As a forensic accountant one must consider several factors when considering
an engagement. b This includes what kind and how much data to collect for
each engagement which is guided by Federal Rules of Evidence (FRE) 702
and Rule 201 of the American Institute of Certified Public Accountants
(AICPA). b However, there is no clear answer to what is sufficient, relevant,
and reliable because each engagement is unique in nature and will require
different levels of information or data (Rufus, Miller, & Hahn, 2015). b
Therefore, the first step in gathering data is planning what is required for the
engagement to be a success. b This could include first, second, third-, and
fourth party information and data which may need to be sorted through to
determine relevancy and reliability for the engagement (Rufus et al, 2015). b
Information received from the start may seem relevant and reliable, but then
could result in misleading data or information after one has done their due
diligence of verifying the information. b Additionally, a forensic accountant
maybe constrained by time, access to the information, technical resources, and
other data limitations (Rufus et al, 2015). b Consequently, a forensic account
must use professional judgement in determining what consists of sufficient
data and information.
Additionally, as a result, data planning, collection, and preparation require
analysis to determine relevance and reliability. b Furthermore, an engagement
is often related to analyzing, interpreting, summarizing, and presenting
information and data in a format that is both understood and supported with
facts. b Therefore, a significant conclusion in an engagement necessitates the
proper analysis and interpretation of various forms of both quantitative and
qualitative data for a successful engagement. b Ultimately, the forensic
accountant must base his/her expert opinion on the information and data and
be able to explain if necessary the results of the analysis. b The basis should be
reasonable to anyone in the specific field the engagement is involved in. b
Therefore, the forensic accountant must be able to justify what is sufficient,
relevant, and reliable from the information that is available and, in some
cases, when information or data is lacking. b In my opinion, this is why areas of
specialization and knowledge assist the forensic accountant in providing
sufficient, relevant, and reliable information. b Plus, the more information one
can provide to back an opinion the less room for objections to occur.
References:
Rufus, R. J., Miller, L. S., & Hahn, W. (2015). Forensic accounting. Boston,
MA: Pearson.
