Question

What is litigation services or expert witnessing future prospects according to AICPA?

Answer 1

Litigation is the process whereby a person fights or defends a case in a court. According to AICPA litigation service is a proffesional assistance provided to CPA's in the litigation process.

Litigation activities include the following: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.

As an expert witnessing the future prospects, the individual becomes responsible for it not the firm or the organisation. According to Accounting standards an expert may do the following:

" Client interest. Serve the client interest by seeking to accomplish the objectives established by the understanding with the client while maintaining integrity and objectivity."

" Understanding with client. Establish with the client a written or oral understanding about the responsibilities of the parties and the nature, scope, and limitations of services to be performed, and modify the understanding if circumstances require a significant change during the engagement."

" Communication with client. Inform the client of (a) conflicts of interest that may occur pursuant to interpretations of Rule 102 of the Code of Professional Conduct [ET section 102.03], (b) significant reservations concerning the scope or benefits of the engagement, and (c) significant engagement findings or events."