SEP 2020 - Institute of Forensic Accountants of Pakistan

www.ifap.org.pk

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SEP2020

The Institute of ForensicAccountants of Pakistan

Voice of the Forensic Accounting

and Forensic Auditing Professionals

The Institute is set up under license of Federal Government of Pakistan issued by Registrar Joint Stock Companies under the Societies Registration Act of XXI of 1860 and is also registered with the Registrar of Trademarks, Trademarks Registry, and Registrar of Copyrights, Intellectual Property Organization (IPO Pakistan).

What’s inside?Let’s have a look of what isinside in this newsletter

Institute’s Profile

AppointmentsSection

New AdmissionsSection

NewsSection

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05 11

The founder/ pioneer member of

- The International Federation of Forensic Accountants & Auditors (The IFFAA)

- The Forensic Auditors Certification Board, England & Wales, UK (FACB)

[email protected] | [email protected]

The Forensic Accountant Pakistan (FAP)Official organ of the Institute of Forensic Accountants of Pakistan (IFAP)

The Institute of Forensic Accountants of Pakistan

(IFAP) was established in year 2009 at Islamabad,

a certificate/license issued by the Registrar Joint

Stock Companies under the Societies Registration

Act of XXI of 1860, Federal Government of

Pakistan and registered with the Registrar of

Trade Marks, The Trade Marks Registry and the

Registrar of Copyrights, the Intellectual Property

Organization (IPO Pakistan).

The Institute of Forensic Accountants

of Pakistan (IFAP) is a first recognized

Professional Pioneer Forensic

Accounting Institute/ Body providing

education and training in the fields of

Forensic Accounting, Forensic

Auditing, Forensic Accounting

Investigation, Fraud Examination, Anti-

Money Laundering Laws, Corporate

Governance, Financial Reporting and

its allied areas/subjects.

The Institute of Forensic Accountants

of Pakistan (IFAP) is a unique Pakistani

Venture to meet the global challenges

of growing menace of frauds and

white-collar crimes in business

establishments. The Institute of

Forensic Accountant of Pakistan (IFAP)

was setup in the year 2009 by those,

who have been in the field of Forensic

Accounting, Forensic Auditing,

Forensic Accounting Investigation,

Fraud Examination and its allied

areas/subjects and have themselves

sniffed out investigated and

prosecuted scores of frauds and white-

collar crimes. The Institute of Forensic

Accountants of Pakistan (IFAP) is

promoted with the objective to

educate business establishments to

prevent, detect and investigate frauds

and white-collar crimes and promote

anti-fraud education to actively

combat the growing menace. The

Institute of Forensic Accountants of

Pakistan (IFAP) also provides

education on intricacies and practical

aspects of Forensic Accounting, Forensic

Auditing, Forensic Accounting

Investigation Fraud Examination and

imparting education on new emerging

issues on aligning new business

methods and technology with existing

process with primary objective to put in

place the right and meaningful controls

and practices to prevents any wrong. In

nut shell The Institute of Forensic

Accountants of Pakistan (IFAP) provide

complete Anti-Fraud Education to

promote Fraud Risk Management

Strategy for prevention, detection,

investigation & prosecution of frauds

and white-collar crimes at all corporate

as a single point destination.

The Institute of Forensic Accountants of

Pakistan (IFAP) launched “Forensic

Accountant & Forensic Auditor (FA)®

Program in year 2009 with a state-of-

the-art course design and curriculum.

Over the years, the Forensic Accountant

& Forensic Auditor (FA)® Program

received overwhelming response from a

wide across section of students, working

executives and professionals. Currently,

there are 312 Forensic Accountants &

Forensic Auditors (FAs) who have

successfully completed Forensic

Accountant & Forensic Auditor (FA)®

Program from The Institute of Forensic

Accountants of Pakistan (IFAP) and

received Forensic Accountant & Forensic

Auditor (FA)® Charter. Yet with

concerted efforts of our members it has

achieved marvellous importance in and

outside the country.

To foster professionalism among Forensic Accountants, Forensic Auditors, Forensic

Investigators, Fraud Examiners, Financial Professionals, Investment Consultants and

Working Executives to serve the needs and interests of members and the public.

To be recognized as the Premier Professional Institute/Body representing Forensic

Accountants, Forensic Auditors, Forensic Investigators and Professionals who uphold

the highest standards in Forensic Accounting, Forensic Auditing, Forensic

Investigation and Fraud Examination that benefit the public and the profession.

The main objective of The Institute of Forensic

Accountants of Pakistan (IFAP) is to develop

professional programs/courses on Forensic

Accounting, Forensic Auditing, Forensic

Accounting Investigation, Fraud Examination,

Anti-Money Laundering Measures & Business

Ethics, Corporate Governance, Internal & External

Auditing, Corporate & financial investigation,

management and its allied subjects with a view to

produce Forensic Accountants, Forensic Auditors,

Forensic Investigators, Fraud Examiners and

Forensic Accounting Professionals in Pakistan.

The Institute of Forensic Accountants of Pakistan

(IFAP) has a very vital role to play not only in

disseminating professional education in Forensic

Accounting and Forensic Auditing but also to

enforce a Code of Professional Conduct/Ethics for

its members, students and Forensic Accountants

and at the same time to meet for Forensic

Accounting Professionals/Specialists not only in

Pakistan but also in other countries of the world

with a view to support and advance their

educational standards, frame and establish rules

for observance in all matters pertaining to their

education and training.

