As a forensic account, the type of data that will be analyzed is determined by
each specific engagement. Different types of data will be analyzed for
different types of engagements. Sufficient, relevant, and reliable data is all
subject to the experts opinion, and can vary from person to person. Because
ever engagement differs in some way, whether minute differences or large
ones, so there is no "one-size-fits-all approach" to defining relevant and
sufficient data (LaGrossa, 2023). LaGrossa continues to explain that the
AICPA's professional guidance proclaims assumptions that have the biggest
effect deserve the most attention (2023). Thus, it is of the utmost importance
that forensic accountants thoroughly analyze each engagement to have the
best opportunity to obtain the most relevant and sufficient data. The Federal
Rules of Evidence (FRE) have specific rules for evidence and date, Rule 401
states evidence is relevant if it makes the fact more or less probable than
without the evidence and that "the fact is of consequence in determining the
action" (Rule 401. Test for Relevant Evidence, 2011). The forensic
accountant must follow the objectives of the specific engagement, and use
their expert knowledge to develop their hypothesis and collect relevant,
sufficient, and reliable data.
References
LaGrossa, J. (2023, February 7). What constitutes sufficient relevant data in
CPA forensic services engagements? The Legal Intelligencer. Retrieved
March 9, 2023, from
https://www.law.com/thelegalintelligencer/2023/02/07/what-constitutes-
sufficient-relevant-data-in-cpa-forensic-services-engagements/
Rule 401. Test for Relevant Evidence. (2011). LII / Legal Information
Institute. Retrieved March 9, 2023, from
https://www.law.cornell.edu/rules/fre/rule_401
