The Pros and Cons of Studying Forensic Accounting

Forensic accounting is the specialty practice of accountancy that describes engagements that result from actual or anticipated disputes or litigation. Today, the demand for forensic accounting is growing rapidly, and this trend is expected to continue as businesses increasingly seek for professional expertise to help with a broad range of issues such as economic damages, family disputes, fraud investigations and litigation.

What are the pros and cons of studying Forensic accounting?

Pros:

• Forensic accountants with forensic accounting degree are in high demand, the good ones can name their price. Forensic work can be a good source of income and solid respect which can double an individual’s success in any occupation.
• Accounting careers are never exciting. But Forensic Accounting is an exception, as it opens to a new world of exciting and marketable great prospects for coming generation.
• A forensic accountant will always be furnished with the latest computer skills and software. Computerized applications are used to present the financial evidence, delivering the findings in the form of reports, collecting and exhibiting documents effectively.
• Forensic accounting career is relatively bright. They are paid well. Entry-level forensic accountant earnings are approximately $40,000-$50,000 per year and the rate rises steeply with experience. Those at private firms can easily make $150,000 or more. Forensic Accounting has been filed as one of the “20 hot job tracks of the future and the job prospects are excellent”

Cons:

• Forensic Accounting has been perceived as an expensive service where only big companies can afford to detect irregularities or frauds in their company. And it will even be more expensive if it is brought to Court where it involved forensic accountant as an expert witness.
• Well-known companies do not want to expose their company frauds for fear of bad reputation should the case are brought to Court.
• There is no mandatory requirement set by the regulatory authority on companies to conduct forensic accounting. There is no specific act or guidelines on forensic accounting practices in many countries to protect these accountants.
• Forensic accounting investigations are complex. Long working hours are very common, as they need to analyze the financial statements, scrutinize securities frauds of the company very thoroughly. Often, the Forensic Accountants is under a great deal of pressure, for the company’s faith and whether if the defendants may go to prison or otherwise is based on the accountant’s work. It is very challenging career, but yet a tough one.
• Many forensic accountants appear as expert witnesses during trials in the Courts. To some extent, their lives maybe at risk. This is because the defendants, whom do not want the forensic accountant to expose their illegal act, may try to threaten.
• The pre-requisite to be a qualified Forensic Accountant is very academic-governed. The candidate needs to have at least a BA in Accounting. Thus, the opportunities are constrained to those who are excellence in Academic in the first place to take up the forensic accounting course.