The Role of a Forensic Accountant as an Expert Witness

At some point in their career, many forensic accountants will be called upon to participate in Court procedures as an Expert Witness (Parker, 2007, p. 1). This proceeding can occur immediately after they have finished the written Expert Report or several years later. 

Many forensic accountants think that ‘once the hard work of the written expert report is completed, providing verbal evidence in Court is straight forward and uncomplicated’ where they can show the barristers they are in control. However, this is not the case.

Forensic accountants are often called upon to provide testimony in criminal prosecutions such as embezzlement, misappropriation of assets/ funds, tax evasion and many other financial frauds. The role requires the Expert Witness to follow the specific guidelines set out by APES 215: Forensic Accounting Services to provide an opinion about accounting evidence (Federal Court of Australia, 2013). Generally, when a forensic accountant is called upon to provide expert evidence in Court, it can be a very challenging and tense situation. 

Cartoon: View about WorldCom Trial

This is because they may be utilised as defense witnesses to support the defendant’s claim and/or be cross-examined by barrister(s) questioning their qualifications, bases of expert opinions, statements made in the Expert Report and overall, how familiar they are with the findings in the Expert Report (Singleton & Singleton, 2010, p. 264 – 265). 

Video: Example of cross examination of Expert Witness

Without experience and qualifications, the role of the forensic accountant as an Expert Witness can be a very daunting process during an oral testimony. The reason for this is because the barrister(s) cross-examining the individual try to make it appear as if the forensic accountant is unqualified and that the Expert Report, along with the evidence provided, is inadmissible in Court. At times, the forensic accountant may even look ‘stupid’ in the eyes of the Court.

Therefore, in order for a forensic accountant to become a successful Expert Witness they must possess the following characteristics:

•          Experience and qualifications
•         Attention to detail
•         Understand the Expert Report extensively
•          Ensure evidence is admissible
•         Follow Expert Witness/Report Guidelines and Standards (Axion Forensics Pty, 2015).

 Video: Expert Witness cross examination advice

Most of these attributes were not evident during my experience from the Mock Trail. I could see that the major issues most students made during their presentation of their expert evidence was that they did not pay enough attention to the small details which could show that they did not familarise themselves with the Expert Report and possibly made the evidence inadmissible. Nonetheless, the Mock Trail was for learning purposes and from my perspective, most students performed very well for their first time providing a testimony on a report they did not write. It should also be noted that the barristers themselves stated that it was a badly written report thus making it difficult to defend.

From this Mock Trail, I learnt that it is important to:

• Only answer the questions asked by the barrister(s), even if it is just a simple “yes” or “no"
• Know Expert Report extensively well
• Look at Judge while answering questions – there to convince Judge not barrister(s)
• Don’t answer a question you do not understand instead ask barrister to clarify question
• Check and understand report findings and calculations yourself – don’t rely on someone else’s assessment
• Write every report as if it is going to end up in Court

After learning all this, I know now that it is crucial for Forensic Accountants to understand and obtain the knowledge and skills for the role of an Expert Witness.

References:

Parker, D. (2007). The Accountant as an Expert Witness: A Basic Guide to Forensic Accounting. InTheBlack Journal, 77, (33), 1 -2. Retrieved from http://search.proquest.com.ezp01.library.qut.edu.au/docview/211304322?accountid=13380%5C

Accounting Professional and Ethical Standards Board. (2013). APES 215 Forensic Accounting Services [Supersedes APES 215 Forensic Accounting Services issued in December 2008]. Retrieved from http://www.apesb.org.au/download.php?code=680

Singleton, T. W. and Singleton, A. J. (2010) The Legal Role and Qualifications of an Expert Witness. Fraud Auditing and Forensic Accounting, 4, 263 – 267. doi: 10.1002/9781118269183.ch15

Axion Forensics Pty. (2015). Independent expert witnesses. Retrieved from https://axiomforensics.com.au/index.php/independentexpertwitness