Commentary: Maximizing the use of forensic accountants at trial

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By Erin West and Timothy Koechel

Forensic accountants have long been a valuable resource to attorneys, but their value in the trial process has grown in recent years as instances of fraud become more frequent and complex.

In order to make the most of a forensic accountant’s services, however, attorneys need to be clear what cases will most benefit from their expertise.

In cases involving allegations of fraud, embezzlement or missing money, consulting with a forensic accountant can be a vital part of trial preparation. They can help sort through financial jargon, determine accurate calculations critical to a case and recreate fraudulent transactions, among other things.

Cases involving voluminous or completely disorganized financial records also can benefit from a forensic accountant. An accountant can determine which financial records are key, and organize the records and information to aid in the case.

In what may otherwise be an overwhelming morass of numbers and papers, a skilled accountant can help attorneys focus on those few transactions or documents that are the crux of the case. Similarly, in situations where information may be sparse or absent, and funds may have been concealed or are simply difficult to find because of poorly maintained records, accountants can help uncover that hidden money.

If you have a case that would benefit from a forensic accountant’s assistance, the next step is to strategically employ their services to get the most out of the collaboration. Keep in mind that accountants, like attorneys, often specialize in specific areas. Have an understanding of the type of subject matter in your case so you can collaborate with an accountant best suited to that area of expertise.

Once you find the right type of accountant, it is important to establish objectives and ground rules for your work together. Specify the type of report you need the accountant to prepare and share your end goals to ensure they are met. Set forth clear standards regarding deadlines and costs so your expectations are clear from the start.  Written engagement agreements with the accountant will minimize misunderstandings over the cost or objective of the services you seek.

With the right objectives in place, forensic accountants can then benefit trial teams in various stages of the litigation process.

In the initial investigation stages of a case, prior to litigation, an accountant’s analysis can help attorneys and their clients make an informed decision about whether there are viable claims to pursue. Gaining this early understanding of the case can be particularly useful as a bargaining chip to push the opposing party toward settlement.

During the discovery phase of litigation, a forensic accountant can assist in piecing together financial records as they come in from an opposing party. The accountant can help guide discovery requests to maximize the production of pertinent information and documentation.  Forensic accountants also can be used as a resource to combat the opinions and evaluations of an accountant employed by the opposing party.

In fact, if an opposing party has hired an accountant, it is probably a good idea to employ one, as well. Your accountant can review and critique the opposing party’s accountant to provide ammunition for cross examination or strategy.

With respect to lay witnesses, your accountant can help focus questioning to achieve the objective you desire.

Once at trial, in cases involving complex financial fraud or embezzlement, the accountant tells a vital piece of the story.

You should use your accountant as a witness to help explain the financial transactions and financial evidence to the jury or the judge.

Attorneys usually get only one shot to tell their story at trial, so an accountant’s ability to connect the dots for the fact-finder is invaluable.

If the above guidelines are followed, a forensic attorney can provide the most value to a trial team by maximizing attorneys’ understanding, investigation and success at trial.