Weekly Blog #5 I partially agree that it is not the forensic accountant’s role to determine whether the opposing party is guilty or innocent. This is because the investigations that they undertake such as the tracing of assets and flow of funds may reveal proof that the opposing party is in fact guilty of committing fraudulent acts. I disagree with the second section of the statement that says it is the role of forensic accountants to investigate the quantification of loss and damages to be paid to their client. In my experience when I tell people that I am studying accounting the usual response I receive is something along the lines of “Oh so you work with numbers?” While true, there is so much more to accounting than just the numbers and the same can be said here for forensic accountants. Two opinions that a forensic accountant may be required to calculate in a Civil case include “the quantum of the damages suffered as a result of a breach of contract, tort or statutory dut...
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Weekly Blog #4 I do not agree with the statement that Boards of Directors and CEOs should not be accountable for their employee’s actions. In fact, it precisely because of these higher ups within companies that employees may be led to commit fraudulent acts. According to the banking Royal Commission many banks had fostered flawed working cultures that could have for example rewarded aggressive sales tactics. Investigation into the misconduct of NAB revealed that the actions of their employees were a consequence of unachievable targets set for them and a flawed incentive-based remuneration design (Yeates, 2018). This pressure placed upon workers by their higher ups is one of the aspects of the fraud triangle. I have experienced this type of pressure before when I was younger. During tennis class a competition was held, and the winner would receive a prize I highly coveted. I played my heart out and at times heavily considered cheating or using underhanded tactics but instead fel...
Weekly Blog #3 It is necessary for forensic accountants to be familiar with the Australian Court Hierarchy and understand the differences in Civil and Criminal Law. As forensic accountants often appear as expert witness during court trials it is imperative for them to understand the court system (Monarch Institute, 2022). Not knowing the differences in rules between the various hierarchies and jurisdictions of Australian courts can cause forensic accountants to make mistakes that would greatly impact their credibility. Ignorance of the law is no excuse. I have experienced this statement myself in high school when I had shared what I thought was an exemplar for our current assignment that I had received from a classmate. One student’s assignment returned with a high similarity report to the “exemplar” to justify an investigation and I was questioned about where I received the document and if had shared it. The document was the assignment of a student who had completed the subjec...
Weekly Blog #2 Policies, Principles and Frameworks for managing fraud risk are not superfluous and ensuring that IT systems are well protected through Access Control measures is not all an organization needs to do. While Access Control measures are useful for managing fraud risk by restricting access, it does not stop those who do have higher levels of access from committing such actions as evidenced by Joseph Hikairo Barlow during the Queensland Health Fraud (Crime and Misconduct Comission, 2013). Additionally, Access Control measures alone can be prone to hacking or the theft of passwords, PINs and biometric data (Citrix, 2022). My family has been victims of such occurrences when in 2021 my sister’s banking details including her password and PIN were somehow leaked and although she had found this out in under 24 hours, she lost over $500 that was not able to be recovered. Rather than relying on Access Control measures alone to protect their IT systems, companies and firms can...
Weekly Blog #1 Some may say that simply hiring ethical employees can eliminate the need for the resources spent on IT Governance, however, there are many flaws within that argument. Have you ever had somebody in your life that you trusted? Somebody you thought you knew only for them to deceive you? This has happened to me and my family at the beginning of 2020 when my grandmother passed away. My uncle who I had known my entire life contested the will to take away from my aunt and father and gain more wealth. It is difficult to determine whether a person is “ethical” in which the word itself relies heavily on perspective. They could be putting on façade or even if they do match the vision of a morally right person there is no guarantee that they will stay that way. The circumstances and experiences people go through can change them and can lead to them committing fraud if given the opportunity (Wells, 1997). This is where IT Governance comes into play as technology has become pe...