Regulatory Environment

Just as the risk of fraud increases, so does the necessity for forensic accountants.  The Queensland Health $16 million and ING $50 million fraud cases demonstrate the requirement for proactive and reactive forensic accounting services (Van Akkeren, Buckby & MacKenzie, 2013).

Forensic accountants are required to assist the courts, solicitors and clients to understand complex financial and accounting issues by presenting information in a manner that all users will understand (Shields, 2010, para. 1).  Accounting expert witnesses within Australia are bound by APES 215 and any applicable court practice notes.  Both the standard and practice notes convey the independence and objectivity of the expert is of utmost importance.

On 1 April 2014, a revised issue of the standard was released and implement.  Paragraph 1.2 of APES 215 (page 3) states that ‘APES 215 sets the standards for Members in the provision of quality and ethical Forensic Accounting Services’.  A concern regarding the challenge to accountants to keep up with the changes of the standard has been raised.  In my opinion, it is within the best interest of accountants to maintain awareness of any standard revisions in order to preserve credibility in court.

References

Accounting Professional and Ethical Standards Board. (2013). APES 215 Forensic Accounting Services.  Retrieved from http://www.apesb.org.au/

Shields, A. (2010).  The Role of Forensic Accountants.  Retrieved from http://www.dolmanbateman.com.au/1323/the-role-of-forensic-accountants/

  

Van Akkeren, J., Buckby, S., & MacKenzie, K. (2013). A metamorphosis of the traditional accountant. Pacific Accounting Review, 25(2), 188-216, DOI: 10.1108/PAR-06-2012-0023