Question

You are an associate at ABC LLP, a forensic accounting firm. Your company is retained by the Law Firm that is representing a client. The client, the former CFO of the Public Company, is being investigated by the SEC and FBI for running a large accounting fraud scheme and funneling money to his own account after allegedly falsely invoicing sales during 2013 and 2014. The Auditing Firm, which was recently terminated, audited the Public Company and issued opinion letters in connection with the Public Company’s 2013 and 2014 annual reports.

You are just getting up to speed on the case, but the ABC Partner asked for you to help analyze the issue in connection with the Law Firm.

Assume that the ABC Partner asks if you are willing to testify about your work in a hearing concerning the CFO, but that the ABC partner is unsure about the laws governing your possible testimony:

1. Identify the types of testimony you might be able to provide by referencing relevant laws on point (and describe the admissibility of such testimony).

Answer 1

The accountants have the responsibility to uphold the dignity and honesty of accounting profession. Thus, an accountant though is allowed to testify in case for or against his clients however, the followings points are worth noting while it comes to different types of testimonials that an accountant can provide. In this case the accountant is allowed to testify for the CFO in following manners:

1. The accountant must be honest while testifying.
2. Confidential information about the clients should not be divulged by the accountant until unless not required by the law.
3. The testimonial should be strictly professional thus, personal information about the CFO should not be disclosed by the accountant in his testimonials.
4. The accountant shall only disclose information that are necessary and relevant to the case.
5. Any information that the accountant has acquired over the course of service should not be disclosed until unless required by the law.