The forensic 

accountant versus 

data

Data is becoming more and more a 
part of everything we, as forensic 
accountants and the lawyers who retain 
us, deal with on each matter. Part of 
our role in helping counsel is to identify, 
collect, review, and analyze all relevant 
documentation and present our findings 
in a way that can be understood by 
the end user, which, in addition to the 
client and depending on the issue, may 
include regulators, other parties to an 
action and their legal counsel, and the 
court. These steps are all impacted by 
the availability, form, and location of  
that documentation. 

Data collection once focused solely on 
paper tucked away in filing cabinets, 
warehouses and corner offices. Now, 
focus is on servers, computers, PDAs, 
and smart phones as sources of data. 
There are countless documents that 
are loaded into review and eDiscovery 
software – how can this information 
be filtered efficiently and effectively to 
identify the relevant information?

The breadth of data and potential 
complications in obtaining it will impact 
the time it takes for the forensic 

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 Standard Practices for Investigative and Forensic Accounting Engagements, CICA, November 2006.

accountant to complete their work. 
Communication between counsel and 
the forensic accountant is integral in 
managing expectations and timelines.

Accountants who perform forensic 
accounting engagements are required 
to adhere to the Standard Practices for 
Investigative and Forensic Accounting 
Engagements (“Standard Practices”). 
Forensic accountants are required, 
according to these Standard Practices, 
to stay within the boundaries of their 
expertise. Moving away from their 
knowledge or skill base only hurts the 
credibility of the report or potential 
testimony. This is not to say that 
forensic accountants should stay 
away from data, but is to say that 
data analysis now needs to form part 
of a forensic accountant’s area of 
expertise. It cannot be ignored. 

Data identification, 

collection and 

analysis

For forensic accounting engagements, 
data is now one of the most important 
areas of focus. The collection and analysis 
of the data, after all, will form the basis 

for the estimate of economic loss, 
support the investigative facts, or provide 
important information on the need for a 
fraud risk management program.

It is important for the forensic 
accountant to be involved in the 
identification and collection of data. The 
knowledge gained on how the data was 
extracted and filtered is often integral 
to a final report. Should testimony be 
required, the ability to speak to the 
collection of the data may, depending 
on the issue, have an impact on the 
credibility of the expert witness.

The growth in the amount of data 
being created and preserved is causing 
forensic accountants to develop new 
approaches to efficiently complete 
their work. In many ways, dealing with 
electronic data is proving to be more 
time consuming and risky than when 
paper was the dominant medium.

The integrity and completeness of data 
has become a primary consideration on 
every forensic engagement. As forensic 
accountants, we have to constantly be 
thinking of more efficient and effective 
ways to ensure that engagements 
are performed in line with Standard 
Practices

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 that govern our profession.

© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms 
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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At Risk 

 

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Volume 7, No. 1