| Summary: | The study aims to establish an integrated generic investigation process that
could be utilised by Commercial Forensic Practitioners in South Africa.
Secondly, it aims to determine which investigation processes are currently
being utilised in South African forensics practices.
An overview is given of the international utilised processes and a basic
framework was developed, presented and tested by means of questionnaires
to members of the Institute of Commercial Forensic Practitioners in South
Africa.
The development of an investigation process for Commercial Forensic
Practitioners in South Africa could be utilised by the Institute of Commercial
Forensic Practitioners to provide a governance structure for the Institute that
would enhance the quality of forensic investigations and contribute to the
successful investigation and prosecution of commercial crime in South Africa.
To achieve the study objective, an empirical study was conducted among
current members of the Institute of Commercial Forensic Practitioners in
South Africa through the circulation of questionnaires via their website.
These results were interpreted, taking cognisance of international practices
identified in the literature review. A formalised investigation process was
developed and suggested to the Institute of Commercial Forensic
Practitioners. Statisticians were involved during the process of designing the
questionnaires, and analysing and interpreting the results.
The research dealt with a generic investigation process for Commercial
Forensic Practitioners. It also dealt with its implementation and investigative
performance in South African practices. In this study, an overview of the
investigation process for Commercial Forensic Practitioners in South Africa
was discussed.
The research also analysed the following:
* The time period in which organisations implemented the Commercial
Forensic Practitioners Process; * The effect of the Commercial Forensic Practitioners Process on
investigative performance; and * The integration of the Commercial Forensic Practitioner's process into
the budgeting process.
The findings of the study revealed the following:
* Each of the phases of the Commercial Forensic Practitioners Process
is as important as the others in matters that will be presented before
court.
* An investigation should only be performed if it can be performed
properly and in a manner that provides clarity and value to the
engagement and its objectives. For this purpose, a Commercial
Forensic Practitioner should only accept an assignment if free of
conflicts and any independence issues. It is imperative for Commercial
Forensic Practitioners to adequately assess not only their relationship
to the client and the particular engagement, but also their relationship
to any opposing party. This assessment should be done in the context
of all other work of the practice, not only that work that is performed by
the particular Commercial Forensic Practitioner and direct colleagues.
* The Commercial Forensic Practitioner must design, implement and use
a robust client and engagement acceptance process that is
documented, standardised and, where relevant, agreed with the client.
* The role of a Commercial Forensic Practitioner in an investigation
process is, therefore, to gather evidence, interrogate and examine the
financial evidence, develop computer applications that help in analysing
and presenting the evidence, putting forward all the findings in the form
of reports, exhibits and documents, and finally taking part in civil
actions or litigation as an expert witness, and testifying to the court and
presenting all the evidence obtained through documentation or visual
aids. It is therefore of the essence that a Commercial Forensic
Practitioner be well versed in financial issues and legal concepts and
proceedings. * The study found that the majority of respondents (69.3%) were male,
while only 30.7% were female. The majority of Commercial Forensic
Practitioners fall within two age categories, namely, 35 to 44 and 45 to
54 years. These age categories fall into the productive stage of a
working career in the human life-cycle. It is furthermore inferred that the
level of experience is of importance, as the majority of participants were
well experienced, mostly with at least ten years‟ experience.
* A total of 22.7% of respondents indicated that they do not use a
formalised investigation process. The majority of respondents (77.3%)
thus make use of a formalised investigation process.
* The study found that formalised investigation processes are not
implemented for the following reasons:
-- Managerial and governance processes within practices were
sufficient to address the risks posed (41.2%);
-- Commercial Forensic Practitioners do not have a formalised
investigation process at their disposal (35.3%);
-- Commercial Forensic Practitioners are not aware of a formalised
investigation process being utilised in industry that could be
used (23.5%); and
-- The implementation of a formalised investigation process proved
too difficult (23.5%).
* The most important reasons for implementing a formalised investigation
process included reputational risks and quality control of investigative
work. It was notable that the study revealed that the industry does not
require practitioners to follow any procedures.
* It is noteworthy that practitioners did not regard monitoring and
management review of compliance with the provisions of their
formalised investigation process as an important requirement. The
study revealed that the majority of Commercial Forensic Practitioners
would measure compliance as an occasional requirement (33.3%); only
23.3% placed compliance as an agenda item for each monthly
management meeting and 16.7% as a quarterly agenda item. * The majority (56.3%) of practitioners recognised that integration of a
formalised process with the budgeting process could enhance
productivity and financial benefits.
* The majority of respondents (88.1%) were of the view that there was an
improvement in financial performance and/or productivity after the
implementation of the formalised investigation process.
* 62% of respondents were of the view that there was a significant
improvement in financial performance and productivity since the
implementation of the formalised investigation process.
This finding is significant, as it proves that a formalised process for
Commercial Forensic Practitioners in South Africa can have a positive effect
on a practise‟s financial performance.
The suggested sub-processes, as described, are accepted by the
respondents, namely:
* Client acceptance, service considerations, risk management
procedures, independence and engagement agreements;
* Planning and strategic objectives of an engagement, including
documented investigative plan incorporating the relevant disciplines
(accounting, law, IT, investigative and risk management skills);
* Gathering information and evidence, documenting evidence in an
evidence file or system and safeguarding evidence as important;
* Interviewing, using best practice interviewing skills, by planning the
interview to achieve strategic objectives, recording the interview and
using technology;
* Analysis and verification of evidence;
* Quality management, with all reported findings included in referenced
working papers supported by documented physical evidence; and
* Reporting on findings in a detailed forensic report, clearly and concisely
reflecting on the sequence of events, supported by financial information
and documents, in a format that could be used in disciplinary enquiries
and/or proceedings in civil and criminal courts. These findings fulfil the objective of the study, which was to establish an
integrated generic investigation process that could be utilised by Commercial
Forensic Practitioners in South Africa and secondly to determine which
investigation processes are currently being utilised in South African forensics
practices. It was clarified whether the implementation of a formalised process
can lead to an improvement in financial performance and what the result of
the integration of a formalised process into a practise‟s budgeting process is.
It was established that there is indeed a relationship between the integration
of the formalised process into the budgeting process and the improved
financial performance of a practise.
The findings of this study have significant implications for the management of
South African Commercial Forensic Practitioner practices. Based on the study
findings, the following general and specific recommendations can be made:
* The investigation process for Commercial Forensic Practitioners should
be fully integrated with the budgeting process of the practise, as this
will ensure improved investigative performance by the business; and
* Education and research on the investigation process for Commercial
Forensic Practitioners should be conducted by the management of a
practice before implementing such a process. === MCom (Forensic Accountancy), North-West University, Potchefstroom Campus, 2015
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