Guidance On Forensic Accountant's Obligations Vis-a-Vis Investigated Parties

Regulations for forensic accountants outline some of the fundamental principles that must be observed by accountants when conducting an investigation into a specific individual. A recent ruling by the Accountants Division provides further guidance on the principle of hearing both sides of the argument. In this case, the Accountants Division ruled that:

• There is no rule requiring a forensic accountant to submit his findings to the investigated party first and only subsequently to the other parties involved.
• The forensic accountant was justified in refusing a request of the investigated party for access to the entire draft report, including additional findings as there was no reason to allow this from the point of view of 'due care'.