The Power of an Expert Witness Forensic Accountant

When financial questions sit at the heart of legal proceedings, the court may need an expert who can provide independent yet well-reasoned opinions presented clearly. They do not need an advocate for the position of whoever is paying them.

Inquesta Forensic was founded to do exactly that. An ICAEW member, Practising Member of the Academy of Experts, and a Certified Cryptocurrency Investigator, I personally handle every instruction, write every report, and attend court.

This guide outlines exactly what solicitors need to know when instructing a forensic accountant expert witness: the expert’s duty to the court under CPR Part 35, FPR Part 25, and CrimPR Part 19; the difference between a Single Joint Expert and a party-appointed expert, as well as when in proceedings an expert should be instructed.

What Does a Forensic Accountant Expert Witness Do?

An expert witness forensic accountant is a specialist who is instructed to provide testimony to assist in legal proceedings. Expert witnesses are qualified to assess financial records and translate complex data into findings which can be presented to a court. 

Forensic accountants are trained to look well beyond the numbers and instead consider other factors behind transactions, including: 

• Patterns of behaviour.
• Inconsistencies in the financial records.
• Supporting documents that verify the authenticity of transactions.
• The context in which transactions take place.
• The relationships between the parties involved.
• The flow of funds through accounts and entities.
• Quantitative data that gives further context.

The starting point for instruction of a forensic accounting expert witness is CPR rule 35.3, which states that the duty of experts is to help the court on matters within their expertise. This duty overrides any obligation to the person they are instructed by or paid by. The same obligation applies in family proceedings under FPR rule 25.3 and in criminal proceedings under CrimPR rule 19.2.

In practice, this means that if the financial analysis of a forensic accounting expert witness were to point against the position of the instructing party in any way, the expert is obligated to say so.   

Solicitors are sometimes required to decide at an early stage whether to involve a forensic accounting expert in a litigation support capacity or as a disclosed expert witness. The distinction between the two does matter because: 

• Litigation support work is advisory and is provided to the legal team.
• Expert witness work is disclosed, independent, and owes a duty to the court. 

Getting the structure right for your case from the outset avoids any potential complications down the line. 

If instructed early, a forensic accountant expert witness can provide substantial support at each stage of proceedings from disclosure through to trial. This also includes the production of a detailed expert witness report outlining their findings and views in a court-compliant format.

Types of Cases where a  Forensic Accountant Expert Witness may be required

From assisting in fraud investigations to providing expert evidence in lost profit claims and divorce settlements, I am instructed as a forensic accountant expert witness across a plethora of different matters. In each case, the role remains the same: to support the court and help to ensure it has the financial clarity needed to make well-informed decisions. 

Some common situations that may require an expert witness forensic accountant include: 

POCA Confiscation and Criminal Proceedings

My services as a forensic accountant expert witness are regularly required in confiscation proceedings under the Proceeds of Crime Act 2002. In confiscation, the role of the expert is typically to either challenge or verify the prosecution’s benefit figure, the available amount, or both.

The benefit figure and the available amount are often where the most significant disputes arise in confiscation proceedings requiring forensic accounting input. The prosecution’s initial figure frequently warrants challenge. However, the question is always what the evidence will support. 

Other related criminal matters that may require the expertise of a forensic accountant expert witness include: 

• VAT fraud investigations. 
• Investment fraud investigations. 
• Mortgage fraud investigations. 
• Money laundering. 
• Financial crime cases. 

As a Certified Cryptocurrency Investigator, I am also able to support cases involving crypto assets.

Business Valuation Disputes

In cases involving the sale of a company, disagreements between shareholders, or divorce proceedings, the expert witness can provide an independent opinion of the value of the business. Their testimony in court is often key to helping to ensure a fair division of assets and also helping to resolve the initial dispute with efficiency.

Fraud Investigations

When allegations of fraud arise, forensic accountants are often called upon and asked to trace suspicious transactions, identify financial patterns, and quantify financial loss. 

Forensic expert witnesses can then not only conduct the investigation, but also present their findings to the court. 

This testimony can have a lasting effect when it comes to both supporting and refuting claims made. 

Lost Profits Claims

Whether referring to a breach of contract or negligence case, the act of accurately calculating the profits lost can be difficult, while often being essential.

An expert witness can be key in lost profit cases to assess figures like financial projections, market conditions, and company records, while using this data to quantify and present claimed losses clearly to the court.

Insolvency Investigations

Forensic accountants will frequently act as expert witnesses in insolvency cases, particularly when the insolvency is considered to be contentious. Traditionally, they will be tasked with tracing assets, determining the cause of the issue, and looking for any wrongful action. 

However, their impartial testimony can also help the court decide if improper action actually contributed to the firm’s failure. 

