Forensic and economic expertise

Forensic economic expertises are the most widespread. They include the following:

  • Forensic accounting expertise is required when civil cases consideration, when there is a need to analyze economic transactions data reflected in accounting. The aim of the expert is to diagnose the problem and to address all issues specified by the court in the determination on the expertise assignment.
  • Financial and economic expertise (including tax expertise) can be directed to determination of financial position of the organization, execution of contractual relations, revelation of the optimization or tax evasion, etc. Specific questions of its conduction are also mentioned by the court in the determination on the expertise assignment.

Forensic economic expertise is required when civil proceedings, within the framework of which are considered the issues related to the damage amount caused for the company by the illegal (criminal) actions of management and other company employees.

Criminal and procedural legislation provides for the party of defense an opportunity to involve forensic expert (specialist) as a participant of the court proceeding.

Forensic expert-economist issues an opinion on:

  • amount of tax base and payable tax;
  • impact of transactions on the economic result of the taxpayer’s activity;
  • legality of the usual prices use for purchased and sold goods, work and services;
  • legality of accounting standards applied;
  • the presence of business purpose and conscience of the taxpayer’s actions (for instance when recognition of transaction as null and void);
  • proof of absence of caused damage (events of a crime);
  • condition of settlements with state;
  • other economic aspects of economic activity influencing tax liabilities.

Participation of an expert-economist in the economic courts is necessary for:

  • analysis of condition of settlements with organizations-counterparties and determination of the debt amount;
  • calculation of the amount of actual damage and the amount of lost profit in case of breach of contract obligations;
  • appraisal of the legality of accounting rules applied (in case of application of corporate law norms and bankruptcy legislation).

Opinion of the expert-economist, being the part of defense, allows to:

  • prove the absence of caused damage (events of a crime);
  • significantly reduce the amount of damage if any (to perform re-qualification of crime);
  • prove the legality and validity of actions of the accused and the defendants (absence of fault);
  • contest illegal forensic conclusions, assigned by the preliminary investigation body or a court, and to exclude its conclusions from the number of evidences.

The Legal System of Ukraine allows to apply for a specialist of economic research – expert-economist, in order to examine and to analyze questions which interest your company, not only in juridical cases but also in the everyday practice, to arrive at the truth in case of controversial moments. By such appeal you will protect you interests and in the future will be able to use the conclusions of forensic expert as the evidence in a possible law process.

In fact, economic expertise (research) reveals the reliability of businesses transactions carried out, which have been already reflected in the accounting documents and became a subject of auditor’s research, tax instance or even the object of judicial body investigation.

It is usually impossible to do without special skills of economist-experts. For them, the expertise (examination) of accounting is an opportunity to help you to determine the quality of previous audits, to evaluate the reliability of the data that are reflected in the primary documents, accounting records and financial statements. Economists-experts thoroughly examine the observance of demands of legal documents when making business transactions and accounting methodology.

In what cases do we need economic expertise (research)?

In particular:

  • for additional taxation in connection with the fact of price of goods deviation, works and services, from the market price of identical goods, works and services;
  • if your company were assessed additional taxes calculated on the basis of data of other similar taxpayers;
  • if your company obtained the charge because of receiving the groundless tax profit related to an argument of tax authority about the deliberate overstating of the goods cost price by your organization.
  • if it is necessary to justify the calculation of the cost of goods, works and services in disputes concerning the application of antimonopoly law, as well as in other disputes;
  • if you need to determine the size of the shareholding of the participants of the economic society in its property, as well as the amount of money owed to society member at the exit of its composition.

The result of this study is the expert conclusion that contains information about the evaluation of financial operations and financial indicators of the activity of business entity, as well as the valuation of goods (works, services), established in your area. Such expert conclusion may be presented in any court or controlling unit.