Uncle Sam wants you (for a fraud examiner job)

Starting Out: For new and budding fraud examiners

Are you looking for that next job opportunity? The U.S. federal government has scores of employment possibilities for fraud examiners on USAJobs.gov.

In this and the next two columns, I discuss the three position classification categories that most often contain fraud examination responsibilities and opportunities:

• Accounting and budget (this column).
• Investigation and inspection (March/April).
• Program management (May/June).

If you understand the delineations for these jobs, you can better comprehend the federal job search process. You can search for specific job codes within entire categories to help narrow your search. You can then tailor your education, training and career experience to the requirements and keywords listed in vacancy announcements.

0500: Accounting and budget

This category includes exciting and meaningful positions that allow CFEs to apply the entire scope of prevention, identification and investigation of fraud plus examination of business records, financial transactions and government programs.

The 0500 job classification category includes accounting, auditing and budgeting. Within the category, it includes 0510 (accountant), 0511 (auditor) and 0512 (Internal Revenue Agent). In some agencies, financial investigators without law enforcement authority are also in this classification. Sometimes, agencies call them financial analysts.

Here are subcategories in "Accounting and budget":

0510: Accountant

Because of the wide job range for accountants, this classification often might be more focused on the prevention of fraud and implementation of internal controls within the government agency. The job responsibilities for the accountant position include:

• Designing, developing, operating or inspecting accounting systems.
• Prescribing accounting standards, policies and requirements.
• Examining, analyzing and interpreting accounting data, records and reports.
• Advising or assisting management on accounting and financial management matters.

These jobs require an understanding of accounting theories, concepts, principles and standards. Accountants — just like in the private sector — work on ledgers by preparing financial statements, reconciling revenues and costs, and determining the appropriateness of transactions.

Developing internal control systems and procedures are important to government accounting and program management. Accountant CFEs who understand The Fraud Triangle and can "think like the bad guy" when designing these control mechanisms for specific programs are better positioned to provide expert advice to an agency's management and leadership.

Also, the best candidates can identify and detect fraud schemes via reconciling and posting financial data. They will be able to use analytical tools, such as common-size statements and others, to uncover areas of concern or program deficiencies.

0511: Auditor

Auditing involves the systematic examination and appraisal of financial records, reports, management controls, policies and practices affecting or reflecting the financial condition and operation of federal agencies and contractors.

Auditors use a variety of examination criteria and methodologies to identify and analyze transactions, programs and organizations. Auditors provide both financial audits and performance audits. The duties for an auditor include:

• Evaluate and modify standard audit program steps to align with the risk assessment.
• Meet with auditee to explain audit purpose and obtain necessary information.
• Test and examine accounting systems and records, cost representations, internal controls, management policies and practices to assure compliance with accounting and auditing principles, standards and regulations.
• Make initial audit determinations.
• Prepare audit working papers and substantiating documents.
• Draft reports of audit findings, conclusions and recommendations.

0510 or 0511: Forensic Accountant

Law enforcement agencies such as the FBI or inspectors general offices often need forensic accountants or forensic auditors to assist in the examination and identification of potentially fraudulent or problematic transactions. They analyze financial records obtained through subpoenas and search warrants, provide expert opinions for trials or hearings, and write reports that detail the transactions. Some of their other responsibilities might include:

• Helping investigators and prosecutors with their knowledge of accounting and financial practices, securities, banking laws and systems, conventional and non-conventional financial institutions, and profit/non-profit businesses.
• Conducting examinations of financial aspects (personal finances and businesses) of investigations with limited guidance from case agents, prosecuting attorneys and others.
• Developing financial profiles of individuals and groups identified as possible participants of suspicious or illegal financial activity.
• Preparing analyses, financial findings and reports to aid investigations.
• Utilizing computer and data applications to review a wide variety of financial transactions, corporate, business, and financial records and information.
• Producing financial investigative exhibits to assist in explaining complex transactions or large amounts of information.
• Participating and conducting subject and key witness interviews, including financial professionals (accountants, financial advisors, etc.)
• Testifying as a summary or expert witness in judicial proceedings.

Other agencies that hire forensic accountants and forensic auditors include the Government Accountability Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. attorney offices. See opportunities in offices of inspectors general.

Most agencies seek forensic auditors who have a strong financial or investigative background and usually five to 10 years of work experience. 

