Forensic Accounting Evidentiary Standards
Forensic accounting findings are only useful if they can be relied upon. When our work may be used in negotiations, mediation, tribunal hearings or court proceedings, we apply a consistent set of professional, ethical and evidentiary standards so that every conclusion can be traced back to the underlying records and explained clearly under examination.
This page outlines the standards that govern how AuditTrace Forensic Accountants scopes, performs, documents and reports on forensic accounting engagements in Australia.
The Frameworks We Work Within
Professional standards
Our forensic accounting services are performed in accordance with APES 215 Forensic Accounting Services and APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the Accounting Professional & Ethical Standards Board. These standards set requirements for objectivity, professional competence, due care, confidentiality and the content of expert reports.
Rules governing expert evidence
Where we are engaged as an expert witness, our reports are prepared with regard to the expert evidence requirements of the relevant jurisdiction, which may include:
- the opinion rule and specialised knowledge requirements in section 79 of the Evidence Act 1995 (Cth) and its uniform State equivalents
- the Federal Court of Australia Expert Evidence Practice Note (GPN-EXPT) and the Harmonised Expert Witness Code of Conduct
- the Expert Witness Code of Conduct in Schedule 7 of the Uniform Civil Procedure Rules 2005 (NSW), and equivalent rules in other States and Territories
- Part 7.1 of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021, including the rules for single expert witnesses
The applicable requirements are confirmed with instructing solicitors at the outset of each engagement.
Independence and Duty to the Court
Our overriding duty is to the court, not to the party paying our fees. We assess conflicts of interest before accepting any engagement and do not act as an advocate for any party.
Clear Scope and Written Instructions
Each engagement begins with written instructions setting out the questions we have been asked to address, so the scope of our opinion is clear to all parties and to the court.
Document Control and Chain of Custody
Records received are logged on arrival, stored securely and preserved in their original form. Working copies are kept separate so the source of every figure can be verified.
Transparent Methodology
We explain the methods applied, the reasons for choosing them and the steps taken, so another qualified accountant could follow and test our work.
Stated Facts and Assumptions
Facts we rely on, assumptions we are instructed to adopt and any information we could not verify are identified separately, so their effect on our conclusions is clear.
Independent Quality Review
Reports are reviewed before release for accuracy, internal consistency and compliance with the applicable professional standards and court rules.
Consistent with APES 215 and the applicable expert codes of conduct, our expert reports generally include:
- the author’s qualifications, experience and relevant expertise
- the instructions received and the questions addressed
- the documents and information relied upon
- the facts and assumptions on which each opinion is based
- the methodology, analysis and reasoning applied
- any qualifications, limitations or matters outside our expertise
- a declaration of independence and acknowledgement of the relevant code of conduct
Forensic accountants provide independent financial analysis and opinion within their area of expertise. We do not provide legal advice, and questions of admissibility and the weight given to any evidence are matters for the court.
Our conclusions depend on the information available to us. Where records are incomplete or unavailable, we say so and explain the impact on our findings.
To discuss how these standards apply to your matter, contact AuditTrace for a confidential, no-obligation conversation.