evolution of forensic accounting and its role in nigeria economy
TRANSCRIPT
Evolution of Forensic Accounting:
The Role in Nigeria Economy
Compiled and Presented
BY
Godwin Emmanuel OYEDOKUN(HND, BSc.Ed, MBA, MTP (SA), ACA, ACIB, AMNIM, ACTI, CFA, CFE, CPFA, ACCA-CertIFR)
Asst. Director (Head) – Finance & ICT
The Chartered Institute of Taxation Of Nigeria (CITN)
&
Vice President
ACFE Nigeria Chapter #126
DL: +2348033737184, +2348095491026, +2348055863944
[email protected], [email protected]
Being a paper presented at the
Annual NUASA WEEK 2012 of
Nigerian Universities Accounting Students' Association
Obafemi Awolowo University Ile-Ife, Osun State. Nigeria
On November 27, 2012
Mr. Godwin Emmanuel Oyedokun, HND, BSc.Ed, MBA, MTP (SA), ACA, ACTI, ACIB, AMNIM, CFA,CFE, CPFA, CertIFR
Asst. Director (Head) – Finance & ICT of The Chartered Institute of Taxation of Nigeria (CITN)
Godwin is an Experience Chartered Accountant, Chartered Tax Professional, Certified Fraud Examiner,
Certified Forensic Accountant, Chartered Banker, Chartered Manager and Financial Analyst of good repute.
He also holds a Certificate in International Financial Reporting (CertIFR) of Association of Certified
Chartered Accountant (ACCA)
He is currently a Doctorial Student of College of Management and Technology of Walden University USA-
(Doctor of Business Administration (DBA)- Information Systems Management)
He is a seasoned professional who is currently serving as an Advisory Council Member of Association of
Fraud Examiner (ACFE), Austin, USA, and Vice President of Nigeria Chapter of same Association. He is a
Members of ICAN Intergovernmental Relation Committee.
Godwin is a leader in Forensic Accounting and Fraud Investigation, he is a sought after intellectual, who
has presented over 30 technical papers in various Training/Seminars on Forensic Accounting, Fraud
Investigation, ICT, Strategic Management, Finance & Accounting related subjects.
He has been trained in Nigeria, Ghana, Senegal, Liberia, Cote d’Ivore, Canada- Toronto, and at some
States in United State of American on Forensic Accounting, Accountancy and Fraud Investigation.
He is the Chief Technical Consultant to OGE & CO Professional Services Ltd. (www.ogecops.com) and A &
D Forensic Consults Ltd. Nigeria (www.adforensicconsults.com)
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The Facilitator- “Nemo Dat Quod Non Habet”
This presentation will cover the following major sub topics on Forensic Accounting
General Introduction to Forensic Accounting
Qualities and Qualifications of a Forensic Accountant
Forensic Accounting and Other Terminologies
Attacks against a professional accountant’s evidence
Forensic Accountants & National Development
Forensic Accountants’ Job
Conclusion3
Contents
Wednesday, February 18, 2015
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“The hardest thing in the world to understand is
income tax”
Albert EinsteinYou need not worry as I am not here today to discuss tax but forensic and
national development
“The reasonable man adapts himself to the
world; the unreasonable man persists in trying to
adapt the world to himself. Therefore, allprogress depends on the unreasonable man.”
GEORGE BERNARD SHAW
Quotes
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Forensic accounting is hardly a new field, but in recent years, financial
organizations, banks, insurance companies and even police agencies have
increased the use of experts in this field.
In the wake of high-profile corporate scandals as well as new regulations
worldwide, many business leaders have become increasingly aware of the need to
create company-specific antifraud measures to address internal corporate fraud
and misconduct.
In Nigeria, the increasing complexity of financial and economic crimes and the
crisis confidence which engulfed the banking system recently, prompted the apex
bank (CBN) to call on Forensic Auditors to carry out special investigation on
money deposit banks.
Recently also, the Securities and Exchange Commission (SEC) called on Forensic
Auditors to investigate the affairs of the Nigeria Stock Exchange following the
allegation of suspected abuse of office by the previous Management of the
Exchange.
