“Begin with the End in Mind”

Habit 2, The 7 Habits of Highly Effective People

Stephen R Covey

What is the issue that you are dealing with?

Fraud

Misconduct

Litigation

Personal Injury

Family Law

Ultimately all matters for which you engage a forensic accountant, will involve money or value in some form

“Begin with the end in mind” ~ Stephen R Covey

What is the end result that you wish to accomplish:

Can the issue be dealt with between the parties?

Will the matter go to Court?

What skills do you need to undertake your investigation / litigation?

Having an accounting degree does not mean you are a forensic accountant

Appropriate education, training and experience are needed

Not being held to be an expert forensic accountant could significantly damage your case.

Coordinating experts

In many litigations / investigations, different experts are required

The coordination of experts is important

Example - Investigations

More than 92% of all business documents are now created electronically

Many of these documents never become “hard copies”

A forensic accountant:

has significant knowledge of case law, legislation, standards and Court processes

Has an understanding of why and how people commit offences

For example:

Understanding the concept of dishonesty – Section 408C Qld Criminal Code

Is there a potential independence issue if a matter is dealt with internally or by the company’s external accountant or auditor?

APES215 Section 2 defines Member in Business:

“A Member employed or engaged in an executive or non-executive capacity in such areas as commerce, industry, service, the public sector, education, the not for profit sector, regulatory bodies or professional bodies, or a Member contracted by such entities.”

A forensic accountant must provide information in their report to assist the Court to assess the degree of their independence (APES215 3.10).

If an employer has an interest in the outcome of the Proceedings, and a reasonable person would consider objectives of the forensic accounting service to impaired as a result of the employer’s interest in the outcome, the member shall decline the engagement (APES215 5.2)

A forensic accountant should be retained as early as possible.

The assistance that a forensic accountant can provide early in the process can: be significant in reducing the overall cost and

maximising the benefit

Assist with the discovery of documents

Identify additional areas of damages / investigation

Provide preliminary assessment of damages.

When to adopt a forensic accounting mindset

“Begin with the End in Mind”

Habit 2, The 7 Habits of Highly Effective People

Stephen R Covey

When to adopt a forensic accounting mindset

• What is the issue that you are dealing with?

–Fraud

–Misconduct

–Litigation

–Personal Injury

–Family Law

When to adopt a forensic accounting mindset

• Ultimately all matters for which you engage a forensic accountant, will involve money or value in some form

When to adopt a forensic accounting mindset

• “Begin with the end in mind” ~ Stephen R Covey

• What is the end result that you wish to accomplish:

– Can the issue be dealt with between the parties?

– Will the matter go to Court?

Skills needed

• What skills do you need to undertake your investigation / litigation?

– Having an accounting degree does not mean you are a forensic accountant

– Appropriate education, training and experience are needed

– Not being held to be an expert forensic accountant could significantly damage your case.

Coordinating experts

• Coordinating experts

– In many litigations / investigations, different experts are required

– The coordination of experts is important

• Example - Investigations

– More than 92% of all business documents are now created electronically

– Many of these documents never become “hard copies”

Litigation / Investigation Knowledge

• A forensic accountant:

– has significant knowledge of case law, legislation, standards and Court processes

– Has an understanding of why and how people commit offences

• For example:

– Understanding the concept of dishonesty – Section 408C Qld Criminal Code

Independence

• Is there a potential independence issue if a matter is dealt with internally or by the company’s external accountant or auditor?

• APES215 Section 2 defines Member in Business:

– “A Member employed or engaged in an executive or non-executive capacity in such areas as commerce, industry, service, the public sector, education, the not for profit sector, regulatory bodies or professional bodies, or a Member contracted by such entities.”

Independence

• A forensic accountant must provide information in their report to assist the Court to assess the degree of their independence (APES215 3.10).

• If an employer has an interest in the outcome of the Proceedings, and a reasonable person would consider objectives of the forensic accounting service to impaired as a result of the employer’s interest in the outcome, the member shall decline the engagement (APES215 5.2)

Engaging a forensic accountant early

• A forensic accountant should be retained as early as possible.

• The assistance that a forensic accountant can provide early in the process can: – be significant in reducing the overall cost and

maximising the benefit – Assist with the discovery of documents – Identify additional areas of damages /

investigation – Provide preliminary assessment of damages.

“Begin with the End in Mind”

Habit 2, The 7 Habits of Highly Effective People

Stephen R Covey

What is the issue that you are dealing with?

Fraud

Misconduct

Litigation

Personal Injury

Family Law

Ultimately all matters for which you engage a forensic accountant, will involve money or value in some form

“Begin with the end in mind” ~ Stephen R Covey

What is the end result that you wish to accomplish:

Can the issue be dealt with between the parties?

Will the matter go to Court?

What skills do you need to undertake your investigation / litigation?

Having an accounting degree does not mean you are a forensic accountant

Appropriate education, training and experience are needed

Not being held to be an expert forensic accountant could significantly damage your case.

Coordinating experts

In many litigations / investigations, different experts are required

The coordination of experts is important

Example - Investigations

More than 92% of all business documents are now created electronically

Many of these documents never become “hard copies”

A forensic accountant:

has significant knowledge of case law, legislation, standards and Court processes

Has an understanding of why and how people commit offences

For example:

Understanding the concept of dishonesty – Section 408C Qld Criminal Code

Is there a potential independence issue if a matter is dealt with internally or by the company’s external accountant or auditor?

APES215 Section 2 defines Member in Business:

“A Member employed or engaged in an executive or non-executive capacity in such areas as commerce, industry, service, the public sector, education, the not for profit sector, regulatory bodies or professional bodies, or a Member contracted by such entities.”

A forensic accountant must provide information in their report to assist the Court to assess the degree of their independence (APES215 3.10).

If an employer has an interest in the outcome of the Proceedings, and a reasonable person would consider objectives of the forensic accounting service to impaired as a result of the employer’s interest in the outcome, the member shall decline the engagement (APES215 5.2)

A forensic accountant should be retained as early as possible.

The assistance that a forensic accountant can provide early in the process can: be significant in reducing the overall cost and

maximising the benefit

Assist with the discovery of documents

Identify additional areas of damages / investigation

Provide preliminary assessment of damages.