subject: Expert Evidence In Fraud Trials [print this page] All leading economies are being threatened by fraud. With economies suffering, cut backs will likely lead to many more frauds being discovered. Once investigated, this will mean many more court cases all having a need for expert accounting evidence to assist the judge and jury.
Frauds can be difficult to comprehend. The nature of a fraud is that it is hidden away until it is uncovered, often by chance. Criminal fraudsters are looking for ways to take in a way that will not be noticed. Or it might not be brought to light until they have moved on to another job. They are looking for a way to disguise illegal acts within the accounting records. Frauds often go undetected for a long time and many are likley never unearthed.
By hiding frauds within financial papers or computer programs, most people do not understand how they work. The accountant is more experienced in dealing with the confusing numbers and can follow the route taken by the missing money.
On discovery, a fraud will normally be investigated in order to prosecute the culprit - who will then be punished as an example to others. Particularly large frauds can be hard to prosecute owing to the complex nature of the financial activity. Generally courts do not understand the finer points of accounting that are being exploited by the fraudster.
An expert accounting witness is needed to present the confusing financial transactions behind the fraud in a way that can be easily understood by the non-accountant. They are much more than experts in accounting methods and practices - they must also be an expert in presenting the information. This can be in the form of a report but they must also be able to answer cross examination by the barristers and judge.
The person carrying out the fraud investigation is often a police officer. These capable investigators are highly competent at chasing the financial information and obtaining supporting evidence through interviewing suspects and other witnesses. However, they are often not able to present the complex money trails in a report that the court readily understands. This is the reason why the forensic accountant is asked to help in the more complex cases as an expert witness.
If a forensic accountant is brought in early to a case they can often reduce the amount of investigation work that the police do. Then, when the matter comes to court, the expert witness has a deeper understanding of the fraud and is better placed to help both sides understand the factual financial evidence by presenting a sound opinion on its interpretation.