•Regulate the profession of Forensic Accountants

and Forensic Auditors (FAs) and matters

connected therewith.

•Provide Forensic Accounting and Forensic

Auditing education, training and support to its

students and members.

•Conduct Forensic Accounting and Forensic

Auditing professional examinations leading to

membership.

•Licensing for governing the practice.

•Set up and ensure the code of ethics for its

members.

Functions

Role

Objective

Mission

Vision

Website: www.ifap.org.pk | Email: [email protected] – [email protected]

02

Mr. Masood Ahmed

(FFA) Financial Specialist,

Professional Accountant,

CPA (PGD), FCMA-USA,

AFA-PK, M.COM, B.COM

(Hons)

SAP Financial, Oracle, ERP,

Peachtree, ISO 9001-2008

Lead Internal Auditor

The Executive Council of The Institute of Forensic

Accountants of Pakistan (IFAP) has been appointed Mr.

Masood Ahmed (FFA) as International Executive

Director (IED) IFAP, UAE with effect from July 01, 2020

for promotion and development of Forensic

Accountant/Forensic Auditor (FA) Program in Pakistan

and Abroad.

Mr. Masood is dynamic and

highly accomplished Finance

Professional offering +17

years portfolio of success

driving Financial Management,

Financial Controlling, Financial

Reporting & Analysis, Auditing

and Accounting Operations;

presently spearheading

functions with Elevate Best

Accounting & Auditing as a

Managing Director / Senior

Auditor and previously in

Middle East Auditing of

Accounts Office - Dubai as a

Senior Auditor & Sales and

previously spearheaded

function in Askari Guards

Limited (Army Welfare Trust

Pakistan) as a Internal Auditor,

& Rauf Textile & Apparel

Limited – Accounts Officer

Contact details:

Office # 1301, Opal Tower, Burj Khalifa Street, Business Bay,

Dubai-UAE

Tel: +971 4 589 7073

Cell: +971 55 511 6556

Email: [email protected]

Mr. Syed Faisal Hassan

(AFA) Forensic Auditor

CPA, ATT

MBA, M. Com

ACMA,

FITM (Tax Certified)

PGDPA, MIPA

AFA (UK)

AAA (UAE)

The Executive Council of The Institute of Forensic

Accountants of Pakistan IFAP)® has been appointed

Syed Faisal Hassan (AFA) as Director Learning &

Membership Affairs (DLMA) IFAP UAE with effect from

September 01, 2020 for promotion and development of

Forensic Accountant® & Forensic Auditor® (FA)

Program in Pakistan & Abroad.

Syed Faisal Hassan is a Finance

Professional, Trainer, and a

corporate Personality having

13 years of professional

experience in Pakistan & UAE.

He starts his Career from

Lahore Pakistan, Born in a very

educated and Supportive

family, who encourages him to

achieve his goals, faced so

many challenges in live but

never turned back.

Contact details:

Office # 04, VNN Villa, Jumeirah 1

Dubai-UAE

Cell: +971 55 243 8029

Cell: +971 55 330 4320


The Executive Council of The Institute of Forensic Accountants of

Pakistan (IFAP) has been appointed Mr. Imran Nawaz (AFA) as Director

Digital Marketing (DDM) IFAP, UAE with effect from September 01,

2020 for promotion and development of Forensic

Accountant/Forensic Auditor (FA) Program in Pakistan and abroad.

Mr. Imran Nawaz, is currently serving as General Manager BD (Middle East)

UAE. He has worked on various top positions as GM (Finance &

Administration), Operation Manager, Business Controller, Director Marketing and Business Development. He is experienced corporate

professional having more than fifteen years of progressive international experience in strategic planning, improving operational efficiency,

business development, team building, logistics & supply chain and project management across the MNCs (Manufacturing, Health care, F&B,

Aviation, Logistics & Supply chain) sector. He has strength in driving values by navigating top and bottom-line growth. Consulting on

international business, global operations, strategic marketing, business generation, quality systems and logistics & supply chain. Turn ideas

into logical strategies and implement systems that optimize productivity, customer satisfaction and increase profitability. Have a strong focus

on continuous improvement and strives for excellence with visionary leadership: An effective communicator leading multi-cultural and

multidisciplinary teams.

Contact details: Office # 1321, Jafza One Building, Jabel Ali Free

Zone, Dubai-UAE

Cell: +971 58 909 1862 Email: [email protected]

Cell: +971 50 522 4495

Mr. Imran Nawaz

(AFA) MBA (Malaysia), AFA (Pak),

AFA (Uk), MIPA (Aus),

CLSCMP (UK&KHDA),

AACA (Malaysia),

ACIM(UK)

International Executive Director UAE

Director Learning & Membership UAE

Director Digital Marketing

03

mailto:[email protected]



Imran Ali Shaikh (AFA)

Deputy Director Investigation, National Accountability Bureau (NAB), Karachi

Forensic Accountants (FAs) need to possess skills in five critical areas: interrogation

and interviewing; evidence sourcing (the proper collection, evaluation, and

documentation of evidence); fraudulent financial-statement schemes; legal issues

relating to fraud; and computer-fraud techniques, as well as, critical thinking, complex

problem solving, and oral and written communication. In addition, they will acquire

investigative flexibility, analytical proficiency, legal knowledge and deductive analysis.