The increase in the number of financial frauds committed through complex
accounting records and manipulations led to the search for a new tribe of
Accountants who can use their accounting, auditing, and investigative skills to
uncover frauds and also assist in legal matters.
This new area of accounting came to be known as ‘Forensic Accounting’.
Introduction
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Who is this Man?
Dr. Kenneth Lee "Ken" Lay (April15, 1942 – July 5, 2006) was anAmerican businessman, bestknown for his role in the widelyreported corruption scandal thatled to the downfall of EnronCorporation.
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas.
Before its bankruptcy in late 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with claimed...
WHAT WILL YOU SAY ABOUT THESE?
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Major milestones in forensic accounting 1942: Maurice E. Peloubet published “Forensic Accounting: It’s place in
today’s economy.”
1982: Francis C. Dykman wrote “Forensic Accounting: The Accountant as
an Expert Witness.”
1986: The AICPA issued Practice Aid #7, outlining six areas of litigationservices – damages, antitrust analysis, accounting, valuation, general
consulting and analyses.
1988: Association of Certified Fraud Examiners established
1988: A new genre of detective novels where the forensic accountant
was the star.
1992: The American College of Forensic Examiners was founded.
1997: The American Board of Forensic Accountants was founded
2000: The Journal of Forensic Accounting, Auditing, Fraud and Taxation
was founded.
2009: The Institute of Chartered Accountants of Nigeria (ICAN)
commenced certification programme in forensic accounting, leading to
the award of Certified Forensic Accountant (CFA) certificate. (250 CFAsas of today)
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Why is forensic accounting so popular now?
According to some experts, this increased interest is because of thestruggling stock market and lack of investor confidence which hasforced many organizations to take a long, hard look at their financialstatements.
A sluggish economy with its attendant problems might also be anincentive to commit fraudulent acts, thus requiring the services of anexpert.
The increase in white collar crime and the difficulties faced by lawenforcement agencies in uncovering fraud have also contributed to thegrowth of the profession.
Many accounting firms believe that the market is sufficiently large tosupport an independent unit devoted strictly to forensic accounting.
Whatever the reasoning may be, more and more forensic accountantsare being called upon to use their investigative skills to seek outirregularities in their companies’ financial statements
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Who needs Forensic Accountants?
Forensic Accountants work in most major accountingfirms and are needed for investigating mergers andacquisitions, and in tax investigations, economic crimeinvestigations, all kinds of civil litigation support,specialized audits, and even in terrorist investigations.
Forensic Accountants work throughout the businessworld, in public accounting, corporations, and in allbranches of government (from the EFCC, ICPC, SSS,FBI and CIA to the offices of the local authorities).
Forensic Accounting firms are everywhere., evenNigeria Police need these new bread of Accountants
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What is Forensic Accounting? Forensic accounting has been defined as "accounting
analysis that can uncover possible fraud that issuitable for presentation in court.
Such analysis will form the basis for discussion, debate,and dispute resolution."
Forensic accounting, sometimes referred to asinvestigative accounting, is a unique career field thatcombines accounting with information technology.
A forensic accountant uses his knowledge ofaccounting, law, investigative auditing andcriminology to uncover fraud, find evidence andpresent such evidence in court if required to.
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A forensic accountant uses sophisticated computer programsto analyze financial data and find evidence that would belegally valid during a court proceeding.
A forensic accountant is a specialized accountant whoperforms investigative accounting as well as litigationsupport.
Those in the forensic accounting field generally use bothaccounting and investigating skills to interpret financialevidence and are often called upon to analyze and presentthis evidence to others in a clear manner.
For example, they may be called upon as expert witnesses ina court of law or to provide documented proof of financialmisdeeds.
A forensic accountant can become involved in a wide varietyof investigations among many different industries..
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Forensic Accountants
Forensic accountants are often asked to review financial records formergers and acquisitions.
They may also serve as advisers to a corporation’s audit committee or workto resolve shareholder disputes within a company.
Objective verification is the primary goal of forensic accounting.
For this reason, many forensic accounting professionals are asked totestify in court cases as expert witnesses for either the prosecution or thedefense.
Forensic accountants can work in both civil and criminal court cases.
