Effective data gathering as a forensic accountant will require one to exercise professional
judgment when determining the types of data one will analyze and when determining
whether the data gathered was sufficient, relevant, and reliable. “Forensic Accountants as
professionals are trained to be proficient in the use of professional skills, core arithmetic,
analytical and investigative skills, and competencies in the assessment of risk factors that
could lead to material misstatement” (N.U., & Okenwa, 2021, 451). Before determining
the types of data one will analyze a forensic accountant should have an established plan
that factors in any data limitations while outlining detailed tasks and time guidelines with
specific target dates. Recording this plan can provide, “a standard against which to
monitor the progress of the data analysis,” while also providing, “a detailed description of
the analysis,” that allows one to properly identify the data universe and any items of
interest, which only provide further assurance of the sufficiency, relevancy, and reliability
of any data gathered during the process (Rufus et al., 2015, 233). These measures allow
the forensic accountant to begin the data collection process because the data sources and
types of engagement will dictate the means that allows one to accurately prepare the data
to be analyzed.
Forensic accountants need to have an understanding that, “there are no clear-cut
thresholds,” when determining whether one has sufficient, relevant, and reliable data, but
one can get reasonable assurance by submitting a data request outlining any specific items
needed to record, “in a data inventory and then compiled into a usable form such as a
database,” that allows for the use of various tools that can be applied in the analysis, “such
as relationship charts, link analysis, and timelines” (Rufus et al., 2015, 246). These tools
can help with the discovery process, as it can allow one to segment the data to gain a
better understanding of the evidence being analyzed because of any potential links that can
map known or hidden relationships. Subjective analysis will need to be applied on the end
of the forensic accountant because reasonable assurance can only be provided when one is
able to provide basis and rationale for one’s opinion. “In that role, we 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, 114).
References
J., N. U., & Okenwa, O. C. (2021). Effective Deploy of Digital Forensic Techniques and
the Sustenance of Material Misstatement-Free Financial Reporting in Nigeria. Journal of
Academic Research in Economics, 13(3), 442–478.
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.
