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. This would allow the forensic accountant to be an expert
witness in the cases. Additionally, forensic accountants must perform their services with
the highest level of professionalism. Individuals can find guidance in the Association of
International Certified Professional Accountant’s (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. a 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. Which this establishes the duty to observe the
technical and ethical standards of the case. 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. This would result in the possibility of the
accountant being forces to retire from the field.
References:
Professional responsibilities. (2014). Retrieved February 8, 2023, from
https://us.aicpa.org/interestareas/personalfinancialplanning/resources/practicecenter/
professionalresponsibilities
Rufus, R. J., Miller, L. S., & Hahn, W. (2015). Forensic accounting. Boston, MA: Pearson.