In a civil case, a forensic accounting professional may be asked to calculateeconomic damages that occurred as the result of a breach of contract orprovide insight into a case based on a claim of professional negligence.
In a criminal case, a forensic accountant may be asked to present evidenceof insurance fraud, identity theft, money laundering, terrorist financing,embezzlement, price fixing, stock market manipulation, or other relatedoffences.
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Forensic Accountants cont’
To be successful as a forensic accounting professional, you must be detailoriented, persistent, ambitious, and highly organized.
Forensic accounting also requires a great deal of creativity, since you mustoften explain complex financial concepts to an audience that lacks basicaccounting knowledge.
Several well-known case investigations around the world have involvedforensic accounting.
The famous American gangster, Al Capone, was arrested and successfullyprosecuted in 1931 because a forensic accountant was able to unearth his taxcrimes.
In another example, it took 14 years for accountants to investigate thebillion-dollar embezzlement case of European publisher Robert Maxwellbefore finally solving the financial puzzle in 1991.
Additionally, after the September 11 terrorist attack on the United States in2001, forensic accountants were hired by the CIA and the FBI to trackterrorist movement worldwide.
These accountants are often able to follow a criminal's money trail which can help lead to a subsequent arrest.
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Forensic Accountants cont’
Forensic Accounting Profession
Business losses in a slow economy and the recent spate of corporatecollapses—think Enron—have executives scurrying to hire forensicaccountants to prevent and investigate money-sucking crimes, andprepare for court cases.
Nearly 40 percent of the top 100 accounting firms are expanding theirforensics and fraud services, according to Accounting Today… It’s not ajob for dullards in green eyeshades, either.
Timothy Anglim, president of the Forensic Group LLC, says the “thrillof the hunt” excites accountants, as does “regenerating anenterprise that may have been written off…. You can turn anenterprise around single-handedly.” Superman CPA, maybe?
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The Word ‘Forensic’ :
The word forensic is derived from the Latin adjective “forensis”, meaning "of or before the
forum." In early Roman times, a criminal charge against a person meant presenting the
case before a group of public individuals in the forum.
Both the defendant and the claimant would argue their cases. The individual with the best
argument and delivery would determine the outcome of the case.
This origin is the source of the modern usages of the word forensic – as a form of evidence
that is suitable for use in courts.
Forensic Investigation
Forensic investigation is the utilization of specialized investigative skills in carrying out an
inquiry in such a manner that the outcome will have application to a court of law. Such
forensic investigation may be in accounting, computer, medicine, engineering or some
other disciplines.
Forensic Accounting Investigation.
Forensic accounting investigation is an aspect of forensic accounting that refers to the
practical steps forensic accountants take in order to gather evidence relevant to alleged
fraudulent activities.
Forensic Accounting and other Terminologies
Audit The general definition of an audit is an evaluation of a person, organization,
system, process, enterprise, project or product.
Audits are performed to ascertain the validity and reliability of information;also to provide an assessment of a system's internal control.
The goal of an audit is to express an opinion of the person / organization /system (etc.) in question, under evaluation based on work done on a test basis.
Due to practical constraints, an audit seeks to provide only reasonableassurance that the statements are free from material error.
The Definition for Audit and Assurance Standard AAS-1 by the Institute ofChartered Accountants of India(ICAI) - "Auditing is the independentexamination of financial information of any entity, whether profit oriented ornot, and irrespective of its size or legal form, when such an examination isconducted with a view to expressing an opinion thereon."
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Forensic Accounting and other Terminologies cont.
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Forensic Auditing
Forensic auditing is an aspect of forensic accounting that applies auditing, accounting and
investigative skills to situations that have legal consequences.
It is an examination of an organization's or individual’s economic affairs, resulting in a report designed
especially for use in a court of law.
A forensic audit is similar to the tax audit performed by the FIRS; both strive to establish a
comprehensive picture of an entity's finances (assets, liabilities, total income, and cash flow).
However, while a tax audit is intended to determine the true size of one's tax liability, a forensic audit
can have several goals, including identifying accounting errors, ascertaining the degree of compliance
with laid down procedures and investigating fraudulent activities uncovered in the course of the
forensic audit.
