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by dcshoesboy

The Forensic Accounting Masters Degree provides one of the fastest tickets to career success. Forensic Accounting was recently listed by Yahoo as one of the highest-paid professions, and numerous publications have listed Forenic Acounting as a hot carrer opportunity. It’s surely the hottest area in Accounting.

One great thing about Forensic Accounting is that it involves exciting work. It’s not the old-school boring accounting that focuses on debit and credits, but rather it involves exciting areas such as fraud investigation, litigation support, business and divorce valuations, dispute resolution, and expert testimony.

The great secret about Forensic Accounting is that it as a relatively easy field to get into. All it takes to start is a bachelor’s degree from a regionally-accredited university. With such a degree, students can enter into an online forensic accounting masters program that offers a concentration in Forensic Accounting. Such a program can be completed within a mere two years. In all cases, it’s best to take such a degree program in a business school that is accredited by the AACSB, the the organization most widely known for business school accreditation. See, for example the Masters of Accounting Degree: Online Forensic Accounting Program at Florida Atlantic University. The usual degree title for such a graduate degree program may be something similar to Masters of Accounting, or Masters in Accounting, with a major in forensic accounting. Even though the program might be offered online, the title of the degree generally won’t include the word “online.” therefore, you won’t find any degrees with a title that says Online Masters of Accounting or Online Masters in Accounting. However, you will find degree titles that don’t include the “s” in Masters. For example, Master of Accounting and Master in Accounting are titles typically used in practice.

Forensic accounting involves the application of investigative techniques help resolve financial issues in a manner that meets standards applicable to courts of law. Forensic Accounting is not limited to the use of financial investigations that result in criminal and civi prosecution; the investigation and its results must always, however, satisfy the requirements of the civil or criminal court that has jurisdiction.

Fraud investigations are an important part of the routine work for many forensic accountatnts. Fraud is the consequence of misleading, intentional actions or inaction (including misleading statements and the omission of relevant information) to gain an over an individual, group of individuals, or an entity. Forensic Accounting is much broader than fraud investigation; it also includes services related to business acquisitions, dispute resolution, asset and liability valuation, and the determination of lost profits.

Defining the words forensic and accounting can facilitate a deeper understanding of forensic accounting. The word forensic suggests applicability to courts of law. The word Accounting suggests the recording, classifying, and summarizing of economic events in a logical manner for the purpose of providing financial information for decision making. But when these two words are combined, a strong unified concept emerges – the use of both accounting and non-accounting information to to support arguments made in court.

How does forensic accounting differ from traditional accounting? Traditional accounting involves acquiring and organizing financial data for decision makers. Accounting involves at least seven areas, including financial accounting, management accounting, information systems and technology, taxation, consulting, internal and external auditing, and forensic accounting. Each has its own distinct purpose. For example, financial accounting provides information to external users, such as investors, creditors, and government regulators about the status of a company and the results of its operations. {One the other hand|In a different vein, the purpose of managerial accounting is to provide relevant information to users inside the company so that the profitability of operations can be monitored and enhanced.

Of all the areas of accounting mentioned above, perhaps auditing most closely resembles forensic accounting, particularly in the area of fraud examination. Auditing can be further divided into two categories: internal and external. Internal auditing is the process by which a company’s operations are verified by employees of the company known as internal auditors. Conversely, external auditors are not employees of the company; rather they are independent Certified Public Accountants, and their principal task is to certifiy that the financial statements of the company fairly present, in all material respects, financial position, results of operations, and cash flows in accordance with generally accepted accounting principles.

The leading organization of Certified Public Accountants (CPAs) – the American Institute of Certified Public Accountants (AICPA) – classifies Forensic Accounting into two categories:

1. Investigative services that may or may not lead to courtroom testimony, and 2. Litigation services that recognize the role of the accountant as an expert, consultant, or other role.

The first of these services encompasses those of the fraud examiner. Fraud examination involves the detection, prevention, and control of fraud, defalcation, and misrepresentation. The second of these services encompases testimony of a fraud examiner as well as forensic accounting services offered to resolve valuation issues, such as those experienced in divorce cases.