The Professional Foundation of Forensic Accounting in Georgia
The credibility of forensic accounting in Georgia rests on the institution of the certified accountant, defined by the Law of Georgia on Accounting and Financial Reporting. Under Article 11 of the law, the Service establishes the standards of professional certification and continuing education which comply with the requirements of European Union directives and with the International Education Standards set by the International Federation of Accountants (IFAC). Professional certification is carried out by those professional organizations whose certification programs and/or examination processes meet the standards set by the Service and are recognized under the established procedure; upon successful certification the person acquires the status of certified accountant. In litigation it is precisely this status — and its verification through the public registry — that forms the first evidentiary basis of the expert's qualification, before any substantive analysis of the figures begins.
Certified Status and the Registries
The status carries strict integrity conditions. Under the note to Article 11, a certified accountant must not have been convicted of, or have an unexpunged record for, an intentional economic crime — including offences in the sphere of financial activity — or an intentional grave or especially grave crime; the record must be expunged or extinguished. The Service maintains and makes public the registry of certified accountants. Article 12 continues the same logic for the audit side: the Service maintains the state registry of auditors and audit firms, the registry is public, and every auditor is identified by an individual registration number. The registry reflects the auditor's name and place of activity, the firm where the auditor is employed or is a partner, information on registration as an auditor in another country, the professional organization of which the auditor is a member, the results of quality-management-system monitoring, the income from non-audit activity over the last 3 years, and professional liability insurance. Administrative acts imposing sanctions are published by the Service for at least 5 years — information that can be used to examine not only one's own expert but also the opposing party's.
Independence and Ethics — Article 16
The second pillar of a reliable forensic conclusion is independence. Under Article 16, a certified accountant, auditor and audit firm must comply with the Code of Ethics for Professional Accountants established by the International Federation of Accountants; an updated edition of the code enters into force within 6 months of its renewal. The auditor — and every person who may directly or indirectly influence the outcome of the engagement — must be independent of the entity being served and must not participate in its decision-making. Independence risks must be documented in writing or electronically, together with the mitigation measures applied. The law prohibits gifts and benefits exceeding the acceptable threshold, and defines conflict-of-interest situations — financial, personal, business or employment relationships from which an objective, informed and reasonable third party could conclude that independence is threatened. After the completion of an engagement the auditor may not become a member of the management body, audit committee or supervisory board of the audited entity for 1 year — and for 2 years where the entity is of public interest. The audit contract with a public-interest entity is concluded for at least 2 and at most 10 years, extendable by a further 10 years after winning a public tender, while re-engagement is possible only after the lapse of at least 4 years; the engagement partner and key personnel rotate at least once every 7 years in relation to each public-interest entity served.
Confidentiality of Information — Article 18
Forensic work always arrives with a heightened confidentiality requirement. Under Article 18, information received in the course of providing professional services is confidential; the accountant and the auditor must protect its confidentiality both during the engagement and after it — regardless of the passage of time or a change of activity — and may not disclose it without the entity's consent, save for the cases provided by Georgian legislation. Where an auditor is replaced, information may be transferred to the successor auditor only with the consent of the client entity, and the protection extends to persons carrying out quality-management-system monitoring. In litigation this means that an expert's unauthorised disclosure of information received in the engagement is itself a professional violation, independent of the merits of the case.
Frequently Asked Questions
What confirms the qualification of a forensic accountant?
The status of certified accountant, acquired through a recognized certification program and verifiable in the public registry maintained by the Service.
Can a convicted person be a certified accountant?
No. A person with a record for an intentional economic or grave crime cannot hold the status until the record is expunged or extinguished.
For how long does the Service publish information on sanctions?
After the administrative act enters into force and the person is informed — for at least 5 years.
How does the law protect independence?
Through the ethics code, conflict-of-interest rules, the prohibition of excessive gifts, cooling-off periods of 1 and 2 years, and limits on contract duration and rotation.
How We Help on Legal.ge
Forensic accounting requires not only financial analytics but legal control of professional status, independence and confidentiality. On Legal.ge you can engage a certified accountant and a lawyer who will assess your case, prepare the documentation and protect your interests in court and arbitration proceedings. Submit a request on the site and get qualified assistance.