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and conclusions and, when possible, identify weaknesses and lay the groundwork for attack at trial Section 469 presents a description of the deposition process and some pointers for giving deposition testimony (f) SETTLEMENT ANALYSIS Settlement negotiations can occur at any point during the litigation process They can be greatly facilitated by the use of an accounting expert The accountant can be instrumental in evaluating existing alternatives and terms as well as in proposing other strategic approaches The accountant s evaluation may involve (1) the determination of economic value and feasibility of various strategies or (2) an analysis of the strengths and weaknesses of the two sides positions When determining value and evaluating feasibility, the accountant can estimate damages under various scenarios and help to assess the probability of occurrence for each, thereby giving the attorney a better understanding of the risks involved Just as importantly, the accountant can evaluate the true economic value of various settlement alternatives and determine possible tax effects of each This will enable the attorney and client to make a more informed decision regarding settlement options and perhaps offer alternatives that bene t both parties The accountant also can provide an evaluation of the relative strengths and weaknesses of both the plaintiff s and the defendant s positions, thereby helping the attorney strengthen his bargaining position and anticipate potential problems (g) PRETRIAL When preparing for trial, the accountant can assist the attorney by: (1) preparing courtroom graphics, presentations, and exhibits; (2) preparing witnesses for trial testimony; (3) preparing for the cross examination of opposing witnesses; and (4) ne-tuning the overall case strategy (h) TRIAL If the case does not settle, the nal role of the accountant will be to assist during the trial itself The accountant s testimony in court is a key part of this role In testimony, the accountant presents the opinions developed as a result of his information gathering, review, and analysis This role is clearly the most important one the accountant will play in the process It is imperative that the accountant present opinions in a straightforward, cogent, and concise manner The last section of this chapter describes the course of direct testimony and suggests ways to enhance the effectiveness of the testimony Although opinion testimony is of paramount importance at the trial stage, the ccountant can play other valuable roles For example, the accountant can be of tremendous value to attorneys during the cross-examination of opposing experts and nancial witnesses The accountant can work with the attorney to prepare cross-examination questions in an effort to undermine the testimony or the credibility of the witness The accountant will be important in this phase because of his ability to formulate accounting and nancially oriented questions that will be dif cult for the witness to evade or de ect More importantly, the accountant will be able to assess the responses and provide follow-up questions to close the loop on important issues (i) Credentials and Certi cations The expert or consultant in a litigation case brings to the table their skills and past experience Increasingly, individuals are obtaining professional certi cations to re ect those attributes Along with societal and regulatory increased attention to fraud, as evidenced in the passage of the Sarbanes-Oxley Act of 2002, various professional organizations are increasingly offering professional certi cations in forensic and fraud related subject matters Fraud speci c specialty certi cations, in most instances, are obtained as a supplement to the widely recognized designation of CPA, but holding a CPA designation may not be a prerequisite to holding other certi cations One of the best recognized certi cations is the Certi ed Fraud Examiner (CFE) designation of the 36,000 member Association of Certi ed Fraud Examiners (ACFEs) The American Institute of Certi ed Public Accountants (AICPA) and ACFE have been working together for some years to leverage expertise and develop joint training programs The American College of Forensic.

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PROFESSIONAL STANDARDS RELEVANT TO LITIGATION CONSULTING ( a) American Institute of Certi ed Public Accountants Code of Professional Conduct (i Rule 101: Independence (ii) Rule 102: Integrity and Objectivity (iii) Con icts of Interest (iv) Rule 201: General Standards. Encode Code 128C In Visual Studio .NET Using Barcode creation for .Related: EAN-13 Generating Java , C# Code 128 Generation , VB.NET Code 128 Generation

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Pursuant to Rule 26, once the expert s written report required by Rule 26 has been disclosed, the opposing side has the right to take the deposition of any person who has been identi ed as an expert whose opinions may be presented at trial The accountant ho is engaged as an expert witness in a matter to be tried in a federal court should ascertain the current status of Rule 26 in the applicable federal district and discuss compliance with Rule 26 with the counsel retaining him It is important to point out that the Federal Rules of Civil Procedure give local courts the option of not complying with certain provisions, including the provisions of Rule 26 discussed above The accountant should consult with the retaining attorney to ascertain whether the case is to be tried in federal or local court and the local rules that apply to the case.

American Institute of Certi ed Public Accountants, Code of Professional Conduct AICPA, New York, 1988 , Statement on Standards for Consulting Services (SSCS) No 1, Consulting Services: De nitions and Standards AICPA, New York, 1986 , Auditing Standards Board, Statement on Standards for Accountants Services on Prospective Financial Information, Financial Forecasts and Projections AICPA, New York, 1985 , Auditing Standards Board, Statement on Auditing Standards No 99 Consideration of Fraud in an Audit of Financial Statements, AICPA, New York, 2001 , Application of AICPA Professional Standards in he Performance of Litigation Services AICPA Special Report 93 1, nd , Con icts of Interest in Litigation Services Engagements AICPA Consulting Services Special Report 932, nd , Comparing Attest and Consulting Services: A Guide for the Practitioner AICPA Consulting Services Special Report 93 3, nd , Providing Litigation Services AICPA Consulting Services Practice Aid 93 4, nd , Communicating Understandings in Litigation Services AICPA Consulting Services Practice Aid 95 2, nd , Communicating in Litigation Services: Reports, AICPA Consulting Services Practice Aid 96 3, nd , Codi cation of Statement on Standards for Attestation Engagements, AICPA, New York, 2003 Black, Henry C, Black s Law Dictionary, Fifth Edition West Publishing, St Paul, MN, 1979 Crain, Michael A, Goldwasser, Dan L, and Harry, Everett P, Liability: Expert Witness In Jeopardy Journal of Accountancy, Vol 42 AICPA, December 1994 de Silva, Harindra, Lo, Nancy N, and Nells, Tara N, Securities Act Violations: Estimation of Damages, In Litigation Services Handbook: The Role of the Accountant as Expert, ed Roman L Weil, Michael J Wagner, and Peter B Frank, John Wiley & Sons, New York, 1995 Dunn, Robert L, Recovery of Damages for Lost Pro ts, Fourth Edition, Lawpress, Tiburon, CA, 1992.

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