Question

  

  

  

21. Unauthorized Access. Ted Munice has recently been fired. He had been the payroll accountant at Texas Shipping in Galveston, Texas. The systems administrator had determined that someone had logged into the payroll system twice on December 25. A forensic investigator hired by Texas Shipping questioned Ted. Ted admitted that he had logged onto the network, but denied that he had done anything while on the network. The Company wants to take legal action against Ted and has asked a forensic accountant for advice. What should the forensic accountant tell Texas Shipping?

  

  

  

Answer 1

lets understand more in a better way what forensic accountant address to :

(1) Evaluating the financial facts and explanations given by the other party and assisting in initial discovery

(2) Quantifying the damage that the parties might have suffered as a consequence of result of the action or inaction being litigated by applying our commercial knowledge and expertise

(3) Investigating the authenticity of responses provided, particularly from the one who appears to be in a more financially robust position. Always bearing in mind that, the parties to the suit are in such a situation, where the level of trust between parties is at the lowest, this appears to be the most common thread running through all enquiries. The suggestion is that the other party is hiding assets, or misleading their financial position by providing expert evidence both written and oral.

(4) Providing reassurance where another expert had already been appointed but, for whatever reason, they do not trust the opinion of the expert and want a second opinion

(5) Challenging the responses from the other party or the other party’s expert independently

(6) Providing expert witness evidence in Court

(7) Forensic accounting is also used to discover whether a crime occurred and assess the likelihood of criminal intent. Such crimes may include employee theft, securities fraud and misrepresentation of financial statement information. Further, identify theft or insurance fraud in courts.

In the light of the above, Forensic accountant shall advice the shipping company on the following pointers:

• Was there as intention of Asset misapproriation.The Data of the Company's Salary is an important component in determing the cost and so do the variatio the values of the asset thereto. The malafied intention shall be addressed (if any) for his doings.
• Was there intention of corruption in doing so.
• Does the statement given by administrator is fraudulant statement.
• The anlysis would be required whether there is any fraud triangle or not., Etc