| These days fraud is a huge problem. The ever | | | | points of accounting that are being exploited by |
| increasing threat is made worse by the economic | | | | the fraudster. |
| downturn. It is likely that there will be an | | | | An expert witness, who is an accountant, is |
| increasing number of fraud cases that come to | | | | essential for presenting complex fraudulent |
| trial and this will mean a need for more expert | | | | transactions in a way that can be understood by |
| accounting evidence. | | | | the lay person. They are much more than |
| Frauds can be difficult to comprehend. The nature | | | | experts in accounting methods and practices - |
| of a fraud is that it is hidden away until it is | | | | they must also be an expert in presenting the |
| uncovered, often by chance. Fraudsters are | | | | information. This can be in the form of a report |
| always on the lookout for a means to steal that | | | | but they must also be able to answer cross |
| will not be noticed. Or it might not be brought to | | | | examination by the barristers and judge. |
| light until they have moved on to another job. | | | | The person carrying out the fraud investigation is |
| They seek means to carry out transactions that | | | | often a police officer. These capable investigators |
| will be disguised within the accounting and business | | | | are highly competent at chasing the financial |
| records of an organisation. Frauds often go | | | | information and obtaining supporting evidence |
| undetected for a long time and many are likley | | | | through interviewing suspects and other |
| never unearthed. | | | | witnesses. However, they are often not able to |
| By hiding frauds within financial papers or | | | | present the complex money trails in a report that |
| computer programs, most people do not | | | | the court readily understands. This is the reason |
| understand how they work. The accountant is | | | | why the forensic accountant is asked to help in |
| more experienced in dealing with the confusing | | | | the more complex cases as an expert witness. |
| numbers and can follow the route taken by the | | | | If a forensic accountant is brought in early to a |
| missing money. | | | | case they can often reduce the amount of |
| On discovery, a fraud will normally be investigated | | | | investigation work that the police do. Then, when |
| in order to prosecute the culprit - who will then be | | | | the matter comes to court, the expert witness |
| punished as an example to others. Particularly | | | | has a deeper understanding of the fraud and is |
| large frauds can be hard to prosecute owing to | | | | better placed to help both sides understand the |
| the complex nature of the financial activity. | | | | factual financial evidence by presenting a sound |
| Generally courts do not understand the finer | | | | opinion on its interpretation. |