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Forensic Accounting - Is it in your DNA?
 

Forensic Accounting - Is it in your DNA?

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Forensic Accounting - Is it in your DNA?

Forensic Accounting - Is it in your DNA?
ParenteBeard Partner Bob Gray at Beta Alpha Psi Conference
April 6, 2013

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  • This Slide will be completed last to fit the order of the presentation
  • This Slide will be completed last to fit the order of the presentation
  • Meyer v. Sefton allowed an ‘expert witness’ to testify in court.JAMES McCLELLAND Born in Ayr on 18 January 1799, McClelland moved to Glasgow in 1815, working initially in the accountancy office of James Kerr. In March 1824 he began business on his own and came to be regarded as the city's leading accountant. In 1853, when the Institute of Professional Accountants was formed, McClelland was elected president.He came to Glasgow in 1815, and after serving nine years in the office of Mr. James Kerr, accountant, he began business on his own account in March, 1824. For nearly fifty years thereafter Mr. McClelland was a very considerable force in the city of Glasgow.As a professional accountant, Mr. McClelland brought quite an unusual amount of energy to bear on everything he undertook. In those days there was no "Accountant of the Court" whose duty it was to see to the expeditious winding-up of bankrupt estates, and there is no doubt that considerable laxity then prevailed in the profession in this respect. Mr. McClelland prided himself on the rapidity with which he completed the business in hand, and for many years he was facile princeps, the head of his profession. When the professional accountants formed themselves into an Institute in 1853, to be incorporated by Royal Charter two years later, Mr. McClelland was elected first President, an office which he continued to hold for several years. A large amount of important business passed through his hands, and his office was the school in which many gentlemen, now occupying important positions in Glasgow and elsewhere, received their commercial training.http://gdl.cdlr.strath.ac.uk/mlemen/mlemen053.htm
  • Maurice E. Peloubet (1892-1976)Maurice E. Peloubet joined Price Waterhouse in 1911 before founding the accounting firm of Pogson, Peloubet and Company. In 1963 his firm merged into Price Waterhouse and he became partner.Peloubet became a member of the Society in 1923, serving in numerous leadership positions, including president (1950-1951), vice president and director.During his lifetime, Peloubet received many awards and honors in recognition of his lasting imprint on the accounting profession. He served three times as a delegate to the International Congress on Accounting and four times as a delegate to the Inter-American Accounting Conference. He received the AICPA Award for Service in 1946.Leading a special mission for the United States and British Combined Chiefs of Staff in Europe, Peloubet served as a consultant to the War Production Board (1941-1942) and the U.S. Navy Department (1942-1943). Peloubet also authored the influential 1946 article “Forensic Accounting: Its Place in Today’s Economy,” in which the origins of investigative accounting can be traced. In 1999, Georgia State University published Peloubet’s memoirs, titled The Story of a Fortunate Man: Reminiscences and Recollections of Fifty-Three Years of Professional Accounting.http://www.nysscpa.org/trustedprof/archive/0503/1tp14a.htm
  • Franklin’s postal career began in 1737 when the British Crown Post appointed him postmaster of Philadelphia. Postmaster General Elliott Benger (1743-1753) made him comptroller with financial oversight over neighboring Post Offices. Maintained double-entry accounting recordsOn August 10, 1753, he and William Hunter of Virginia became joint postmasters general for the Crown.He encouraged postmasters to establish the penny post, whereby letters not called for at the Post Office were delivered for a penny. Abolished the practice of letting postmasters decide which newspapers could travel through the mail and mandated delivery of all newspapers for a small fee. Thanks in part to Franklin’s efforts, the British Crown Post in North America registered its first profit in 1760.July 26, 1775 - Congress appointed Benjamin Franklin the first Postmaster General of the organization now known as the United States Postal Service
  • Al Capone was one of the most famous gangsters in the 20th centuryIn 1931, he was found guilty for tax evasion.The FBI and IRS used forensic accounting by way of an agent delving through about 2 million documents and files and questioning witnesses.This very famous case led to the boasting phrase... “Only an accountant could catch Al Capone”.
