Four Key Attributes of a Forensic Accountant
Video Transcript
I’ve been a forensic accountant for over half a century, even before the term existed. The field is gaining popularity, especially with movies like The Accountant, which feature forensic accountants. The forensic accountant, as portrayed by Ben Affleck, effectively embodies many of the key attributes of a forensic accountant.
Forensic accountants can significantly influence litigation outcomes by providing precise financial data, thereby eliminating moving targets that waste time and increase fees. The role requires handling complex situations, thinking quickly, making logical arguments, and standing up to criticism and cross-examination.
As Theodore Roosevelt said, “It’s not the critic who counts… it’s the man in the arena that counts.”
1. Demonstrate Resilience
Resilience means maintaining physical and mental stamina. Traits like grit and endurance are often cultivated through youth participation in competitive combat sports like wrestling, MMA, and boxing.
- You must be willing to take real hits — metaphorically and literally — to build mental toughness.
- Combative sports help develop neural pathways that are critical for forensic accounting performance.
Do Hard Things, Face Challenges:
- Choose difficult tasks over easy ones.
- Examples: Take a hard class, learn a new skill, compete in a tough event.
- Success builds confidence; failure builds resilience.
I personally challenge myself as a Coast Guard Merchant Marine Captain, navigating the North Atlantic, or scuba diving in harsh environments. These hard experiences forge the toughness needed in this profession.
Play Competitive Poker
I’m also a professional poker player. Poker builds:
- Analytical and data interpretation skills
- Emotional and mental discipline
- Risk-based thinking
Importance of a Religious Foundation
Developing a sense of ethics and moral clarity early in life is important. A forensic accountant must be a force for good.
2. Think Differently
Most lawyers and accountants think linearly. Forensic accountants must think differently — often spotting flaws others miss.
Harvard’s graduate case method helped me strengthen this skill through Socratic dialogue and nonlinear thinking strategies.
Linear Thinking:
- Follows step-by-step logic (A → B → C)
- Good for rule-based, predictable tasks
Nonlinear Thinking:
- Jumps between ideas, sees hidden patterns
- Connects unrelated concepts and embraces complexity
3. Have a PhD-Level Understanding of Business
To become a subject matter expert in forensic accounting, you need a strong blend of education, experience, and continuous learning:
- Earn undergrad and graduate degrees in accounting or finance — state schools often produce more street-smart professionals.
- Take online courses (e.g., Coursera), start a business, and gain experience at regional CPA firms.
- Get your CPA license and work in forensic engagements.
- Pursue an MBA and take advanced courses at elite institutions like Ivy League schools.
- Commit to lifelong learning.
4. Ability to Time Travel
Forensic accountants must metaphorically “travel through time” — reconstructing the past and projecting the future.
Reconstructing the Past:
- Review records (bank statements, emails, ledgers)
- Trace money and uncover fraud
- Rebuild sequences of events and understand intent
Projecting the Future:
- Estimate damages, lost profits, or valuations
- Create financial models for “what-if” scenarios
- Advise on risks or compliance exposures
Summary: The Forensic Accountant as a Time Traveler
| Concept | Physicist | Forensic Accountant |
|---|---|---|
| Time travel to the past | Observes cosmic events | Reconstructs frauds and transactions |
| Time travel to the future | Predicts outcomes with equations | Projects losses, values, and damages |
| Core skill | Understands time as a continuum | Connects past actions to future impact |
| Limitation | Bound by laws of physics | Bound by data and assumptions |