The Problems And Strategies Of Forensic Accountant In Litigation Support

The exposing of Enron and other financial scandals made American economy met unprecedented crisis. The ultimate reason is that company and auditors shield each other. The public’s confidence in the American economy are at an all-time low. At the same time, with the appearance and application of forensic accounting, the public revived hopes. So, forensic accounting get unprecedented attention and development.As the third largest economy in the world, China have the most dynamic markets. The high-wheeling growth in economy let China’s economy become more and more complicated. Besides opportunities, there are challenges in it too. More and more contradictions and cases are arising in the areas of economy. And the case in the trial involving more and more fact on the accounting law. However, because of lacking expertise the judge and lawyers always have difficult in collecting evidence. In face of it, the forensic accounting is being bring in China to compensate the shortage of it. What’s more, the demand of forensic accounting litigation support are increasingly.In the real case: confirmation the shareholder qualification of Bi yuping, how to define the behavior of Chen changlin is the focus of this paper. As a certified public accountant, Chen changlin participated in the lawsuit and pronounced on the case. The capital verification report and witness testimony, coming from him, become key points in the confirmation of shareholder qualification. But my attention is he has forensic accounting qualification or not? What role he took in lawsuit? And what the faction is in civil and commercial cases?In the development of forensic accounting, its connotation is extremely comprehensive, from different perspective can lead to different connotation. In this paper forensic accounting is be defined as a comprehensive activity, which be carried out by forensic accountant. And litigation support is forensic accountant to help judges and litigants to understand the financial issues, and appear in court as expert witness. At the same time from the perspective of litigation and evidence to discusses the theoretical basis that forensic accountant take part in litigation support.After analyzing the characteristic of civil and commercial cases and issues, though helping judge understanding financial evidence and measurement the loss to show the need for forensic accountant participate in civil and commercial cases. And the role of forensic accountant in litigation support is described in detail.Then analysis the situation and problems of forensic accountant participate in litigation support. Firstly, because of lacking the system of forensic accountant, it is hard to confirm the qualification of forensic accountant. Secondly, due to the missing of expert witness, the property of forensic accountant in lawsuit is difficult to define. Thirdly, the responsibility of forensic accountant is also not clear.In the last, based on extraterritorial application, the paper takes the following measures to solve these problems. First, we should build a system of confirming forensic accounting qualification, and set up strict regulations both in education background, working years and forensic accounting qualification test. Secondly, we must treat forensic accountant as expert witness to avoid the awkwardness in the existing legal system. We should determine the legal status of forensic accountant and evidence form. We also need to give forensic accountant the right of cross-examination, and requires they must appear in court to testify. Last, clear the right and obligation of forensic accountant.