Forensic accounting is a demanding profession that promises great rewards for those

with an inquisitive mind and attention to detail.

Muhammad Ashraf (AFA)

Deputy Manager Internal Audit, Crescent Textile Mills Limited, Faisalabad

For the past 30 years business surveys have found that fraud is a widespread problem

throughout the business world, especially in light of highly publicized financial

scandals such as Enron, Bernie Madoff, WorldCom, HealthSouth, Satyam, Xerox and

more. Leaders in the accounting profession have begun to clamour for forensic

accounting education to be given to accounting students and forensic accounting

has become one of the hottest career tracks for them. The demand from students for

forensic accounting education far exceeds the supply of programs offered by colleges

and universities around the world.

Saeed Ahmed (AFA)

Manager Finance, Fast Pay Limited, Erbil, Kurdistan, Iraq

Roles vary somewhat based on position and employer, but most Forensic

Accountants (FAs) use their forensics and accounting expertise to help prevent,

detect, and/or prosecute financial crimes. Aspiring Forensic Accountants (FAs) can

choose from exciting careers in a diverse array of industries and public sector

agencies. Usually detail-oriented, ethical, and analytical problem-solvers, Forensic

Accountants (FAs) often enjoy varied responsibilities and duties. Depending on their

position, employer, and context, these professionals may gather and analyse data,

provide security consulting to clients, deliver reports to company executives, or testify

as expert witnesses in court.

Mohammad Nouman (AFA)

Manager Finance & Accounts, Castle knock Hotel, Dublin, Ireland

Forensic Accountants (FAs) may perform some regular accounting duties while also

providing litigation support and/or investigating financial crime cases. These

professionals work in many types of industries and organizations and may interact

with company executives, clients, forensics teams, or law enforcement agencies.

Investigative responsibilities often include conducting forensic research, auditing,

analysing financial data, and identifying stolen assets. Often employed by insurance

companies and banks, Forensic Accountants (FAs) may investigate or prevent

financial fraud by auditing organizational finances to ensure regulatory compliance.

Forensic Accountants (FAs) might also work for accounting firms, providing fraud-

prevention consulting to clients.

04

Books on Forensic Accounting, Fraud Auditing & Fraud Investigation (What to Read?)

Forensic Accountant/Forensic Auditors (FAs) of today constantly need to refresh their

knowledge of forensic accounting/forensic auditing and about the changes taking

place around the world. Here is a list of books at the IFAP Head/Registered Office

Library. These top six (06) books are strongly recommended by the IFAP

Head/Registered Office Library for all.

• Financial Shenanigan, how to detect accounting gimmicks and fraud in

financial reports by Howard M Schilit & Jeremy Perler

• Financial Crime Investigation and Control by K.H. Spencer Pickett and

Jennifer Pickett

• Financial Services, Anti-Fraud Risk and Control, Workbook by Peter D

Goldmann

• Financial Statement, Fraud Casebook, Baking the Ledgers and cooking the

books by Joseph T. Wells

• Fraud Examiners Manual (International Edition) by ACFE USA

• Investigating Identity Theft, a Guide for Businesses, Law Enforcement and

Victims by Judith M. Collins

1. Barrister Sohail Nawaz, FFA (President/Member

Executive Council)

2. Dr. Abdul Jaleel, FFA (Vice President/Member

Executive Council)

3. Dr. Tahir Iqbal, FFA (Secretary/Member Executive

Council)

4. Dr. Shahzad Ali Khan, FFA (Member Executive

Council)

5. Mr. Fahim Ul Haq Khan, FFA (Member Executive

Council)

6. Barrister Umer Abdullah, FFA (Member Executive

Council)

7. Syed Ijaz Hussain Shah, FFA (Member Executive

Council)

8. Dr. Mohsin Raza (FFA) (Member Executive Council)

9. Mr. Muhammad Ihsan (FFA) (Member Executive

Council)

10. Ms. Fouzia Andleeb (FFA) (Member Executive

Council)

1. Mr. Aamir Ali Khan, FFA (Member Board of Directors-

Executive) (Islamabad)

2. Mr. Zafar Zaman Ranjha, FFA (Member Board of

Directors-Executive) (Lahore)

3. Mr. M. Salman Hashmi, FFA (Member Board of

Directors-Non Executive) (Rawalpindi)

4. Barrister Humayun Nawaz Khan, FFA (Member Board

of Directors-Executive) (Muzaffarabad)-AJK)

5. Barrister Yasir Shah, FFA (Member Board of Directors-

Executive) (Karachi)

6. Dr. Majid Latif Bhatti (FFA) (Member Board of

Directors-Executive) (Islamabad)

7. Mr. Muhammad Javaid Iqbal Khan (FFA) (Member

Board of Directors-Executive) (Lahore)

8. Mr. Ikram-Ul-Haq (AFA) (Member Board of Directors-

Executive) (Quetta)

9. Mr. Fazal Mehmood Malik (AFA) (Member Board of

Directors-Executive) (Karachi)

10. Mr. Waheed Ur Rehman (FFA) (Member Board of

Directors-Executive) (UAE)

11. Mr. Masood Ahmed (FFA) (International Executive

Director IFAP UAE)

