Introduction: The Importance of Forensic Accounting Expertise
Forensic accounting expertise is a specialized procedure aimed at preparing an objective and qualified conclusion on financial issues that are the subject of a legal dispute. Unlike general forensic accounting, which is broader and investigative in nature, this service is specifically focused on creating an expert report destined for court or arbitration. A significant portion of civil and criminal cases in Georgia requires special financial knowledge that a judge or lawyer may not possess. This is where the expert accountant comes in, helping the justice system establish the truth with their professional knowledge. This service is critical for individuals who need an official document with legal weight to substantiate or refute financial claims.
What Does Forensic Accounting Expertise Cover?
Expertise involves the formal and substantive study of financial documentation. Specialists perform the following tasks:
- Preparation of Expert Report: Providing exhaustive, substantiated answers in written form to questions posed by the court or client.
- Financial Damage Assessment: Calculating lost income, direct damages, and compensation amounts based on evidence.
- Verification of Accounting Accuracy: Checking the compliance of accounting records maintained during the disputed period with legislation.
- Analysis of Credit and Banking Disputes: Verifying the correctness of interest accruals, penalties, and loan balances.
- Tax Liability Expertise: Checking the validity of fines and penalties accrued within the scope of a tax dispute.
- Alternative Expertise: Reviewing the report of an opposing party or the state forensics bureau and presenting an alternative opinion.
Common Situations and Scenarios
Forensic accounting expertise is often appointed during commercial disputes. For example, when a client disputes the volume of expenses incurred by a contractor in construction or services. The expert determines how much was actually spent and whether it corresponds to the budget estimates. A second common scenario is a corporate dispute over dividend distribution: if a shareholder believes the director hid profits, the expertise determines the real amount of distributable profit. Also, in criminal cases such as tax evasion, a defense lawyer often needs an independent expert's conclusion to refute the prosecution's position. Additionally, in family disputes (property division), expert valuation of business shares is often required.
Georgian Legal Framework
Conducting expertise is strictly regulated by legislation. The Civil Procedure Code of Georgia and the Criminal Procedure Code of Georgia define the rights and duties of the expert, the structure of the report, and its evidentiary value. When studying financial issues themselves, the expert relies on the "Law of Georgia on Accounting, Reporting and Auditing" and the Tax Code of Georgia. It is important to note that the expert is obliged to be impartial and objective, as giving a false conclusion is punishable under the Criminal Code of Georgia. In judicial practice, an expert's conclusion is one of the weightiest pieces of evidence.
Process: How is Expertise Conducted?
The process begins with the appointment of the expertise—this can happen by a court order or by a party's initiative (private expertise). The client or the court asks the expert specific questions (e.g., "Does the profit calculation of Company X comply with legislation?"). The expert requests case materials and financial documentation. During the research stage, they use special accounting and auditing methods. Finally, a written report is compiled, consisting of three parts: introduction (circumstances of the case), research part (analysis), and concluding part (answers to questions). If necessary, the expert appears in court to orally explain their conclusion.
Why Choose a Specialist on Legal.ge?
Legal.ge offers access to professionals with years of experience in conducting forensic accounting expertise. The specialists presented on our platform are well-versed in procedural law and know how to prepare a report that will withstand cross-examination and criticism from the opposing party in court. Engaging a qualified expert is often decisive for winning a dispute. Find a trusted expert on Legal.ge and strengthen your legal position with irrefutable financial arguments.
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