A FORENSIC ACCOUNTANT PERFORMS AND HIS ENGAGEMENT

A forensic accountant as other professionals has a definite assignment he performs and areas he is been-engaged to exercise his duties.

            Coenen (2005) identifies the following as areas where a forensic accountant is engaged.

(i)                Investigating corporate fraud

(ii)             Litigation services

(iii)           Business valuation

(iv)           Computer forensic

However, Zysman (20010 in a more elaborate form captured the assignment performed by forensic accountant as including.

(i)          Criminal investigation –Forensic accountant do this type of investigation on behalf of the police with the aim of presenting evidence in a professional and concise manner

(ii)       Shareholders and partnership disputes– These assignments involves analysis of numerous year financial record for valuation and qualification of the issue in dispute.

(iii)     Personal injury claims/motor vehicle accidents –A forensic accountant is often asked to quantity the economic losses resulting from a motor vehicle accident. He needs to be familiar with the legislation in place which pertains to motor vehicle accidents. Also in the case of medical malpractice and wrongful dismissal, it often involves similar issues in calculating the resulting economic damage.

(iv)     Business interruption/other types of insurance claims– Insurance policies differ significantly as to their terms and conditions. These assignments involve a detailed review of the policy to investigate. Coverage issues and the appropriate method of calculate the loss. He is often asked to assist from either an insured or insurers perspective in the settlement of a case. Example of this assignment includes property losses and employee dishonestly claims business interruptions.

(v)        Business/Employee fraud investigations- These type of assignment involves fraud tracing, asset identification and recovery, forensic intelligence gathering and due diligence reviews. By employee fraud investigations it involves procedures to determine the existence nature and extent of fraud and may concern the identification of a perpetrator. These investigations often entail interviews of personnel who had access to the funds and a detailed review of the documentary evidence.

(vi)     Matrimonial Disputes– This also involves the tracing, locating and evaluation of assets

(vii)   Business Economic Losses- This assignment involves setting contract dispute, construction claims, expropriation product liability claim and trade mark issues.

(viii)Professional Negligence- This to ascertain the breach and quantity the loss involved.

(ix)     Mediation and arbitration