Expert Witness
A CPA often serves as either an expert witness or as a consultant. Expert witnesses and CPA consultants are often used in situations such as the following:
- Divorce
- Dissolution of business
- Economic loss
- Breach of contract
- Partner disputes
- Dissenting shareholders
- Bankruptcy
Things to check before hiring an expert witness or consultant include:
- Does the expert witness have expert witness experience?
- What professional designations does the expert witness hold?
- Has the expert witness received continuing education particularly in the area needed such as litigation requiring Business Valuation?
- How long has the valuation analyst been performing business valuations, i.e., how much valuation experience does the expert witness have?
- Are good references readily available for the valuation analyst?
A business appraiser also may work as a consultant to assist with such things as:
- Reviewing the valuation clause in a buy-sell agreement.
- Review of other expert's work.
- Interpreting a company's financial statements and other information.
- Exploring the strengths and weaknesses of both sides of the case.
- Determining which discovery documents may be useful or necessary for analysis.
- Developing questions to ask opposing expert or principals regarding valuation facts and issues.
As a consultant, a CPA acts as an adviser for the attorney. In a business appraiser and expert witness role, the appraiser must not be an advocate for either side.
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