The changing face of forensic accounting

Every year we collate information from our members regarding the number and type of cases we undertake.  This means we have some interesting insights to the changing face of forensic accounting.

In summary, the last five years of instructions have looked like this:

As with 2023, we have seen a significant increase in the number of cases and claimant work in particular.  This work relates to a class action which started in 2021, ramped up in 2022 and has impacted our results for 2023 and 2024.

If this source is ignored, then we have been instructed in a similar number of matters in 2020 to 2024 although the type of appointment has varied.  What is interesting is that we are seeing more matrimonial cases where we are appointed by both parties at an advisory stage rather than being a court appointed expert.  Hopefully this means the parties are able to save costs and deal with personal matters in a less adversarial way.

In terms of the type of work we are receiving, it has been as follows:

Matrimonial cases still account for most of our instructions and we have had approximately the same number across the five year period.  However, in 2024 matrimonial cases accounted for just over a third of all work whereas between 2020 and 2022 it was a half.  However, in respect of fee income, matrimonial cases only accounted for 20% whereas it had been almost a third.

Much of this change is due to the impact of the class action as litigation support now accounts for 50% of cases (up from 19% in 2020) and the related fees account for 65% (up from 22% in 2020).

In respect of fees per case, our average has only increased by just over 20% over the last 10 years which suggest that we still offer value for money to our clients.

Excluding the class action, the Midlands area generates the largest number of cases with London just behind but, unsurprisingly, it is the reverse when it comes to fee value.

It will be interesting to see what 2025 brings given that the class action is slowing down albeit likely to continue for a further 18 months to two years.

Types of cases

The work our members carried out can be broadly categorised as:

• Criminal – both prosecution and defence
• Expert determination / completion accounts
• Fraud – both civil and criminal
• Insolvency
• Loss of profits / earnings
• Matrimonial
• Personal injury
• Professional negligence
• Shareholder disputes

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