A forensic accountant is an expert accountant, who works on contentious matters that are likely to lead to legal proceedings, whether a tribunal or court case. Forensic accountants can support litigation by providing expert evidence and advice.

Many forensic accountants are also fraud investigators, supporting businesses to recover from instances of fraud.

Digital forensics works by identifying and analysing electronic data. When formatted correctly, this data can then be used to support legal cases in a court of law. The digital forensic services offered by Evelyn Partners can help recover, investigate and present electronic data.

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Forensic auditing is a specialist service offered by experienced accountancy practices. A forensic audit examines the records of a company or individual to identify evidence that could support a legal case. It may bring to light financial statement fraud, conflicts of interest or other suspected corruption, for example.

Forensic accountants typically assist with historical events linked to a dispute or allegation of wrongdoing. Their forensic services can cover things like fraud, remedial accounting, and valuations of assets or lost earnings, for example in contractual disputes or divorce cases. 

Forensic accountants can provide a wide variety of services, such as:

• Preliminary case evaluation.
• Provision of an independent expert report for use in court.
• Assistance with complex financial disclosure requirements.
• Quantifying various scenarios or issues for mediation.
• Valuing a business, asset or shareholding under contentious circumstances.
• Reviewing a business for fraudulent activity.
• Quantifying lost earnings.
• Performing wide-ranging analysis of financial data, such as asset tracing and account restatement.

Forensic accounting solutions support a wide range of clients in the UK and overseas. Some examples include:

• People and entities in a shareholder dispute.
• People and entities suing another party for damages, for example for a breach of contract or warranty.
• People and entities involved with or accused of fraud, or impacted by the Proceeds of Crime Act.
• People and entities involved in or impacted by a professional negligence dispute.
• Individuals in a divorce proceeding who require an independent valuation of assets.
• People, entities and councils involved in a compulsory purchase order.

Forensic accountants can be engaged at any time, from a preliminary review to advise on potential outcomes to when a case is well established.

However, earlier engagement will allow us to provide more input into case management. For example, helping with understanding the merits of the claim with you and your solicitors, drafting of pleadings, disclosure requirements and quantum issues.   

Our forensic services team is regularly engaged in cases across the criminal, civil and family courts in the UK, and in various international commercial litigation forums. Cases involve various regulatory bodies and international competition authorities. 

Yes, our workstreams often have an international element. For example, our team has worked in jurisdictions including the UK, Channel Islands, US, Europe, Singapore, Brazil and India.

An expert witness provides an independent expert opinion, within their area of expertise, to assist a court in relation to disputed matters. An expert witness cannot act as an advocate. Their evidence on matters within their expertise is given more weight than evidence provided by witnesses that are a party to the proceedings.

It’s a good idea to contact a forensic accountant if you believe financial statements have been misstated. The forensic services team at Evelyn Partners has a range of specialisms. Depending on the nature of your concerns, we can:

• Perform investigations to identify whether fraud and/or error has caused a misstatement. We also have forensic technology experts who can ensure evidence is gathered and preserved in the manner required for any potential legal claim.
• Perform reviews of your financial statements to determine whether they were prepared in accordance with the relevant accounting standards. We have financial reporting experts in IFRS and UK GAAP, including each of the SORPs.
• Assist in considering whether there is a basis for an auditor negligence claim.
• Assist in determining restatements required in the financial statements.

Our disputes team works across a variety of cases, including:

• Loss of profit claims
• Breach of warranty cases
• Breach of contract cases
• Shareholder disputes
• International arbitration
• Providing preliminary advice in advance of litigation
• Professional negligence cases
• Financial reporting disputes
• Business valuations
• Claims for consequential losses
• Intellectual property disputes

We have provided our expertise in many areas of accounting (and/or the audit of that area), including IFRS and UK GAAP, across each of the SORPs. For example, we’ve provided expert opinion where:

• Assets have been fraudulently presented in the financial statements as being owned by the company when in fact they were not.
• There were significant unauthorised related party transactions which, had they been appropriately reflected in the financial statements, would have led to intervention by the board and losses avoided.
• Financial statements were drawn up using a going concern assumption when that assumption wasn’t valid.
• A company had overstated its assets using ‘cross firing’. This is where a business falsely records additional assets arising out of payments and receipts between related companies.