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 analyse 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.
Oral presentations are very important for forensic accountants. c There will be many times where
your discussions and meetings are held face to face during an engagement. c Verbal skills become an
important asset as you must be able to clearly express and explain important findings, requests, and
reports. When a client as for an oral report, you must consider the risks involved in doing so such as
the lack of back up documentation and the potential for the client to misunderstand the information
being given. c One situation where an oral report would be given instead of a written one would be in
the examination and testimony of a witness while in mitigation or in court. c The saving grace for the
oral reports is that there is usually a stenographer who records the entire conversation so that
anyone can refer to what was said as factual.
Oral reports are provided to the client when they are requested. c There are usually discussions or
updates before the final report with the client and or attorney. c During these conversations, the
client may provide further insight into what specific information the client is looking for. Several
risks associated with an oral report are a misinterpretation of the information provided where the
client may have selective hearing or memory, or in cases where there may be litigation, a jury may
believe there was not a full investigation, allowing opportunity to leave out or hide information. c If a
client were to request an oral report, I would want to make sure the client speaks to their attorney
prior to their final decision. c Regardless I would provide a summary of what was discussed touching
upon the major factors of the oral report. c The work I did would be the same regardless of the type
report provided, therefore leaving detailed information on the work I have completed and how I
came to the conclusions. c This will help should I need to refer to the documentation later. c
(Rosenberg, 2010)
References
Rosenberg, J. A. (2010, July 3). WRITTEN REPORT? ORAL REPORT? WHAT'S AN INVESTIGATOR TO
DO? Retrieved from California Association of Workplace Investigators:
http://judithrosenberg.com/articles/caowi_1_3.html
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
