Different kinds of experts can serve as witnesses during financial litigation proceedings. These experts are usually able to understand complex money-related concepts that members of the general public cannot. A lawyer may utilize a finance expert witness to highlight the misdeeds of a particular company or to showcase that an individual’s financial health was compromised by the actions of others. Check out this list of four types of finance experts.
1. Certified Fraud Examiner
Certified fraud examiners (CFEs) are trained on how to spot whether or not workers in a small or large business setting are engaging in fraudulent practices. CFEs must have a solid understanding of complicated financial transactions, be knowledgeable of the law, and be able to conduct investigations. Oftentimes, CFEs will devise fraud prevention strategies involving things, such as auditing policies, corporate governance systems, risk management, and risk assessment.
2. Certified Financial Planner
Certified financial planners (CFPs) are financial advisors that help clients develop a financial plan for their enterprise. They can create a plan by taking into account their clients’ needs and goals as well as their clients’ investments, liabilities, assets, and income. Many CFPs will monitor the transactions their clients make and discuss specific investments and risks. Some CFPs will pinpoint ways their clients can save money or make the most out of an upcoming venture.
3. Certified Financial Consultant
Certified financial consultants (CFCs) take part in many of the same practices as CFPs. However, CFCs engage in more consulting than they do planning. CFCs will examine the financial problems their clients are having and offer a set of solutions. They will assist their clients in making pertinent financial decisions by generating information about the risks and benefits associated with each decision. There are CFCs that will extensively study the corporate structure and policies of their clients’ companies so that they can better aid them in making crucial choices.
4. Certified Management Accountant
Certified management accountants (CMAs) are accountants who have an in-depth understanding of financial planning, analytics, and management. Many CMAs will devise financial statements, produce budget reports, conduct internal audits, influence investment-related decisions, and prepare tax returns. CMAs are a vital part of any corporate finance team. Many of them go on to assume senior executive roles, such as Chief Financial Officer.
Finance experts are well-trained and well-educated and can provide a great deal of information during a case. They are an important part of the legal community.