Forensic Accountants and Auditors

Certification or Licensing

Anyone who is interested in becoming a forensic accountant should first become a certified public accountant (CPA). While it is theoretically possible to practice as a forensic accountant without becoming a CPA, it is extremely unlikely that anyone would succeed in so doing. Clients hire forensic accountants with the idea that they may eventually serve as expert witnesses. A forensic accountant who is not certified could be easily discredited in a trial.

To become a CPA, most states require candidates to have completed 150 credit hours, or the equivalent of a master's degree, in an accounting program of study. The Association of International Certified Professional Accountants (AICPA) is working to make this a national standard for accounting education as accounting procedures and reporting laws become increasingly more complex. Candidates for the credential also must pass the Uniform CPA Examination, which is developed by the AICPA. In 2024, the AICPA launched a revised CPA examination. Candidates must complete three core sections: Auditing and Attestation, Financial Accounting and Reporting, and Taxation and Regulation. Then they select one discipline from the following categories: Business Analysis and Reporting, Information Systems and Controls, and Tax Compliance and Planning. The AICPA says that "new content has also been added throughout the exam to test on relevant topics of emerging technology and financial planning." Visit https://www.aicpa-cima.com/resources/download/learn-what-it-takes-to-become-a-cpa to learn more about the examination. Finally, many states require candidates to have a certain amount of professional experience (usually at least two years) to qualify for certification. Most states also require CPAs to earn about 40 hours of continuing education each year.

AICPA members who have valid CPA certificates may also earn the following specialty designations: certified in financial forensics, accredited in business valuation, certified information technology professional, certified in the valuation of financial instruments, and personal financial specialist.

A CPA who has gained some experience should consider becoming a certified fraud examiner (CFE). Forensic accountants and fraud examiners use many of the same skills. In fact, the titles are sometimes used interchangeably, although, according to the National Association of Forensic Accountants (NAFA), fraud examiners are more often concerned with developing procedures and implementing measures to prevent fraud. However, the two areas are not mutually exclusive; many forensic accountants also work as fraud examiners and vice versa. To gain the CFE designation, a CPA must meet certain educational and professional experience requirements and pass the Uniform CFE Examination, which is administered by the Association of Certified Fraud Examiners. The designation can help forensic accountants establish their credibility as expert witnesses. CFE's must complete a certain amount of continuing education classes each year.