Forensic audits are normally used whenever lawyers or law enforcement officials need reliable
financial data during court proceedings, e.g., in a case of suspected abuse of office by an executive
management of a company, a lawyer may request the presiding judge to permit a forensic audit of the
company to be carried out in order to establish alleged facts.
Similarly, if an elected official is accused of accepting bribes, the Economic and Financial Crime
Commission (EFCC) could set up a forensic audit team to investigate the allegation.
Forensic Accounting and other Terminologies cont.
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Fraud Examination
The Association of Certified Fraud examiners’ manual states that Fraud
examination is the methodology of resolving allegations from inception to
disposition including obtaining evidence, interviewing suspects, writing reports
and assisting in detection and deterrence of fraud.
Fraud examination draws its common body of knowledge from four areas:
accounting and auditing, fraud investigation, legal elements of fraud and
criminology.
According to Joseph T Wells, the Chairman of Board of Directors, Association
of Certified Fraud Examiners, the terms ”Fraud Examination” and “Forensic
Accounting” are often used interchangeably. However, they refer to different but
overlapping concepts.
Forensic accounting according to him is a kind of accounting work done for
litigation purposes. In his book “Fraud Examination”, W. Steve Albrecht noted
that fraud examination is sometimes referred to as forensic accounting.
Forensic Accounting and other Terminologies cont.
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Internal Audit
An audit performed by an employee who examines operational evidence to determine
whether prescribed operating procedures have been followed.
External Audit
An audit performed by an auditor engaged in public practice leading to the expression of a
professional opinion which lends credibility to the assertion under examination.
Litigation Support
"Litigation Support", provides assistance of an accounting nature in a matter involving
existing or pending litigation.
It deals primarily with issues related to the quantification of economic damages. A typical
litigation support assignment would be calculating the economic loss resulting from a
breach of contract.
Investigative Accounting
"Investigative Accounting", is often associated with investigations of criminal matters. A
typical investigative accounting assignment would be an investigation of employee theft.
Other examples include securities fraud, insurance fraud, kickbacks and proceeds of
crime investigations.
Forensic Accounting And Other Terminologies cont.
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Auditors can be classified into the following categories:
External auditor/ Statutory auditors
Internal auditors
Consultant auditors
Quality auditors
What about Forensic auditors?
Auditors
Forensic Accountants– What We Are Neglecting
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What risks currently impact your
ability to perform as a conventional
Accountant/Auditor?
How can Forensic Accounting
Certification, knowledge & skills
help deliver better shareholder
returns, draw more investors?
Accelerated Financial Close. How?
Strategy vs. Execution?
How does the organization govern
itself? Managing, Monitoring and
Analyzing Internal Controls. How?
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Which of these can organization control and how?
Fraud Triangle Forensic Accounting relies on the Fraud Triangle to find weak points in
business processes and identify possible suspects in cases of fraud.
It consists of three core concepts that together create a situation ripe forfraud; incentive, opportunity and rationalization.
People must have the incentive and opportunity to commit financialfraud as well as the ability to justify it.
Recent analysis has suggested adding a fourth concept to make adiamond: capability.
Just because someone has the opportunity or incentive to steal, it doesn'tmean that they have the capability to do so.
For example, if someone doesn't understand how to do journal or ledgerentries, they wouldn't know how to manipulate the numbers no matterwhat the incentive or opportunity.
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Definition of Fraud:intentional
(deliberate) deception resulting in injury to
another person
In a broad strokes definition, fraud is a deliberate
misrepresentation which causes another person to suffer damages, usually
monetary losses.
Most people consider the act of lying to be
fraudulent, but in a legal sense, lying is only one small element of actual
fraud.
Fraud usually involves lying for a specific gain that causes someone
loss while lying does not always include hurt.
Fraud and lying
Wednesday, February 18, 2015 27
Is your tool sophisticated enough to fight
fraudsters?
Qualities and Qualifications of a Forensic Accountant
Characteristics
• Curiosity;
• Persistence;
• Creativity;
• Discretion;
• Organization;
• Confidence; and
• Sound professional judgment.
A capable Forensic Accountant should have the following characteristics:
• A Forensic Accountant must be open to consider all alternatives, scrutinize the fine details and at the same time see the big picture. In addition, a Forensic Accountant must be able to listen effectively and communicate clearly and concisely.
