General and Special Standards for Forensic Accountants

In the book Forensic Accounting and Investigative Auditing by Tuanakotta (2014) there are general and
specific standards for forensic accountants adapted from Thornhill's book, Forensic Accounting: How to
Investigate Financial Fraud, namely:
1. Independence: Forensic Accountants must be independent in carrying out their duties.
A. Line of Accountability
2. Objectivity: Forensic Accountants must be objective (impartial) in carrying out their forensic accounting
studies.
3. Professional Skills: Forensic accounting must be carried out with professional skill and care.
A. Human Resources
B. Knowledge, Experience, Expertise and Discipline
C. Supervision
D. Compliance with Standards of Conduct
e. Human Relations
F. Communication
G. Continuing Education
H. Professional Caution
4. Scope of Assignment: Forensic accountants must properly understand the assignment they receive. He
should review the assignment carefully to determine whether it is professionally acceptable, and whether he
has the necessary skills or can obtain resources that do. The scope of this assignment is stated in the
contract.
A. Reliability of Information
B. Compliance with Policies, Plans, Procedures and Legal Provisions
C. Asset Security
D. Efficient and Economical Use of Resources
5. Implementation of Study Assignments
A. Problem Formulation and Evaluation
B. Planning
C. Evidence Collection
D. Evaluation of Evidence
e. Communicate Assignment Results
The Association defines three key branches of the Fraud Tree: (i) asset mis- appropriation; (ii) corruption,
and (iii) fraudulent reporting.

Fosa and Cosa Fraud audits consist of the first two components, proactive fraud audits, which are outside
the umbrella of forensic accounting. Meanwhile, the second component, investigative audit, is part of
forensic accounting. Proactive fraud audit In a proactive fraud audit, some use a system review, because
in this fraud audit a system review is carried out with the aim of identifying the potential or risk of fraud
occurring. In information studies, the study of a system to find out weaknesses in the system is called a
systems audit, where the orientation and aim is to identify the risk of fraud with the term fraud-oriented
system audit (FOSA). The term FOSA is used for system studies that aim to identify potential fraud in
general. Meanwhile, the term COSA is used for system studies which aim to identify potential corruption in
specific terms. FOSA is carried out by the organization itself. In private companies, FOSA is carried out by
internal auditors and the legal department or units below the director of compliance, or other units
appointed by the audit committee. Systematics of FOSA or COSA Consists of three boxes which illustrate
the three steps in FOSA, namely: 1. Assessing the potential or risk of fraud 2. Analyzing the potential or
risk of fraud 3. Assessing the risk or potential of fraud