Question

Describe how working papers can be an aid to the forensic accountant?

Prior to a trial, the prosecution and defense may be involved in plea bargains. Explain how this process works

Answer 1

(A) Forensic accounting refers to the use of accounting skills to investigate fraud or embezzlement and to analyse financial information for use in legal proceedings. Various ways in which working papers can be an aid to the forensic accountant are:

1. Checklists of standard investigation items that were completed, and by whom

2. Copies of correspondence

3. Documentation of the assertions investigated and supporting evidence found

4. Extracts from the corporate minutes of the client

5. Summarize the evidence found in client documents and are used by accountants to prepare financial statements.

To summarize, the working papers assist in planning and performing an audit, retaining a record of matters for future purposes.

(B) Plea Bargain is any agreement in a criminal case between the prosecutor and defendant,prior to a trial, whereby the defendant agrees to plead guilty to a particular charge in return for some concession from the prosecutor.

In some cases where plea bargains are permitted, the prosecution and defense can arrive at an agreement at any stage of the criminal proceedings, including during or after a trial but before a jury arrives at a verdict.

When it is successful, Plea Bargaining results in a plea agreement between the prosecutor and defendant. In this agreement, the defendant agrees to plead guilty without a trial, and, in return the prosecutor agrees to dismiss certain charges or make favorable sentence recommendation to the court