brown announced it has introduced a new consulting service to help businesses deal with the troubled economy. The firm says its Project Forward team is comprised of the firm’s top industry experts who will provide independent counsel to enable leaders of middle-market companies to navigate through difficult times.
Meanwhile, the growing government “economic stimulus” and “bailout” programs are seen as breeding ground for fraud, waste and abuse. Forensic accountants are in a prime position to help government organizations, non-profits and businesses prevent potential fraud before it occurs and to identify fraud when it does take place.
A number of firms are stepping up to address the predicted rise in fraud. Already, Walter C. King Associates is offering tax recovery and forensic accounting services to investors who fell victim to Bernard Madoff’s Ponzi scheme.
Accounting firm Eisner LLP has also formed a Tax Recovery Assistance Task Force to help investors who have suffered losses as a result of Madoff’s fraudulent investment scheme. The firm says its TRA team will focus on helping to position taxpayers to optimize the recovery of previously made tax payments and to obtain current tax deductions, as well as assist in reconstructing supporting historical tax and investment records. “Our forensic team includes former IRS agents, who are skilled in navigating the processes and procedures inherent in this type of matter. This expertise and experience enables us to gather the facts and figures that can best support our clients’ positions,” said Walter Pagano, Partner-in-Charge of Eisner’s litigation consulting and forensic accounting group.
“The alleged Madoff fraud is unique in its impact. It’s of a magnitude that has not been seen before. Therefore, it’s critically important that we gather all the information we can and assess appropriate tax considerations for recovery, so that we can provide the most insightful advice for our clients as we move forward,” adds Robert Harrison, Co-Chairs of Eisner’s tax advisory services group.
The International Association of Consultants, Valuators and Analysts is also launching a fraud deterrence training program in partnership with the fraud and forensic consulting firm Cendrowski Corporate Advisors, according to WebCPA. “Economic downturns may cause financially strapped employees to appropriate corporate funds or commit other types of employee fraud,” said CCA Managing Director and IACVA’s new Director of Education for Fraud and Forensic Services, Harry Cendrowski.
Are you working in Forensic Services? If you want to grow your career or address your firm’s talent needs, contact A.E. Feldman’s President, Mitch Feldman, now. Find out more about accounting jobs today!
