Forensic Accountant Expert Witness Evaluations of Lost Income
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Accountant expert witnesses are necessary for a number of monetary issues within a company, but forensic accountants have the ability to take apart the entire operation and understand the minutiae of the numbers much better. These professionals have tasks to evaluate lost income and discover where it has disappeared to and if the business is engaging in illegal activities.
A loss of income usually occurs due to unforeseen circumstances. This usually happens when less income from a revenue stream pans out and what was a normal expectation provided less funds than standard in the company. The experts in these matters may provide details that explain away the problem or for more information about financial and corporate accounting concerns. Investigations into the accounting issues could increase or decrease suspicion, and a forensic accountant often has the experience and knowledge to give the plaintiff more data about the complication that caused economic loss. The injury to a financial matter may show how the defendant is liable for damages to the victim.
Forensic Accounting ExplainedA forensic accounting expert is often necessary for a case where fraud or embezzlement occurs against a company or individual that owns a business. These professionals analyze financial data for legal proceedings with a plaintiff that sustained injury due to the actions of the perpetrator. The expert’s hire become important to prove the claim and explain the complicated and confusing details of financial and accounting concerns. If fraud occurs due to accounting activity, the expert may need to break down the numbers and demonstrate how the defendant committed the crime. While criminal proceedings are also possible, the litigation happens so the company or individual may acquire compensation for the economic or financial losses.
Lost Income Due to Certain FactorsThe need for an expert witness increases significantly when a company has lost a large amount of revenue due to fraud or embezzlement. The expert hired for these situations may need to analyze the financial and electronic data to determine how the individual accomplished the crime. Based on various elements, the expert may discover the means and where the funds disappeared to after funneled out of the company. Then, it is important to prove this in court. Testifying before a judge or jury will require detailed explanations with words that unravel the confusing numbers and statements. Then, the judge or jury will have the information necessary to deliberate.
Tasks of the Expert WitnessOnce the professional is able to analyze and evaluate the lost income along with the factors affecting the company, it is possible to discover how the money transfer occurred. Some experts with a background in forensic accounting may need additional education in computers and software to work a case of lost income. If the company has moved to computer processes to keep track of income, the professional may need several hours sifting through pages of electronic data. Looking through books or a computer, the expert will need to decipher the information available to perform his or her duties for the plaintiff.
Expert forensic accountant expert witnesses may need to explain how lost income is due to an employee, owner of the company or through actions of the business. Various issues with interruptions in business transactions, problems in compensation plans, calculations in damage and numerous other problems may occur within the company. Debt and lost profits are possible based on the actions of the employer or workers in the organization. Any problems in a merger or acquisition could also cause a loss of income for the entire company. False or incorrect forecasting could cost the business greatly if there is no make up for the lost revenue. Lawsuits with contract breaches and other complications could also hemorrhage funds from the entity.
Presenting Testimony for Loss of IncomeOnce the expert is able to evaluate the lost income and understand how it occurred, he or she may present testimony on his or her opinions. These details may also include how to fix the issue if compensation from the culprit is not enough to recover. However, when explaining these facts to the judge or jury, the professional may need to connect the incident to the defendant. It is important for the case to succeed so that the company is able to acquire the necessary compensation for the fraud, embezzlement or damage of funds from the company. With strength of testimony and a confident manner, this is possible for the expert to project.
Provided by HG.org
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.