The move is the US group’s latest foray into the UK market, where it is trying to get a foothold.

FTI is expected to pay between £5m and £10m for Forensic Accounting, whose 31 staff would be relocated to Holborn Gate ­ the advisory firm’s London headquarters where 400 employees are based.

Chief executive officer Jack Dunn said: ‘It has been on our radar screen to have a presence in the UK to serve the rest of Europe as the scope of our business has turned international and we are representing international companies. Our clients want someone who knows the legal rules and this acquisition is very important for us.’

He said FTI would be looking to expand its economic consulting presence, where it currently has a 15% to 20% global market share, in the UK or the continent. ‘We would like to have a global brand where companies feel as comfortable using us as the Big Four.’

Dunn added that he expected forensic accounting in the current tough economic climate to come to the fore.‘There are a lot of people who go along with certain business practices, such as including current sales in the previous quarter, which is fine as long as it can be made up in the next quarter. In a declining market this sort of thing can’t be made up.’

Fraud work is predicted to be on an upsurge as the likelihood of a downturn increases.

Andrew Durant, managing director of fraud investigations at forensic accounting firm Navigant said: ‘As things get tighter, people will look at the bottom line, how can we make things look better, they will start examining their costs more closely and will uncover fraud.’

Nick Hood, a partner in Begbies Traynor’s London office, said: ‘More and more when you go into companies to restructure there are issues to do with false accounting and fraud.’