12. Mr. Muhammad Azam Shahzad (AFA) (Member Board

of Directors-Executive) (Faisalabad)

13. Malik Imran (FFA) (Member Board of Directors-

Executive) (Multan)

14. Khawaja Saeed Abbas Ansari (FFA) (Member Board of

Directors-Executive) (Islamabad)

15. Syed Faisal Hassan (AFA) (Director Learning &

Membership Affairs IFAP UAE)

16. Mr. Imran Nawaz (AFA) (Director Digital Marketing

IFAP UAE)

1. Mr. Yahya Mohamnmad (FAP-Affiliate) (Dubin –

Ireland)

2. Mr. Ibrar Ahmed (FAP –Affiliate) (Islamabad –

Pakistan)

3. Muhammad Saad Iftikhar Quadri (FAP –Affiliate)

(Karachi – Pakistan)

Admission of IFAP New Affiliates

IFAP Executive Council IFAP Board of Directors

05

1. Mr. Saadat Hussain (AFA) (Dublin – Ireland)

2. Mr. Mohammad Nouman (AFA) (Dublin – Ireland)

3. Mr. Muhammad Ashraf (AFA) (Faisalabad –

Pakistan)

4. Mr. Saeed Ahmed (AFA) (Erbil-Kurdistan - Iraq)

5. Mr. Imran Ali Shaikh (AFA) (Karachi - Pakistan)

6. Mr. Rizwan Habib (AFA) (Lahore – Pakistan

7. Mr. Zeeshan Yousaf (AFA) (Lahore - Pakistan)

8. Syed Faisal Hassan (AFA) (Dubai - UAE)

9. Mr. Imran Nawaz (AFA) (Dubai - UAE)

10. Mr. Farooq Ahmed (AFA) (Jeddah - KSA)

11. Mr. Ali Shan Ahmed (AFA) (Lahore - Pakistan)

12. . Ishfaq Hussain Aawn (AFA) (Arkwit – Sudan

13. Mr. Ibrar Ahmad (AFA) (Dubai – UAE)

14. Syed Nayab Haider (AFA) (Islamabad – Pakistan)

15. Sonia (AFA) (Karachi – Pakistan)

16. Syed Zamin Raza Rizvi (AFA) (Multan – Pakistan)

17. Mr. Qadeem Khan (AFA) (Calbary – Canada)

ROLE OF ACCOUNTANT IN

DISPUTE RESOLUTION Muhammad Hasan Bhagat, (AFA UAE)

For the past decade, professionals

have voiced their opinions and have

highlighted that role of accountants

within the organizations needs to

evolve from operational to a

strategic role as well. These opinions

and concerns have merit and should

be considered, however, there is a

critical role which accountant’s play

that often goes unnoticed and is not

highlighted to the required level by

the professional community that is

dispute resolution.

Organizations enter into contracts

and transaction on daily basis with its

employees, suppliers, customers,

service providers, etc. and each of

these transactions and contracts

entails certain pre-determined terms

& conditions, which if not adhered to

could result in a dispute between the

organization and the parties

involved. While addressing these

contractual and other disputes may

be the responsibility of the legal

experts, accountants play a crucial

role in determining and providing

insight into the financial and

accounting aspects of these

disputes. This role is put to display by

accountants when they prepare

various type of reports and act as

experts to provide clarification on

the financial and accounting aspects

of the dispute and answer to the

queries that are raised. The reports

produced could be used and

presented to a legal forum or it can

simply be used by the management

and other stakeholders to resolve

and settle internal disputes.

The term generally used for such

reports/documents produced by the

accountants is “Expert Reports” or

“Expert Witness Reports”

(hereinafter referred to as

“reports”). These reports contain

facts, analysis, assumptions,

limitations, and accountant’s

opinion on the subject matter. In

these types of reports, the

accountants act as an independent

party to produce reports on loss of

profits, claims, valuations, alleged

fraud, breach of contracts or

agreements, shareholder’s

disputes, insurance claims, and other

similar matters. The scope of work

performed by the accountants as

experts to produce these reports is

either dictated or defined by court,

tribunal, client, lawyers or senior

management.

Reports offer critical advantages to

the organizations and clients and

provide clarity over the quantum of

loss, strengthen the case preparation

for lawyers and assist the decision

makers in determining the facts of

the cases.

Umesh Kumar, ACCA who was

associated with the Forensic

Department of a global audit and

accounting firm in UAE, regularly

prepared Reports for his clients. On

the notion of importance of these

reports, he stated that “Accountant,

as a subject matter expert, brings

objectivity to the expert witness and

dispute resolution process by

reviewing and challenging the

assumptions made by clients in

calculating their loss claims. With the

assistance of client’s legal team, the

accountant can advise and calculate

the quantum of losses which are

difficult to be challenged by the

other party, which help the client in

saving a significant amount of legal

cost which they otherwise will incur

in form additional proceedings.

