As a forensic accountant, the specific data obtained will need to be tailored to the
objectives of intended engagement. In general, when data analysis is conducted, “we take
some set of information and break it down into manageable pieces. The purpose of this
action is to drill down to the essence or meaning of the information, which may not be
apparent when viewed as a whole. This interpretation highlights an important aspect of
data analysis—its strategic nature. In a forensic accounting engagement, successful data
analysis is not conducted indiscriminately. It requires a well-defined purpose, careful
planning, and a systematic process, all aimed at refining the working hypothesis” (Rufus,
2015, page 227). With this in mind, the data obtained needs to sufficient to support their
expert opinion and will be the basis for their witness testimony per Rule 702 and 401 of
the federal rules of evidence.
Rule 702 of the federal rules of evidence states that the testimony of an expert
witness would be allowed if it will help the trier of fact see scientific, technical, or other
specialized knowledge of evidence. The three specific criteria are:
• The testimony is based upon sufficient facts or data.
• The testimony is the product of reliable principles and methods.
• The principles and methods have been applied reliably to the facts of the case.
With regards to the issue of being sure you have sufficient, relevant, and reliable data, data
is sufficient when it can support your expert opinion, is relevant to the objectives of the
engagement, and support your working hypothesis.
References
• Rufus, R. J., Miller, L. S., & Hahn, W. (2015). Forensic accounting. Pearson.
