In the present era, worldwide and especially in third-world counries, Nigeria Inclusive, the largest indutsry seems to be that of corruption with financial irregularities and misdemeanours of all kinds holding sway. To battle this cankerworm, the government of President Olusegun Obasanjo established the Independent Corrupt Practices (and other offences) Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC). These agencies have been trying to fight the monster that corruption has become. But the more they try, the more it appears that corruption is invincible (the evidence of this stars at us at every corner of the society). There is hardly any facet of our national life that has not been deeply struck by this malaise.
It is to assist in this battle that the Institute of Chartered Accountants of Nigeria (ICAN), through its Audit, Investigation and Foresic Accounting Faculty, decided to expand the knowledge base of its members by adding a set skill that will enable them qualify as Forensic Accountants, by establishing the ICAN Forensic Accountants Certification Programme.
During the inauguration of the second batch of the Forensic Accountants training in 2010 the then ICAN President, Major General Sabastine A. Owuama, in his opening address, said:
“According to the CBN Report, a total of 313 bank employees were involved in fraudulent acts which cost the system a whopping N53 billion loss in 2008. Yet, in human history, no nation ever prospers with perverse values. In fact, no nation can prosper where personal will supplants the general will, where established procedures are obsered in the breach, where governance is for self-enrichment rather than public service, where there exists a yawning gap between leadership and stewardship. Interestingly, but painfully, such economic crimes have become so rampant and sophiscated that prevention and detection now require special investative skills which are currently not available. Indeed, forensic accounting skills alre now required to uncover and establish the occurrence of financial crimes, document evidence to support court processes such that culprits do not escape justic. Here lies the propriety of ICAN Forensic Accounting Certification Programme. It is particularly heart warming that the Board is organizing this training at this auspicious time when our nation is craving for attitudinal change and renaissance of our value system.”
WHO IS A FORENSIC ACCOUNTANT
The term ‘Forensic’ is of Latin origin which means “of the forum or before the forum”. It relates to the determination of criminal cases by a group of public individuals in a forum. Something similar to a jury in the modern legal system (where such is applicable).
In the modern use, forensic, seems to refer to accounting and investigation. But, this is not exactly what it is. It rather refers to ‘forensic sciences’ which is the use of a range of skills to obtain evidence which can assist the court in determining criminal matters. Therefore, we have:
-Forensic Accounting
-Forensic Economics
-Forensic Photography
-Forensic Chemistry
and so many other forensics.
To the accounting world, forensic accounting is the combination of the accounting, audit, investigation and other skills to obtain information which can be admissible in the court of law as evidence in determining criminal cases.
A Forensic Accountant is, therefore, a person who has acquired these skills and is so certified by the relevant institute; in Nigeria, the Institute of Chartered Accountants of Nigeria, ICAN.
In his paper on Forensic Accounting, Pattison Boleigha (2010) defined forensic accouting as‘… anything from execution of a fraud analysis to recreation of “true” accounting records after a discovery that they have been manipulated’. Thus, the job of the Forensic Accountant can range from accounting, investigation and reporting to giving evidence in the court of law.
QUALITIES OF FORENSIC ACCOUNTANT
Apart from his/her academic qualifications which may include ACA, CFA and (perhaps) CFE (Certified Fraud Examiner) designations, he must be:
a) analytically-minded with street smartness
b) be a creative thinker who must thin ‘outside the box’.
c) multi-tasked and work under preasure
d) able to simplify and communicate complex financial concept in a manner that will be easy to understand, among others.
Since the Forensic Accountant is required to give evidence in the court of law, it is paramount that he should have a good knowledge of the law and art of giving evidence.
But, giving evidence in the court of law or even in a public gathering is not an easy task. For example, some funny things happened when we were having our mock court session. One of us, when in the witnss box, could not know the number of years between 1992 and 2010. At a point, he called for a calculator, and, even with the gadget, he was unable to calculate the years. Giving evidence is as difficult as that. Another incidence happened a year latter. I went to witness the mock court session of the 2011 set during their induction programme. When a ‘police prosecutor’ (I do not know whether he was actually a policeman), was giving evidence, he nealy forgot his name. He sweated and nearly collapsed in the box.
A good technical work can be rubbished in the course of giving evidence, especially during cross-examination.
It is therefore very important that anyone aspiring to become a Forensic Accountant, apart from being vast in accounting, auditing and investigation, must also familiarise himself with the law of evidence and attend court sessions for practical knowledge.
U.I Ijioma
