During the mock trial both barristers had shown exquisite skills allowing it extremely difficult to provide sufficient expert evidence. According to the text, yes it is essential to provide a well structured report, however I have to disagree there are other preparations required and it is not just simply answering questions.
The mock-trial allows me to grasp a clear view how expert witnesses were assessed in court. The atmosphere was definitely intense along with two intimidating barristers ready to question me. The overall experience was a great learning experience which allowed me to learn the importance of what preparation work is required when needed to provide expert evidence to the court.
A well-structured report does assist you while you are being called upon an expert witness however, for one the barristers will question the context of the report. Hence, the first major issue I had identified was the knowledge you have of your own report. In practical context, the barristers study and review from the first to the end of that expert report you are to provide to the court. By doing so, they attempt to look for weak spots and question the credibility of the expert witness to the court. And this includes knowing the detail of the report. By not being able to answer the barristers correctly, and cause panic, this allows them to question in front of the court the your credibility as a expert witness in court. If the court is satisfied, the expert evidence could be disregarded.
Another major problem that was shown in the mock-trial by the fellow students was the role of an expert witness. Although the report was not written by us students, the barrister was able to question whether the expert evidence constituted factual evidence or simply an expert's opinion. By raising such an important issue, in practical context the barrister could raise to the court to disregard certain parts of the report.
Firstly, a well structure report is certainly recommended when a forensic accountant expert witness is required to appear in court. Further, there needs to be a calm mind-set when entering the witness box allowing them not to be panicked by the barrister's questions. Also, answer precisely what the barrister is essentially asking. By providing too much information in an answer, this allows the barrister to find other details and apply pressure on certain answers that could come with strong consequences.
AYB115 Governance, Fraud and Investigation
Sunday, 29 May 2016
Week 10 - The Forensic Accounting Expert Witness
There are differences in the applicable
evidence law between Australian jurisdictions. Such differences in evidence law
may be significant in the extent to which case law in one Australian
jurisdiction may not be applicable in another jurisdiction. In essence, each
Australian jurisdiction has rules that govern the content of, and the manner of
giving expert evidence. As such, like the Federal Court Rules (2011) section
23.15 this provides specific scope and content of the rules applicable to
expert evidence which differs significantly between Australian jurisdictions.
This allows the author to satisfy formal requirements in its jurisdiction
(Charrett, 2015). Furthermore this also shows that the court exercises
considerable control over the form of expert evidence. For forensic accounting
expert witnesses evidencing in court for the first time, the first advice I
would give to would be to comply with all the legal procedures to prepare for
the expert evidence. (Craig, Smieliauskas &
Amernic, 2014).
By doing so the proceeding is done in a timely manner, and less
problems could occur in regards to procedural. Secondly, is not to
overriding the duty of assisting the court. Particularly, an expert witness is
not an advocate for a party in proceedings, and the paramount duty is to the
court. Finally do not overwhelm the court with extra information. By providing
strong facts and expert opinion as requested by the court this also saves time
and minimises costs.
Reference
Practice Note CM 7: Expert Witnesses in Proceedings in the Federal Court of Australia
Federal Court Rules
2011 (Cth) rr 5.04(3), 23.15.
Charrett, D., 2015. The rules for expert evidence in
Australia, s.l.: Melbourne TEC Chambers.
Craig,
R., Smieliauskas, W. & Amernic, J. (2014). Assessing Conformity
with Generally Accepted Accounting Principles Using Expert Accounting Witness
Evidence and the Conceptual Framework. Australian Accounting
Review, 24, 200–206. doi: 10.1111/auar.12039
Week 9 - Preventing Fraud and Risk Management
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Organisations traditionally focus on
internal controls to battle fraud and misconduct. Although I think this is both
a great place to start and a good thing to do, internal controls will not offer
complete protection against fraud. Unfortunately, many organizations have no
insight into the behavioural factors of employees. These organizations tend to
take a legalistic approach and focus primarily on battling fraud by adding more
“opportunity” controls (Cressey, 1973). Doing so might even result in
bureaucratic and costly internal control systems with many sign-offs, yet they
still experience incidents of non-compliance. An example of this effect is the
approach that some companies have made toward implementing the Sarbanes-Oxley
internal control frameworks. The frameworks required a lot of paperwork, yet
according to many employees, it added little in terms of actual control against
unethical behavior ultimately having an adverse effect because of this
ineffectiveness (Dittmar, 2006).
I believe a more appropriate way for fraud
management will also need to incorporate the behavioral factors of the Fraud
Triangle, namely the “Pressure” and “Rationalization” factors. In particulars,
to assess the pressure factors is to have an integrity survey with employees.
The following step in training employees for them to be aware of and alert for
possible rationalisations is to provide dilemma training.
