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The Law of Forensic Accounting


I agree with the statement that “It is extremely important for Forensic Accountants to be familiar with the law.” When a case reaches the courts, the forensic accountant may need to become an expert witness (Sanchez & Zhang, 2012). Accounting expert witnesses in Australia are bound by APES215 and any other relevant court procedure rules (APESB, 2008). A competent expert must make sure any relevant information within their area of expertise is identified and communicated as soon as possible to prepare the legal team (APESB, 2008). The expert must understand that their independence and objectivity is of the upmost importance.

APES215 guides forensic accountants in being able to distinguish between their legal and ethical requirements. The legal requirements of a forensic accountant involve complying with the laws of evidence and communicating findings as soon as possible. The ethical requirements as stated by CPA Australia’s policy adviser is to “act in the public interest and comply with the code of ethics and its principles” (Head, 2017).

In 1997, Brian Quinn, the former chief executive and chairman of Coles Myer was found guilty of defrauding his employer of more than $4million. He was found guilty of using company funds meant for the refurbishments of Coles Myer stores for his own personal property. This information was discovered by a forensic accountant who analysed invoices finding they were in fact payments to Quinn’s personal contractors (Head, 2017). The accountant acted legally and ethically disclosing unbiased information as it was discovered. I believe the quick and thorough actions of the forensic accountant complying with APES215 contributed greatly to the successful conviction of Brian Quinn.


References


APESB. (2008). APES 215 FORENSIC ACCOUNTING SERVICES.
Head, B. (2017, June 1). Forget CSI - accountants are the new expert witness. Retrieved from In the
Black: https://www.intheblack.com/articles/2017/06/01/accountant-as-expert-witness
Sanchez, M. H., & Zhang, S. W. (2012). The role of the expert witness in accounting fraud cases. Global journal of business research, 6(1), 103-111.

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