Let’s take an example to

understand this. A Company “A”

owns a property “P” and enters

into an agreement with Company

“B”. Company B agrees to manage

the property for Company A against

a percentage of profit and fixed fee

for a period of 10 years. After four

years, the Company A abruptly

cancels the agreement with

Company B. Company B, in this case,

may seek legal opinion and file for a

case against Company A for

wrongful termination. For the

purpose of this case, the Company B,

its lawyers and/or the relevant legal

forum may request a report

calculating the loss of profits and/or

quantification of other claims as per

the agreement. An accountant would

be engaged to produce this report,

quantify the claim using the past

performance, agreement terms,

assumptions, economic conditions,

and discounting & other techniques

and submit the report to the

requester in the required format. The

accountant may also be asked to

Admission of IFAP New Associates

06

present the report as an expert

witness in front of the forum.

Important Considerations in

Preparation of Expert Reports

Determining whether the reports

prepared by the accountants

would be presented on the legal

forum or not is crucial, as the legal

forums have defined standards for

such reports which, if not followed

adequately, could render the

report unacceptable. Moreover, it

is also important to ascertain

whether the accountant would also

be required to testify as an expert

in relation to the support and/or

whether the report is just to obtain

a written confirmation regarding

some element of the dispute.

When the reports are to be

produced for internal stakeholders

only, it is advisable to follow the

template of the most relevant legal

forum. However, the template can

be adjusted to meet the

stakeholder requirements and to

ensure transparency of

information.

Contents of Expert Report

Some of the key contents of the

Reports include case reference,

name of parties, resume of the

expert, instructions (from court,

tribunal, lawyers, etc.), scope of

work, limitations, sources of

information, statement on

restriction of circulation of the

report, disclosure of interests,

background of the case and

dispute, calculation of the claim,

conclusion, and declaration of

independence (if applicable).

The reports should be supported

the adequate supporting

references for all the facts

mentioned, data used, and

assumptions. In addition, it is vital

that the data used in the reports is

authentic, properly cited, and

clearly highlights assumptions

which may impact its integrity. In

addition, the report should create a

proper link between the findings

and the questions asked by the

requester of the report. Most

importantly, the report should be

transparent, and it should not be

prepared to intentionally benefit

one party over the other. It should

be prepared with a duty of care and

consideration of ethics of being a

professional accountant.

Conclusion

Accountant’s role in dispute

resolution is crucial and

challenging. Accountant’s ability

to assist the organizations and

legal forums in this manner is not

widely recognized and/or

highlighted in general. It is

important that accountant’s roles

and responsibilities with regards to

dispute resolution is highlighted

and basic guidelines and standards

are established by the professional

bodies to assist accountants in

performing this role with more

efficacy.

07

ABOUT FORENSIC

ACCOUNTING

What is Forensic Accounting?

Forensic accounting is a specialty

practice area of accountancy that is

used in a court of law. Forensic

accounting uses accounting,

auditing and investigative skills to

analyze financial information and

assist in legal matters. It’s

essentially a combination of

accountancy and detective work to

present the facts, uncover fraud,

and assist in resolving legal

disputes.

There are two main areas of

forensic accounting; litigation

support and investigation.

Litigation involves the factual

presentation of financial

information relating to pending or

existing legal disputes. Forensic

accounting can help to resolve

disputes before they reach court. If

the case does reach the courtroom,

a Forensic Accountant (FA) can

testify as an expert witness.

Investigation determines whether

fraud, theft, or falsification of

financial statements has occurred.

This can include insurance fraud

and civil matters, such as hidden

assets in a divorce case.

What does Forensic Accounting

actually involve?

Forensic Accountants (FAs) draw

from many areas of expertise,

including accounting, auditing,

taxation, and information

technology to assist in legal

matters. A Forensic Accountant

(FA) will seek to determine what

events took place from a financial

standpoint. Forensic accounting

teams will include expert testifiers,

witness interviewers, data mining

and computer forensic specialists,

fraud examiners, and specialist

professionals to document the

facts.

What types of

legal dispute do Forensic

Accountants (FAs) become

involved in?

Forensic Accountants (FAs)

investigate and document

allegations of financial fraud,

professional negligence,

embezzlement, shareholder

disputes, breaches of contract,

Stock Market manipulations, and

insurance fraud, as well as

bankruptcy fraud and preferential

payments. Forensic accounting is

appropriate for any illegal financial

activity, and is also called upon in

civil cases, such as matrimonial

disputes. Any dispute or

prosecution in a court of law

involving financial ambiguity or

fraud will require the expertise of a

Forensic Accountant (FA).

What is the difference between

Auditing and Forensic Accounting?

An audit is designed to provide

confidence in whether accounts

show a true and fair view of the

financial position and performance

of a company within a specified

period. This is achieved by

undertaking sample checks on the

transactions and balances that

make up the accounts, and is

subject to the concept of

materiality which is a lower

threshold where the values under

scrutiny are considered too small

to have an influence on the overall

stated position of a set of accounts.

In Forensic accounting, there is

already suspicion that errors exist

in the presented accounts, so the

work undertaken relies on far

higher samples, and a substantive

review of transactions regardless of

value. This means a forensic review

of accounts will concentrate on

significantly more detail in order to

obtain evidence of wrongdoing.

The purpose of forensic accounting

is to uncover any possible

misappropriation, misstatement or

fraud. Forensic accounting seeks to

provide evidence for use in a court

of law and so requires specialist

legal documentation.

When should I consult a Forensic

Accountant (FA)?

Forensic Accountants (FAs) are

consulted for a wide range of legal

disputes and suspected financial

fraud. If you suspect fraud or theft

within your business, or

surrounding a civil matter, you may

wish to consult a Forensic

Accountant (FA) to investigate for

you.

