Question

Briefly explain why limitations to forensic accounting analysis are required to be disclosed by the forensic accountant in his/her expert report under APES215 Forensic Accounting Services.

Answer 1

Forensic accountant has to explain the limitations of forensic accounting analysis for the following purposes:

• Providing legal advice or making legal assertions in their work or deliverable's

• Providing actuarial or valuation guidance unless appropriately credentialed and trained

• Acting as a judge or jury by making judgements as to the guilt or innocence of particular people or groups

• Expressing an audit opinion on financial statements or internal control effectiveness.

• Creating legal exposure as a result of comments that may lead to claims of defamation, libel, slander, and the like On occasion, the forensic accounting investigator may need to remind staff, other parties, and counsel of those limitations.

The board or special committee of the board, in conjunction with counsel, frequently issues a written report following an internal investigation, especially if the focus of investigation is a public company. The report may include work performed or evidence reviewed by the forensic accounting investigator, sometimes with an explicit reference to the forensic accounting investigator. For example, a report of the Special Investigative Committee of the Board of

• Information from the external auditor