Lawyer Monthly - May 2022

breaches of warranties, with the most often-breached warranties relating to accounting information. With regard to completion accounts disputes and earnout disputes, these types of disputes typically lend themselves to be solved via expert determination, which can be a much quicker process. The role of forensic accountant generally can either be as advisor to the buyer or seller or as an expert determiner, a quasi-judicial role which is part of the alternative dispute resolution approach of expert determinations. Usually, expert determinations in completion account and earnout dispute settings requires the interpretation of the share purchase agreement as an expert accountant. With regard to warranty claims, these types of disputes usually lend themselves to be litigation or arbitration. Forensic accounts could help the buyer or seller pre-litigation in valuing any potential claim. Forensic accountants may also be used as experts in any subsequent litigation. Additionally, insurers who may have provided W&I insurance may also require the services of a forensic accountant with regard to validifying and potential payout, but also in the case of subrogation. Typically, a forensic accountant’s involvement in a warranty dispute would relate to valuing the acquired entity in its current state versus its warranted state to produce a loss of value which will be the claimed amount. Mazars Mazars is a leading international audit, tax and advisory firm. Operating as a united partnership in over 90 countries, the firm works as one integrated team, leveraging expertise, scale and cultural understanding to deliver exceptional and tailored services in audit and accounting, as well as tax, financial advisory and consulting. Mazars’ Litigation and Arbitration team was recently ranked in GAR 100 Expert Witness Firms’ Power Index for the first time. This annual list, which identifies the top expert witness firms in arbitration, has described Mazars as “a prominent debutant this year”. WWW.LAWYER-MONTHLY.COM | MAY 2022 68 THOUGHT LEADER - SANDY COWAN I love getting into the detail, which is essential when working on forensic cases as there is no concept of materiality, and an understanding of that detail is essential when it comes to giving evidence in a hearing.

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