Forensic economic examination: what it is and when you need it

When a criminal case or a commercial dispute raises a question about the amount of damages, the reality of transactions, or the correctness of calculations, the investigator, court or a party often cannot answer it on their own. Specialised knowledge of accounting, taxation and finance is required. This is where forensic economic examination comes in.

What a forensic economic examination is

A forensic economic examination is an examination of documents — accounting and tax records and financial-economic activity — carried out by a qualified court expert on the basis of a court ruling, an investigator’s order, or a party’s request. Its purpose is to give a reasoned answer to the specific economic questions put to the expert.

The legal basis in Ukraine is the Law on Forensic Expertise, the Criminal Procedure Code, and the Ministry of Justice instruction on ordering and conducting forensic examinations. The expert bears responsibility for a knowingly false opinion.

How examination differs from audit and inspection

These terms are often confused, although they are different in nature:

• Audit is an independent review of financial statements commissioned by a company; its goal is an opinion on the overall reliability of the statements.
• Inspection (documentary check) is a control measure carried out by regulators, such as the tax service.
• Forensic economic examination answers clearly defined questions within a specific case and has the procedural status of evidence. The expert studies only the materials provided and does not gather evidence independently.

The key difference: an expert opinion is prepared for the court or investigation and is assessed together with other evidence.

The main specialties

Within the economic field there are several expert specialties. The most common are:

1. Examination of accounting and tax records and reporting.
2. Examination of documents on the economic activity of enterprises and organisations.
3. Examination of financial-credit transactions.

A single expert may hold qualifications in several specialties, which allows a complex case to be examined comprehensively.

When an examination is ordered

The most typical situations:

• Criminal proceedings — embezzlement, abuse of office, tax evasion, fraud involving financial resources, deliberate bankruptcy.
• Commercial and civil disputes — recovery of damages, contract disputes, corporate conflicts.
• Tax disputes — challenging assessments, where the regulator’s calculations need to be confirmed or refuted.
• Internal business investigations — when a company wants to document the fact and the amount of the damage caused.

What the expert examines

The subject of the study is primary documents, accounting registers, statements, bank records and contracts. The expert can, in particular, establish:

• whether a given business transaction is documented;
• the amount of material damage (losses);
• whether taxes, wages and interest were calculated correctly;
• whether the accounting data match the primary documents.

Importantly, the expert does not decide legal questions — they do not establish guilt or the elements of a crime. That is the competence of the court.

How an opinion becomes evidence

Based on the study, the expert prepares a written opinion describing the materials examined, the methods applied, the calculations, and the answers to the questions posed. Such an opinion is a source of evidence and is assessed by the court on a par with other evidence. A party who disagrees may commission a review of the opinion or request a repeat examination.

In short

A forensic economic examination turns complex financial data into an answer the court can understand. If your case is about money, damages or accounting, a professionally conducted examination often becomes decisive evidence. To understand whether it is needed in your situation, and which questions to put to the expert, it is best to seek a consultation in advance — before the examination is ordered.