Forensic Accountant

Forensic Accountant

Introduction

Forensic accountancy applies accounting, auditing, and investigative techniques to legal disputes. A forensic accountant analyses complex financial information to assist the court in understanding matters such as fraud, valuation, or loss. Experts in this field are usually chartered accountants or chartered management accountants (for example, FCMA or CGMA) and may also hold professional memberships such as the Academy of Experts (MAE) or the Expert Witness Institute (MEWI).

Their overriding duty is to the court, not the instructing party. Under Civil Procedure Rules Part 35, Family Procedure Rules Part 25, and Criminal Procedure Rules Part 19, the expert must act independently, remain objective, and ensure reports meet the standards required for admissible expert evidence.

Typical Case Types

Forensic accountants are instructed across all jurisdictions:

  • Criminal Court: Examination of financial crimes including fraud, money laundering, proceeds of crime (POCA) assessments, and unauthorised financial activity. The expert may trace assets, quantify criminal benefit, and analyse financial records to test the prosecution’s case.

  • Civil Court: Calculation of financial loss in matters such as breach of contract, professional negligence, or business interruption. Experts quantify loss of profits, assess damages, or value businesses in shareholder or partnership disputes. They also contribute to personal injury and clinical negligence cases by calculating loss of earnings or pension rights.

  • Family Court: In divorce and financial remedy proceedings, forensic accountants provide single joint expert valuations of businesses, trace hidden assets, and consider tax implications to support fair division of assets.

Role of the Expert Witness

The forensic accountant provides an independent opinion on financial matters requiring specialist knowledge. Typical concepts include:

  • Quantum of loss – the monetary value of damage or harm;

  • Business valuation – assessment of a company’s worth using accepted financial methods;

  • Consequential loss – indirect loss such as lost opportunity or future profit.


The expert’s analysis transforms complex data into clear, comprehensible evidence. By remaining impartial and transparent, the forensic accountant assists the court in understanding the financial reality of a case and often helps narrow the issues in dispute between parties.

Evidence and Reporting

Work begins with examination of accounts, ledgers, tax records, and supporting documents. Using recognised accounting principles, the expert reconstructs transactions, identifies discrepancies, and quantifies loss. The findings are presented in a court-compliant expert report, typically including:

  • Instructions and background;

  • Expert qualifications;

  • Documents reviewed;

  • Methodology and assumptions;

  • Analysis and calculations;

  • Findings and opinion;

  • A statement of truth confirming compliance with procedural rules.


Experts may meet to prepare a joint statement setting out areas of agreement or disagreement. When required to give oral evidence, the forensic accountant explains their findings in plain language and answers cross-examination questions objectively.