Forensic accountants examine financial statements, tax returns, and business records to calculate lost profits, trace transactions, value businesses, and identify irregularities. They apply accounting standards to litigation questions.
Credentials include CPA and specialized forensic certifications.
Alternative Names:
Forensic Accounting Expert, Financial Forensics Expert
Why it Matters?
Lost profits calculations are where these opinions are most vulnerable, because projecting what a business would have earned requires assumptions about growth, market conditions, and expenses that the historical record may not support. New and unprofitable businesses present particular problems, since there is no baseline from which to project. Comparing the projection against actual performance in comparable periods is the standard check.
Frequently Confused with
Related terms
Frequently asked questions
Where are lost profits opinions vulnerable?
What is the standard check?
