First, and most importantly, you have the child.  Who, for whatever reason, is not telling or not able to tell the truth concerning their relationship with the accused.  It will have an adverse psychological effect on the child, both in the present and later in life.  The impact on the child could ruin their life just as surly as if there was actual sexual abuse.

Second, you have the person who is making the false accusation.  That person could be an older child who is trying to hurt the accused for some reason.  If this is the case, the child needs professional counseling.  That person could be a parent, guardian, acquaintance, or some other caretaker of the child.  The accusation could stem from a malicious desire to hurt the accused.  If this is the case, it represents abuse of the child and should be dealt with as such.  This should be investigated by law enforcement and addressed by a competent professional therapist.  If the accusation is made by an hysterical person who believes they are acting in the best interest of the child this needs to be addressed in a manner that will put to rest that person's concerns.

Third, you have the person accused.  This accusation is a serious charge.  It will publicly humiliate them.  It will probably get that person fired from their job.  It could make it impossible for that person to find work.  It could cause trouble for their family.  Physical violence could result for the accused, either in jail or on the street, or even for their family.
 
VOFSAA proposes that standards are put in place for the handling of sexual abuse accusations.  The standards are simple.  What they would prevent is sloppy and/or improper interviews that may taint the testimony of the child.  Proper handling of the interview and everything else is far too important to the child and the accused.  It must be handled with the utmost professionalism and attention to detail.  This is one of the most serious charges that a person can bring against someone.