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Forensic accounting is a relatively new field in which accountants specialize in investigating white collar crimes. They use their knowledge of standard accounting practices to find evidence of fraud, embezzlement, money laundering, and other transactions that might be criminal in nature.

Forensic accountants also do work for courts on bankruptcy cases and contract disputes. In addition to their skills in accounting, they also are well-versed in the law and investigative techniques, which are used to determine if an activity is illegal. Many of these forensic accounting jobs are associated with law enforcement agencies and also with law firms. Forensic accountants are often called as expert witnesses in trials.

Forensic Accountant Training Online

Most forensic accountants earn their basic four-year accounting degree and then go on to study forensic accounting, earning either a certificate or a master's degree. Some schools offer a four-year forensic accounting degree and many offer forensic accountant training online.

The Forensic CPA Society offers a Forensic Certified Public Accountant certification. To attain that, you have to be a licensed CPA or a Chartered Accountant (CA) and you have to pass a five-part exam to earn the certificate.

Classes in forensic accounting focus on such things as:

• Auditing
• Fraud
• Procedures for gathering and analyzing evidence
• Financial investigations
• Financial statement fraud
• Business ethics

Job Prospects for Forensic Accountants

Many schools offer forensic accounting training online, and the diploma you earn can help you find a job as an auditor, fraud examiner, or forensic accountant. Recent high-profile fraud cases have created a demand for forensic accountants with the Securities and Exchange Commission, the Internal Revenue Service, and Offices of the Inspector General, among other employers. LaSalle University, which offers an online master's of science in accounting with a concentration in forensics, calls the field the fastest growing area of accounting.

According to the Bureau of Labor Statistics, job prospects for accountants in general are good due to an increasing number of businesses and ever-changing financial laws. The increasing interest in transparency and accountability should fuel the demand for accountants, and those with master's degrees or special certifications, such as CPAs, will likely have an edge in the job market. The increased need for transparency also establishes a need for forensic accountants to uncover illegal activity by individuals, companies, and criminal enterprises.

Forensic Accountant Salary 2009

Accounting students with bachelor's degrees started out in accounting earning $48,993 in 2009 and those with master's degrees earned $49,786 initially, according to data from the National Association of Colleges and Employers.

Although the U.S. Bureau of Labor Statistics offers no specific figures for forensic accountant salary in 2009, it does report that the 1.1 million accountants in the U.S. earn a mean salary of $67,400 a year. Most work for accounting, tax preparation, bookkeeping and payroll services and earn about $74,000 a year.

The best salaries for accountants are with the federal executive branch, where the mean annual salary is $88,190. Nearly 23,000 accountants were employed there.

Best Towns and States for Forensic Accountants

The District of Columbia has the highest per capita number of accountants in the nation, with nearly 17 per 1,000 workers. Colorado, Delaware, New York, and Massachusetts also have a high percentage of accountants, ranging from 10.5 to 13 per 1,000 workers. The best-paying accountant jobs are in New York, where the mean salary is $84,280. The District of Columbia, New Jersey, Maryland, and Massachusetts round out the top five with salaries of $73,000 to $80,000.

The most popular city for accountants is Tallahassee, Fla., where there are nearly 20 accountants per 1,000 workers. But the mean annual salary is $50,890--fairly low. Other metro areas with a lot of accountants are Denver, Bridgeport (CT), San Francisco, and New York City. High-paying metro areas include:

• New York-White Plains, NY-NJ: $87,940
• Nassau-Suffolk, NY: $486,120
• San Jose-Sunnyvale-Santa Clara, CA: $85,600
• Bethesda-Frederick-Gaithersburg, MD: $83,390
• Haverhill-North Andover-Amesbury, MA: $83,280

Despite their high salaries for accountants, Bethesda and San Jose are both expensive places to live; the cost of living is higher than the national average, and Bethesda is 57 percent higher than San Jose. Of all the cities where accountants are paid the most, the Haverhill-North Andover-Amesbury area offers the most affordable cost of living. For instance, housing in Amesbury is 44 percent cheaper than housing in San Jose and the overall cost of living is 26 percent less.