The Future of Forensic Accounting

Source: CPA Trendlines

In this article, Rick Telberg reviews the state of the forensic accounting industry. Here are some of the highlights:

Billings are on track to grow seven percent a year through the next five years, to $6 billion (a slowdown from the previous five years but a significantly faster rate than the two percent projected for CPA firms overall).
Profit margins average 15.6 percent of revenue and are forecast to continue growing over the next five years.
The number of bankruptcy cases is expected to decline, which will impede industry growth slightly.
Economic growth will likely lead to renewed demand for advisory work.
Both internal and external competition are expected to become bigger threats.
The supply of certified and experienced forensic accountants will likely catch up to demand over the next five years.
More finance and insurance companies will choose to hire in-house forensic accountants.
The industry's major players are beginning to acquire smaller firms.
Major firms will likely pursue growth opportunities in specialized, niche fields under the forensic accounting umbrella and emerging markets overseas.
Over the next five years, the Big Four will continue to perform the majority of forensic accounting services, but medium-size firms will also take on an increasing share of the work. Smaller firms that offer niche forensic accounting practices are projected to grow faster than the industry average.
Outside of the Big Four, most firms are specializing in micro-niches, such as family law and patent litigation.
Financial reform and growing regulation will also drive industry growth through 2017.

From CPA Trendlines, October 7, 2012, http://cpatrendlines.com.