What should I do if I suspect

financial fraud in my business?

If you suspect fraud, theft or

wrong-doing in your business, the

best way forward is contact your

accountant who will be able to help

you substantiate your suspicions

and take the appropriate action.

Fraud or theft tends to be

committed by trusted employees

with access to the most company

information.

If an internal investigation is

required you will need the help of

a Forensic Accountant (FA). If you

suspect fraud or theft in your

business, try not to overreact. It’s

equally important not to sweep it

under the carpet and ignore it. Be

discreet when seeking advice as

the perpetrator may destroy

evidence or try to cover their

tracks. An IT consultant will be able

to discreetly copy the suspect’s

hard drive. Ensure all of your

financial information is backed-up

and work with your accountants

and other professional advisors to

reduce the disruption to your

business.

What is a Forensic

Accountant/Forensic Auditor (FA)?

Forensic Auditors (FAs) are

investigators of legal and financial

documents that are hired to look

into possible suspicions of

08

fraudulent activity within a

company; or are hired by a

company who may just want to

prevent fraudulent activities from

occurring. They also provide

services in areas such as

accounting, damages, analysis of

data, valuation, and general

consulting. Forensic Auditors (FAs)

have also been used in divorces,

bankruptcy, insurance claims,

personal injury claims, fraudulent

claims, construction, royalty audits,

and anti-money laundering by

investigating financial records.

Many Forensic Accountants (FAs)

work closely with law enforcement

personnel and lawyers during

investigations and often appear as

expert witnesses during trials.

Why study Forensic

Accounting/Forensic Auditing?

With the growth of white-collar

crime and budget constraints on

law enforcement, many

organizations have to utilize

internal resources to control fraud.

Auditors need to be alert to

inadequacies in record keeping as

well as to errors and unusual

results which could be indicative of

fraud, improper or unlawful

expenditure, unauthorized

operations, and inefficiency.

Forensic Auditors (FAs) are able to

apply auditing skills to situations

that have legal consequences. The

Forensic Accounting Professional

Membership/Certification

Program: Forensic Auditing offers

the relevant professional skills to

prepare the student for a career in

forensic auditing. This qualification

provides a comprehensive

framework, which uses forensic

auditing methodology, to allow

individuals to detect, investigate

and deter fraud.

What career opportunities exist for

the Forensic Accounting

Professional Membership or

Certification Program in Forensic

Accounting/Forensic Auditing?

The

qualification enables you to

become part of an internationally

recognized forensic-orientated

profession, either as an employee

of an organization or as a

professional forensic practitioner in

private practice.

The qualification offers career

opportunities in most large

organizations and especially in the

following areas:-

• Audit companies, law

firms, banks, insurance companies

and most listed companies’

forensic services units where you

can become part of an

investigation team to perform a

variety of forensic services.

• Law enforcement agencies

such as the Special Investigation

Unit, IB, NACTA, The Specialized

Commercial Crime Unit of the

Pakistani Police, the National

Accountability Bureau (NAB), FIA,

Prosecuting Authority and The

Asset Recovery Unit.

• Regulators such as the

SECP, FBR, SBP, FMU and the

Financial Intelligence Centre.

• Academia.

Specialized knowledge of financial

accounting and auditing is

combined with the skills required

to prevent, detect, investigate,

report and testify on commercial

fraud.

09

Newsletter www.ifap.org.pk 10

The Institute of Forensic Accountants of Pakistan (IFAP) signed a Memorandum of

Understanding (MOU) with the Max Strategy-Riphah Group-A Knowledge Partner

Riphah International University Islamabad for Corporate Trainings, Seminars,

Workshops and Others Professional Programs. The IFAP and Max Strategy have

also agreed to work together on Continuing Professional Development/

Continuing Professional Education (CPD/CPE) which is seen by both Institutes as a

key requirement of professionalism in a dynamic and demanding business

environment.

The Institute of Forensic Accountants Pakistan (IFAP) and the Association of

Certified Forensic Practitioners (ACFP) Zimbabwe have entered into a

Memorandum of Understanding (MOU). The MOU allows both Forensic

Accounting Bodies to provide service and support to each other members and

collaborate on joint research, education and on other areas of mutual interest. This

new relationship will reinforce the ties between our two organizations and help us

in our mutual goal to further strengthen the Forensic Accounting and Forensic

Auditing Profession. The MOU specifies the criteria by which members of one body

are eligible for membership in the other.


Understanding (MOU) with the Max Strategy-Riphah Group-A Knowledge Partner

Riphah International University Islamabad for Corporate Trainings, Seminars,

Workshops and Others Professional Programs. The IFAP and Max Strategy have

also agreed to work together on Continuing Professional Development/

Continuing Professional Education (CPD/CPE) which is seen by both Institutes as a

key requirement of professionalism in a dynamic and demanding business

environment.

The Institute of Forensic Accountants Pakistan (IFAP) and the Association of

Certified Forensic Practitioners (ACFP) Zimbabwe have entered into a

Memorandum of Understanding (MOU). The MOU allows both Forensic

Accounting Bodies to provide service and support to each other members and



in our mutual goal to further strengthen the Forensic Accounting and Forensic

Auditing Profession. The MOU specifies the criteria by which members of one body

are eligible for membership in the other.

