EXPLAINED: Forensics & Litigation

Forensic Accountant’s skillsets include an understanding of the legal process, investigative techniques, financial analysis, accounting procedures, and common business practices. The focus is on the reporting, but with the understanding that numbers are symbols that can represent broad patterns of activity, and that the ultimate goal is to understand, simplify, and explain what really happened in a business. A good forensic accountant will start with the accounting data, but will go beyond the numbers and ledgers and reports and focus on the underlying realities of the business. Forensic accountants must be curious, observant, persistent, and able to detect abnormalities in patterns. Usually they are looking for something that was intentionally hidden, and the path to finding it goes through circumstantial evidence or pulling on loose threads to see what unravels.

Forensic Analysis includes the following:

  • Reconstruct Accounting Record
  • Fraud Examination / Investigation
  • Analysis of financial data
  • Bank or lender audits
  • Identification and location of hidden assets
  • Quantification of damages or losses sustained
  • Evaluation of claimed losses or damages
  • Evaluate internal controls and recommended changes to strengthen them
  • Forensic review of tax returns
  • Life style audits to assess the likelihood of hidden assets
  • Expert witness testimony

This is achieved by:

  1. Fully understanding the theory of the case
  2. Determining what evidence, data and information is relevant, where it exists, how best to obtain it, and the cost / benefit ratio of using it. This determination is case-specific and depends on the theory of the case, the parties involved, and other facts and circumstances
  3. Applying knowledge, expertise, and experience in conducting interviews, reviewing data, analyzing information, making observations, and forming opinions
  4. Documenting and presenting expert opinions and the underlying basis for forming those opinions
  5. Assisting the case attorneys with negotiation, deposition, and trial preparation
  6. Preparing for and testifying, if necessary, to support the analysis

When a case is not able to settle, KCP is able to organize and understand the evidence required for discovery and trial, present it in a compelling expert report, and testify to the facts and opinions in a manner that conveys the quality, relevance, and integrity of both the evidence and the manner in which it was analyzed.

Financial experts require the quantitative skills to undertake and perform the numerical analysis necessary to develop the technical evidence required in complex cases. They also require the understanding of human nature – how parties to the case are likely to have acted, what impact that has on the evidence, and how the parties are likely to respond to the presentation of the evidence. The human elements are often as important as the numerical aspects of the case, if not more so.

Specialty Areas include, but are not limited to, Forensic Accounting/Fraud Investigation, Insolvency, Professional Malpractice, Lost Profit Analysis, Contract Disputes, Shareholder Disputes, Pre-case Assessments, and Internal Control.

If you wish to speak with one of our consultants about Forensic Analysis or Litigation Support, please CLICK HERE to contact KCP today.