When a client requests an oral report instead of a written report, the
forensic accountant should take precautions, as this could put the
accountant at risk. The accountant should analyze the client’s
motivation for an oral request, such as whether it is cost-related or
for confidentiality (Rufus, Miller, & Hahn, 2014). Furthermore, the
oral report can be misconstrued by the recipient, and the accountant
is left to prove what he or she meant to say. Without written
documentation, there is no full-proof way to prove the conversation
took place. The forensic accountant can mitigate this risk by
preparing a written prereport outline with a memo-to-file to
document the substance of the oral report (Rufus, Miller, & Hahn,
2014). Accountants often give oral advice in response to client
questions for general inquiries or specific business discussions (Wolfe
& Ference, 2013). An example of when a client may ask for an oral
report would be asking which states levy individual income taxes
(Wolfe & Ference, 2013). Another example may be legal counsel does
not yet want a discoverable report in the file (The Fraud Files Blog,
2018). Accountants should be comfortable in presenting evidence in
an oral or written manner.
References
Rufus, R., Miller, L., & Hahn, W. (2014). Forensic Accounting. Pearson
Education.
The Fraud Files Blog. (2018, June 12). The Fraud Investigation Report.
Retrieved from The Fraud Files Blog:
https://www.sequenceinc.com/fraudfiles/2018/06/the-fraud-
investigation-report/
Wolfe, J., & Ference, S. B. (2013, October 1). Write it down: The
importance of documenting oral advice. Retrieved from Journal of
Accountancy:
https://www.journalofaccountancy.com/issues/2013/oct/20138366
.html
