Acca aaa s21 Notes

integrity
(eg not hiding evidence that is useful to the other side) and 
objectivity
(eg 
drawing fair and reasonable conclusions about the value of inventory lost in a fire). The accountant is 
and should be seen as a servant of the court and should help the court to discover the truth as far as 
possible. The accountant should beware of becoming an advocate for one side of the dispute. 
Forensic work is of a specialist nature which requires 
professional competence
and 
due care
. For 
example, there are considerable skills needed in questioning suspects in a fraud case. Specialist skills 
are needed to trace money as it passes through various bank accounts and various countries in a 
money-laundering case.
September 2021 to June 2022 exams
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3. Planning
As for all assignments, planning is essential. In addition, because each piece of forensic work will be 
unique, it is essential to agree with the client exactly what work is required.
Planning will start with a planning meeting where the following will be discussed:
๏
The nature of the investigation and why it is required (eg fraud, money laundering, loss 
estimation).
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The type of report(s) needed (eg quantifying the fraud, finding out how it was perpetrated, 
determining who was involved and for how long it went on). Remember that an engagement to 
perform agreed-upon procedures will report factual findings - no assurance opinion is given.
๏
Agreement that the investigation team will have full access to whatever documents, 
information, personnel and explanations they need.
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What work has been done already. For example, has the fraud mechanism been understood and 
stopped? Have the police been involved?
๏
If the investigation work is likely to become evidence in a court case, the accountant will need to 
ensure that it is of the highest quality.
๏
Determine who will receive the completed report.
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When can the investigation start? By when is the report needed?
๏
Some preliminary documents might be asked for, such as any insurance policy that might 
compensate for negligence payments, losses through fraud or fire.
If the client is not an audit client, then the amount of work that has to be done will be somewhat 
greater. For example, whereas auditors will have documented the accounting system and this might 
give insights as to how a fraud was perpetrated, if the investigating accountants are not the auditors 
they will have to start by documenting relevant parts of the system, getting to understand the nature 
of the business and the reporting structures within it.