Five reasons why your lawyer may suggest a forensic accountant
Forensic accountants investigate fraud and financial misrepresentation. Lawyers will often seek the expertise of a forensic accountant in legal proceedings that involve areas such as corporate work, litigation, loss of profit claims, proceeds of crime reports and divorce.
Enlisting a forensic accountant allows for financial records and accounts to be examined thoroughly, which can then be used as legal evidence in court. Such evidence typically involves a written report, but may also include the delivery of expert witness testimony in court cases.
The importance of a forensic accountant cannot be understated, as their involvement in a court case could be the difference between success and failure. Read on to discover the main reasons why your lawyer may suggest a forensic accountant.
1. Divorce proceedings
Forensic accountants are able to use their investigative skills to take a deeper look into finances and identify any discrepancies. Although it is the court’s decision to divide assets in a divorce, the information collected by your forensic accountant can help provide a more accurate picture of your family’s finances and help you achieve a fairer settlement.
They can also reduce the emotional impact and stress on the parties involved in your divorce while speeding up the process at the same time.
2. Corporate work
If a business is open to fraud, it can be difficult for customers to trust it, and it may cause irreversible damage to their brand name. Forensic accounting uses investigative techniques to uncover fraud, embezzlement and other financial crimes within a business. Therefore, enlisting the help of a forensic accountant is vital to making sure that potential fraud risks are removed.
GET IN TOUCH WITH US TO FIND OUT MORE
3. Litigation
Litigation and forensic accounting often go hand-in-hand. Legal disputes involving money, such as theft, deception or bribery, often require the enlistment of a forensic accountant. They are able to find things that are often overlooked in a standard financial review. This means that they can assist with providing crucial information that could help with a case.
The information that has been gathered can often be transferred to a fully evidence-based report. This is admissible in court and could help improve your chances in litigation proceedings.
4. Loss of profit claims
Lost profit is economic damage that is caused by disturbances in business operations. Calculating these lost profits can be difficult without the necessary expertise. Forensic accountants are able to help with this, as they can conduct calculations to estimate how the business would have performed had there been no incident.
Every case is different, and the steps it takes to calculate the damages depend on the facts of the situation. Forensic accounting ensures a good understanding of the income and expense statements. This can lead to more accurate estimates.
5. Proceeds of crime reports
Proceeds of crime are money or assets gained through criminal activity, such as selling illegal products. Solicitors can enlist the help of a forensic accountant to assist in a fair and balanced approach to calculating the recoverable total. They can also trace payments between multiple sources and prove their legitimacy. Without a forensic accountant, there may be mistakes, such as numerical inaccuracies and double counting, that can negatively affect the defendant.
The main focus of a forensic accountant is to find out whether a crime occurred and assess the likelihood of criminal intent. This is to bring about a fair trial for the defendant.
Learn more about forensic accounting
If you want to learn more about how forensic accounting could help with your court case, please ask your lawyer and request that they contact one of our advisers who can offer their expertise.
Get in touch with Alexander and Co’s expert accountants and let us help you with your case.
