John Wiley Accountants Handbook Volume 2_14 docx

[...]... Concepts and Damages,” In Litigation Services Handbook: The Role of the Accountant as Expert, 1996 Supplement ed Roman L Weil, Michael J Wagner, and Peter B Frank, John Wiley & Sons, New York, 1996 Kinrich, Jeffrey H., “Cost Estimation,” 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 Knapp, Charles... 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 Profits, 4th ed., Lawpress, Tiburon, CA, 1992 Dykeman, Francis C., Forensic Accounting: The Accountant as Expert Witness John Wiley & Sons, New York, 1982 Federal Rules of Evidence:... N Low, and Tara N Nells, “Securities Act Violations: Estimation of Damages,” in Litigation Services Handbook: The Role of the Accountant as Expert, ed Romal L Weil, Michael J Wagner, and Peter B Frank (John Wiley & Sons, New York, 1995) 44 16 • FORENSIC ACCOUNTING AND LITIGATION CONSULTING SERVICES Accountants for the debtor in possession may be asked to prepare analyses supporting the solvency or... No 7 AICPA, New York, 1986 Weil, Roman L., Wagner, Michael J., and Frank, Peter B., eds., Litigation Services Handbook: The Role of the Accountant as Expert, 2nd ed John Wiley & Sons, New York, 1995 INDEX Above cost inventory valuation, 18.5(d) Accepted principles of accounting, 1.2(a)(i) Accountants, independent, see also Auditors, independent; Certified public accountant accounting services nonpublic... after-tax amounts, then gross up the award for the current tax rate 5 Elo R Kabe and Brian L Blonder, “Discounting Concepts and Damages,” in Litigation Services Handbook, 1996 Suppl., ed Roman L Weil, Michael J Wagner, and Peter B Frank (John Wiley & Sons, New York, 1986) 44 22 • FORENSIC ACCOUNTING AND LITIGATION CONSULTING SERVICES 44.8 SUPPORT FOR OPINIONS (a) SOURCES OF INFORMATION The accountant... 44.10 SOURCES AND SUGGESTED REFERENCES American Institute of Certified Public Accountants, Code of Professional Conduct AICPA, New York, 1988 , Statement on Standards for Consulting Services (SSCS) No 1, “Consulting Services: Definitions and Standards.” AICPA, New York, 1986 , Auditing Standards Board, Statement on Standards for Accountants Services on Prospective Financial Information, “Financial Forecasts... Since most civil lawsuits involve one or more of these issues, an accountant may be involved in almost any type of litigation Accountants are also used as experts in cases that require a knowledge of business records and transactions However, there are certain types of cases in which accountants more likely to be involved 44.6 TYPES OF CASES 44 13 • A lawsuit typically requires proof of liability, causation,... the potential damage to unsecured creditors The accountant’s ability to distinguish operating losses caused by the form and structure of 4 Grant W Newton, Bankruptcy and Insolvency Accounting, 5th ed (John Wiley & Sons: New York, 1994) 44.6 TYPES OF CASES 44 17 • the buyout from losses due to the economy or other competing companies will also assist counsel in determining whether the LBO can be attacked... Commercial Damages Matthew Bender, New York, 1986 Kraft, Melvin D., Using Experts in Civil Cases Practicing Law Institute, New York, 1977 Newton, Grant W., Bankruptcy and Insolvency Accounting, 5th ed John Wiley & Sons, New York, 1994 Sims, Raymond S., and Haller, Mark W., “Lost Profits: Covering All the Bases in the ‘But For’ World,” Inside Litigation, Vol 2, No 4 Prentice-Hall Law & Business, New York,... they would not have bought the stock or they would have bought at a lower price These lawsuits are often brought against officers, directors, investment bankers, lawyers, accountants, and others who may have been party to misstatements Accountants may be involved in the liability, causation, and damages portions of securities cases Involvement with liability issues is most common when an auditor has been . Others 22 (c) Documentation 22 (d) Engagement Letters 22 44.9 TESTIMONY 23 (a) Giving Deposition Testimony 23 (b) Giving Trial Testimony 24 (i) District Testimony 24 (ii) Cross-Examination 24 (iii). Measuring Damages 20 (c) Mitigation 20 (d) Interest on Damage Awards 20 (e) Present Value and Inflation 21 (f) Income Taxes 21 44.8 SUPPORT FOR OPINIONS 22 (a) Sources of Information 22 (b) Reliance. Independence 8 (ii) Rule 1 02: Integrity and Objectivity 8 (iii) Conflicts of Interest 8 (iv) Rule 20 1: General Standards 9 (v) Rule 20 2: Compliance with Standards 9 (vi) Rule 20 3: Accounting Principles