Published: 28 January 2026
Financial fraud, disputes, and misconduct can seriously damage businesses — financially and reputationally. When numbers don’t add up, forensic accounting steps in.
Forensic accounting combines accounting expertise, auditing skills, and investigative techniques to examine financial records in detail, identify irregularities, and produce evidence suitable for legal and regulatory proceedings.
At Direct Assist, we provide forensic accounting support to businesses, legal advisers, and individuals where clarity, accuracy, and defensible evidence are essential.
Forensic accounting involves the systematic investigation of financial information to uncover:
Fraud and financial manipulation
Misrepresentation in financial statements
Hidden assets or income
Financial misconduct and regulatory breaches
Forensic accountants analyse accounting records, transaction trails, contracts, emails, and digital data to establish facts, quantify losses, and support legal outcomes.
Their work is commonly used in:
Court cases and litigation
Insurance claims
Regulatory investigations
Commercial disputes
Forensic accounting is not routine bookkeeping or audit work. Its defining features include:
A combination of accounting knowledge and investigative methods
Focus on identifying whether a financial crime has occurred
Assessment of intent, not just errors
Ability to explain complex financial issues clearly to courts, lawyers, and regulators
Tracing funds, identifying assets, and assisting with asset recovery
Quantifying financial losses or damages
Use of both manual and technology-based investigation techniques
Tailored approach — no two investigations are the same
Forensic accountants are typically engaged once a suspicion already exists, and their role is to confirm, refute, or quantify the issue.
Forensic accountants may be involved in a wide range of cases, often linked to legal or regulatory proceedings.
Investigations into fraud committed by:
Employees
Management
Customers or external parties
Forensic accountants analyse records, identify control weaknesses, and report findings to management or authorities.
In cases of suspicious or complex claims, forensic accountants:
Review financial records supporting the claim
Assess whether claims meet policy terms
Identify inflated or duplicate claims
This is common in business interruption and loss-of-profit claims.
When disputes arise between business partners or shareholders, forensic accountants:
Analyse financial records
Assess profit allocations
Determine fair compensation or settlement values
Under the fair value model, investment property is measured at fair value at each reporting date, in line with IFRS 13 – Fair Value Measurement.
Key features:
No depreciation is charged
No impairment testing is required
All fair value movements (upward and downward) are recognised directly in profit or loss
This model can significantly increase profit volatility — but provides greater transparency for investors.
Forensic accountants investigate:
The events leading up to insolvency
Misuse of funds
Transactions with related parties
Lenders often engage forensic specialists to understand whether insolvency resulted from mismanagement, fraud, or genuine commercial failure.
During acquisitions or mergers, forensic accounting helps to:
Validate financial information
Identify hidden liabilities or risks
Assess true asset values and returns
This provides buyers with confidence before completing a transaction.
Forensic accountants assist in identifying:
Underreported income
Hidden assets
Artificial arrangements designed to reduce tax
Their findings are often used in tax investigations and disputes.
In cases involving alleged negligence by:
Accountants
Lawyers
Other professionals
Forensic accountants assess whether financial losses claimed are factual and supported by evidence.
In divorce proceedings, forensic accountants help:
Trace hidden assets or income
Analyse complex business interests
Ensure fair financial settlements
Forensic accountants support investigations into:
Illicit funds passing through accounts
Complex transaction chains
Identifying the source and destination of funds
This work is often linked to regulatory or criminal investigations.
At Direct Assist, our forensic accounting services focus on clarity, independence, and credibility.
We support clients by:
✅ Investigating suspected fraud or financial irregularities
✅ Quantifying financial losses and damages
✅ Preparing court-ready forensic reports
✅ Supporting solicitors, insurers, and regulators
✅ Tracing funds and identifying hidden assets
✅ Advising on control weaknesses and fraud prevention
Forensic accounting is about getting to the truth behind the numbers. Whether you’re dealing with fraud, a dispute, or a high-stakes investigation, having independent financial expertise can make all the difference.
If something doesn’t look right — it probably isn’t.
👉 Contact Direct Assist today for a confidential consultation or instant online quote.
Direct Assist – Chartered Certified Accountants providing clarity when it matters most.
(0203) 633 2018
info@directassistaccountants.co.uk
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