Is the

service to
provide
evidence?
Is it expert
evidence?
Is service in
relation to an
Investigation?
Expert
Witness
Service
Lay Witness
Service
Investigation
Service
Consulting
Expert Service
Report/opinion/
Other evidence
YES
YES YES NO NO
NO
Figure 1.1 Decision Tree to determine the type of Forensic
Accounting Service
THEORETICAL FRAMEWORK
























Figure 1.1 illustrates the decision tree which determines the type of Forensic Accounting
Service that the forensic accountant will be providing. Each type requires specific obligations
that are necessary to its purpose. That is why a Forensic Accountant needs to determine what
type of service he must perform. The researchers would like to prove the validity of this decision
tree in helping the forensic accountant determine what kind of forensic accounting service he
will be providing.

First, the forensic accountant should determine if the services they are about to give are
of providing evidence or not. If the service is to provide expert evidence, then the forensic
accountant should determine if the evidence to be provided is expert evidence or the other way
around. The service will be classified as an Expert Witness Service if the evidence to be
provided is expert evidence. On the other hand, if the evidence is not expert evidence, the
service will be classified as Lay Witness Service.
If the service is not to be done to provide expert evidence, the forensic accountant
should determine if whether or not the service to be performed is in relation to an investigation.
The service will be classified as Consulting Expert Service if the service is not related to an
investigation. On the contrary, if the service is in relation to an investigation, it will be classified
as an Investigation Service.
Expert Witness Service involves presenting expert evidences in court. The opinions
expressed by the expert witness are usually based on the specialized knowledge acquired by
the witnesss training, study and experience. Lay Witness Service involves presenting
evidences other than expert evidences on court. The evidence provided may be oral or written
in form, or both. Consulting Expert Service may involve activities such as an adviser, mediator,
or arbitrator. The consulting expert may provide assistance based from the specialized
Motive
Opportunity
Capability
Rationalization
Figure 1.2 The Fraud Diamond
knowledge gained from study, training, or experience in accounting, but is not to provide
evidence. Investigating Service involves assisting in the investigation concerning unethical or
illegal conducts in which the expert expects that the matter will be brought to the court.











Figure 1.2 shows the Fraud Diamond which illustrates the four elements of fraud: motive,
rationalization, opportunity, and capability. These elements are considered by the forensic
accountant in doing his work during the investigation process and litigation of the case.
Forensic accounting makes use of accounting, auditing, and investigative skills to
support in legal matters. Forensic accountants go beyond detection. They gather information,
examine and interpret it, and present it as evidence in the court. During their investigation,
forensic accountants use different procedures and techniques to aid them in collecting
evidence. The four elements presented in the fraud diamond can be used as a basis to collect
these evidences by using them as a guide on how the criminals thought process and how the
crime was committed.
Opportunity can be seen as the starting point of fraud and motive and rationalization can
draw the person toward it. In motive, the person thinks that he has a need to commit fraud while
rationalization means the person has convinced himself that the fraudulent act is worth the risk.
But person committing the act must have the capabilities of doing it. It means that he has the
ability to pull it off. For example, the person has an authoritative position in the company and
capability to understand and to take advantage of the organizations internal control that will
enable him to commit the act. Considering these elements will be helpful for the forensic
accountant in tracing the money trail.