;Alongside with the development of modern science and technology, the scale of the economy has expanded correspondingly, and the investors affected by major financial frauds have been extremely harmful to the capital market, such as in the early days, Enron, WorldCom, and Xerox of the United States, and Boda, Taikai of Taiwan, etc.; to the recent XPEC, Farglory, Mega Bank and other cases. Every piece of malpractice has undermined the mechanism of fair operation of the market and has also devastated the people′s trust in the judicial system. Therefore, how to investigate and prevent major economic crimes has become the primary issue of judicial personnel in various countries.
The perpetrators of economic crimes usually have certain professional knowledge and experience, so their occult and imperceptibility are higher than the general crimes. In the investigation of economic crimes, it often involves professional knowledge such as accounting, economy and finance. However, common law professions do not have such specific knowledge. Therefore, in the relevant investigations, the assistance of relevant professionals is needed, and "Forensic accounting" has gradually received attention in both academic and practical fields.
However, in the majority of financial statement frauds and market manipulation cases, the courts did not select personnel with relevent knowledge to serve as expert witnesses to assist in solving disputes. Whether the legal person has sufficient practical experience and be competent to interpret a large number of documents, analyzing the hidden mystery, achieving the purpose of discovering the truth. The issue is worthy of discussion.
In this paper, we will discuss the challenges faced by forensic accountants as supporting economic crime in respect of formal and substantive aspect. At the formal aspect, the problems encountered by the forensic accountants when applying to the current criminal procedure law are in discussion, and I will analyze the latest draft amendments of the criminal procedure law published in 2019 to identify future developments and suggestions; at the substantive level, the article pays attention to the financial statement frauds and market manipulation cases, and then to observe what are the advantages of forensic accounting compared to the current method.
Last but not least, we hope to enhance the attention of judicial workers to forensic accounting through the essays in this article, and to provide the direction for future legislators to practice the law.