Forensic Accounting: Detect Fraud and Quantify Damages for Court

Forensic accounting is a specialised discipline that applies accounting, financial analysis, and investigative techniques to detect fraud, quantify economic damages, and produce evidence-quality findings for use in legal proceedings, arbitrations, or regulatory investigations. In Spain, forensic accounting experts acting in court proceedings must meet the independence requirements of Article 335 of the Civil Procedure Act (LEC), and their reports are subject to procedural scrutiny for methodology and chain-of-custody compliance. Common engagements include internal fraud investigations, post-M&A warranty breach claims where the acquired company's financials were misrepresented, shareholder disputes requiring independent damage quantification, and insurance loss assessments under professional indemnity or fidelity coverage, with digital evidence handled under e-discovery protocols to preserve admissibility.

Our forensic accounting team has acted in court proceedings, international arbitrations, and complex out-of-court negotiations. We combine the rigour of financial analysis with the expert precision demanded by courts and regulators.

Why Financial Irregularities Discovered Without Expert Handling Become Compound Crises

Financial irregularities discovered without expert handling become compound crises. The manner of the initial response determines whether evidence is preserved or contaminated, whether the responsible parties are alerted before the full scope is understood, and whether the investigation methodology will withstand procedural challenge in court. Post-M&A warranty claims require financial quantification that is simultaneously technically rigorous and legally admissible — a combination that few conventional accountants are equipped to provide. Shareholder disputes need an independent expert who can produce a report acceptable to both parties and defensible in arbitration. And the investigation that alerts the subject before its scope is understood recovers a fraction of what a properly sequenced one does. The first call should be to a forensic specialist, not to internal management.

Our Forensic Investigation Process: Evidence Preservation, Analysis, and Expert Reporting

We conduct fraud investigations, financial dispute analysis, and expert reporting with the procedural discipline that legal proceedings require. Investigations begin with a confidential scoping phase: defining parameters, establishing evidence preservation protocols, and designing a communication plan that minimises the risk of early disclosure. We deploy forensic data analysis techniques — transaction testing, statistical anomaly detection, and network analysis of financial relationships — with a strict chain of custody for all digital evidence. Our expert reports are produced to the standards required for Spanish court proceedings and international ICC or LCIA arbitrations, and our professionals are qualified and experienced as expert witnesses in both forums. Where the financial investigation intersects with legal proceedings, our team coordinates directly with litigation counsel through our litigation and arbitration team to ensure financial and legal strategies are aligned from the outset.

Real Results in Forensic Accounting: €220M+ Damages Quantified, 100% Court Acceptance

• Complete, documented picture of irregularity scope, mechanics, and financial impact: the foundation for any criminal complaint, warranty claim, or insurance recovery.
• EUR 220M+ in damages quantified across fraud investigations, post-M&A warranty claims, and shareholder disputes.
• 100% of expert reports accepted by Spanish courts and arbitral tribunals without procedural challenge.
• Post-M&A warranty claims supported: forensic review of acquired company financials with precise quantification of breach, creating a strong factual basis for settlement or arbitration.
• Anti-fraud programme design for companies after an investigation: controls, whistleblowing channels, and governance improvements that reduce future exposure.

Forensic accounting engagements in Spain operate within the framework of the Civil Procedure Act (LEC) for expert reports, the Criminal Code for fraud and accounting offences, and international arbitration rules (ICC, LCIA, UNCITRAL) for cross-border disputes. Spanish courts require expert witnesses to meet independence standards under Article 335 LEC. Post-M&A warranty claims are governed by the purchase agreement representations and warranties provisions, frequently resolved in ICC arbitration. Digital evidence must be preserved and handled in accordance with chain-of-custody standards for admissibility. Our due diligence team and forensic accounting team work together in post-M&A warranty investigations, applying the same rigorous analytical approach that drives the due diligence process to the investigation of misrepresentations identified after closing.