Forensic Accountant
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Qualities and Qualifications of a Forensic Accountant
A forensic accountant must be part detective and part accountant while analyzing, investigating, testing and examining evidence in order to present expert testimony on the occurrence of fraud.
This requires knowledge of financial and managerial accounting, corporate financial management, advanced computer skills, a good knowledge of the legal environment, and strong communication skills.
A naturally suspicious state of mind also helps the forensic accounting during the task of uncovering fraud.
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Professional Accountant’s Evidence on Cross-examination
In 1926, Albert S. Osborn described 14 possible attacks against an accountant’s evidence on cross-examination (which were summarized by Max Lourie)
Insufficient preparation and experience to qualify as an expert witness.
Inadequate examination of the issues presented.
Improper presentation of the issues to the witness.
Suspicion upon the testimony, based upon the witness’s personal record and character.
Use of misleading illustrations, selection of unfair examples, drawing of inferences not justified by facts, and improper emphasis or exaggeration.
Impossibility of reaching a conclusion meriting serious consideration on an issue not permitting adequate inquiry.
Expression of an opinion unjustified by the reasons given.
Basing the opinion upon vague and trivial facts insufficient to sustain any opinion, and arriving at a conclusion by guesswork.
A biased and unfair attitude of the witness in the examination of the facts.
The possibility that the problem is so difficult or unusual even a competent and careful witness may be mistaken.
Influence of other things rather than technical findings on the opinion of the witness and basing conclusions on reasons other than those given.
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Role of Forensic Accountants The role of a forensic accountant involves:
Investigating financial accounts for illegal activity such as white collarcrime.
Interprets findings of an investigation to determine if there's aproblem.
Examines financial data regarding alleged criminal activity such asfraud, money laundering, illegal transactions and embezzlement.
These financial records may include bank accounts, records orfinancial transactions.
Using knowledge of the law and accounting to determine whetherthere was fraudulent activity.
Working with law enforcement, private investigators or lawyers whileconducting investigations.
Testifies in court about the investigation.
Assist the courts, solicitors and clients understand the complexfinancial and accounting issues and presenting that information in amanner that all users can understand.
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Role of Forensic Accountants cont. As forensic accountants, we help at a number of different levels in the
litigation process including:
Assisting in initial discovery
Applying our commercial knowledge and expertise
Providing expert evidence both written and oral
Independence
Criminal Investigations
Shareholders' and Partnership Disputes
Personal Injury Claims / Motor Vehicle Accidents
Business Interruption / Other Types of Insurance Claims
Business/Employee Fraud Investigations
Matrimonial Disputes
Business Economic Losses
Professional Negligence
Mediation and Arbitration
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• Review of the factual situation and provision of suggestions regarding possible courses of action.
• Assistance with the protection and recovery of assets.
• Co-ordination of other experts, including:
• Private investigators;
• Forensic document examiners;
• Consulting engineers.
• Assistance with the recovery of assets by way of civil action or criminal prosecution.
Investigative Accounting
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Forensic Accountants’ Job
Forensic Accountants and the Vexed Problem of Corporate World
According to Owojori, A. A & T. O. Asaolu (2009), the following are the Role ofForensic Accounting in Solving the Vexed Problem of Corporate World:
1. Giving preliminary advice as an initial appraisal of the pleading and evidenceavailable at the start of proceedings.
2. Identifying the key documents which should be made available as evidence. Thisis important when the forensic accountant is acting for the defense and lawyersare preparing lists of documents to tender in court.
3. Preparing a detailed balanced report on quantum of evidence, written in alanguage readily understood by a non-accountant and dealing with all issue,irrespective of whether o not they are favourable to the client.
4. Reviewing expert accounting reports submitted by the other party which mayhave impact on the quantum of evidence and advising lawyers on these reports.
5. Briefing legal counsels on the financial and accounting aspects of the case duringpre-trial preparation.
6. The other plane of the forensic accountant can initiate measure for introductionof environment accounting to highlight the damage done to the environment bythe possible recoupment of such damages or replenishment of lost propertiesthrough environmental management continually.