By establishing such an approach to
internal control will lead to a much more effective internal control and also a
more cost efficient one as well.
Reference
Donald R. Cressey, Other People's Money (Montclair: Patterson Smith, 1973) p.
30.
Dittmar, S. W. (2006). The Unexpected Benefits of
Sarbanes-Oxley. Harvard Business Review.
Week 8 - Interviewing Techniques for Forensic Investigation

There are three
interviewing techniques that could be applied in order to minimise problems as
mentioned:
1. REID – a guided model
on lying detection and psychological persuasion (Rollnick & Miller 1995);
2. PEACE – Provides a framework for interviewing
witnesses; essentially providing a ‘conversation management’ approach and
locating the witnesses’ inconsistencies; and
3. Motivational
Interview - “A directive, client-centred counselling style for eliciting
behavioural change by helping clients to explore and resolve ambivalence”.
Additionally, there are
court rules that disallows how questions are framed when questioning witnesses
for example, closed questions. The court disallows interviewers or
interrogators to guide the witness to answers where they could potentially hurt
their credibility.
Much evidence has
suggested that a humanitarian approach is more likely to result in a
confession. Thus, this should be an alternative approach as this could first,
limit the confusion of interrogation and interviewing. Moreover, this could
also assist the court to determine whether the confession was orchestrated by
duress.
In my working experience
at a law firm, we usually encourage our clients to tell us everything about
their legal dispute matter whether it prejudices them or not. Although they may
be disadvantaged, this allows us to provide support on that issue and encourage
the court to disregard it.
Reference
Davies, G. L. (2002). The Exclusion of Evidence
Illegally or Improperly Obtained: An Unsatisfactory Answer to an Unstated
Question. Journal of
Financial Crime, 9, 224 – 248. doi: 10.1108/eb026023
Rollnick, S., & Miller, R.W. (1995. What is MI?
Retrieved from http://www.motivationalinterview.net/clinical/whatismi.html
Week 7 - Identifying and Profiling Fraudsters
Week 7
In my view, the differential association theory explains
why fraud occurs by groups within an organisation because it focuses on how
individuals learn the criminality behaviour influenced by their associated
groups (Sutherland, 1924). In particulars, when an individual is socialising
with an associated group who has criminal behaviour involved, the individual is
more likely to follow that group’s footstep. Although I do not associate with
these groups, I do agree with this view. From working at a law firm, I mostly
associate with solicitors and by interacting with them I am able to learn the
values, attitudes and techniques required to work in the industry.The General
Strain theory argues that strains or stressors increase the likelihood of
negative emotions like anger and frustration which could result to crime (Agnew,
1992). In my view this explains how an individual turn to fraud by the pressure
applied from their lives (work or personal). For example, at my work place
there is a target of billing six hours of work. This can cause stress to an
individual and allowing fraud or corruption to meet these targets at work.
Personal financial issues could also be a motive under this theory. In contrast
Cressey’s Fraud Triangle in my view postulates that employee’s commit fraud
when they have the opportunity to do so, when they are motivated to do so, and
when they can justify or rationalise their behaviour. I believe the fraud
triangle indeed addresses both matters as discussed with the elements presented
with opportunity provided by associated groups, pressure or motivation from the
groups or external factors (ie. Finance) and rationalization (Cressey, 1973). Unfortunately, many organizations have no insight into
the behavioral factors. These organizations tend to take a legalistic approach
and focus primarily on battling fraud by adding more “opportunity” controls.
Doing so might even result in bureaucratic and costly internal control systems
with many sign-offs, yet they still experience incidents of non-compliance
(Kiewit, 2014).
Reference
Agnew, Robert 1992. “Foundation for a General Strain
Theory of Crime and Delinquency.” Criminology 30:47-87
Donald R. Cressey, Other People's Money (Montclair: Patterson Smith, 1973) p.
30.
Kiewit, Martijn D. (2014) Preventing Fraud: Behavioral Factors in the Fraud Triangle: Expert
blog KPMG Switzerland.
Sutherland, Edwin H. (1924) Principles of Criminology,
Chicago: University of
Chicago Press
Thursday, 21 April 2016
Week 6 - Civil Law and Forensic Investigation
Week 6
The common criticism of expert witnesses including forensic accountants is that they are overly partisan and fail to provide the court with a neutral or independent opinion. Previous cases had indicated judges are getting frustrated when there is deliberate partisanship. (Keegan v. Minneapolis and St. Louis R.R., 1899) This could be drawn from my experience where I could have 'acquaintances or friends' to help me and provide evidence in that assists me in situations. To prevent such partisanship to occur I think a few strategies could be implemented.
