1 - The Forensic Profession Flashcards
What does Forensic mean?
Pertaining to the law
Being able to extract standards of a court of law
Types of Forensic Actg
- Litigation services
2. Investigative Services
Litigation Services
Testifying expert
Non testifying expert or consultant
Investigative Services
Consultant in cases that do NOT involve litigation
What are forensic objectives?
Quantifying the loss of a fraud scheme
Identifying specific control weaknesses that led to a particular loss
Determining how and why fraud was perpetrated
Quantifying transactions for which records are incomplete
Forensic accountants bridge the gap between what?
Perception and Reality
Having knowledge in which of the following areas is important for a forensic accountant?
Finance, economics and criminology
What are the responsibilities of a forensic accounting?
Structure and manage investigations
Understand the types of evidence to collect
Maintain the chain of custody over evidence
Understand the legal rights to those under investigation
Identify different types of fraud schemes
Conduct investigative interviews and detect deception
What is included in investigative services?
Investigate occupational fraud
Determine the value of assets in a divorce case
Investigate public corruption
Trace the sources of funds in a terrorism case
Determine extent of money laundering in narcotics trafficking and identify of sources of funds
Fact check representations made by the target of a corporate merger
What is fraud risk management?
Three primary fraud risk management activities:
- Fraud Prevention
- Fraud detection
- Response to or management of risks
What falls under consulting?
Fraud risk mitigation
Internal dispute resolution systems
Valuation of an estate
Approximating the financial impact of bankruptcies, mergers or acquisitions
What is an expert testimony?
Give opinions on evidence or relevant issues to the case
Protects the reputation of the innocent
Protects the forensic accountant from retaliation
What is a fact witness?
Fact witnesses only allowed to testify as to what they perceive through their senses ( i.e touch, smell, hear, sight)
Business valuation
Valuation of businesses, assets, or liabilities
- economic advantage
- patents or other intangibles
- assets in a marital dispute
- medical expenses
What is alternative dispute resolution? (ADR)
Assist in the avoidance of litigation through:
- Mediation: negotiation with assistance of a mediator or neutral third party
- arbitration: negotiation where both parties still provide testimony and evidence and one or more neutral “ arbitrators” decided based on majority vote
