Expert Witnesses in Fraud Cases

Fraud cases of any kind can damage a business, but there are ways to manage the repercussions. One of the most potent is to have a skilled CPA act as an expert witness in your court case.

 Fraud can cost a company millions, even billions. When a company discovers that it has been defrauded it causes widespread repercussions, with inordinate damage done by a single employee, a small group of employees or by a partner organization. This damage goes far beyond the immediate financial cost of the fraud, involving a hit to public image and stock price, loss of confidence internally, and potentially even liability issues if the fraud affected your contracts with other companies. In some cases it can even bring legal penalties. No matter what the likely repercussions of a fraud case are, it's vital to prove that your company was the victim of the fraud and acted in good faith. To do that, you will want a CPA expert witness.

When most people think of a CPA, “expert witness” is not what comes to mind. We think of CPA's as the people who keep our books, prepare us for taxes and audits, and advise us on best practices. But in litigation following a fraud investigation, a CPA expert witness is among the strongest tools you an have. Here's why:

• Authoritative. CPA's go through extensive training and licensing and are held to strict ethical standards. They are authorities on bookkeeping and their professional appraisal of discrepancies and irregularities carries weight both to judges and juries.
  
  
• Objective. When an executive of your company testifies, they are always seen as a biased witness to some extent. A CPA serving as an expert witness is more independent, even if they were retained by your company. Their opinion is often seen as objective.
  
  
• More relatable than data. An attorney can go before the court and present hard data that proves your case – but that doesn't mean it will be easy to understand or relate to. Charts, graphs and numbers might be the final proof of what happened, but a CPA puts a face to the data and can explain the story that the numbers tell.

                              
                        

However, not all CPA's are equally qualified. In order to be useful as an expert witness in a fraud case, a CPA should be well versed not only in forensic accounting but in litigation and what is expected in a courtroom.

Fraud is always damaging, but like any crisis in business it can be managed and mitigated. Utilizing a knowledgeable  CPA expert witness is one of the surest ways to do that.For more information click here!