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The global financial crisis of 2008 started with the rapid decline in home prices, rising interest rates, and loans increased “subprime”, which leads to a growth rate of mortgage foreclosures. The subprime mortgage crisis has hit several financial institutions and banking systems around the world in various ways. With the collapse of major financial institutions such as Fannie Mae and Freddie Mac, Lehman Brothers, Merrill Lynch and American International Group (AIG), the Federal Reserve has responded in an attempt to alleviate the crisis in the credit markets. The collapse of financial institutions has created a domino effect on the economy. Thus, there is little the Fed can do to prevent the collapse of other financial institutions. Besides affecting financial institutions, the financial crisis has affected accounting in various ways. Although the global financial crisis has affected all companies in a negative impact on the auditors were not so negative.

Because of past accounting scandals, there was a significant increase in the budget law, the strictest regulations, and an increased risk common in financial institutions and tourism increased demand for accountants, in spite of economy. The Public Company Accounting Oversight Board created the Sarbanes-Oxley Act of 2002, which requires all listed companies in the United States to follow specific rules and regulations. Compliance with this regulation increases the costs of listed companies and, in turn increases the demand for accountants and auditors. Following the financial crisis, there is a greater risk to the financial aspects of society and, therefore, the need for risk management has grown in financial institutions. Companies tend to demonstrate a greater need to understand and assess risks and to achieve the auditors to assist in the understanding of risk management in this difficult period. Risk management is essential and can be the breaking point to the financial success of a business, especially during a financial crisis. This increase in financial laws, stricter regulations and increased financial risk, has a positive effect on the demand for accountants.

The concept of globalization has a strong correlation with the global financial crisis of 2008. Because of globalization, countries are linked and dependent on each other, now more than ever. Globalization has also affected the demand for accountants in various ways as well. The current global financial crisis has a strong correlation with globalization. Currently, financial institutions around the world are more dependent on each other that the companies have been in the past. Consequently, the collapse of major financial institutions may have a high incidence of other financial institutions around the world because of dependence on another. Another aspect of globalization that the financial effect is the change of use International Financial Reporting Standards (IFRS). The transition from accounting principles generally accepted international standards of financial reporting has a significant impact on accounting in this period. Auditors are preparing for the transition, which also leads to increased demand for accountants, despite the global financial crisis. Accountants who are familiar with the area in question are in greater demand, compared to auditors who are less informed. Although countries are already connected, the adoption of IFRS is simply to ensure a stronger relationship between the countries, because you will be using the same rules that may have an impact on the global financial crisis.

Although some effects on the auditors are positive, negative effects still exist. The global financial crisis is affecting all businesses in the United States and the global world. Because of the crisis, businesses reduce costs throughout their organizations. For example, customers of auditors spend less and reduce significantly due to the economy. Consequently, accountants are losing customers that they have established relationships with customers, because their incomes do not support services for the accounting. Thus, accountants are losing customers, and thus losing revenue. In return, the accounting firms are also cutting costs along to their organizations to reflect the loss of customers. Currently, these companies are cutting costs by reducing the number of employees to hire. Recruitment procedures have increased over the past two years, but with the economy approaching recession, recruitment practices have slowed.

Although the global financial crisis of 2008 has a negative effect on all businesses, not the effects of negative book. It ‘clear that accountants are in high demand at this stage, due to many factors, despite the economy. Accounting is a profession that is lucky to still be in high demand during the global financial crisis of 2008.

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302 Moved302 MovedIl document was spostatoqui.