DIPLOMA IN FORENSIC ACCOUNTING SYLLABUS. Background information to the modules

Transcription

1 DIPLOMA IN FORENSIC ACCOUNTING SYLLABUS Background information to the modules

2 Background to Module 1 DIPLOMA IN FORENSIC ACCOUNTING SYLLABUS The aim of this module is to give participants an introduction to forensic accounting and their role. It will cover the Irish Courts and legal system and regulations affecting forensic accounting. It will also introduce specific engagement management issues that a forensic accountant must consider. The module will also introduce some of the resources and technology available. Module 1-An Introduction to Forensic Accounting Module 1.1-Introduction to the role of forensic accountant The overall objective of Module 1.1 is to provide the participants with an introduction to what Forensic Accounting involves and what their responsibilities and duties include. Specifically, this module will cover: The different types of forensic assignments: - Forensic Accounting Investigations - Expert Witness Assignments Regulations affecting Forensic Accountants - Money Laundering and other offences - Reporting obligations to An Garda Siochana, Revenue, ODCE and others Engagement acceptance and management Duty of an expert accountant to the Court (in the case of an Expert Witness Assignment) Module 1.2-Introduction to the Courts and legal system in Ireland This module will introduce participants to the Irish Courts and legal system. Specifically module 1.2 will cover: The Irish Courts system, including: - Supreme Court - High Court - Commercial Court - Competition Court - Circuit Court - District Court The Personal Injuries Assessment Board Alternative Dispute Resolution systems 1

3 What to expect prior to during and after a court case or Alternative Dispute Resolution hearing The principles of discovery Module 1.3-Introduction to the resources and technology available This module will provide an introduction to some of the information resources available to a Forensic accountant. It will also identify some of the technologies that are available. This module will introduce Forensic technology and, in particular will cover: Use of forensic technology in both financial investigations and expert witness assignments: Digital Evidence Recovery Data Analytics Electronic Discovery Background to Module 2 and 3 An expert witness, the ability to clearly communicate, both in writing and orally, to the client, the legal team and ultimately to the Judge or Arbitrator is essential. The primary function is to assist the Court and therefore you must be able to communicate clearly to non-accounting specialists and maintain our objectivity and independence, as well as working to the best of our ability for your instructing solicitor. It is essential that, as an expert witness, you maintain our integrity and that the evidence we give in written or oral form is the truth, the whole truth and nothing but the truth. Module 2-Expert Witness Assignments (Part 1) Module 2.1-Role of an Expert Witness The objective of this module is to set out the role of an Expert Witness and the related responsibilities and duties. This module will identify issues to be considered prior to acceptance of an Expert Witness assignment and also the steps that should be followed after acceptance including dealing with the instructing solicitor, the client and other experts. This module will deal with the various stages of an Expert Witness assignment including handling evidence and will discuss the law of damages. Module 2.2-Key types of Expert Witness assignment This module will identify the key types of Expert Witness assignments that a Forensic Accountant is likely to be involved in, the key principles to be aware of, illustrate the calculation methodologies which are appropriate and discuss the elements which should be included in each type of report. This module shall also set out the principles of writing a robust and effective expert report, including the Expert Witness s curriculum vitae. The calculation methodologies/ Expert Witness assignments that will be covered are: Loss of profits: 2

4 - Personal injury - Breach of contract - Breach of warranty - Insurance - Construction - Competition Asset/ business valuation: - Matrimonial dispute - Shareholder disputes and business valuations - Insurance - Intellectual Property Auditor negligence Completion accounts disputes We will also cover some of the ethical dilemmas that an Expert Witness may face and how to deal with them. At the end of this module, participants will be asked to prepare a report demonstrating their understanding of the principles and methodologies covered in the module based on a case study. These reports will be used in Module 3 as the basis for the cross examination of the participants. Course Assignment-Preparation of an Expert Witness report based on Case Study Module 3-Expert Witness Assignments (Part 2) This module will focus on the role of the Expert Witness in the run up to and during the Court hearing and will cover: Communications between Expert Witnesses The meeting of Expert Witnesses Preparation for giving evidence Techniques lawyers use to disconcert witnesses How to direct answers in the witness box Pitfalls in presenting evidence. This will include a case study Participants will take part in a mock cross examination on the report they prepared as the course assignment in Module 3. The solicitors/ barristers carrying out the cross examination will discuss issues identified during the cross examinations and discuss the Expert Witness role from the perspective of the legal teams. 3

