Being an Expert Witness

As part of a forensic accountant’s job they are required to research, analyse, interpret and present evidence on complex financial and business cases in court. Therefore as an expert witness being prejudiced in favour of one side would be unprofessional and could cost you your career.

Forensic accountant are also required submit written reports which are comprised of their expert opinion that is backed up with thorough research and evidence.

Another aspect of a forensic accountant job is to give a testimony as an expert witness in criminal cases that can include cases of embezzlement, tax evasion or other forms of fraud. A forensic accountant must follow the APES 215 guidelines on how to provide evidence or an expert opinion in a case.

One of my strategies to avoid partisan perceptions during a case would be that when I am assessing the case I would ensure that I do not neglect one side of the argument just because it would be easier to explain. I would also need to remove any common ground I could have by limiting my use of opinions and preferring the facts of the case. Therefore reducing the amount of bias in my reports.

Crime in Business

Amongst the most common types crime in the business world white collar crime is the most common but there is also organised crime, cybercrime and various offences through compliance and regulatory crimes. White collar crime is the act of using high social status or position within an organisation to commit a crime, whether that is through fraud, bribery or corruption. It usually involves high financial gain and can be very hard to detect as evident in the Queensland health and Tahitian prince scandal.

Organised crime is stereotypically referred to as a mafia or bikie crime and described as “serious crime planned, coordinated and conducted by people working together on a continuing basis” ("National Crime Agency - Organised crime groups", 2016).

Cybercrime is accessing unauthorised areas, modifying programs without proper authorisation; this includes using the internet to commit fraud and money lauder.

Under the Director’s liability act 2013, vicarious liability addresses issues when directors have been personally involved or can be connected to a criminal offence by a company. Even if they are unaware they can still be held liable.

Reference

National Crime Agency - Organised crime groups. (2016). Nationalcrimeagency.gov.uk. Retrieved 22 April 2016, from http://www.nationalcrimeagency.gov.uk/crime-threats/organised-crime-groups

New Regulatory Environment

In my opinion no matter what the profession, it should be a part of every job that involves a legal environment should have to be up to date with all regulations. In the case of forensic accountants they have a duty towards the court and need to be able to understand and apply all regulations (CPA, 2014).

The revision of the APES 215 in December 2013 included amendments to expert witness reporting and changes to definitions of expert witness, other evidence and professional activity, services and bodies. However if forensic accountant had no awareness or could not apply these new regulations then they would have failed their duty to the courts and could possibly have affected the outcome of a case.

An example of this can be related to when my high school updated their assignment submitting program. It was crucial for me to learn how to use and understand the rules associated with this program because it was around the time of my final year of school and could have caused serious issues with the outcome of my grades.

References

CPA Australia. (2014). APES 215: Forensic Accounting Services Fact Sheet.  Retrieved 13 April 2016, from: http://www.cpaaustralia.com.au/~/media/corporate/allfiles/document/professional-resources/ethics/apes-215.pdf

Information Security

With today’s standards of online being the pinnacle of business having only the likes of adware, malware and virus protection is not enough. Since the start of the internet hackers and the likes have always been in front of information security and controls, so a business that relies on using servers that have a portal to the internet need more than these basic controls. COBIT 5 outlines how a business wide knowledge of information security protocols and controls is crucial (Wolden, Valverde, & Talla, 2015). Businesses should apply the framework of COBIT 5 using few principles that are outlined in simple and concise language. In regard to the policies surrounding information security and access should also be included when applying COBIT 5. Businesses should also promote risk management practices in order to avoid risk scenarios, which can trigger a loss event (Wolden, Valverde, & Talla, 2015). Vulnerabilities that cause these types of events are usually associated controls strengths or threat strengths. Therefore a business that does not constantly assess risks and controls on information will expose itself to more risk from multiple sources.

Reference

Wolden, M., Valverde, R., & Talla, M. (2015). The effectiveness of COBIT 5 Information Security Framework for reducing Cyber Attacks on Supply Chain Management System. IFAC-Papersonline, 48(3), 1846-1852. http://dx.doi.org/10.1016/j.ifacol.2015.06.355

Governance & separation from Management

One of the best ways to minimise risks has always been to separate duties, be it in a business environment where the sales person takes the orders but someone else signs off on the invoice or in a personal environment where the person taking an exam is not the person who is also marking the exam. These are just some examples however they illustrate a point, that being that management should be separate from the making of the governance policy. This is because when using the COBIT 5 framework it outlines managers’ roles as to plan, run and measure activities to achieve the business objectives set out by board  ("The difference between governance and Management", 2014).

If management are allowed to create the governance policy then risk becomes a factor whether this through fraud or other risks such as accountability and responsibility ("The difference between governance and Management", 2014). An example that comes to mind is the allowing of my brother to borrow or use my car; with this I am accountable if he crashes. However if I told him he could use our mother’s car without her knowing the risk is that I hold no accountability if it’s damaged as it is not my car and it becomes my word against his over who is responsible. Therefore allowing managers to determine governance policy presents risk.

Reference

The difference between governance and Management. (2014). Our Blog. Retrieved from http://www.escoute.com/2014/03/14/the-difference-between-governance-and-management/