Firstly since the expert witnesses act most as an advocate for their client's case, the court should implement a procedure rule where forensic accountant expert witnesses should be appointed by the court and declare the duty of a forensic accountant expert witness in relation to the court. The implementation would diminish the level of bias that may occur since they are not acting on behalf of a client, and also they have a duty of care to perform in court (refer to APES 215). Secondly, if parties are required to seek expert evidence in trial, they are required to seek directions from the court, and its the courts discretion to determine whether it should be required.
By implementing this rule into the Uniform Civil Procedure Rules in Queensland, I believe this will not only prevent partisanship but will enable expert witnesses like forensic accountants to provide more effective evidence for the court.
Reference:
Keegan v Minneapolis & St Louis RR, 78 NW 965
Uniform Civil Procedure Rules 2005 (NSW)
The common criticism of expert witnesses including forensic accountants is that they are overly partisan and fail to provide the court with a neutral or independent opinion. Previous cases had indicated judges are getting frustrated when there is deliberate partisanship. (Keegan v. Minneapolis and St. Louis R.R., 1899) This could be drawn from my experience where I could have 'acquaintances or friends' to help me and provide evidence in that assists me in situations. To prevent such partisanship to occur I think a few strategies could be implemented.
Firstly since the expert witnesses act most as an advocate for their client's case, the court should implement a procedure rule where forensic accountant expert witnesses should be appointed by the court and declare the duty of a forensic accountant expert witness in relation to the court. The implementation would diminish the level of bias that may occur since they are not acting on behalf of a client, and also they have a duty of care to perform in court (refer to APES 215). Secondly, if parties are required to seek expert evidence in trial, they are required to seek directions from the court, and its the courts discretion to determine whether it should be required.
By implementing this rule into the Uniform Civil Procedure Rules in Queensland, I believe this will not only prevent partisanship but will enable expert witnesses like forensic accountants to provide more effective evidence for the court.
Reference:
Keegan v Minneapolis & St Louis RR, 78 NW 965
Uniform Civil Procedure Rules 2005 (NSW)
Week 5 - Criminal Fraud and the Law
Week 5
Again drawing the experience from me studying law, crimes like cyber crime requires more guidance and strict or vicarious liability need to be enforced to minimise such crime. Prime example would be the case Kennison v Daire, where the court was able to explore offences committed by the use of computer technology, however, the prosecution found it difficult to prove such offence. Furthermore, it remains uncertain as to whether our current legislative systems contains all the computer offences or technical definitions that prevents cyber crime from happening. Computer crime must now confront obfuscation crime tools used to commit computer abuse such as dynamic domain name hosting, encryption, fast-flux and double fast-flux, malware, onion routing, peer-topeer (P2P) channels, Trojans and virtual private network services. (The Report of the Inquiry into Cyber Crime, 2010.)
For recommendations, I suggest Australia should first implements principles in relation to cyber crime and only to be of guidance for courts to apply if assistance is required. Having these principles as guidance, will result the court to come a decision allowing other matters to rely on the judgment. Thus, it allows this to law and allow the courts then further to develop strict and vicarious liabilities for these crimes.
Reference:
House of Representatives Standing Committee on Communications, Hackers, Fraudsters and Botnets: Tackling the Problem of Cyber Crime — The Report of the Inquiry into Cyber Crime, 2010.
KENNISON v. DAIRE [1986] HCA 4
Criminal Code Act 1995 (Cth)
Again drawing the experience from me studying law, crimes like cyber crime requires more guidance and strict or vicarious liability need to be enforced to minimise such crime. Prime example would be the case Kennison v Daire, where the court was able to explore offences committed by the use of computer technology, however, the prosecution found it difficult to prove such offence. Furthermore, it remains uncertain as to whether our current legislative systems contains all the computer offences or technical definitions that prevents cyber crime from happening. Computer crime must now confront obfuscation crime tools used to commit computer abuse such as dynamic domain name hosting, encryption, fast-flux and double fast-flux, malware, onion routing, peer-topeer (P2P) channels, Trojans and virtual private network services. (The Report of the Inquiry into Cyber Crime, 2010.)
For recommendations, I suggest Australia should first implements principles in relation to cyber crime and only to be of guidance for courts to apply if assistance is required. Having these principles as guidance, will result the court to come a decision allowing other matters to rely on the judgment. Thus, it allows this to law and allow the courts then further to develop strict and vicarious liabilities for these crimes.
Reference:
House of Representatives Standing Committee on Communications, Hackers, Fraudsters and Botnets: Tackling the Problem of Cyber Crime — The Report of the Inquiry into Cyber Crime, 2010.
KENNISON v. DAIRE [1986] HCA 4
Criminal Code Act 1995 (Cth)
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