Towards the end of a forensic accounting engagement, it is the forensic
accountant’s responsibility to prepare a report, either written or oral. Most clients
will request written reports, but certain situations promote oral reports, such as
legal privileges or discovery issues (Driskell III, 2019). Oral reports are
advantageous because they can be prepared quickly, but are only able to provide
a summary of information (Driskell III, 2019). While a client may request an oral
report, it is best practice to document any oral advice given to clients to protect all
parties (Wolfe & Ferenc, 2013). When preparing to document this information, it is
vital to include the date, facts and advice provided, pertinent disclaimers, note
that no legal advice has been or is being provided, and any follow-up information
(Wolfe et. al., 2013). It is important for the forensic accountant to have a full
understanding of the client’s motivation for the oral report, whether fraud is
suspected or it is cost related (Rufus, Miller, & Hahn, p. 379, 2015).
When an oral report is requested, it is important to consider possible reasons
why, such as cost, secrecy, confidentiality, or competitive advantage (Rufus, i.e.).
A client may choose to receive an oral report instead of a written report in a
situation where secrecy is most important. A lack of a written report would not
allow the other party, to see and eventually cross-reference the forensic
accountant while he was on the stand testifying. This action would theoretically
put the other party at a disadvantage. As a side note: according to a news article,
43% of respondents identified Effective oral communication as the second most
identified core skill trait in forensic accounting (Accounting today). Based on this
information, oral reports are not a skill that can be disregarded.
References
Driskell III, D. (2019, August). Conducting forensic accounting and internal
investigations. Retrieved March 30, 2023, from
https://willamette.com/insights_journal/19/autumn_2019_1.pdf
Rufus, R., Miller, L., Hahn, W. (December 18, 2015). Forensic Accounting.
[[VitalSource Bookshelf version]]. Retrieved from vbk://9780133867534
Wolfe, J., & Ferenc, S. B., CPA. (2013, October 1). Write it down: The importance
of documenting oral advice. Journal of Accountancy. Retrieved March 30, 2023,
from https://journalofaccountancy.com/issues/2013/oct/20138366.html
https://eds-p-ebscohost-
com.ezproxy.snhu.edu/eds/pdfviewer/pdfviewer?vid=2&sid=15140a69-db92-4e4b-
bc69-f061f8068337%40redis
Rufus, R., Miller, L., & Hahn, W. (2014). Forensic Accounting. Pearson Education
(US).
