ACCOUNTANTS IN MANCHESTER

Forensic accounting

Brian Spence heads up our forensic accounting unit.  He is a fellow of the Institute of Chartered Accountants in England and Wales, a member of The Academy of Experts, a member of the Chartered Institute of Arbitrators and Vice Chairman of NIFA – the Network of Independent Forensic Accountants.

He has dealt with every type of forensic accounting assignment, has appeared in court and been cross-examined, has been appointed on three occasions as an arbitrator by the President of the Institute of Chartered Accountants in England and Wales and has acted as a single joint expert.  He is registered as a financial coach with the Manchester Pod of Resolution – a group of matrimonial lawyers who have adopted the collaborative law approach to divorce cases.

Montpelier’s experts are:

            Knowledgeable                  Articulate                  Credible

            Reliable                                 Experienced                        Unbiased

They are fully trained and experienced in the CPR (Civil Procedure Rules).

The benefits to you

-                                              We always provide a free initial consultation during which our role can be defined;

-                                              We guarantee a very quick response;

-                                              We apply lateral thinking to cases which can open avenues of legal argument not previously apparent;

-                                              Our reports are layman-friendly but authoritative.

What is forensic accounting?

For better or for worse our society is becoming increasingly litigious and accountants are frequently asked to assist clients in legal disputes.  That is why Forensic Accounting is also referred to as Litigation Support – the accountant assists one of the parties engaged in litigation. 

The professional training of qualified accountants, with its insistence on integrity, objectivity, professionalism and detailed knowledge, coupled with their wide ranging experience, means that accountants are well placed to help.   

The accountant’s role is normally concerned with quantifying or disputing the amount of loss suffered or giving an opinion as to the value of a business.  An accountant could be asked to act for either the Claimant or the Defendant. Sometimes the accountant is asked to advise initially, before litigation commences.

The Forensic Accountant requires a detailed knowledge of the subject matter of the specific dispute, an attention to detail and considerable practical experience, not just of accounting and tax, but also of how the legal system works and of the rules governing expert witnesses.

Preparing the “Accounting Expert’s Report” is a crucial element of all forensic accounting cases.  This report sets out the financial evidence that will be presented to the court to assist it to reach a decision.  If the dispute goes to court, then the forensic accountant will be cross-examined on the report by the opposing barrister.

Being cross-examined in court is rarely pleasant and it is tremendously important for the forensic accountant to bear in mind from the outset the possibility of being cross-examined.  Experience of appearing in court and of being cross-examined are vital attributes of the forensic accountant. 

Fortunately most cases are settled out of court and appearance as an expert witness is not always necessary.

Valuations of private businesses (sole traders, partnerships, limited and unlimited companies) may be needed for Capital Gains Tax purposes or where a shareholder/partner or owner wishes to sell his shares and leave the business.  There are different bases and methods for valuing the shares and the accountant needs to be well versed in share valuation practice and law.  Share valuations are often needed for shareholder disputes and in divorce.  Valuation is not an exact science – it has been said that the value of a share in a business is what it can be argued to be!  It’s a skill, not a science.

Usually a forensic accountant is asked not only to quantify the loss suffered by a claimant but also to assist in providing evidence that another accountant was negligent.  Common areas of negligence arise in taxation, share valuation, auditing and corporate finance.

The Forensic Accountant could be asked to quantify the past and future losses suffered by a claimant, usually as a result of an accident or medical negligence.  Alternatively an accountant might be asked to dispute the claim by examining the assumptions and calculations.

Commercial disputes

We have extensive experience of commercial litigation – consequential loss, breach of contract, partnership disputes, agency termination and valuation.

An accountant’s knowledge of bookkeeping and accounting, coupled with wide ranging experience of different accounting and internal control systems, is a formidable tool in unearthing or proving fraud.  Confiscation orders are increasingly frequent sources of work, alongside retail and employee fraud.

The need for independent financial advice “IFA”

There is a growing need for Financial Services advice in the areas of divorce, personal and fatal injury cases.  In matrimonial disputes advice may be needed on the preferred solution for pension provision and also on how the receiving spouse should invest any sums received.

In personal injury cases advice will be needed on the split between a lump sum, covering past loss and accommodation costs, and periodical payments for future loss. 

Choosing an expert who can call upon in-house IFA guidance is essential.  The Montpelier Group includes one of the largest, privately owned IFA organisations in the UK.