  • The report covers the professional standards that apply when forensic procedures are employed in an audit and explains the various means of gathering evidence through the use of forensic procedures and investigative techniques.
  • Source: Serving as an Expert Witness or Consultant, Practice Aid 10-1, AICPA’s Forensic and Valuation Services Section, © 2010, page 6.
  • This is where you talk about how forensic accountants are like the emergency room of the accounting hospital and when the attorney ambulance pulls up, etc.
  • AICPA website
  • Source – AICPA website
  • Source – AICPA website
  • LEK to complete on Monday
  • LEK to Complete on Monday
  • LEK to Complete on Monday
  • Add some more under other from slide bob handed me
  • LEK to Complete on Monday
  • Source: Serving as an Expert Witness or Consultant, Practice Aid 10-1, AICPA’s Forensic and Valuation Services Section, © 2010, pages 6-7.
  • Source: Serving as an Expert Witness or Consultant, Practice Aid 10-1, AICPA’s Forensic and Valuation Services Section, © 2010, pages 7

Forensic Accounting - Is it in your DNA? Forensic Accounting - Is it in your DNA? Presentation Transcript

  • April 6, 2013 | Beta Alpha PsiForensic AccountingIs it in your DNA?Robert P. Gray, CPA/ABV/CFF, CGMA, CFE2013 Midwest Regional Meeting | ―Dreams of TomorrowBecoming Reality for Today “ | Chicago, IL
  • Bob Gray,CPA/ABV/CFF, CGMA, CFE• Managing Partner of ParenteBeard LLC’s Texas Practice• Chair of the American Institute of Certified Public Accountants (―AICPA‖) Forensic and Litigation Services (―FLS‖) Committee• Former chair of the AICPA Merger & Acquisition Dispute and Bankruptcy & Insolvency Task Forces• Member of the Texas Society of Certified Public Accountants’ Business Valuation and Litigation Services Committee• Over 15 years experience with a Big Four firm providing assurance, consulting services and Executive Office assignment 1
  • Agenda• Introduction/agenda• History of Forensic Accounting• What is it?• Forensic credentials and professional standards• Specialized services and examples• Is it for you?• Questions and answers 2
  • History of Forensic Accounting 3
  • Historical Roots of ForensicAccounting• 10,000 years ago — Temple priests took inventory of village livestock• 3,000 B.C. — Scribes recorded ruler’s wealth• 1775 – Ben Franklin appointed as 1st Postmaster General1800s: • 1817 — Canadian court decision of Meyer v. Sefton • 1824 — James McClelland started his business in Glasgow, Scotland • 1856 — In England, the audit of corporations became required • 1887 — American Association of Public Accountants (later becoming the AICPA) was formed • 1896 — New York State legislated the first CPA law 4 4
  • Historical Roots of ForensicAccounting (cont.)1900s:• 1900 — School of Commerce, Accounts, and Finance at New York University opens• 1902 — Congress calls for audit reports for large corporations• 1913 — Federal Reserve Board created & Federal income tax law was passed• 1914 — Federal Trade Commission created• By 1921 – All states had passed laws requiring exam for CPA certificate• 1931 – Al Capone convicted of tax evasion• In 1946 – The term ―forensic accounting‖ was first used by Maurice E. Peloubet, a partner in a New York accounting firm 5 5
  • Additional Accounting History –Benjamin Franklin 6 6
  • Additional Accounting History –Al Capone 7 7
  • ACFE / AICPA• The Association of Certified Fraud Examiners (―ACFE‖) was established in 1988 to expand membership of professionals who worked on fraud- related engagements.• In 2003, the AICPA’s Litigation and Dispute Resolution Services Subcommittee issued a report of its Fraud Task Force entitled, ―Incorporating Forensic Procedures in an Audit Environment.‖ 8 8
