| When a particular occupation is surrounded by | | | | order to increase penalties and make the |
| controversy and scandals, in most cases this | | | | company’s chief executives personally |
| spells trouble for individuals involved, or looking to | | | | responsible for falsely reporting financial |
| become involved, in the field. A specific profession | | | | information. |
| that does not follow suit is accounting. Accounting | | | | These changes in legislation should increase |
| is one of the few occupations where you will see | | | | scrutiny towards a company’s financials. Two |
| an inverse relationship with regards to the quality | | | | of the most important aspects in reporting |
| of work in the particular field and subsequent job | | | | adequate financial information are good form and |
| opportunities. No matter how despondent things | | | | substance. These strides will mandate the correct |
| may seem in the accounting field, there will be a | | | | use of the matching principle and the periodicity |
| great deal of effort put forth to ensure that | | | | assumption. This will also encourage proper |
| there will be better days ahead. | | | | accounting procedures and make sure that |
| American International Group (AIG) was one of | | | | Generally Accepted Accounting Principles (GAAP) |
| the largest most prestigious insurance agencies in | | | | are being followed properly. In the long run, this |
| the world. Following many years of reported | | | | will diminish the occurrence of fraudulent acts |
| success and unprecedented growth; the public | | | | within corporations. |
| was informed that the financial position of the | | | | In light of these current strides that the |
| company was misstated due to faulty accounting | | | | Sarbanes-Oxley Act and Federal Legislation have |
| procedures and lack of proper oversight. On | | | | made, accountants should see a substantial |
| March 30, 2005, AIG publically acknowledged | | | | increase in job opportunities. Students that are |
| improper bookkeeping over a fourteen year | | | | willing to put forth the hard work and time it |
| period that could have reduce the value of the | | | | takes to earn an accounting degree will enter a |
| company by over a billion dollars. They admitted | | | | job market that is starved for educated and |
| to improperly accounting for the insurance | | | | ethical accountants. Additionally, individuals that |
| transactions to help bolster assets, along with | | | | choose to become a Certified Public Accountant |
| several other in depth examples of problematic | | | | (CPA) will become even more sought after. |
| accounting procedures. When scandals like this | | | | They will be hired to help thoroughly audit |
| occur, fear is struck into the hearts of investors | | | | financial records and ensure adherence to GAAP |
| all across the country. Investors subsequently | | | | and other federal legislation. |
| lose confidence in the market causing a domino | | | | In addition, management and internal auditors will |
| effect throughout the entire economy. | | | | be increasingly important. They will be essential in |
| Everything and anything has to be done in order | | | | the process of discovering and elimination fraud |
| to restore this confidence and ensure that | | | | before an external audit occurs. In more specific |
| investors will not have to suffer from the effects | | | | cases, such as individual and organized fraudulent |
| of similar accounting scandals in the future. | | | | crimes, forensic accountants will see an increase in |
| We have seen more accounting scandals in the | | | | job opportunities. Lastly, jobs for government |
| U.S. over the past 10 years than we have ever | | | | accountants will increase in an effort to make |
| experienced before. It has become almost | | | | government agencies more proficient and |
| commonplace to turn on the news or read the | | | | accountable. |
| newspapers and see negative information leaking | | | | In a time when jobs may seem scarce, |
| about companies. For this reason, it is safe to | | | | accountants are thriving at an all time high. The |
| say that our economy has seen better days. | | | | ongoing problem surrounding these scandals in |
| From Enron and WorldCom, to more recent | | | | large corporations needs to be put to an end. Well |
| scandals like AIG, huge companies are committing | | | | educated accountants will serve as the core of |
| fraudulent acts that are costing investors billions | | | | the process to help eliminate these problems. This |
| of dollars. | | | | will lead to great opportunities for accounting |
| In 2002, the Sarbanes-Oxley Act was made in | | | | students right out of college. Having the |
| response to a number of major corporate and | | | | opportunity to immediately branch out and have a |
| accounting scandals. The Act contains eleven | | | | direct impact on the economy is an excellent |
| sections, ranging from additional Corporate Board | | | | opportunity an accounting major can provide. |
| responsibilities to criminal penalties. It also involved | | | | Opportunities like this are something that people |
| the Securities and Exchange Commission (SEC), | | | | of all occupations are striving for and for some it |
| and required them to implement rulings and | | | | may take years to achieve. So if you are |
| requirements to comply with the new laws. Also, | | | | currently undecided on what major to pursue, it is |
| the severity of these scandals has become so | | | | safe to say that accounting is the way to go. |
| prominent that Federal Legislation was enacted in | | | | |