After reading the details of the case one can rationalize why there is a need for forensic
accounting services, as they are needed to serve as a witness to the court and provide a valuation
for potential losses. Therefore one would have to demonstrate professional care, objectivity, and
integrity when performing these engagement services, which can be done by assessing the
possibility of fraud being committed and through the guidance provided by the AICPA’s
professional code of conduct. The Fraud Triangle can be an efficient tool, created by Cressey,
which analyzes the pressure, opportunity, and rationalization factors, that helps signal for
indications of fraud and knowing, “that influencing any one of these conditions can impact the
likelihood that fraud will occur” (Rufus et al., 2015, 149). Analyzing the possibility of fraud
allows one to exercise professional care because when one serve the court in that role, one must,
“independently and objectively develop our opinions—advocating for the opinion and not the
client per se,” which, “does not (and should not) prohibit a forensic accountant from leveraging
this expert’s skills to enhance management of the case” (Rufus, 2018, 110). Abiding by the
AICPA’s code of professional conduct can serve as guidance to remain objective and maintain
integrity by making sure that, “prior to accepting an engagement, members shall investigate for
potential conflicts of interests, disclose any potential conflicts to prospective clients,” and
ensuring that one, “shall not knowingly make a false statement when testifying in a court of law
or other dispute resolution forum” (Rufus et al., 2015, 301). If any issues or conflicts exist or are
discovered, there can be negative impacts when obtaining sufficient evidence or data to support
that opinion because the forensic will not be neutral and carry some bias when performing the
engagement. One also has to understand that in recent history, “even when law enforcement does
pursue a case, financial crimes are often difficult and expensive to prove,” because of, “the data-
intensive nature of such cases and the challenge of using circumstantial evidence to infer intent,”
which is necessary given that the land development company will have to prove the malicious
intent to commit fraud by engineer and architecture firm (Rufus et al., 2015, 156).
References
Rufus, R. J. (2018). The 3 W’s of Engaging a Forensic Accountant: Why, When, and Who.
American Journal of Family Law, 32(3), 108–114.
Rufus, R., Miller, L., & Hahn, W. (2015). Forensic Accounting. Pearson Education, Inc.
