EWJ August 62 2025 web - Journal - Page 87
International Connections
by Paul Burchett, Associate Director, Forensic Services
Introduction
In 2025, global boundaries in accounting have
narrowed significantly, driven by advances in
technology and the growing use of AI in business. For
accountancy firms, international work brings both
opportunities and challenges.
The business was a large Middle Eastern enterprise
with subsidiaries across Europe. This required coordination with teams in Europe, the Far East, and the
Middle East, all working to a shared plan. The brothers had vastly different views on the value of the
business, with one planning to buy out the other.
This article explores how international considerations
feature in forensic accounting. Increasingly, accountants are expected to manage case matters, regardless
of jurisdiction.
Interviewing both parties was a key challenge. We
used a consistent set of questions and relied on undisputed financial data to avoid bias. Each brother
brought a team to their interview—one in our London office, the other in Dubai. Due to mutual distrust,
both insisted on neutral transcribers and raised concerns about team composition, including religious
sensitivities.
Global Reach
Tax, forensic and VAT work often require crossborder checks to understand the local business landscape. While International Accounting Standards provide a framework, every territory has its own rules and
exceptions that must be correctly understood and
respected.
The older brother, favouring a lower valuation, cited
environmental pressures, European competition, and
reputational damage. His interview in the UAE required regular breaks for water and prayer. The
younger brother, interviewed in London, spoke of expansion opportunities in Saudi Arabia and accused his
sibling of blocking growth.
In corporate finance, many merger and acquisition
deals involve UK entities and counterparts from the
USA, Scandinavia and France. When a foreign entity
acquires a UK business, it may seek further assurance
on performance and decide whether to take a more
active role or rely on local management to deliver.
Cultural differences can be significant, even down to
which days are considered working days. For example, Friday is part of the weekend in the Middle East,
while Sunday is a normal working day.
One memorable moment was when the brother
seeking a high valuation compared the different
mindsets of he and his brother, when discussing the
Saudi market. Inventing a curious analogy, he said if
the Saudi population had no shoes, his brother would
say “how will we sell any shoes, nobody in Saudi wears
them’, whereas his mindset was “Nobody in Saudi
wears shoes, so we’re going to sell millions of shoes”.
This illustrated the need to separate opinion from
fact and focus on the financials, balance sheets, and
realistic prospects.
Since Brexit, UK businesses face a growing divergence
from European rules on tax, employment and customs. Currency differences also remain, with the UK
retaining the pound sterling while the majority of Europe has long since adopted the Euro. This adds complexity around currency risk and financial planning.
This case underscored the importance of responding
effectively to international business challenges and
maintaining objectivity across jurisdictions.
In cases where litigation arises between entities or individuals in foreign jurisdictions, it has to be agreed
which Court jurisdiction will be the host to give judgement. UK courts have long been favoured for determining family matters, with several high-profile cases
heard in London involving non-UK nationals such as
Princess Haya v Sheikh Mohammed Al-Maktoum (£500
million+) and Bertarelli v Bertarelli (£400 million).
Final thoughts
Global trade continues to accelerate, supported by
technology and AI. As cross-border transactions
become more common, professional services firms
must be equipped to operate in this international
environment.
Case Study: Navigating a Cross-Border Valuation
Dispute
The author has worked on several international
forensic assignments. One case stands out for its complexity and the importance of recognising cultural
differences and global collaboration.
Choosing the right expert to support international engagements is crucial, as it is not solely based upon their
knowledge as an expert in their field, but the way in
which they can harness and appropriately present this
expertise seamlessly between jurisdictions.
Crowe UK has a specialist forensic expert witness
team, with experience spanning a wide range of technical accountancy competencies, covering civil, family
and criminal matters as well as in the international
arbitration arena.
The instruction came via an internal referral,
involving a dispute between two brothers seeking an
independent valuation of their shared business. After
submitting a proposal and credentials, the assignment
was awarded to our team, supported by our
international network.
EXPERT WITNESS JOURNAL
85
AUGUST/SEPT 2025