The Institute of Forensic Accountants of Pakistan (IFAP) and the Institute of

Certified Public Accountants of Pakistan (ICPAP-CPA Pakistan) have entered into a

Memorandum of Understanding (MOU). The MOU allows both Accounting

Institute/Bodies to provide service and support to each other members and



in our mutual goal to further strengthen the Public Accounting, Forensic

Accounting and Forensic Auditing Profession. The MOU specifies the criteria by

which members of one body are eligible for membership in the other.

The Institute of Forensic Accountants of Pakistan (IFAP) and the Institute of

Certified Public Accountants of Pakistan (ICPAP-CPA Pakistan) have entered into a

Memorandum of Understanding (MOU). The MOU allows both Accounting

Institute/Bodies to provide service and support to each other members and



in our mutual goal to further strengthen the Public Accounting, Forensic

Accounting and Forensic Auditing Profession. The MOU specifies the criteria by

which members of one body are eligible for membership in the other.


Understanding (MOU) with the Abstract Accounting and Auditing (A Dubai-UAE

based Accounting and Auditing Firm) for Corporate Trainings, Seminars,

Workshops and Others Professional Trainings Programs. The Institute of Forensic

Accountants of Pakistan (IFAP) and the Abstract Accounting & Auditing have also

agreed to work together on Continuing Professional Development/Continuing

Professional Education (CPD/CPE) Programs in the areas of common interest

which is seen by both Institutes as a key requirement of professionalism in a

dynamic and demanding business environment.


Understanding (MOU) with the Abstract Accounting and Auditing (A Dubai-UAE

based Accounting and Auditing Firm) for Corporate Trainings, Seminars,

Workshops and Others Professional Trainings Programs. The Institute of Forensic

Accountants of Pakistan (IFAP) and the Abstract Accounting & Auditing have also

agreed to work together on Continuing Professional Development/Continuing

Professional Education (CPD/CPE) Programs in the areas of common interest

which is seen by both Institutes as a key requirement of professionalism in a

dynamic and demanding business environment.

The Institute of Forensic Accountants of Pakistan’s Affiliations andMemorandums of Associations (MOUs)

Affiliations

Major loss-making SOEs to

undergo forensic audit

Cabinet Committee on State-Owned-

Enterprises (CCoSOEs) has directed

the finance division to consult the

relevant ministries/divisions to select

major loss-making SOEs under their

control for a forensic audit of the last

ten (10) years and the federal cabinet

has ratified this decision. (The Profit

Pakistan Today dated September 17,

2020).

FBR to introduce online income tax

refunds system

The Federal Board of Revenue (FBR)

has announced its plan to introduce

an online ‘income tax refunds

system’—with the initiative aimed at

making the refunds process more

automated, transparent and

convenient, a news source reported

on September 10. (The Zameen.Com

dated September 11, 2020).

MoF to consult AGP on forensic

audit of loss-making SOEs

The Ministry of Finance (MoF) is to

consult Auditor General of Pakistan

(AGP) on forensic audit of loss-

making public sector entities for the

last ten years as directed by Prime

Minister Imran Khan. (The Business

Recorder dated September 18, 2020).

Forensic audit of Islamabad High

Court (IHC) district courts ordered

In a first, the Chief Justice of

Islamabad High Court (IHC) has

ordered forensic audit of the IHC and

the East and West Division of the

district courts. According to the

circular issued by the registrar office

of the IHC, the Auditor General of

Pakistan (AGP) has been asked to

conduct the forensic audit for the last

five years (Sept 30, 2015 till Sept 30,

2020. (The Daily Dawn dated

September 12, 2020).

Chairman NAB approves investigation of Sugar scam

The NAB chairman approved the probe into sugar scam after having a meeting

with Hussain Asghar (Deputy Chairman), Syed Asghar Haider (Prosecutor General

Accountability), Zahir Shah (DG Operations) and Irfan Mangi (DG-NAB Rawalpindi)

where the details of the said scam was reviewed and discussed. The decision came

after the Supreme Court temporarily suspended SHC verdict of nullifying the sugar

inquiry commission’s report; declaring the formation of the commission illegal

and unconstitutional. (The Truestories.pk dated September 24, 2020).

Pakistan Banks Association (PBA) and Federal Board of Revenue (FBR) agrees

to share information under Income Tax Ordinance, 2001

Federal Board of Revenue (FBR) and Pakistan Banks Association (PBA) have finally

agreed on the implementation modalities of Section 165 and 165A of the Income

Tax Ordinance, 2001.It has been agreed that banks will start providing information

in respect of cash withdrawals, deposits, credit card payments and profit on debt

to FBR u/s 165 and 165A of the Income Tax Ordinance, 2001 through IT solution

developed by FBR. This technical solution will provide interface to banks through

which banks will share the relevant information with FBR in real time. The banks

have agreed to share information with FBR from 18.09.2020 by using interim IT

solution developed by FBR IT team. Dr. Ishrat Hussain, Adviser to Prime Minister

on Austerity & Institutional Reforms played a key role towards ironing out the

long outstanding issues between FBR and banks. (www.fbr.gov.pk).

