Ethical Issues In Forensic Accounting

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Forensic accounting is neither glamorous nor nearly suspenseful enough to rate a Friday night TV slot, however it is an exacting science in its own right and is often critical in the litigation process. Few forensic accountants have the spookily perceptive eyes of Silent Witness' Professor Sam Ryan, however many forensic accountants would joke that their job is, like hers, about counting dead bodies. Bad jokes aside, good detective work and accurate analysis are what it's all about, and attention to detail can obviously make or break a case. Silent Witness turns on expert witness in the courtroom, and the analogy extends to Professor Ryan's examining decaying bodies whilst forensic accountants examine decaying businesses and finances. But…show more content…
As a discipline, it encompasses financial expertise, fraud knowledge, and a strong understanding of business reality and the working of the legal system. The process includes: o Reviewing the factual situation. o Providing assistance in obtaining documentation necessary to support or refute a claim. o Reviewing the relevant documentation to form an initial assessment of the case and identify areas of loss. o Providing assistance with examination for discovery, including the formulation of questions to be asked regarding the financial evidence. o Co-ordination with other experts. o Reviewing the opposing expert's damages report and reporting on both the strengths and weaknesses of the positions taken. o Providing attendance at trial while hearing the testimony of the opposing expert and also providing assistance with the cross-examination. Forensic accountants become involved in the assessment of economic loss damages in personal injury; assessment of damages in commercial disputes; business valuations for family law and commercial disputes; family law superannuation valuations; professional negligence claims; fraud investigation and fraud risk assessment; and business interruption…show more content…
Ask your colleagues and other solicitors whom they use and why. Ask barristers whom they would recommend. Forensic accounting requires a different set of skills and knowledge from general accounting. Forensic accountants will have knowledge of the rules of evidence, common law, the relevant legislation, the expert code of conduct and obligations. Forensic accountants will be experienced at giving evidence in court and preparing reports for court. It is important to establish a relationship with the forensic accountant. An ongoing relationship enables you to ask questions about a matter and get a feeling for the issues and reduces the time required to brief the accountant. The instructions that we receive are often one page, briefly detailing the important facts of the case, contact details for the client and enclosing copies of financial documentation available. Due to our ongoing relationship with the solicitor, we arrange a conference with the client, obtain further financial details and in turn provide our expert

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