5 Background to Module 4 and 5 As investigative professionals, the ability to quickly and efficiently respond to fraud, theft and financial statement abuse in diverse and complex environments is essential to your clients. Therefore, having proper tools and knowledge is critical to your success as Forensic Accountants. Module 4 and 5 of the Diploma will focus on: Understanding the most common types of fraud business faced in the current environment and the prevention and detection methods; Effectively performing a fraud investigation, including information and evidence gathering, interviewing of suspects and evidence analysis and reporting; and Testing the knowledge participants have gained from the content of the modules (either at the end of two modules or as part of the overall exam). Module 4-Fraud, Theft and Other Financial Investigations Module 4.1-Key information on Fraud, Theft and Other Financial Investigations The overall objective of Module 4.1 is to provide a background to the Participants on: Contemporary examples of fraud, theft, financial reporting misstatement and improper business practices; The profile of a fraudster: The type of internal controls that can assist in the prevention of fraud, theft, financial reporting misstatement and improper business practices; and Common detection methods. Specifically, Module 4.1 will address the above in conjunction with the KPMG International Fraud Survey Module 4.2-Evidence Gathering (1) The overall objective of Module 4.1 is to illustrate to the Participants methods of evidence gathering as part of a live investigation, including practical examples based on experiences, where relevant demonstration of methods (such as search and seizure and interviewing and the do and don t associated with each method. Additional module time will be spent on Suspect Interviewing and participants will be provided with a case study of a fraud investigation at the end of Module 4.12 and asked to prepare a plan of work to be performed including a mock interview plan as a Course Assignment. All or a number of the participants (depending on time available) will be required to take part in a Mock Interview as part of Module 5. Specifically Module 4.1 will cover the following: 4

6 Corporate Intelligence and Background information, discussing the use of publically available information to build an initial background on the individuals or entities under suspicion; Search and Seizure of Evidence, including risk management, planning, authority to perform the search and the act of search and seizure; Digital evidence recovery, including re-creation of deleted s and text files, internet usage reports, telephone records and other media device analysis; Informal interviews with associated individuals, including the best practices of Note Taking; and Formal interview of Suspect (Part 1): 1. Barriers to interviewing 2. Basic interpretation of body language 3. Methods of Eliciting Information 4. Legal Requirements for Interviewing suspects 5. Five Phases of Interviewing-Planning & Preparing covering areas such as drafting of Interview Plan, location of interview, equipment use, and timing on interview Course Assignment-Preparation of plan of work to be performed including an interview plan based on Case Study Module 5-Fraud, Theft and Other Financial Investigations (cont) Content Module 5.1 Evidence Gathering (Part 2) This module continues with an outline of the remaining 4 of the 5 Phases of the Interview, and end the session with a number of Mock Interviews, feedback and questions from the Participants. Formal interview of Suspect (Part 2): The remaining four stages of the Five Phase of Interviewing (Engage & explain, Account, clarification & challenge, Closure, Evaluation) and Participants will part take in a Mock Interview in pairs using a number of scenarios, including: 1 Interview using hand written notes; 2 Interview using a tape recorders; 3 Interview where the suspect is co-operative; 4 Interview where the suspect in uncooperative; 5 Interview in the presence of a solicitor 6 Interview without a solicitor. 5

7 Module 5.2-Analysis of Information This module section will address: Document Control including preparation of work papers, legal and professional requirements, security and movement of original documentation and relevant retention policies; The use of financial analysis such as ratio analysis, gap analysis and access filtering when applied to evidence gathered; Briefly discussing key word searches of digital evidence recovered and the concept of fuzzy matching of data from various different sources; and Other methods of data analysis, such as handwriting analysis, fax and photocopy analysis and inks and paper analysis. Module 5.3-Reporting of Findings other matters This module section will address: Legal and Regulatory Reporting Requirements for Accountants and other Professionals; Report format for the findings of the investigation and inclusion of recommendations; Type of Civil and Criminal Proceeding applicable in Ireland and the possibility of recovering assets purchased with monies form illegal acts; Discovery process and the provision of the evidence gathered as part of this process. Module 6-A Full Case Study Encompassing All Areas Covered In Modules 1 to 5 In this module participants will work through a detailed case study encompassing all areas dealt with during the Diploma in a practical and interactive way. 6

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