Forensic accounting and business valuation often play integral roles in litigation. Here are four types of cases where a financial expert can be of particular assistance to attorneys.
1. Shareholder disputes/partnership dissolutions
Valuation experts can assist in determining a fair value for an owner’s stake in the business. Or, fraud experts can determine if malfeasance has occurred.
2. Damage claims/lost earnings for corporations and individuals
Whether it involves working for the plaintiff side or the defense, a CPA can assist in either the calculation or critique of damages for your client or client’s business for any number of circumstances.
CPAs with the necessary credentials – CFE, CIA, CVA FCPA, ABV and/or ASA – are familiar with court-accepted damage claim methods and the reports that are required to support these calculations.
3. Bankruptcy and fraudulent conveyance actions
A CPA can assist trustees and their counsel with bankruptcy-related issues, including finding and recovering hidden assets, identifying fraudulent conveyances and even filing the monthly reports for operating entities in bankruptcy.
4. Fraud and forensic analysis
If a client has become a victim of embezzlement or fraud, certified fraud examiners can assist in determining what happened, who is responsible and the extent of the exposure.
Their work product can be used in civil proceedings against the identified perpetrators or by authorities in a criminal action.