  • Accountant’s Role• During the late 1990s and early 2000s, the AICPA began the process of developing a forensic/fraud certification. – After the Enron, WorldCom, etc. came to light, the AICPA developed the CFF credential to deal with forensic accounting in a much more broad manner. – The CFF was created as a means to identify CPAs with forensics expertise.1• In 2008, the AICPA established a Certification that recognizes the specialized skills of CPA’s who practice in the area known as Forensic Accounting. Source: 1 - The AICPA CFF Credential – Opening the Door Wider, FVLE Issue 27, dated October/November 2010 by Robert Gray. Source: www.aicpa.com Picture Source: http://www.insidesocal.com/scauzillo/enron%20logo.jpg & http://news.bbc.co.uk/olmedia/1160000/images/_1160997_worldcom_logo300.jpg 9 9
  • What is Forensic Accounting? What Our Parents Think I Do What Society Thinks We Do What We Think We Do What Do You Think We Do? What our friends think we do 10
  • What is Forensic Accounting?What Our Friends Think I Do What Our Parents Think I Do What Society Thinks We Do ?What Our Significant Other What We Think We Do What Do You Think We Do? What our significant others think we doThinks We Do 11
  • What is Forensic Accounting?What Our Friends Think I Do What Our Parents Think I Do ?What Our Significant Other What We Think We Do What Do You Think We Do?Thinks We Do What society thinks we do 12
  • What is Forensic Accounting?What Our Friends Think I Do What Our Parents Think I Do What Society Thinks We Do ?What Our Significant Other What We Think We Do What Do You Think We Do?Thinks We Do What our parents think we do 13
  • What is Forensic Accounting?What Our Friends Think I Do What Our Parents Think I Do What Society Thinks We Do ? 14
  • What is Forensic Accounting?What Our Significant OtherThinks We Do What we think we do 15
  • What is Forensic Accounting?What Our Friends Think I Do What Our Parents Think I Do What Society Thinks We Do ?What Our Significant Other What We Think We Do What Do You Think We Do?Thinks We Do What do YOU think we do? 16
  • Some Myths of Forensic Accounting• We sit at our desks all day looking at balance sheets, income statements, and bank statements• We cannot start out in our field, but first we must be abused by the audit/assurance or tax departments• We have no deadlines or busy seasons• We are crime fighters or work in a lab• We have the power to make arrests and ―pack‖• Our work is always fraud related• Like attorneys, forensic accountants’ duty of loyalty is to the best interest of their client(s) 17
  • What is Forensic Accounting? 18
  • What is Forensic Accounting? 19
  • What is Forensic Accounting?• Forensic accounting services generally involve the application of specialized knowledge and investigative skills possessed by CPAs to collect, analyze, and evaluate evidential matter and to interpret and communicate findings in the courtroom, boardroom, or other legal or administrative venue.• In a litigation context, the term forensic means to be suitable for use by a court of law. Source: Serving as an Expert Witness or Consultant, Practice Aid 10-1, AICPA’s Forensic and Valuation Services Section, © 2010, page 6. 20
  • What is Forensic Accounting?The Emergency Room of the Accounting Hospital 21
  • American Institute of CertifiedPublic Accountants (―AICPA‖)• World’s largest member organization representing the accounting profession• Has nearly 386,000 members in 128 countries• Estimates that 20,000 to 30,000 members now provide forensic accounting services• AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting• The AICPA sets ethical standards for the profession and U.S. auditing standards for audits of private companies, nonprofit organizations, federal, state and local governments 22
  • Certified in Financial Forensics - CFF Focus of the CFF 23
