Future of Forensic Accounting and Accountants Essay

Future of Forensic Accounting and Accountants - Essay Example This takes us to our discussion regarding the future aspects of forensic accounting and the role of forensic accountants in the light of the current events and endless possibilities and opportunities in the profession. The current economic recession has yet again revealed the weaknesses in the corporate structure which is under pressure to sustain itself and the crisis which started from prime loans and credit crisis in the financial sector did not take long time to spill over its adversities to other sectors in the US. Similar conditions also prevail in other countries in particular European and Far Eastern countries which rely heavily on US interests in these countries. Present glooming conditions are not favoring businesses and stocks are plummeting as shareholders hold a more conservative approach and feel that presently a more careful approach is required. In this situation businesses are not able to benefit from the capital markets as raising capital becomes difficult and slowing trading activity making businesses fall back on their commitments and disputes are more than likely to happen. In addition to this to stay as a favorable investment choice amongst shareholders it is imperative that companies will indulge in manipulation of their accounts to report healthy view of their companies which may not be the case. Despite of the tougher regulation of the accounting profession and attempts by international regulators to converge all countries on a single set of accounting standards there still remains certain loopholes as participants are not willing to compromise their sovereignty and identification. Fraudsters and culprits are always in search of such gaps that remain in both accounting and legal systems and it is in their interests to misreport their financial condition or avoid such commitments which they may not be able to fulfill. This scenario would surely create further demand for forensic accounting and forensic