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.
An oral report is defined as "a report presented in verbal form with no written documentation."
(Rufus et al., 2014) An example of a situation where an oral report may be requested is when
providing testimony in court. There are some cons to giving an oral report over a written report. One
con is that the recipient of the information may misunderstand what the accountant is saying. This
can lead to people relaying information that is false due to the misunderstanding of what was being
said. When giving oral reports, it is important to have a pre-report outline and a memo to file, which
contains the context of the oral report. Before giving an oral report, it is important to understand
why the oral report is being requested so that the accountant is not put in a risky situation. If the
accountant does not feel comfortable giving an oral report or believes the reasons for the request
are for suspicious reasons, it is best for the accountant to find an alternative option.
According to the textbook, some important notes about oral reports are:
• c c c "The presenter must understand that speech differs from writing in both function and style.
• c c c The length of an oral report is generally short (15–30 min.).
• c c c The focus of an oral report is usually the results (findings), which are presented concurrently
with analysis and discussion.
• c c c The presenter is responsible for selecting the necessary information to be communicated and
ensuring that it is relayed successfully." (Rufus et al., 2014)
References:
Rufus, R., Miller, L., & Hahn, W. (2014). Forensic accounting. Upper Saddle River, NJ: Pearson
Education.
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. c (December 18, 2015). Forensic Accounting. [[VitalSource Bookshelf
version]]. c 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).