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Litigation Support
• Assistance in obtaining documentation necessary to support or refute a claim.
• Review of relevant documentation to form an initial assessment of the case and identify areas of loss.
• Assistance with Examination for Discovery including formulation of questions to be asked regarding the financial evidence.
• Attendance at Examination for Discovery to review the testimony, assist with understanding the financial issues and to formulate additional questions to be asked.
• Review of the opposing expert's damages report and reporting on both the strengths and weaknesses of the positions taken.
• Assistance with settlement discussions and negotiations.
• Attendance at trial to hear testimony of opposing expert and to provide assistance with cross-examination.
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Forensic Accountants & Litigation Support
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Wednesday, February 18, 2015 37
Fraud Investigations & Govt. Agencies
38
Is your tool sophisticated enough to detect
fraud?
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A forensic accountant must have skills in many areas. Some forensic accountants, of course,
specialize in certain areas such as information technology. However, all well-trained forensic
accountants should have at least a minimum level knowledge and skills in the following
areas:
Auditing skills - are of paramount importance to the forensic accountant because of the
information-collecting and verification nature of forensic accounting. Well-trained forensic
accountants must be able to collect and analyze relevant information so that the cases being
investigated would be well supported in the courts.
Investigative knowledge and skills, such as surveillance tactics, interviewing and
interrogation skills, assist the forensic accountant beyond the skills related to auditing and
blend with the financial and legal aspects of forensics.
Criminology, particularly the study of the psychology of criminals, is important to the
forensic accountant because effective investigative skills often rely on knowledge of the
motives and incentives deployed by the perpetrator.
Accounting knowledge helps the forensic accountant analyze and interpret the financial
information necessary to build a case in financial investigation, whether it is a bankruptcy
setting, a money-laundering operation, or an embezzlement scheme. This includes
knowledge of proper internal controls such as those related to corporate governance.
Knowledge and Skill Set of a Forensic Accountant
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Legal knowledge is critical to the success of the forensic accountant.
Knowledge of laws and court procedures enables the forensic accountant to
identify the type of evidence necessary to meet the legal standards of the
jurisdiction in which the case is to be adjudicated and preserve evidence in a
manner that meets the criteria of the court.
Information technology (IT) knowledge and skills are necessary tools of the
forensic accountant in a world filled with paperless crimes. At a minimum, forensic
accountants must know the point at which they should contact an expert in
computer hardware or software.
Forensic accountants use technology skills to quarantine data, extract data
through data mining, design and implement controls over data manipulation,
accumulate baseline information for comparison purposes, and analyze data.
Communication skills are required of forensic accountants so that the results
of their investigation/analysis can be correctly and clearly conveyed to users of
their services. Many a time, some well intended purposes get marred by the
manner they are delivered.
Knowledge and Skill Set of a Forensic Accountant cont.
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Several organizations support and promote the practice of forensic accounting. These include:
•The Institute of Chartered Accountants of Nigeria (ICAN),
•The Association of Certified Fraud Examiners (ACFE),
•The American College of Forensic Examiners International (ACFEI),
•Institute of Certified Forensic Accountants (ICFA)
•The Association of Certified Fraud Specialists (ACFS) and
•The American Institute of Certified Public Accountants (AICPA).
•Many of these organizations offer credentials to those who meet their rigorous standards.
• In Nigeria, the only Forensic certification available is the CFA (Certified Forensic Accountant)
of The Institute of Chartered Accountants of Nigeria. The Audit, Investigations and Forensics
Accounting Faculty of ICAN is the Institute’s platform for training and certifying professional
accountants in Forensic Accounting, Corporate Investigations and Anti-Money Laundering. The
program develop the skill sets which combine accounting, auditing and investigative knowledge
to analyze and interpret business and financial evidence needed to support and prove cases of
economic crimes.
The Institute of Chartered Accountants of Nigeria (ICAN) offers certification programme in
forensic accounting which commenced in 2009. The ICAN Forensic Certification programme
is open to Chartered Accountants only (i.e. ACAs and FCAs). At the completion of the
programme and having met the requisite practical training in forensic, successful candidates
are issued Certified Forensic Accountant (CFA) certificates.
