Forensic accounting is essentially the integration of accounting, auditing and investigative skills that provides an accounting analysis which will form the basis for discussion, debate and ultimately dispute resolution.
Forensic accounting therefore encompasses both litigation support and investigative accounting. Forensic accountants are trained, largely as a result of many years of experience, to look beyond the numbers and deal with the business reality of the situation.
Litigation support deals primarily with issues related to the quantification of economic damages. The typical litigation support assignment we are involved with is in calculating the economic loss resulting from a breach of contract e.g. a claim for breach of warranty, pursuant to the provisions of an Agreement of Sale and Purchase of a business.
Investigative accounting is often associated with investigations of criminal matters. A typical investigative accounting assignment would be an investigation of employee theft. We have received instructions in a number of cases in recent years, and in one notable case, our evidence in a civil proceeding was used by the police as part of their criminal prosecution.
