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Determining Economic Damages

The demand for accountants with a forensic specialty has significantly increased in recent years. The growth of forensic practices is, in part, linked to the necessary determination of economic damages.
In this episode of the Forensic Perspectives podcast, host Mark S. Gottlieb discusses the most common methods used to determine economic damages.

Episode Highlights:

  • Mark mentions the late JD Salinger, the author of the 1951 classic, Catcher in the Rye. (00:50)
  • Mark shares why a business can be devastated financially. (2:12)
  • Mark mentions one of the four common methods used in measuring damages. (3:38)
  • Mark shares what the economic damage investigations can cover. (4:09)
  • Mark shares the three core components in determining economic damages to financial experts’ calculations. (4:47)
  • Mark mentions the responsibility of a forensic accountant. (5:41)
  • What is required from the economic damage expert by the attorney? (6:02)
  • Mark shares the methodologies of forensic accountants. (7:00)

Key Quotes:

  • “Preparing economic damage estimates requires a deep understanding of accounting principles and an acute understanding and knowledge of the subject business.” – Mark S. Gottlieb
  • “No matter what the nature of the case. In the end, it’s all about great detective work and accurate analysis. Attention to detail, as many you know, can make or break a case.” – Mark S. Gottlieb
  • “It is my firm belief that the economic analysis and function of the forensic accountant should be able to demonstrate several different ways to approach a problem. Based upon my years of professional experience, I think the simplest approach is often the best.” – Mark S. Gottlieb

Resources Mentioned: