Loss Quantification

Many, but not all, forensic accounting cases involve issues of loss quantification. At times, the amount of the loss is already known but the causes need to be identified in order for the proper remedies to be sought and obtained. Damages may need to be determined either through exact numbers or estimates of loss. Financial analysis and calculation may be required to assess the losses as part of the forensic accounting service. There may be items offsetting or reducing the losses such as amounts to be reimbursed. Part of the damages may be interest calculations over some or even many years under different damages scenarios. The damages may have occurred on multiple dates which would impact the interest calculations, as interest would have started on different dates for the different transactions.

Losses may not be caused to an individual directly. These may be caused to a business or even another individual such as in a wrongful death case, resulting in losses to another individual.

The term “loss quantification” overlaps different types of cases. Quantification of damages may involve much subjectivity. Contact SGI to determine if a damages calculation prepared by an opposing expert seems reasonable. SGI can, for example, examine the assumptions and logic used by an opposing expert to determine how these factored into the valuation of the economic damages/loss.