Explain Some Considerations for Choosing the Appropriate Evidence-Gathering Technique

question 31

Essay

Explain some considerations for choosing the appropriate evidence-gathering technique.
To choose the appropriate technique, the forensic accountant should consider the following factors: the type of fraud believed to have been perpetrated; whether the fraud is ongoing; the extent of the fraud; the extent to which the investigation can be kept secret; the condition of the financial records, other source documents, and physical evidence; the sophistication of the suspect and whether collusion exists; the cost of applying a given method; the psychological and organizational impact of applying the given method; and the objectives of the investigation.

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Definitions:

Competitive Strategy

Approaches that a company adopts to gain an edge over its competitors, such as cost leadership, differentiation, or focus strategies.

Foreign Firms

Describes companies that are incorporated or headquartered in a country different from where they operate or do a significant portion of their business.

Canadian Companies

Business entities registered, established, or operating under the laws and regulations of Canada.

Conglomerate Merger

Occurs when unrelated enterprises combine, such as Mobil Oil and Montgomery Ward.