A forensic accountant is a professional who possesses both
accounting and investigation skills in order to carry out investigation
activities relating to business entities or individuals. The professional
must use his professional skills and prowess effectively so that he can
properly apply financial principles and theoretical frameworks to
handle issues such as legal disputes (Yang & Lee, 2020). In the specific
context relating to a potential land purchase, a land development
company has sued the hired engineer and architecture firm for the
breach of contract, negligence and restitution and reliance. For
providing appropriate validation of the losses in the context and
serving as an expert witness in the court of law, it is instrumental for
the forensic accountant to act in a responsible, accountable, objective
and ethical manner. In order to carry out his responsibilities in the
most professional manner, the professional must make sure to use his
knowledge in the accounting area and rely on his past experience to
ensure justice prevails (Hamdan, 2019). He must think in a rational
and pragmatic manner so that the actual meaning can be deciphered
from the available evidence. In addition to using his skills relating to
the specialized area, it is necessary to integrate ethical principles such
as honesty, integrity and transparency so that the possibility of
malpractice or fraud can be identified.
The forensic accountant can demonstrate professional care, integrity
and objectivity by ensuring that the appropriate professional
standards are maintained throughout the engagement and acting in
an independent manner so that he would not get influenced by either
of the parties. According to the American Institute of Certified Public
Accountants (AICPA), every member AICPA member is supposed to
follow the Code of Professional Conduct so that he is able to carry
out his duties in a competent and responsible manner (Professional
responsibilities. AICPA). It is imperative to rely not only on
professionalism but also on moral judgement so that all the activities
can be carried out thoroughly by upholding justice and fairness. After
conducting the investigation activities, the accountant must also have
to carry out proper communication so that the flow of information
can be made in a transparent way and without any form of bias. He
must rely on his skills and capabilities to conduct a detailed and
holistic investigation process that can help to calculate the exact loss
that has been incurred by the land development business. He must
deploy forensic accounting as a strategic tool to identify any kind of
violations or mis agreements that may have contributed to the
adverse consequences for the company (Jain & Lamba, 2020).
The expert witness testimony by the forensic accountant has the
potential to carry significant weightage in the trial between the two
companies. It is the responsibility of the professional to act in an
objective manner while performing the valuation for the losses so
that a fair outcome can be arrived at (Jonathan & Okoye, 2019). He
must use verifiable and authentic pieces of evidence and help the
attorney prosecute the relevant party to address the dispute.
Reference
Hamdan, M. W. (2019). The role of forensic accounting in discovering
financial fraud. International Journal of Accounting Research, 06(02).
https://doi.org/10.35248/2472-114x.18.6.176
Jain, D. E., & Lamba, J. (2020). Forensic accounting: A way to fight,
deter and detect fraud. IARS International Research Journal, 10(1).
https://doi.org/10.51611/iars.irj.v10i1.2020.106
Okoye, E. I., & Jonathan, N. C. (2019). Forensic accountant expert
testimony and objectivity of forensic investigation in deposit money
banks in Nigeria. International Journal of Multidisciplinary Research
Review, 5(2), 10-15.
Professional responsibilities. AICPA. (n.d.). Retrieved February 8, 2023,
from
https://us.aicpa.org/interestareas/personalfinancialplanning/resourc
es/practicecenter/professionalresponsibilities#:~:text=Additionally%
2C%20all%20AICPA%20members%20are,client%20confidentiality%
2C%20disclose%20to%20the
Yang, C.-H., & Lee, K.-C. (2020). Developing a strategy map for
forensic accounting with Fraud Risk Management: An integrated
balanced scorecard-based decision model. Evaluation and Program
Planning, 80, 101780.
https://doi.org/10.1016/j.evalprogplan.2020.101780
