Loss Quantification & Quantum
Loss quantification establishes the exact financial impact of employee fraud - the figure that drives civil recovery claims, insurance notifications, and settlement negotiations. Our experts reconcile fraudulent transactions against legitimate business activity to produce defensible quantum figures.
Our Methodology
| Phase | What We Do | Deliverable |
|---|---|---|
| Scope definition | Agree period of fraud, categories of loss, and whether gross or net figures are required. | Quantum methodology statement |
| Transaction analysis | Identify and categorise all fraudulent transactions from source records. | Detailed transaction schedule |
| Quantum calculation | Calculate total loss including direct theft, associated costs, and consequential losses where recoverable. | Loss quantification schedule with supporting workings |
| Expert report | Prepare CPR Part 35 compliant quantum report with sensitivity analysis. | Expert witness report on quantum |
Frequently Asked Questions
How is the total loss from employee fraud calculated?
Forensic accountants identify all fraudulent transactions from source records, reconcile against bank statements, and calculate the total misappropriated amount. The quantum includes direct theft plus associated costs such as employer NI on ghost employee wages, and consequential losses where recoverable in civil proceedings.
Is the initially discovered amount usually the full loss?
No. Systematic employee fraud often extends over years and involves more transactions than initially discovered. Forensic accountants analyse the full historical dataset to establish the true quantum - which is frequently substantially larger than the first identified amount.
Need a forensic accountant for employee fraud?
Tell us about your matter and we will connect you with a qualified expert witness. Response within one business day.