14 April 2016

Remaining impartial as a forensic accounting expert witness

Our company is extremely susceptible to fraud, and it is highly likely that we will need to engage a forensic accountant as an expert witness. We must understand that their paramount duty is to the court, and this may conflict with our expectations as their client (Accounting Professional & Ethical Standards Board 2013, 8). When preparing a report, expert witnesses must form an opinion based entirely on specialised knowledge (Hoffman et al. 2013, 46). They are required to act independently and without bias, and a statement that verifies this should be included in the report (Beran 2009, 135).

(Aviation Safety Institute 2016)

All facts and assumptions that were relied on must also be explained in the report, and the opinion should be justified in terms that can be understood by a layperson (Hoffman et al. 2013). It is essential that the expert understands they are not obliged to endorse the client’s position, even if instructed by the lawyer.

I have no personal experience in this area, but if I was an expert witness, I would also be bound by these requirements to avoid prejudice. I think these duties are quite onerous and may be difficult to comply with, particularly because they are being paid by only one party to the proceeding. Despite this, expert witnesses must remain impartial throughout all dealings with their client.

Relevant Links
If you would like to read more about the forensic accountant and their expert report, you can do so here:
http://www.mwforensic.com.au/news/MWCommDispute_Ed3.pdf

References
Accounting Professional & Ethical Standards Board. 2013. Forensic Accounting Services. APES 215. Accessed April 16, 2016. http://www.apesb.org.au/uploads/standards/apesb_standards/13092014103232p1.pdf.

Aviation Safety Institute. “Expert Opinion for Legal Matters.” Image. Accessed April 20, 2016.
http://aviationsafetyinstitute.aero/consulting/expert-opinion-for-legal-matters/.

Beran, Roy G. 2009. “The role of the expert witness in the adversarial legal system.” Journal of Law and Medicine 27 (1): 133-137. Accessed April 16, 2016. http://www.westlaw.com.au.ezp01.library.qut.edu.au/.

Hoffan, Ronnie, Warwick Finney, Phillip Cox, and Kathie Cooper. 2013. The Accountant as an Expert Witness: A basic guide to forensic accounting. CCH Australia.

Munday Wilkinson. 2011. Forensic Accounting for Commercial Disputes. Accessed April 20, 2016.
http://www.mwforensic.com.au/news/MWCommDispute_Ed3.pdf.

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