  • Credentials and Designations ofForensic Accountants• CPA – Certified Public Accountant• ABV - Accredited in Business Valuation• CFF – Certified in Financial Forensics• CGMA – Charter Global Management Accountant• CFE – Certified Fraud Examiner 24
  • Certified Public Accountant - CPA• Fulfill specified number of credit hours in accounting and general business• Gain necessary amount of experience working for a public accounting firm (and specifically in auditing if the state requires it)• Ethics course requirement given by most states• Pass all four parts of CPA examination 25
  • Certified in Financial Forensics - CFF• Exclusively granted by the AICPA• CPA in good standing• Complete the CFF examination• Apply to be a licensed CFF – Must have 1,000 hours in forensic accounting experience within the 5 years prior to CFF application – Must have 75 hours of forensic accounting related continuing professional education (―CPE‖) within 5 years prior to CFF application 26
  • Accredited in Business Valuation –ABV• Exclusively granted by the AICPA• CPA in good standing• Pass the ABV examination• Completed either 6 business valuation engagements or obtained 150 hours of business valuation experience within 5 years of the application date – Must have 75 hours of business valuation related continuing professional education (―CPE‖) within 5 years prior to CFF application 27
  • Chartered Global ManagementAccountant - CGMA• Three years of financial (including internal audit) or management accounting experience in business, industry, or government, or• Two years of financial or management accounting experience plus one year in public accounting, or• Three years of financial/management accounting experience on a consulting basis, or• Three years in a management accounting role focused on the management and operation of an accounting firm 28
  • Certified Fraud Examiner - CFE• Associate member of the Association of Certified Fraud Examiners in good standing• Bachelor’s degree or higher in education experience or two years of fraud related experience• Must have at least two years of professional experience in a field either directly or indirectly related to the detection or deterrence of fraud• Pass the CFE examination 29
  • Typical Day of a ForensicAccountant? 30
  • Typical Day – There Are None! Focus of the CFF 31
  • Specialized Forensic AccountingServices• Economic damages• Valuations in dispute• Computer forensic analyses• Financial statement misrepresentation• Bankruptcy, insolvency & reorganization• Matrimonial disputes• Fraud prevention and detection 32
  • Economic Damages 33
  • Economic Damages• Lost profits• Loss of value• Out-of-pocket costs• Reasonable royalty• Other – Analyze lost cash flows – Review mitigation of damages of economic damages – Analyze or aid in calculating restitution 34
  • Lost ProfitsLost Profits Defined• Lost profits are based upon the alleged harm suffered by the Plaintiff or injured party.• In a business setting, lost profits are determined as the amount necessary to place the injured party in a position that it would have realized had the incident not occurred.• Only ―Net Lost Profits‖ are allowable in economic damages – (Net Lost Profits = Lost Revenues less Avoided/Incremental Costs) 35
  • Conceptual Issues in Measures ofEconomic Damages Courts have stated the general rule permitting alternate theories of recovery: ―[I]f a business is completely destroyed, (then) the proper total measure of damages is the market value of the business on the date of the loss. If the business is not completely destroyed, then it may recover lost profits. A business may not recover both lost profits and the market value of the business.‖¹ 1. Montage Group, Ltd. V. Athle-Tech Computer Systems, Inc., 889 So.2d 180, 191 (Fla. App.2004) (internal citations omitted). From “The Comprehensive Guide to Lost Profit Damages,” 2013, Chapter 9 36
