The Fraud Examiners: Sleuthing Careers Bring CPAs Personal and Professional Satisfaction
Becoming a fraud examiner--a.k.a. a financial detective--is not for everyone. Detectives either in law enforcement or in the private sector--typically have distinct personality traits (see "America's Original Private Eye," page 77): They're as good with people as they are with numbers and they are inclined to be aggressive rather than shy and retiring. This helps them achieve success in adversarial situations where confrontation is endemic to their work. For people with these qualities and the proper qualifications, career opportunities are plentiful. Three successful CPAs who possess both talk about their careers as fraud examiners. Tom Golden, who heads PricewaterhouseCooper's Midwest investigations practice in Chicago, assesses the field: "Companies know fraud is epidemic--the phone is ringing off the hook. We have doubled the number of examiners in the past year, and we're still growing. There is no end in sight." Robert J. Lindquist, senior managing director for Citigate Global Intelligence & Security in Washington, D.C., agrees and adds, "For those professionals who wish to excel, this field has much opportunity." And according to Debbie Cutler, a partner with Kramer, Love and Cutler in New York City: "Clearly, the CPA's role in combating fraud has increased due to recent corporate scandals and media attention. There is growth in this area as companies implement internal control systems and look for ways to reduce fraud." As the career paths of these CPAs affirm, becoming an antifraud expert doesn't take months--it takes years. Formal education in the fraud examination field is new and limited--but growing (see "Antifraud Education and Training," page 78). Until four years ago, only 19 colleges out of 900 offered a class in fraud examination. That number now exceeds 150, with 200 more schools planning to add a course shortly. But for the time being, it is necessary for most budding fraud examiners to learn this craft on the job. Lindquist says interested CPAs should learn about the legal aspects of fraud. "It is important to understand exactly what constitutes fraud," he says, "which includes practical knowledge of the legal system and concepts such as the elements of the offense, what constitutes proof, mens rea (intent) and completeness of evidence." Both Lindquist and Cutler say antifraud education and training will include interviewing skills. According to Cutler: "Conducting proper interviews is a large part of being an effective fraud examiner. It is hard to overemphasize the importance of this skill." Golden says that CPAs interested in doing fraud work must commit to the time demands of the training, get the proper education, pursue the certified fraud examiner (CFE) designation and make their interest in the field known to their employer. "Becoming a fraud examiner is not something that should be pursued part-time," Golden says. "There are a lot of 'wanna-bes' who think the work sounds interesting, but they haven't acquired the background to differentiate themselves. In my office at PwC, we won't hire CPAs for this field unless they also are CFEs or are working to acquire the designation." Certification, however, is only one facet of becoming a fraud expert. Many employers believe the most attractive job candidates are CPAs with many interrelated skills. The pros recommend CPAs have at least two years of solid auditing experience, obtain the CFE designation and then work for a law enforcement agency (see "Government Employment Opportunities," page 79). Working on complex fraud cases in law enforcement for several years offers an invaluable learning experience that could place someone ahead of other applicants when he or she returns to the private sector in this increasingly competitive field. Here are the personal and private-and public-sector experiences that led these three CPAs to professional fulfillment. MR. PROFESSIONAL SKEPTIC Golden, as a junior auditor, looked again at the file folder. …