Forensic Accounting Expert Witnesses often play an integral role in litigation. CPAs in forensic accounting may be called upon for testimony in a wide range of legal cases, such as a class action suit, dissolution of marriage, financial fraud, loss of business earnings, and individual earnings.

Class Action Suit

In a class action suit involving alleged price fixing, the CPA can:

  • Evaluate company profitability
  • Analyze cost data
  • Compare invoices issued against price lists
  • Attend and analyze witness depositions

In a suit alleging breach of contract, the CPA can:

  • Review financial information
  • Help the attorney determine the accuracy of the damage calculations submitted
  • Calculate damages based on financial information submitted

In a medical malpractice suit, the CPA can:

  • Calculate the value of lost wages
  • Determine the cost of medical services
  • Appear as an expert witness regarding the CPA’s findings

Dissolution of Marriage

As part of a dissolution proceeding, the CPA can:

  • Prepare an overview of the community estate with assets of deeds
  • Critique a valuation report submitted by the spouse
  • Identify a number of important valuation issues
  • Provide valuation reports
  • Provide testimony under oath
  • Calculate controllable monthly cash flow for support of the non-working spouse

Financial Fraud

In a financial fraud case, the CPA can:

  • Trace financial transactions
  • Help prove or disprove assertions regarding values and amounts of income
  • Help demonstrate the accuracy of representations or data about business transactions
  • Assist in preparation of financial statements
  • Help prepare qualifying damages
  • Examine underlying controls to ascertain whether the control environment was supportive of prudent business decisions

Loss of Business Earnings

In a loss of business earnings case, the CPA can:

  • Prepare projections of future revenues, expenses, and net income of a company based on the business, historical financial information, and operating information

Individual Earnings

In a loss of individual earnings case, the CPA can:

  • Calculate earnings based on compensation, benefits, and services provided by the individual
  • Calculate the total loss of individual earnings based on the time period analyzed
  • Prepare a report summarizing the CPA’s findings and conclusion

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