As a forensic accountant one can have situations in which a client requests to have an oral report
rather than a written report, which can create some issues, as this will require one to assess the
client’s motivation behind the request because there is the risk that, “the information being relayed
in the oral report may be misunderstood by the recipient and later misrepresented to others, either
intentionally, or unintentionally” (Rufus et al., 2015, 379). Therefore, there can be instances in which
the client would want a more condensed and direct version of the case, due to possibility of
availability or time constraints. “Oral reports can be prepared quickly, but only offer summary
information,” but can be beneficial when clients, “are concerned with legal privilege and discovery
issues—if there is no report, no report can be produced” (Driskel III, 2019, 7). There could be a case
in which sensitive information was discovered and the disclosure in a written scenario can result in a
disadvantageous position if the information were to give the client a competitive advantage in the
courts. If one were to gather direct evidence being provided by a whistleblower, oral reports may be
necessary in order to protect anonymity of the individual providing the direct evidence. Therefore,
to avoid any setbacks, one would, “recommend that forensic accountants prepare a written
prereport outline, followed by a memo to file documenting the substance of the oral report,” which,
“should contain all necessary information about the engagement, including the scope, assumptions,
limitations and results” (Rufus et al., 2015, 379).
In an engagement, the forensic accountant must communicate their results and opinions in a report.
Regardless of the format of the report, whether it is written or oral, it must be based on reliable
facts and data. Rufus et al. (2014) states that an oral report is verbal and there is no written
documentation. Although this format may be easy and preferred by the engaging attorney, the
information can be easily misunderstood and misrepresented to other individuals later (Rufus et al.,
2014). Because of the nature of oral reporting, it is important to consider the motivation behind a
client requesting an oral report. Motivation can vary, including confidentiality, competitive
advantage, secrecy, or cost (Rufus et al., 2014). By understanding the reasons why, a client wants an
oral report, a forensic accountant can protect themselves from potential risks. The reason may be as
innocent as the client wanting to save money. An oral report can be done quickly compared to a
written report which may take more time for a forensic accountant to put together. Or it could be
that the client is hiding something. If the client is intentionally being secretive about something and
not wanting it documented, then this is a red-flag and the forensic accountant may not want to
engage. To avoid these types of risks, the forensic accountant should prepare a pre-report outline
and a memo-to-file which documents the oral report material (Rufus et al., 2014).
Reference
Rufus, R., Miller, L., & Hahn, W. (2014). Forensic accounting. Upper Saddle River, NJ: Pearson
Education.
Driskel III, D. (2019). Conducting Forensic Accounting and Internal Investigations. Willamete.com. 1-
10. c c c https://willamette.com/insights_journal/19/autumn_2019_1.pdf
Rufus, R., Miller, L., & Hahn, W. (2015). Forensic Accounting. Pearson Education, Inc.
