Forensic Accounting

Forensic accounting is a detailed review of financial, accounting, tax, banking and other documents in order to investigate the finances of an individual or a business. It combines the analysis of all these areas to address issues. The results of the forensic review can help with settlement negotiations or if needed, can be used in court as expert evidence. Forensic Accounting Surrey.

Auditing involves checking that the financial statements or reports are supported by accounting records which represent financial transactions. Auditing checks that the appropriate accounting principles have been applied to represent the financial transactions in the financial statements. Forensic accounting or forensic auditing involves the review of the financial statements, accounting records, etc. to address an allegation or resolve a dispute. The pupose of which is to obtain evidence which can be used in court, if necessary. 

Sometimes the issue relating to a forensic accounting investigation may involve fraudulent activity, but most often it relates to a dispute or misunderstanding between parties regarding how funds were used by an individual, a partner or within a corporation. 

The biggest challenge is understanding the relevance of information and organizing documents to create a meaningful conclusion or pattern. With training and experience, we can sift through the information to obtain the most important and relevant information that can be overwhelming to an untrained individual. 

 Sample Cases:

1. Shareholder dispute: Two shareholders had a falling out and needed to understand how each shareholder benefited financially from the business in order to fairly compensate themselves when they parted ways. Our expert report assisted the shareholders in settling their dispute.
2. Divorce dispute: One party required an understanding of how funds were dissipated during the marriage. Our expert report assisted the parties in arriving at a settlement of their finances.
3. Estate litigation: The beneficiaries of an estate questioned how estate funds were managed by the power of attorney/executor. Our expert report assisted in the settlement of the estate and determination of the beneficiaries' claims.   
4. Construction claims: An investor questioned the profitability of a real estate development project that was less profitable than expected. Our expert report supported the fact that the project was more profitable than reported to the investor.
5. Class Action: We prepared financial calculations in a large class action case which led to a mediation settlement for a number of the defendants.
6. Breach of contract: Two corporations were in dispute regarding compliance with their contract regarding the extraction of minerals from a mine. Our expert report resulted in a settlement of over-payment from one corporation to the other.