Week 2

Discussion Assignment- Should Forensic Accountants engage in Covert Surveillance?

According to Albrecht covert surveillance can be categorized as a theft investigative

technique method which involves the use of two main senses sight and hearing, in short one is

closely observing the movements of the perpetrator. His discussion further went on to explain the

covert surveillance can be

 Fixed or stationery- The perpetrator or activities from a stationery discreet point.

 Moving or tailing- The perpetrator is every movement is observed and followed.

 Electronic Surveillance- This can be for example the use of video camera to observe

individuals.

In an attempt to understand whether the Forensic Accountant should engage in covert

Surveillance it is important to note the following points:

1. According to the book forensic accounting and Fraud examination while this technique is

used as a means of gathering evidence i.e. the how’s and who of a fraud, it is mainly used

in the more complicated frauds, as a result of a fraud being classed as complicated it

implies that there may be the need for more manpower and resources and clearly the

Forensic Accountant on his own will not suffice.

2. This technique requires a certain skill set and training, to illustrate this method of

investigation are usually undertaken by private investigators and law enforcement such as

the FBI. It stands to reason that it requires the use of a Skilled professional and though a

Forensic Accountant may be considered a professional he or she may not have the

required skills and training to undertake such a task. In addition this technique is

considered very risky which further compounds the need for a professional.
 3. According to Albrecht he also highlighted that covert surveillance are normally legal

once a person’s privacy is not invaded, therefore there is the legal aspect to consider

and while the forensic accountant is said to be a combination of accountant, auditor,

investigator and lawyer he may still need the professional input of a lawyer to understand

the legal aspects of covert operation, hence again the reasons of leaving it to the

professionals who not only has the skill of how to but also the legal knowledge that

governs it.

To further illustrate one can make reference to the Mc Donald’s Monopoly Fraud. To

investigate covert surveillance was the main method employed, however because of the

complication and the magnitude of the fraud it not only required the use of covert surveillance

by the FBI but it required resources from FBI field offices in Columbia, South Carolina, Atlanta,

Georgia, Memphis, Tennessee, Boston, Massachusetts, and Indianapolis, Indiana, Dallas, Texas,

Miami, Florida, Chicago, Illinois.

Clearly the Forensic Accountant may employ various investigative techniques in order to

prove a fraud however when It comes to the use of covert surveillance the points noted above is

an indication that the Forensic accountant should leave it to the professionals as it requires time,

money, resources, and most important professional skill and training in the field all of which are

critical factors to be considered by the Forensic accountant when undertaking an investigation as

any of these factors can either jeopardize result in the success of his investigation.

References

Albrecht Albrecht & Albrecht- Fraud examination 4e

Kranacher.M, Riley.R, Well. J.T- Forensic Accounting and Fraud Examination

The FBI- Federal Bureau of Investigation- National Press release-Eight arrested for defrauding

Mc Donald’s Corp and its customers in Promotional Prize Contests retrieved from

http://www.fbi.gov/news/pressrel/press-releases/eight arrested- for-defrauding-mc Donald’s