0512: Internal Revenue Agent

An Internal Revenue Agent (IRA) is a tax auditor for the Internal Revenue Service. They conduct audits and examinations of personal tax returns and corporate, partnership, trust, non-profit and others responsible for filing income and revenue tax returns. By conducting reviews of financial data, documents, and interviews with key individuals, an IRA determines if any additional (or lesser) assessments of tax liability is due.

The Office of Personnel Management describes the full-performance (highest non-supervisory grade) of the IRA as having the following attributes:

1. Knowledge of and skill in applying professional accounting principles, theory, and practices to analyze and interpret accounting books, records, or systems specifically to determine their effect on Federal tax liabilities and their adequacy for recording transactions affecting tax liabilities.
2. Skill in interpreting and applying federal tax law for individuals, business, and/or exempt organizations, partnerships, and corporations.
3. Knowledge of business and trade practices to develop tax issues based on analysis and evaluation of overall business operations and financial condition.
4. Knowledge of corporate financial transactions and financial management principles and practices.
5. Skill in interacting effectively with a broad range of individuals and in negotiating with specialists in accounting, legal, tax, and other similar business-related professions.

Fraud and the U.S. government

Proficient anti-fraud professionals would be well suited for any of these positions. In fact, the CFE credential is a preferred hiring consideration for the members of the ACFE Law Enforcement and Government Partnership program.

Some of the 21 federal agency members of the program include: the FBI, the U.S. Secret Service, the Department of Defense (including the Defense Contract Audit Agency, the Defense Contract Management Agency and the Army Audit Agency), the Securities and Exchange Commission and more than 10 inspectors general offices.

Important skills for these positions include a knowledge of the principles and theories of accounting and how to apply them. Candidates must also be able to analyze and communicate complex data to those with no accounting backgrounds — also an important component of the CFE credentialing process. Numbers don't mean much without understanding the people behind them.

Educational requirements

Almost all these positions require either a bachelor's degree in accounting or a certain number of academic course hours in accounting, finance, business law or similar business classes.

Double check education requirements in each vacancy announcement on USAjobs.gov. For example, one recent "Staff Accountant" announcement for the U.S. Department of Veterans Affairs described the basic education required of all applicants as:

Possess a degree in accounting or a degree in a related field such as business administration, finance, or public administration that included or was supplemented by 24 semester hours in accounting. The 24 hours may include up to 6 hours of credit in business law.

Alternatively, the announcement also noted that certain work experience, certification as a CPA or Certified Internal Auditor and the completion of substantial course work in accounting or auditing (15 semester hours) could qualify the applicant.

Network, mingle, interact …

If you're interested in learning more about these job types, consider using the various social media avenues of the ACFE, including the ACFE LinkedIn page and the member directory. See the ACFE Career Center. Go to your local chapter meeting, especially when a guest speaker is presenting. Use the USAJobs portal as your "one-stop-shop" for federal jobs and review all the information in the tutorial on résumés.

Colin May, CFE, is a forensic financial investigator with a government agency (the views in "Starting Out" are his own) in Baltimore, Maryland.

Students: Apply for a chance to attend the ACFE Global Fraud Conference on scholarship

The 2015 ACFE Conference Scholarship program is now open to ACFE student members for a chance to attend the 26th Annual ACFE Global Fraud Conference, June 14-19, 2015 in Baltimore. Each scholarship includes a free Main Conference registration and two ACFE polo shirts. (Recipients will be responsible for travel, lodging and dining expenses outside of the meals provided at the conference.) Each recipient will be required to assist the ACFE staff in various areas for a minimum of five hours during the conference.

This is a great opportunity for students pursuing a fraud-related career to hear from subject matter experts and network with anti-fraud professionals in a variety of industries.

Students must submit a 400-word statement describing the way in which their academic and/or career interests relate to the anti-fraud profession. They also must submit a letter of recommendation written by a professor or employer who's familiar with their work and career interests. The letter must be submitted on official institutional/company letterhead with a visible signature. The deadline date is Feb. 19, 2015.

All documents must be emailed to Lupe DeLeon or faxed to +1 (512) 478-9184. Recipients will be selected and notified by March 10, 2015.

The Association of Certified Fraud Examiners assumes sole copyright of any article published on www.Fraud-Magazine.com or ACFE.com. Permission of the publisher is required before an article can be copied or reproduced.