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