Begin with the End in Mind Habit 2, The 7 Habits of Highly Effective - - PowerPoint PPT Presentation

“Begin with the End in Mind”

Habit 2, The 7 Habits of Highly Effective People Stephen R Covey

 What is the issue that you are dealing

with?

 Fraud  Misconduct  Litigation  Personal Injury  Family Law

 Ultimately all matters for which you

engage a forensic accountant, will involve money or value in some form

 “Begin with the end in mind” ~ Stephen R

Covey

 What is the end result that you wish to

accomplish:

 Can the issue be dealt with between the parties?  Will the matter go to Court?

 What skills do you need to undertake your

investigation / litigation?

 Having an accounting degree does not mean you are a forensic accountant  Appropriate education, training and experience are needed  Not being held to be an expert forensic accountant could significantly damage your case.

 Coordinating experts

 In many litigations / investigations, different experts are required  The coordination of experts is important

 Example - Investigations

 More than 92% of all business documents are now created electronically  Many of these documents never become “hard copies”

 A forensic accountant:

 has significant knowledge of case law, legislation, standards and Court processes  Has an understanding of why and how people commit offences

 For example:

 Understanding the concept of dishonesty – Section 408C Qld Criminal Code

 Is there a potential independence issue if a matter is

dealt with internally or by the company’s external accountant or auditor?

 APES215 Section 2 defines Member in Business:

 “A Member employed or engaged in an executive or non-executive capacity in such areas as commerce, industry, service, the public sector, education, the not for profit sector, regulatory bodies or professional bodies, or a Member contracted by such entities.”

 A forensic accountant must provide information

in their report to assist the Court to assess the degree of their independence (APES215 3.10).

 If an employer has an interest in the outcome of

the Proceedings, and a reasonable person would consider objectives of the forensic accounting service to impaired as a result of the employer’s interest in the outcome, the member shall decline the engagement (APES215 5.2)

 A forensic accountant should be retained as early

as possible.

 The assistance that a forensic accountant can

provide early in the process can:

 be significant in reducing the overall cost and maximising the benefit  Assist with the discovery of documents  Identify additional areas of damages / investigation  Provide preliminary assessment of damages.

When to adopt a forensic accounting mindset

“Begin with the End in Mind”

Habit 2, The 7 Habits of Highly Effective People Stephen R Covey

When to adopt a forensic accounting mindset

• What is the issue that you are dealing

with?

–Fraud –Misconduct –Litigation –Personal Injury –Family Law

When to adopt a forensic accounting mindset

• Ultimately all matters for which you

engage a forensic accountant, will involve money or value in some form

When to adopt a forensic accounting mindset

• “Begin with the end in mind” ~ Stephen R

Covey

• What is the end result that you wish to

accomplish:

– Can the issue be dealt with between the parties? – Will the matter go to Court?

Skills needed

• What skills do you need to undertake your

investigation / litigation? – Having an accounting degree does not mean you are a forensic accountant – Appropriate education, training and experience are needed – Not being held to be an expert forensic accountant could significantly damage your case.

Coordinating experts

• Coordinating experts

– In many litigations / investigations, different experts are required – The coordination of experts is important

• Example - Investigations

– More than 92% of all business documents are now created electronically – Many of these documents never become “hard copies”

Litigation / Investigation Knowledge

• A forensic accountant:

– has significant knowledge of case law, legislation, standards and Court processes – Has an understanding of why and how people commit offences

• For example:

– Understanding the concept of dishonesty – Section 408C Qld Criminal Code

Independence

• Is there a potential independence issue if a matter is

dealt with internally or by the company’s external accountant or auditor?

• APES215 Section 2 defines Member in Business:

– “A Member employed or engaged in an executive

• r non-executive capacity in such areas as

commerce, industry, service, the public sector, education, the not for profit sector, regulatory bodies or professional bodies, or a Member contracted by such entities.”

Independence

• A forensic accountant must provide information

in their report to assist the Court to assess the degree of their independence (APES215 3.10).

• If an employer has an interest in the outcome of

the Proceedings, and a reasonable person would consider objectives of the forensic accounting service to impaired as a result of the employer’s interest in the outcome, the member shall decline the engagement (APES215 5.2)

Engaging a forensic accountant early

• A forensic accountant should be retained as early

as possible.

• The assistance that a forensic accountant can

provide early in the process can:

– be significant in reducing the overall cost and maximising the benefit – Assist with the discovery of documents – Identify additional areas of damages / investigation – Provide preliminary assessment of damages.

“Begin with the End in Mind”

Habit 2, The 7 Habits of Highly Effective People Stephen R Covey

 What is the issue that you are dealing

with?

 Fraud  Misconduct  Litigation  Personal Injury  Family Law

 Ultimately all matters for which you

engage a forensic accountant, will involve money or value in some form

 “Begin with the end in mind” ~ Stephen R

Covey

 What is the end result that you wish to

accomplish:

 Can the issue be dealt with between the parties?  Will the matter go to Court?

 What skills do you need to undertake your

investigation / litigation?

 Having an accounting degree does not mean you are a forensic accountant  Appropriate education, training and experience are needed  Not being held to be an expert forensic accountant could significantly damage your case.

 Coordinating experts

 In many litigations / investigations, different experts are required  The coordination of experts is important

 Example - Investigations

 More than 92% of all business documents are now created electronically  Many of these documents never become “hard copies”

 A forensic accountant:

 has significant knowledge of case law, legislation, standards and Court processes  Has an understanding of why and how people commit offences

 For example:

 Understanding the concept of dishonesty – Section 408C Qld Criminal Code

 Is there a potential independence issue if a matter is

dealt with internally or by the company’s external accountant or auditor?

 APES215 Section 2 defines Member in Business:

 “A Member employed or engaged in an executive or non-executive capacity in such areas as commerce, industry, service, the public sector, education, the not for profit sector, regulatory bodies or professional bodies, or a Member contracted by such entities.”

 A forensic accountant must provide information

in their report to assist the Court to assess the degree of their independence (APES215 3.10).

 If an employer has an interest in the outcome of

the Proceedings, and a reasonable person would consider objectives of the forensic accounting service to impaired as a result of the employer’s interest in the outcome, the member shall decline the engagement (APES215 5.2)

 A forensic accountant should be retained as early

as possible.

 The assistance that a forensic accountant can

provide early in the process can:

 be significant in reducing the overall cost and maximising the benefit  Assist with the discovery of documents  Identify additional areas of damages / investigation  Provide preliminary assessment of damages.