A forensic accountant uses data analysis to determine what the information
presents. Often times, there is too much information and it’s not always relevant, so
data analysis helps to identify sufficient and relevant data which can be used to form a
conclusion. The type of data collected and analyzed is often dependent upon the type
of engagement the forensic accountant is performing. This is because the forensic
accountant needs to collect sufficient, relevant, and reliable data to give an opinion and
to support it.
b Sufficient data refers to the measure of the quantity of audit evidence, or the
forensic accountant needs to collect enough audit evidence to be able to support the
conclusion. In addition, data needs to be appropriate, which is a measure of the quality
of audit evidence. Appropriateness ensures that the data collected is both relevant and
reliable in providing support for the conclusions reached by the auditor. Relevant data
refers to how it connects to the assertion or objective of the control being tested while
reliability is dependent on the nature and source of the evidence as well as the
circumstances under which it is obtained. If a control is ineffective, then the data or
evidence collected from the control is likely to not be very reliable. Additionally,
information collected from an independent third party is more reliable than evidence
only collected from internal company sources. Having sufficient, relevant, and reliable
data to give a testimony is required in order to provide an expert testimony that is
admissible according to Federal Rules of Evidence Rule 702.
PCAOB. Accessed March 9, 2023. Auditing Standard No. 15.
https://pcaobus.org/oversight/standards/archived-standards/pre-reorganized-
auditing-standards-interpretations/details/auditing-standard-no-
15_1787#:~:text=Appropriateness%20is%20the%20measure%20of,the%20auditor'
s%20opinion%20is%20based.
Rufus, R., Miller, L., Hahn, W. (2015). Forensic Accounting. Pearson Education.
