One role forensic accountant have is to be expert witnesses and give testimony in court. There are
certain principles that guide forensic accountants in this role. The AICPA Professional Standards are
designed to establish and maintain trust between a forensic accountant and their client and between the
forensic accountant and the court. The rules of professional conduct a forensic accountant must follow
include independence, integrity and objectivity, general standards (professional competence, due
professional care, planning and supervision, and sufficient relevant data), compliance, accounting
principles, responsibilities to clients, etc (Rufus et al, 2015).
To demonstrate due care, the forensic accountant should perform professional services to the best of
their ability and maintain a high level of competence. This means a commitment to learning and
continually striving for professional improvement. Additionally, the forensic accountant should not
perform work that exceeds their ability, and either bring in a consultant or refer the work to someone
else should that situation occur (AICPA). Objectivity refers to the forensic accountant remaining
impartial, intellectually honest, and free of conflicts of interest. Should the forensic accountant have a
reason to not remain objective, such as having stock in the company they are testifying for or a
longstanding friendship with the CEO, then they should decline work or testifying for this company. A
forensic accountant should maintain a high level of integrity because the public’s trust is built on this
quality. To demonstrate integrity, a forensic accountant should be honest and should not perform work
for personal gain (AICPA).
As the forensic accountant serving as the expert witness, he or she must demonstrate professional
care, objectivity, and integrity. The AICPA outlines the importance of these while working any
engagement. To provide professional care, the accountant must be able to provide quality services
(AICPA). In preparation for court, they must gain the proper knowledge of zoning and architectural
development regulations and obtain the necessary training and/or education to be able speak on the
topic accurately and freely. Professional care also looks like setting fees for the arrangement, as well
as offering additional services outside of serving as the expert witness (AICPA).
Objectivity can often be paired with independence in accounting. Objectivity allows the forensic
accountant to remain impartial, intellectually honest, and free of conflict of interest (AICPA). If he or
she is biased to one side or the other, the attestation services can be heavily affected. For example, in
this case the forensic accountant serving as the expert witness would not be working with objectivity
if they had a personal relationship with the architect because this may sway the way they present their
testimony or cause them to neglect essential information while testifying in court. Working an
engagement without objectivity is a violation on the AICPA’s Code of Professional Conduct.
Lastly, integrity is an important trait to have in all walks of life, however in this case it is a
requirement. Integrity requires honesty under any and all circumstances. Integrity is measured in terms
of what is right and just (AICPA). This means that in the event that there are no specific rules and laws
set in place for the scenario the accountant is in, he or she must then turn to the concept of ethics to
come to a final judgment. If the accountant does not do so in this case, it can lead to an unfair ruling of
the case.
Forensic Accountants must demonstrate professional care, objectivity, and integrity in performing any
engagement. For this case of valuation of loss in a failed business venture, the forensic accountant
should have the knowledge, skill, experience, training, or education on the topic of a feasibility study
on a potential land purchase and what is suitable land for development. z This would allow the forensic
accountant to be an expert witness in the cases. z Additionally, forensic accountants must perform their
services with the highest level of professionalism. z Individuals can find guidance in the Association of
International Certified Professional Accountants (AICPA) code of professional conduct and bylaws
and the Federal Rules of Evidence for the guidelines of professional responsibilities (Rufus, Miller, &
Hahn, 2015). For example, AICPA Rule 101; Independence, Integrity, and Objectivity; demonstrates
an accountant’s ability to be independent which leads to integrity and objectivity. This means a
forensic accountant must be free of conflicts of interest in each case one is involved in (Professional
responsibilities 2014). In other words, the forensic accountant should not have a relationship or the
appearance of a relationship with another individual, entity, product, or service that could influence
the forensic accountant’s professional judgement or be viewed by others as an impairment of the
accountant’s point of view. Through this independence it allows the forensic accountant to act with
integrity, objectively, and with professional skepticism. In addition, with the land case of valuation, a
forensic accountant’s testimony should focus on the General Standards Rule 201 This rule includes
the process of professional competence, due process care, planning and supervision, and sufficient
relevant data (Rufus et al, 2015). As a result, to be competent an individual must have the
professional background and experience in land valuation and what is required for land to be
developed to help the client in this case.
Therefore, an individual must be aware of their skills and experience as a forensic accountant. This
illustrates due professional care because an effort was implemented in determining independence and
objectivity. z Which this establishes the duty to observe the technical and ethical standards of the case. z
Also, this promotes service to the client and courts to ensure one’s capable of providing the necessary
information in a timely manner. Plus, without the knowledge, skill, and experience the forensic
account may not be able to interpret the data or provide sufficient information to provide an opinion in
the case. Additionally, objectivity and independence provide a foundation that the opinion is not bias
and based on the merits of the information. Meanwhile, if a forensic accountant provides inaccurate
information, then the reputation of the individual will be less creditable currently and in the future
cases. z This would result in the possibility of the accountant being forces to retire from the field.
a forensic accountant is hired specifically to value the losses and serve as an expert witness, it's
already their job to demonstrate such professional conduct. The Association of International Certified
Public Accountants (AICPA) have established a code which includes six principles that encompass
moral behavior (Rufus, Miller, & Hahn, p.298, 2014). In the case described, the forensic auditor has
responsibilities to the company that hired them, as well as the public. The forensic accountant must
convey "integrity, objectivity, due professional care, and a genuine interest in serving the public"
(Rufus, et. al., p. 298, 2014). The forensic accountant must ensure that they are fully separated from all
involved, and in no way related to or tied to any party. It is important that the forensic accountant uses
due diligence when assessing the losses, interviewing witnesses in preparation for testimony, and
when conducting research. Using his or her own judgement, knowledge, prior experiences, and
skepticism, the forensic accountant can ensure the required skills. Collecting information and evidence
both legally and in the correct manner will ensure the report contains true and pertinent information.
Reference
Rufus, R., Miller, L., Hahn, W. (2014/12/18). Forensic Accounting. [[VitalSource Bookshelf
version]]. z Retrieved from vbk://9780133867534
Professional responsibilities. (2014). Retrieved February 8, 2023, from
https://us.aicpa.org/interestareas/personalfinancialplanning/resources/practicecenter/professionalrespo
nsibilities
Rufus, R. J., Miller, L. S., & Hahn, W. (2015). Forensic accounting. Boston, MA: Pearson.
AICPA. (2013, June 1). Code of Professional Conduct and Bylaws.
https://us.aicpa.org/content/dam/aicpa/research/standards/codeofconduct/downloadabledocuments/201
3june1codeofprofessionalconduct.pdf
Rufus, R.J., Miller, L. S., & Hahn, W. (2015). Forensic Accounting. Pearson Education.
