Regardless of the term accounting in forensic accounting, the discipline isn’t related to simply reading financial statements that are available to the public or dealing with other accounting issues; the usual accountants, portfolio managers, investment analysts, and etc. already do the regular financial tasks. Instead, forensic accounting scrutinizes the financial documents that are internal which aren’t readily available to the public; these documents are usually considered in litigation affairs. Generally, the field of accounting was undergoing a major overhaul; before the recent economic crisis that has devastated some parts of the western world, the accounting scandals regarding WorldCom and Enron pushed the field towards change.
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For instance, a company may influence a civil servant by offering an attractive job after their term if they influence certain policies in specific ways. As a result, the individuals that commit white collar are often those that have the influence and power to forge policies as they may require. Therefore, while some companies like WorldCom and Enron may be caught, there are potentially a whole amount of entities committing white collar crime which some may be getting away with by working the system. The paradox in policymaking has forged a system where powerful corporation can influence the system so that they may get their way. As a result, there is a stronger need for forensic accountants more than ever before.
However, the education field of forensic accounting is limited at best; just being a good accountant doesn’t equal an efficient forensic accountant. For starters, a forensic accountant needs a large variety of knowledge and abilities. Unfortunately, due to the high demand of forensic accountants, a lot of traditional accountants are getting in the field in hopes to progress in their career. The problem is that with the issues in the economy, policymaking, white collar crime, and etc., forensic accounting