Tuesday, December 2, 2008

Forensic Accounting

I've realized that I'm fascinated by books the unravel misdeeds at companies like Enron.   I just finished reading the book Fooling Some of the People All of the Time and I was forced to stay up late to read the bulk of it the other night.    Popularized versions of Forensic Accounting are fascinating to me and I've never had an accounting class. 

After finishing this book, I remembered that I also enjoyed Conspiracy of Fools which talked about Enron and Worldcom and others and I also enjoyed Smartest Guys in the Room about Enron.

It is amazing how people who know better can take little steps, one-at-a-time that lead them to a place they know is wrong.   It is like the boiling frog story we've heard.   We know better and we end up in the wrong.


3 comments:

  1. These cases are interesting to read. I think the ones that perpetrate these frauds get so caught up in "making the numbers" to please management and Wall Street they abandon professional judgement. Another interesting point is to look at the ages of the financial managers at Enron and some of the other accounting frauds - they were all in their 30's. I question whether they had the experience and knowledge to really know how to properly do the job.

    By the way - be careful in admitting this interest in accounting - it will ruin your reputation.

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  2. I recommend you watch The Crooked E or the documentary version of the book The Smartest Guys in the Room so that you would better know how companies are involved in those cases. Well, if you can take the risks and dangers of catching fraudulent people, then try to study accountancy. Who knows, you might become one of the best forensic accountants someday. :)

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  3. Thanks Jamie. I've read the book you mentioned, but will look for the Crooked E. Thanks for stopping by!

    Mark

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