SECP approves disclosure framework under global principles

In adherence to internationally recognized standards of regulation and oversight,

the Securities and Exchange Commission of Pakistan (SECP) has approved

disclosure framework to provide participants and general public with sufficient

information for better understanding of Financial Market Infrastructures (FMIs),

regulatory, supervisory, and oversight policies of SECP with respect to FMIs and

complete regulatory and operational landscape. (www.secp.gov.pk).

Monetary Policy Statement

At its meeting on 21st September 2020, the Monetary Policy Committee (MPC)

decided to keep the policy rate unchanged at 7 percent. The MPC noted that

compared to the time of the last meeting in June 2020, business confidence and

the outlook for growth have improved. This reflects the decline in Covid-19 cases

in Pakistan and the easing of lockdowns, as well as the timely stimulus provided

by the Government and SBP. At the same time, the forecast for inflation has risen

slightly, primarily due to recent supply side shocks to food prices. Average

inflation is now expected to fall within the previously announced range of 7–9

percent during FY21. (www.sbp.gov.pk).

Plea bargain is deemed conviction. Accused confesses his guilt and return all

looted money which is deposited in national exchequer

Corruption is the mother of all evils which is one of the main hurdles in the

progress and prosperity of the country. National Accountability Bureau (NAB) was

established to eradicate corruption and to recover looted money from corrupt

elements and deposit in national exchequer. NAB through its “Accountability for

All” policy not only apprehended big fish, besides recovering looted money in

billions and deposited the looted money in the national exchequer.

(www.nab.gov.pk).

11

http://www.nab.gov.pk/

IFAC and ICAEW Release First

Installment of Six-Part Anti-Money

Laundering Educational Series

Segment Provides Introduction to

Anti-Money Laundering (AML) for

Professional Accountants. Together

with ICAEW, The International

Federation of Accountants (IFAC)

today released the first installment in

its Anti-Money Laundering: The Basics

educational series: Installment 1:

Introduction to Anti-Money

Laundering for Professional

Accountants. The publication is part of

a 6-month short series helping

professional accountants enhance

their understanding of how money

laundering works, the risks they face,

and what they can do to mitigate

these risks and make a positive

contribution to the public interest.

The series, with its focus on

accessibility and ease of use, will be a

resource for Small and Medium

Practices (SMPs,) and accountants less

familiar with AML, while also

providing guidance for those looking

for a quick refresher or reference.

(www.ifac.org).

Articles are welcome from any individual, whether an IFAP member or not. For inclusion on the next issue of “The Forensic

Accountant Pakistan”, fax or email us articles, case studies, papers, opinion, research or related material: Fax: +92 51 234

4058, or emails: - [email protected], [email protected]

IFAP Research and Publications Committee

Dr. Tahir Iqbal (FFA)

Dr. Majid Latif Bhatti (FFA)

Mr. Malik Imran (FFA)

Mr. Masood Ahmed (FFA)

Mr. Syed Faisal Hassan (AFA)

Mr. Imran Nawaz (AFA)

The Institute of Forensic Accountants of Pakistan (IFAP)

Head Office

Office # 01, First Floor, Selex Center, Plot # 25-A

Opposite Virtual University Campus, G-10 Markaz

Islamabad -Pakistan

Tel: +92 51 235 5056

Fax: +92 51 234 4058

Cell: +92 300 531 3597

Cell: +92 336 320 4185

Website: www.ifap.org.pk


United Arab Emirates Chapter

Office # 1301, Opal Tower, Burj Khalifa Street, Business

Bay, Dubai-UAE

Tel: +971 4 589 7073

Cell: +971 55 511 6556

Website: www.ifap.org.pk


Disclaimer: The contents of this Newsletter are the copyright of The Institute of Forensic Accountants of Pakistan (IFAP), whose permission is necessary for reproduction in whole or in part. The Institute reserves the right to refuse any matter of advertisement detrimental to the interest of the Institute. The decision of the Editor in this regard will be final.

IFAC Calls for Creation of an International Sustainability Standards Board

Alongside the International Accounting Standards Board (IASB)

New Board to Build on Important Initiatives Already Underway; Critical

Objective Is a Global System of Interconnected Corporate Reporting. IFAC, the

global voice of the accountancy profession, today called for the creation of a

new sustainability standards board that would exist alongside the IASB under

the IFRS Foundation. The proposed board would address the urgent and

growing demand from investors, policy makers and regulators for a reporting

system that delivers consistent, comparable, reliable, and assured information

relevant to enterprise value creation, sustainable development and evolving

stakeholder expectations.

IFAC Endorses Joint Statement from the Secretariats of the International

Organizations

Earlier today, the Organization for Economic Co-operation and Development

(OECD) hosted the seventh annual meeting of the Partnership of International

Organizations for Effective International Rulemaking (IO Partnership). The

meeting concluded with the publication of a Joint Statement of International

Organizations in Support of Effective International Rulemaking. Signed by

nearly 50 major international organizations, as diverse as the World Health

Organization (WHO), World Trade Organization (WTO), United Nations

Educational, Scientific and Cultural Organization (UNESCO), the International

Energy Agency (IEA), and the International Organization for Securities

Commissions (IOSCO), the Joint Statement reiterates the central role that

international organizations play in promoting the global public good, tackling

trans boundary issues, and achieving the United Nations Sustainable

Development Goals (SDGs).

12


SEP 2020 - Institute of Forensic Accountants of Pakistan

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