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The courtroom is quiet as the certified public accountant takes the stand. The attorney whispers to the client, while the opposing attorney leans back, looking hard at the CPA. The opposing attorney considers what questions to ask to undermine the CPA's credibility. Anticipation hangs heavy, and within moments the questioning begins ...
CPAs have faced attorneys as expert witnesses for many years. As expert witnesses, CPAs assist with cases such as marital dissolutions, corporate dissolutions, fraud, breach of contract and product liability. They provide services including accounting investigations, tracing of funds, lost profits and earnings computations and the determination of community property and related-asset valuation.
While many of these activities are not new, what is new about litigation consulting services is an increased sophistication of practitioners working in the field. Attorneys increasingly seek out CPA experts who not only have a focused practice area, but who also are experienced in deposition and trial testimony and understand litigation processes and deadlines. In addition, judges are more critical of the qualifications and computation approaches of CPAs serving as expert witnesses.
CPAs interested in litigation consulting services can turn to many places to advance their skills. They can attend training courses and seminars, read publications about established practices and seek out tips from experienced practitioners. Over the years, however, CPAs serving as expert witnesses have discovered some definite dos and don'ts that anyone working in the field should consider. Listed here are 10 of each, and not surprisingly, many of them concern the up-front work that occurs long before a CPA steps into the courtroom.
TEN DOS
1. Do evaluate you qualifications to perform each litigation assignment that comes your way.
If you accept an expert witness engagement, even if it is not your first time performing the services or computation, be prepared to recite reasons why you are qualified to handle the assignment. For instance, if you've never performed a computation of lost wages, not only will opposing counsel discover that fact, but you may fail to address a critical consideration. You can build upon your educational qualifications by attending CPE courses and conferences, reading current literature and conferring with other CPAs.
2. Do be aware of what standards apply to litigation consulting services.
Although still...