How to become a forensic accountant
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• One of the most popular certifications available is the CFE or the Certified Fraud Examiner.
This is an examination offered by the Association of Certified Fraud Examiners. It consists of
four parts: financial transactions, investigation, legal elements, and criminology.
The Association of Certified Fraud Examiners (ACFE) was organized in 1988 to promote
the detection and deterrence of fraud and white-collar crime. At the last count, its membership
totaled more than 35,000 members in 110 countries. It offers the Certified Fraud Examiner
(CFE) certificate, which is presently the most recognized fraud credential. It is also one of the
largest providers of continuing professional education for fraud professionals. To become a
CFE, an individual must meet certain experience and education requirements and pass the
CFE examination.
• The American College of Forensic Examiners offers the “Certified Forensic Accountant”
or the CrFA. This program qualifies the accountant in the areas of Fraud and Expert
Testimony.
• The Certified Insolvency and Reorganization Accountant (CIRA) qualifies an accountant
in the areas of insolvency and reorganizational accounting.
• The Association of Certified Fraud Specialists offers the Certified Fraud Specialist
Certification
• Other resources include the Forensic Accounting Society of North America, the National
Association of Certified Valuation Analysts and National Litigation Support Services
Association.
How to become a forensic accountant cont.
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Forensic Accountants in Court
A key piece of evidence is the report of the forensic accountant.
The fraud report should not be accusatory or conclusive as to guilt.
It is critical to ensure that the tone of the report is not inflammatory
or prejudicial.
•The fraud trial can be a civil or a criminal trial.
•In either case, the role of the forensic accountant is
•to study relevant materials documents, and the authoritative
literature relating to the case on hand.
•Direct and cross examination questions will be asked, and the
forensic accountant has the responsibility to answer these questions
clearly and concisely.
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Forensic Accountants in Court
In court, the forensic accountant can be:
• an expert witness,
•a consultant, or
•play other roles such as Trier of fact,
•special master,
•court-appointed expert,
•referee,
•arbitrator, or mediator
•Godwin, explain types of witness and their roles
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Recently, the number of reported fraudulent cases, especially in
government agencies and banks has continued to grow with low rate in the
number of successful prosecution.
According to information gathered from law enforcement and prosecuting
agencies, the low rate of successful prosecution and conviction of fraudulent
cases is partly attributed to lack of necessary skills and knowledge on the part of
some fraud investigators and prosecutors in providing suitable evidence to
support prosecution.
This is where Forensic Accountants and Fraud Examiners come in.
Forensic accountants are currently in great demand, with the public need
for honesty, fairness and transparency in reporting increasing
exponentially.
These Forensic Accountants and Fraud Examiners uses accounting, finance, law
and investigative skills to identify, interpret, communicate and prevent fraud.
As more and more companies look for Forensic Accountants & Fraud
Examiners, and professional organizations offer certifications in the area, it
is becoming evident that forensic accounting would emerge as one of the
hottest jobs in Nigeria within the next few years.
Conclusion
THANK YOU
46
Godwin Emmanuel Oyedokun ACA, ACTI, CFA, CFE
Vice President
ACFE Nigeria Chapter #126
08033737184, 08095491026
Email: [email protected]
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Albrecht W. S (2006), Fraud Examination, Thomson South-Western Publishing, 2006.
Association of Certified Fraud Examiners’ Manual, (2012)
Association of Certified Fraud Examiners, www.acfe.com
Crubley, Heiger and Smith (2003),Forensic and Investigative Accounting, CC Publishing
Hopwood, Leiner and Young (2009); Forensic Accounting, McGraw-Hill International.
New Frontiers: Training Forensic Accountants within the Accounting Program; Journal of College of
Teaching & Learning – September, 2007.
Owojori, A.A & T. O. Asaolu (2009) European Journal of Scientific Research
ISSN 1450-216X Vol.29 No.2 (2009), pp.183-187 http://www.eurojournals.com/ejsr.htm
http://blog.rpc.co.uk/tax-law/criminal-guidance/note-9-the-role-of-the-forensic-accountant
http://www.dolmanbateman.com.au/1323/the-role-of-forensic-accountants/
America institute of CPAs :
http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2008/CPA/June/Rol
e.jsp
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