For an investigation to be a proper one and meet all requirements, it is always necessary for the
forensic accountant to provide proper, honest, and accurate written reports to the management of
the company. On the other hand, the accountant can also provide oral reports to the people who
are responsible for monitoring and supervising the investigation or the people who are associated
with the company and the investigation. One of the most important and most frequent times when
an accountant must make an oral report is when the accountant is summoned to testify in court
based on their investigation. When this must happen, the accountant is called upon to be an expert
witness and they may be cross-examined by the opposite party. Any statements, findings, and
testimony that are communicated orally are recorded as part of the court documents. Oral reports
can be prepared quickly and only at the client’s discretion. “If the client either intends to seek
reimbursement for the costs of the fraud and investigation for its insurance carrier or wishes to refer
the matter to a law enforcement agency for prosecution, the analyst should prepare a written
report. If these issues are not important to the client, but there are concerns about confidentiality
or legal privilege, an oral presentation may suffice” (Driskell III, 2019). Whether or not an oral or
written report will be conducted will be at the discretion of the client, however: the accountant
needs to always prepare a written statement just to back up the oral report. Accountants do give
oral advice to clients sometimes whenever they have questions. Accountants must learn how to
protect themselves by always keeping a backup plan by recording these transactions or keeping a
written log of the conversation.
Oral Forensic Accounting
Forensic accountants need to be comfortable speaking in front of an audience because they will
communicate with clients regularly throughout an engagement. If the customer insists on hearing
the forensic data presented verbally, they will get that. This may be necessary for confidentiality,
improved clarity, or anything else. Ineffective customer engagement and a shaky presentation due
to a lack of preparation are potential pitfalls of an oral presentation (Özcan, 2019). Very skilled
workers are required to deal with this threat. The information presenter should have adequate
preparation. So, the forensic accountant must have excellent public speaking skills and be able to
explain complex financial concerns to a board of directors, legal counsel, and financial regulators at
any time at the client's request.
Clients may want oral reports for various reasons, including privacy, competitive advantage, or even
cost savings. Forensic accountants benefit greatly from knowing their client’s goals and expectations
before beginning a partnership (Ozili, 2020). It will also help the forensic accountant avoid trouble
with the law, the bank, and elsewhere in the business world. It is recommended that the forensic
accountant sufficiently produces a written outline and memo-to-file to support the material given
during the oral report in order to mitigate these potential future dangers (Afriyie et al., 2022). In
addition, the client engagement's assumptions, constraints, and outcomes should all be spelled out
in writing.
A deposition is one type of oral report in which a forensic accountant may be called either a fact
witnesses or an expert witness. The court reporter will record all the testimony during the
deposition (Özcan, 2019). A lawyer who intends to hire a forensic accountant can, for instance, ask
the accountant for a rough valuation estimate of the company.
Reference
Afriyie, S. O., Akomeah, M. O., Amoakohene, G., Ampimah, B. C., Ocloo, C. E., & Kyei, M. O. (2022).
Forensic accounting is a novel paradigm and relevant knowledge in fraud detection and prevention.
International Journal of Public Administration, 1-10.
https://doi.org/10.1080/01900692.2021.2009855
Özcan, A. (2019). Analysing the impact of forensic accounting on the detection of financial
information manipulation. Manas Sosyal Araştırmalar Dergisi, 8(2), 1744-1760.
https://doi.org/10.33206/mjss.486662
Ozili, P. K. (2020). Forensic accounting theory. In Uncertainty and Challenges in Contemporary
Economic Behaviour. Emerald Publishing Limited. https://doi.org/10.1108/978-1-80043-095-
220201005
Driskell III, F. Dean. (2019). Conducting Forensic Accounting and Internal Investigations. pg. 10.
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