For the forensic accountant to remain objective, the accountant must examine his
relationships with all parties involved prior to accepting the engagement. The accountant
must be independent, with no ties to either part so no conflict of interest occurs.
According to the AICPA’s rules of professional conduct, “members shall maintain
objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly
misrepresent facts or subordinate their judgement to others.” (Rufus, Miller, & Hahn,
2014)
According to the ACFE code of professional standards, the third standard relates to due
professional care. To demonstrate due professional care, the accountant should do the
following:
“Members shall exercise due professional care in the performance of their services,
which requires diligence, critical analysis, and professional skepticism.
Conclusions shall be supported with evidence that is relevant, competent and sufficient.
Members professional services shall be adequately planned and supervised.” (Rufus,
Miller, & Hahn, 2014)
This essentially means that the accountant should do extensive research into how the
fraud occurred. They must be able to obtain sufficient data that is relevant to the case
and can help them come to an unbiased conclusion. They need to ensure that they
have planned enough time to be able to thoroughly investigate this case. The
accountant should ensure that he can demonstrate professional competence, and if he
or she can’t, they should not accept the case. The accountant must also demonstrate
confidentiality. They must only relay privileged information with the client unless
otherwise allowed by the client. a a
If these standards are not followed, it could lead to a lack of trust from clients. The
accountant could lose clients and credibility if he or she acts outside of these standards.
If the accountant lacks objectivity and integrity, it may lead to a biased opinion. If the
accountant lacks competence in the required areas, it may prevent them from being
able to obtain enough sufficient evidence to support their conclusion.
References:
Rufus, R., Miller, L., & Hahn, W. (2014). Forensic Accounting. Pearson Education (US).
https://mbsdirect.vitalsource.com/books/9780133867534
