Litigation services: standards and ethics.

Summary

---

Includes related article with a sample case

Accountants involved in providing litigation services or considering adding these services to their practices should be aware of the professional standards that are applicable to such work. The primary source of such guidelines is the statements on standards for consulting services, though comparable auditing, attestation and accounting and review standards may also be applicable. General standards of competence, confidentiality and independence will also apply to litigation engagements.

See the full content of this document

Extract

---

Litigation services: standards and ethics.

Litigation services are gaining popularity with CPAs. However, many practitioners may not be aware of which professional standards and ethics rules apply to such engagements. This article reviews the major rules and discusses their relative importance to litigation services.

NATURE OF SERVICES

A litigation service is any professional assistance CPAs provide to lawyers in the litigation process. Anecdotal evidence shows that more than 90% of CPAs' litigation activities fall into one of these areas: business valuations, damage calculations, forensic accounting, accounting principles, accounting and statistical analyses, tax issues and accountant and auditor professional performance. Some CPA firms provide litigation services in areas requiring expertise in other disciplines, such as engineering.

The nature of a CPA's litigation-related activities can vary. In addition to serving as expert witnesses, CPAs serve as arbitrators or mediators in disputes and as consultants. Some CPAs are called on to serve as receivers, both in bankruptcy matters and for other special purposes. (For example, recently I was appointed receiver for a company to ensure the payment o...

See the full content of this document

---