  • Conceptual Issues in Measures ofEconomic Damages (cont.) Scenario 1: Temporary Impairment¹ Scenario 2: Immediate Destruction of Business² Scenario 3: Slow Death of a Business³ Scenario 4: Startup/Emerging Businesses 1. “Financial Valuation Applications and Models”, Second Edition, James R. Hitchner, Wiley Finance, pages 1032-1034.” 2. ibid 3. ibid 37
  • Scenario 1: Temporary Impairment:Exhibit 1 – Temporary Impairment¹ Expected Profits $1,600,000 $1,200,000 Profits Lost Profits $800,000 $400,000 Actual Profits $0 1 2 3 4 5 6 7 1. “Financial Valuation Applications and Models”, Second Edition, James R. Hitchner, Wiley Finance, pg. 1033 38
  • Scenario 2: Immediate Destructionof BusinessExhibit 2– Immediate Destruction of Business² $2,000,000 Expected Profits $1,600,000 LostProfits $1,200,000 Business $800,000 Value $400,000 Actual Profits $0 1 2 3 4 5 6 7 8 9 10 2. “Financial Valuation Applications and Models”, Second Edition, James R. Hitchner, Wiley Finance, pgs. 1033 and 1034. 39
  • Scenario 3: Slow Death of BusinessExhibit 3– Slow Death of Business³ $2,000,000 Expected Profits $1,600,000 Lost LostProfits $1,200,000 Profits Business $800,000 Value $400,000 Actual Profits $0 1 2 3 4 5 6 7 8 9 10 3. “Financial Valuation Applications and Models”, Second Edition, James R. Hitchner, Wiley Finance, pg. 1034. 40
  • Scenario 4: Startup/EmergingBusinesses: Exhibit 4– Startup/Emerging Businesses $2,000,000 Expected Profits $1,600,000Profits $1,200,000 Incident $800,000 Losses May Be too Speculative $400,000 Actual Profits $0 1 2 3 4 5 6 7 8 9 10 41
  • One v. Two Model Approach• The following sample lost profits analyses are included only for informational and educational purposes.• Scenario One and Two 42
  • Scenario One Sample Lost Profits (One Model Method) Damages Analyses With a Time Value of Money/Discount Rate Historical Periods Future Periods Year 1 2 3 4 5 Total A Lost Revenues $610,000 $660,000 $710,000 $250,000 $0 $2,230,000 Incremental Cost B % 45% 45% 45% 45% 45% Incremental C-A*B Costs $274,500 $297,000 $319,500 $112,500 $0 $1,003,500 D=A-C Lost Profits $335,500 $363,000 $390,500 $137,500 $0 $1,226,500 E Discount Rate 15% 15% 15% 15% 15% F = 1 / (1+E) ^ # of periods Discount Factor 1.00 1.00 1.00 0.87 0.76 Present Value of G=D*F Lost Profits $335,500 $363,000 $390,500 $119,625 $0 $1,208,625 43
  • Scenario Two Appendix A Summary - Net Lost Profits Historical Periods Future Periods Year 1 2 3 4 5 Total "But For" Lost Profits - Appendix B $ 730,000 $ 925,000 $ 1,037,500 $ 1,150,000 $ 1,180,000 $ 5,022,500 Actual/Projected Lost Profits - Appendix C 394,500 562,000 647,000 1,012,500 1,180,000 3,796,000 Net Lost Profits $ 335,500 $ 363,000 $ 390,500 $ 137,500 $ - $ 1,226,500 Discount Rate 15% 15% 15% 15% 15% Discount Factor 1.00 1.00 1.00 0.87 0.76 Present Value of Lost Profits $ 335,500 $ 363,000 $ 390,500 $ 119,625 $ - $ 1,208,625 44
  • Appendix B―But For‖ (a/k/a ―Without Interruptions‖) Lost Profits Projected Historical Periods Future Periods Year 1 2 3 4 5 Total "But For" Revenues: Product A $ 900,000 $ 1,100,000 $ 1,250,000 $ 1,400,000 $ 1,500,000 $ 6,150,000 Product B 700,000 900,000 1,000,000 1,100,000 1,100,000 4,800,000 Total Revenues 1,600,000 2,000,000 2,250,000 2,500,000 2,600,000 10,950,000 Expenses Fixed 150,000 175,000 200,000 225,000 250,000 1,000,000 Semi-variable 240,000 300,000 337,500 375,000 390,000 1,642,500 Variable 480,000 600,000 675,000 750,000 780,000 3,285,000 Total Expenses 870,000 1,075,000 1,212,500 1,350,000 1,420,000 5,927,500 "But For" Lost Profits $ 730,000 $ 925,000 $ 1,037,500 $ 1,150,000 $ 1,180,000 $ 5,022,500 45
