Fraud examination (sometimes called forensic accounting) is one of the most exciting careers for students studyng accounting and business today. The AICPA has called forensic accounting one of the hot new «sizzling» career areas in accounting. It is estimated then there will be shortage of between, 25.000^^^50.000 security professionals in the next few years in the United Stases. Exciting opportunities for accounting and business students who become knowledgeable in fraud prevention, detection, and investigation abound in various federal agencies, such as the FBI and Postal Inspectors, major corporations, and professional service and consulting firms. Both the size and number of frauds are increasing, which will result in an even greater demand for fraud fighting professional in the future.
You`ve probably heard about Enron, WorldCom, and other major management frauds. But many other types of frauds occur everyday. Fraud is an extremely costly business problem. For example, not long ago, a Fornture 500 automaker experienced a $436 000 000 fraud. Because the fraud reduced the company`s net it come $436 000 000 from what it would have have been and because the company had a profit margin (net income divided by net sales) of approxametaly 10 percent , the company would have to generate sn additional $4.36 000 000 000 (10 times the amount lost it in the fraud in verenues to restore net in come to it pre-faud level. If you assume that an average car sell for $30. 000, thiscompany would have to make and sell over 145, 000 additional cars (4.36 billion divided by $ 30. 000 sales price) to recover the effect on net income. In other words, this company faced a major business problem proble: it could either make and sell 145.000 more cars, or it could work hard to prevent these types of frauds from occurring in the future. When faced this the choice of genereting that much additional revenue – which would have been difficult if not imposible – the company decided that reducing and eliminating future frauds was the more effective way to spend its money. As a result it hired additional fraud and control experts and implemented extensive fraud prevention procedures throughout the orgenization . Eliminating fraud is a problem that every organization faces and you can help them deal with this growing problem.
Even if you decide not to become a fraud expert the topics in this book will help you be a better proffessional in whatever career path you choose. The technology interviewing document examination public records and other tools and know ledje you gain will make you a better consultant auditor tax proffessionaly or manager as well as a better and more astute investor.