Divorce and Matrimonial Disputes

During high-value divorces, forensic accounting expert witnesses will often be brought in to assess the value of complex assets, trace hidden funds, and provide expert reports to help to ensure that a fair settlement is reached. 

Their involvement can also assist in identifying discrepancies or evidence indicative of undisclosed assets.

Single Joint Expert vs Party-Appointed Forensic Accountant Expert Witness

How a forensic accountant expert witness is instructed depends entirely on the type of proceedings. In most financial remedy cases, the court will request the appointment of a Single Joint Expert (SJE). In criminal defence and more complex commercial litigation cases, party-appointed experts are commonplace.  

I have experience in both capacities, and also of acting as a shadow expert, where my work supports the legal team and is not disclosed as evidence.

Single Joint Expert

An SJE is appointed jointly by both parties involved in a dispute. In financial remedy proceedings, the court can direct under FPR rule 25.11 that expert evidence on an issue is given by a single joint expert, and in most cases it does. The principle is that expert evidence should remain proportionate, and that in most cases, one independent expert will suffice.

In cases where a Single Joint Expert is instructed, there will be a joint letter of instruction, unless the Court directs otherwise, and the SJE is responsible for answering all of them impartially. 

The obligation is to produce an independent opinion, not to find a compromise between the two parties’ positions. 

As part of the process, fees are typically shared equally. Though, in some cases, one party may pay more proportionally for the services, or pay for the expert entirely to act on behalf of both parties. 

Party-Appointed Expert Witness

A party-appointed expert witness forensic accountant is instructed independently by one side. This is the more common arrangement in criminal defence cases where the prosecution and defence may require independent financial investigations. 

In more complex commercial disputes, both parties will instruct their own expert. Each one analyses the same accounting records independently. Where methodologies or assumptions differ, their conclusions may diverge accordingly. 

Both experts remain objective. However, the questions they were asked, and the assumptions they were instructed to apply, will likely lead them to different conclusions.

Other situations where a party-appointed expert is considered appropriate include: 

• High-value financial remedy cases where the court accepts the issues are too complex for a Single Joint Expert. 
• Expert determination proceedings. 
• Arbitration proceedings. 
• Cases involving complex or disputed asset valuations where independent analysis is required by each party.

The fees to instruct a party-appointed expert are borne by the appointing party, and may not be fully recoverable, even if the case does succeed. 

I can advise on financial scope at the outset of a case, helping solicitors draft a letter of instruction that covers the right ground.   

Shadow Expert

A shadow expert supports a legal team without producing a disclosed report. The work remains confidential to the instructing party and does not form part of the formal evidence in proceedings.

Shadow experts are typically instructed at the pre-action stage, when a legal team needs an informed financial view before committing to formal expert witness instruction, or where the complexity of the matter warrants independent analysis that stays with the legal team.

I regularly take on shadow expert work and would be happy to discuss what that looks like in practice before any formal commitment is made.

CPR Part 35, FPR Part 25, and CrimPR Part 19: The Forensic Accounting Expert Witness Framework

The ultimate procedural framework by which forensic accountant expert witnesses are governed depends on the jurisdiction. Civil proceedings are governed by CPR Part 35 and Practice Direction 35. Family proceedings fall under FPR Part 25 and Practice Direction 25B. Finally, criminal proceedings are governed by CrimPR Part 19. 

CPR Part 35: Civil Proceedings

CPR rule 35.10 and Practice Direction 35 set out what a compliant forensic accountant expert witness report must contain. This includes:

• Qualifications of the expert.
• Relevant experience.
• A statement of all material instructions received, both written and oral.
• Facts and assumptions upon which any opinion is based, with a clear distinction between what falls within the expert’s own knowledge and what does not.
• Where a range of opinion exists on the matters covered, a summary of that range and the reasons for the expert’s own conclusion.
• A summary of conclusions.
• A statement of truth together with a declaration that the expert understands their duty to the court and has complied with it.

Note: the report must be addressed to the court, not to the instructing party.

Any report that falls short of these requirements risks being excluded or given reduced weight in proceedings. The most common failures are in not clearly distinguishing between facts presented and assumptions made, omitting the statement of truth, and failing to summarise the range of opinion on a given issue and explain why the expert’s own conclusion was preferred over alternatives.

In practice, reports that conflate facts with assumptions tend to draw the most sustained cross-examination. The methodology has to be clear and transparent enough for the other side’s expert to test it. 

FPR Part 25: Family Proceedings

Under FPR rule 25.4, expert evidence cannot be put before the court without the court’s permission. The court can only give permission if it considers the evidence necessary to assist it to resolve the proceedings.

CrimPR Part 19: Criminal Proceedings

In criminal matters, CrimPR Part 19 governs expert evidence and strictly imposes equivalent independence requirements to CPR Part 35. 

