Factual Finding
Definition
A statement supported directly by identified source documents, such as a specific transaction recorded in a ledger, which the report can prove by exhibit without requiring inference or judgment.
- Report section
- Forensic accounting report
- Support required
- Identified source documents
- Example
- A specific transaction recorded in a ledger
- Distinguishing feature
- Provable by exhibit, no inference or judgment needed
Common questions
Why does separating factual findings from opinions matter in a forensic accounting report?+
Factual findings can be verified directly against the underlying documents and are much harder for opposing counsel to challenge, so clearly separating them from the accountant's interpretive conclusions strengthens the report and lets the reader see exactly what is documented versus what is professional judgment.
Can a factual finding become the basis for an opinion elsewhere in the report?+
Yes, opinions are typically built by drawing inferences across multiple factual findings, such as concluding a pattern of transactions indicates concealment, but the report should keep the underlying factual findings and the resulting opinion clearly distinguished.
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