Forensic Accountant as Expert Witness in Litigation

Forensic Accounting 1
FORENSIC ACCOUNTANT AS EXPERT WITNESS IN LITIGATION
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Forensic Accounting 2
Forensic Accountant as Expert Witness in Litigation
Introduction
Forensic accountants are experts in examining financial records of organizations or
individuals with the aim of establishing evidence that could be utilized in litigation. The use
their accounting and forensic skills to investigate fraudulent practices such as money
laundering (Özkul & Pamukçu, 2012). Their skills is also much useful in tracing and
recovering missing financial and physical assets. The forensic accountancy profession is
highly demanding and also equally rewarding. A Forensic accountant should possess strong
analytical and problem solving skills. Majority of the investigations conducted by forensic
accountants culminate in to judicial proceedings and hence forensic accountants work closely
with legal professionals (Okoye & Gbegi, 2013). The forensic accountant acts as an expert
witness in litigation proceedings. Therefore, they are expected to conduct themselves with
greater professionalism compared to non-expert witnesses. This research shall discuss the
topic of forensic accountants as eye witness in litigation. These include the relevant
regulation that include case laws, statutes relevant to the role of a forensic account as an
expert witness in litigation.
What does Forensic accounting Involve?
Forensic accountants play a critical role in providing support during legal
proceedings. This involves the provision of assistance of an accounting nature in a matter
involving existing or pending litigation (Kelly, 2011). It’s scope in litigation involves
assisting in quantifying of economic losses. Therefore, a model litigation support assignment
would include calculating the economic loss resulting from a breach of contract by a party.
However, it is worth noting that it also extends to other areas such as valuations, tracing of

Forensic Accounting 3
stolen assets, recovery of revenues, accounting reconstruction and financial statement
analysis. The accountants work very closely with lawyers in matters such as contract
disputes, insurance claims, royalty dispute scrutiny, shareholders disputes and intellectual
property claims. Forensic accounting also involves investigative accounting which is
concerned with inquiry of issue of criminal nature (Jones, 2011). The common examples of
forensic accounting jobs include employee fraud, securities fraud, insurance fraud and
kickbacks. These kinds of fraud are common in government and in the private sector as well.
Commonly, both litigation support and investigative accounting are needed in every single
litigation assignment.
Why are accountants useful as witnesses?
The legal system is created to deliver justice as per constitutional and legal
requirements. It is mandated to solve disputes in a just manner in order to protect the rights of
all. The system also promotes proper social conduct, political and economic stability of
countries. Therefore, to achieve this objectives, there is need to work in collaboration with
experts in the areas of litigation. Forensic accountants are experts in areas of valuations,
taxation and financial fraud. Therefore, they are useful in the court of law in investigating
cases of money laundering, property conflicts, corporate fraud and other cases of financial
nature (Heitger & Greer, 2018). The judges presiding over the hearings are therefore able to
make conclusive recommendations based on the evidence presented to the court by the
forensic accountant. The parties to the case get a fair ruling on the size of bond and
punishment placed upon them. The judges will also get the benefit of hearing financial issues
presented to them in simple non-accounting jargon without loss of meaning since forensic
accountants are skilled in putting them in simple language.