I am regularly instructed in criminal proceedings involving POCA confiscation, fraud, and money laundering.

What a Forensic Accounting Expert Witness Report Contains

A forensic accounting expert witness report is a formal legal document. Its structure is determined by the procedural rules applicable to the proceedings; CPR Part 35 for civil cases, FPR Part 25 for family matters, and CrimPR Part 19 for criminal proceedings. 

CrimPR Part 19 is the criminal courts’ equivalent of CPR Part 35 and imposes the same core independence requirements.

What the report actually contains will vary significantly from case to case. The following gives a general indication of what a forensic accounting expert witness report typically covers.

• Background and Scope:  The report will set out the background to the case, the parties involved, the key events that gave rise to the issues, and a clear statement of what the forensic accountant has been instructed to analyse.
• Methodology and Assumptions: The analytical methods used are described, along with any assumptions made during the analysis. For example, assumptions about market value, industry benchmarks, or corporate practices. Where a range of methodology exists, the report will explain why the approach taken was preferred.
• Evidence Reviewed: A full list of the documents and evidence examined. This includes financial statements, bank records, emails, contracts, and any other relevant material.
• Financial Analysis and Findings: The core of the report. This sets out the detailed calculations, asset tracing work, quantification of losses (or damages where applicable), and the rationale behind each figure.
• Expert Opinion and Conclusions: The forensic accountant’s professional opinion on the findings. This will include what they establish, what they invalidate, and what they mean for the matters under consideration.
• Supporting Documentation: Copies of key documents, calculations, and any other material referenced within the report.

The purpose of the report is to present structured financial evidence in a form the court can follow and rely on. An expert witness report that is technically sound but difficult to understand serves nobody. This is why clarity of presentation can be just as important as accuracy of analysis.

When to Instruct a Forensic Accountant Expert Witness

When it comes to instructing a forensic accountant expert witness, early instruction may be useful. Solicitors who bring a forensic accountant in at the outset allow more time for the analysis, and gaps in the financial records can be identified while further disclosure can still be sought.

Ultimately, the further a case progresses before instruction, the less time there is for that work. Below is a guide to the key stages at which I am typically instructed and what I offer at each juncture.

Onset of Proceedings

At the pre-action stage, the financial issues in a case are often not yet fully defined. At this stage my role is usually advisory, and I would not normally be acting as an expert witness. In that role, I can help clarify what the financial questions are, what evidence will be needed to answer them, and whether the numbers support the position the client intends to take. Identifying weaknesses early is more useful than discovering them at trial.

I can provide an early-stage view on scope and financial viability without a full formal instruction. This is also consistent with the court’s expectation that expert involvement is proportionate from the outset.

During Disclosure

Disclosure is where cases are often won or lost on financial matters. The right documents need to be identified and requested early, and gaps in what has been provided need to be spotted before the expert is able to form an opinion. 

I can assist at this stage by identifying which financial records are material to the issues in the case, flagging where disclosure appears incomplete, and advising on what further information needs to be sought before reliable conclusions can be drawn.

Court Preparations

By the time a case reaches the preparation stage, the expert’s report needs to be finalised.. Where I have been involved from the outset, my conclusions will have been tested over time and the counsel should understand the financial evidence thoroughly.

If instruction comes late, there is less time to conduct the analysis, take relevant instructions, gather evidence and prepare the report.. Ultimately, the expert witness forensic accountant’s report is only as strong as the preparation behind it.

Experts’ Discussions

In many cases the court will direct experts to meet and produce a joint statement before trial, identifying where they agree and where they disagree. 

Under CPR Part 35.12 this is a formal part of the process. A well-prepared expert goes into those discussions with a clear position on every material point. Following this, the parties may prepare a document setting out agreed facts, for the Court.

My experience in experts’ discussions and the production of joint statements means I understand that how those discussions are handled can significantly affect what issues remain live at trial.

Instruct Rob Miller as Your Forensic Accountant Expert Witness

Rob Miller is a forensic accounting expert who founded and runs Inquesta Forensic as a specialist practice. Every instruction is handled personally. Rob writes the reports and attends courts himself. There is no delegation to junior staff at any stage.

Rob is a member of the ICAEW, a Practising Member of the Academy of Experts, and a Certified Cryptocurrency Investigator. The Academy of Experts is a professional body for expert witnesses in England and Wales. Practising Membership requires demonstrated experience of acting as an expert witness.

Rob Miller’s ability to analyse, interpret, and present complex financial information clearly, and to defend his methodology under cross-examination, is what makes his involvement valuable to the legal teams he works with.

To discuss an instruction or request a fee estimate, fill in the contact form to request a callback at a convenient time. Alternatively, call directly on 0161 243 0595 or email info@inquestaforensic.co.uk.