Summary
The referred article speaks of the increased levels of fraud by insiders in organizations across countries - especially those that are hit by recession. In this analysis I take a look at how this will impact forensic accounting and indepth audits. The role of the accountant and auditor will gain emphasis and management will have to take increased care to safeguard assets - the stewardship function.
Analysis
1. As employees get laid off, productivity falls and incomes fall in other ways there is a motivation for employees to indulge in different ways including fraud for increasing their incomes.
2. In this context forensic accounting and audit become increasingly relevant.
3. Employees will have to be properly motivated to ensure that the extent of frauds and other enterprize assets misappropriation is minimized.
4. All that this means is that enterprizes will have to concentrate on increased audits and checks.
5. I would expect that in addition to internal audits most organizations would move towards a regular forensic audit also in the coming years. In my experience I have already seen a very visible move in this direction over the last few years.
6. Managements are increasingly saying "Do not trust anyone" when you audit us. This ofcourse puts greater responsibility on the auditors.
7. In summary I would say expect much greater emphasis on forensic accounting in the coming years.
