Should the forensic accounting profession be regulated?

Adopting Huber’s (2012) argument that forensic accounting has become a profession, this paper examines whether the forensic accounting profession and the forensic accounting certification industry should be regulated. Several recent studies have uncovered significant problems within the forensic accounting profession and the forensic accounting certification industry. The failure of forensic accounting corporations to disclose either their legal status or the qualifications of their officers and directors, their failure to publish financial statements, and their failure to adopt or enforce a Code of Ethics or Standards of Practice, were among the most significant problems uncovered. The failures of the corporations were exacerbated by forensic accountants’ failure to investigate diligently the corporations that issued their certifications prior to obtaining their certifications. This resulted in a significant number of forensic accountants holding certifications from corporations that were inconsistent with their beliefs that a forensic accounting corporation should be not-for-profit, and their officers and directors should be qualified.Those studies suggested three alternatives for addressing the problems: voluntary action by the corporations, establishing an independent agency for accrediting the corporations and certifications, and regulatory intervention. However, the feasibility of the recommended alternatives was not sufficiently evaluated to be able to arrive at a conclusion for recommending which alternative should be implemented.This paper evaluates the feasibility of alternative solutions. It concludes that the most realistic alternative is for government regulation of forensic accounting in the form of legislation at the state level.