Wanted: Forensic Accountants

Source: AICPA CPA Insider

The following includes excerpts, reproduced with permission, from an article by Ken Tysiac.

Demand for forensic accounting services will remain strong over the next five years as a result of increased financial regulations and continued demand for investigative services in the wake of the recession, according to new market research.

Revenue in forensic accounting in the United States is expected to grow 6.8 percent annually, from $4.3 billion in 2012 to $6 billion in 2017, according to a report by IBISWorld. That's a slightly lower rate than the 7.9 percent annual increase from 2007 to 2012.

Mike Ueltzen, CPA/CFF, CFE, a former chair of the AICPA's Certified in Financial Forensics Credential Committee, said the forecast is consistent with what he's seeing in the market.

“We are seeing increased demand,” said Ueltzen, a founding member of Ueltzen & Co. LLP, a firm in Sacramento, Calif., whose specialties include forensic accounting. “We do special investigations, fraud investigations, valuation work, economic damages and electronic discovery, and across the board we're seeing significant upticks.”

The IBISWorld report said the internal control provisions of the Sarbanes-Oxley Act of 2002 fueled the growth of forensic accounting during the recession. The Dodd-Frank Wall Street Reform and Consumer Protection Act, P.L. 111-203, also led to increased demand for forensic services, according to the report. And the increase in recession-fueled bankruptcies fueled increased litigation that required the attention of forensic accountants.

Forensic accounting employees in the United States make an average salary of $80,435, according to the IBISWorld report, and wages are projected to increase because of demand. In addition, Ueltzen said the supply of forensic accountants is low because the job requires skills such as interviewing techniques and rigorous communication abilities, which entry-level accountants often don't possess.

For the complete article, read “Demand strong for forensic accountants in wake of financial crisis.”

From AICPA CPA Insider, September 24, 2012, www.CPA2biz.com.