  • Appendix CActual/Projected (a/k/a ―With Interruptions‖) Lost Profits Historical Periods Future Periods Year 1 2 3 4 5 Total Actual/Projected Revenues: Product A $ 590,000 $ 770,000 $ 850,000 $ 1,275,000 $ 1,500,000 $ 4,985,000 Product B 400,000 570,000 690,000 975,000 1,100,000 3,735,000 Total Lost Revenues 990,000 1,340,000 1,540,000 2,250,000 2,600,000 8,720,000 Expenses Fixed 150,000 175,000 200,000 225,000 250,000 1,000,000 Semi-variable 148,500 201,000 231,000 337,500 390,000 1,308,000 Variable 297,000 402,000 462,000 675,000 780,000 2,616,000 Total Expenses 595,500 778,000 893,000 1,237,500 1,420,000 4,924,000 Actual/Projected Lost Profits $ 394,500 $ 562,000 $ 647,000 $ 1,012,500 $ 1,180,000 $ 3,796,000 46
  • Loss of Value 47
  • Purpose of Valuation• Buying or selling a business• Buying or selling a partial interest• Obtaining or providing financing• Initial public offering• Leveraged buyout• Employee Stock Ownership Plans (―ESOPS‖) 48
  • Purpose of Valuation (cont.)• Estate gift and income tax• Buy/sell agreements• Divorce settlements• Damage cases• Mergers and acquisitions• Dissenting shareholder actions• Determining life insurance needs 49
  • Overview of Valuation Process –4 D’s Process Explanation Contact Person PercentagePlanning Stage: Define Define the Valuation Attorney 10% ¤ Valuation Date ¤ Interest to be Valued ¤ Purpose ¤ Scope of Report Discover/DueDevelopment Stage: Diligence Research and Analyses Any combination of: 20% ¤ Economic Research ¤ Attorney ¤ Industry Research ¤ Client ¤ Subject Company Analysis ¤ Valuation Analyst ¤ Market Comps Research ¤ Industry Participants ¤ Site Visit Valuation Approaches and Determine Value Methods Discounts and Valuation Analyst 50% Premiums Determine Final ValueReporting Stage: Describe Report Valuation Analyst 20% 50
  • Valuation Approaches & Methods• Income Approach: – Capitalization of earnings method – Discounted cash flow analysis (DCF) method• Market Approach: – Guideline publicly traded company method – Guideline merger and acquisition method – Subject company transaction method – Industry method or ―rule of thumb‖• Cost Approach: – Adjusted net asset value method – Excess earnings method – Impacted by premise of value (Orderly Liquidation Value vs. Fire Sale) 51
  • Comparative Summary of LostProfits v. Loss of Value: The following table summarizes the differences between lost profits and lost business damages:¹ Attribute Lost Profits Loss of Value Income stream Incremental income stream net of Typically net after tax income avoided costs Income stream Before income tax Typically after tax income Income stream Typically limited life Into perpetuity Valuation methods Present value of post trial lost Discounted net income or net cash flow incremental income added to pretrial model, supported by other valuation lost incremental income including methodologies as needed appropriate pre-judgment interest added to the date of trial Discount rate Based on either risk assessment, Based on risk assessment risk-free rate, or plaintiff’s use of funds depending on circumstances (see Chapter 10A) Prejudgment and post judgment interest Considered Considered Use of hindsight Typically considered Seek guidance (the ―Book of Wisdom‖) 1. ”The Comprehensive Guide to Lost Profits Damages‖, 2009, pg. 8-6, Business Valuation Resources. 52
  • Case Study – ValuationDispute – Ad Valorem Tax Issue• Valuation of identifiable intangible assets for energy company• Higher the value of the intangibles – less money the company has to pay in property taxes• Opposing experts rely on one valuation approach• SSVS No. 1 – three approaches to valuation• Testimony 53
  • Computer Forensics 54
  • Computer Forensics Solves – Liveand Let Die! 55
  • Financial StatementMisrepresentation 56
  • Financial StatementMisrepresentation• Defense work• Plaintiff’s work• Represent the company, individuals, or plaintiffs• Heavy GAAP, GAAS, and PCAOB issues• Standard of care 57
  • Financial StatementMisrepresentation• U.S. Bankruptcy Trustee sues Big 4 Firm for failed audit• At issue was the valuation of intangible assets on the reporting company’s balance sheet• Also GAAP and GAAS issues 58
  • Matrimonial Services• Asset tracing• Valuation of business interests• Reconstruct income and cash flow used by the parties to pay for the marital lifestyle• Evaluate the tax consequences of equitable distribution and support• Prepare net worth statements and financial affidavits in accordance with jurisdictional requirements• Identify and quantify the income and cash flow available to pay child and spousal support 59
  • Family Law Matter• Estate of over $1B• Hidden and moving assets• Jigsaw puzzle situation• International companies• Different than regular civil cases• Requires special DNA 60
  • Fraud Prevention and Detection 61
  • Fraud Detection• Large law firm in SE Florida• Answering service message• Investigation• Analyses of books and records, interviews, and observations• Original suspects were not the perpetrators• Value through by-products 62
  • We do litigation! 63
  • Role of the ForensicAccountant in LitigationExpert Witness- A person formally designated to render an opinion before a Trier of fact.- If designated as an expert witness, the practitioner’s litigation-related work may be required to be produced to opposing parties through a process called discovery 64
  • Role of the Forensic Accountantin Litigation (Continued)Consultant- A person retained to advise about facts, issues, strategies, and other matters is a consultant. The consultant does not testify about his or her expert opinion before a Trier of fact unless the consultant’s role is subsequently changed to an expert witness during the pendency of the litigation- Generally, the consultant’s work is protected from discovery by the attorney work product doctrine, which emanates by extension from the attorney-client privilege- When engaged by a client, as opposed to the client’s attorney, the consultant’s work may lose the protection of privilege that would be afforded such work if the consultant was retained directly by the client’s attorney.Other- This can be a person retained in a number of different roles, including, but not limited to, a Trier of fact, a special master, a court-appointed expert, a referee, an arbitrator, a mediator, or other. 65
  • Is Forensic Accounting for You? 66
  • Traits, Qualities, and Skillsof a Forensic Accountants• Analytical • Investigative Intuitiveness • Organizational skills –• Detail-Oriented • Persistent ability to organize and• Self-starter (entrepreneurial) • Professional skepticism unstructured situation• Ethical • Evaluative • Excellent research skills• Responsive • Function well under pressure • Ability to analyze and interpret financial• Insightful • Ability to generate new ideas and statements and information• Inquisitive scenarios • General knowledge of rules• Team player • Ability to synthesize results of of evidence and/or civil• Outgoing personality and discovery and analysis procedure Confident • Possess problem-solving skills • Possess technical skills• Adaptive • Investigative ability • See the big picture• Excellent/effective oral and • Understand the goals of an • Ability to simplify written communication skills engagement (the whys of what information and identify key• Critical/strategic thinker you are doing) issues (tell the story) 67
  • Gray’s Thoughts• High energy• Skeptical• Inquisitive• High dominant and analytical personality• Entrepreneurial mindset• Self starter – exam cram folks need not apply 68
  • Gray’s Thoughts 69
  • What have we learned from the showtonight? 70
  • Key Items• History of Forensic Accounting• What is it?• Forensic credentials and professional standards• Specialized services and examples• Is it for you? 71
  • Questions and Answers This is your program! 72
  • Thank You!Again, you’ve only just begun… 73
  • Robert P. Gray, CPA/ABV/CFF, CGMA, CFEBob.Gray@parentebeard.com214-658-6582