Forensic accountants can serve a number of important roles in a legal dispute.
others
Description
Forensic accountants can serve a number of important roles in a legal dispute. In these
roles, forensic accountants often provide 1) discovery assistance (e.g., knowing what specific
information to request and identifying the appropriate individuals to depose or interview); 2)
development of a detailed, straightforward analysis and report that communicates appropriate
findings and conclusions; and 3) the delivery of effective testimony whether it be in deposition,
arbitration, trial or other dispute resolution forums. Since discovery accounts for the majority of
the cost of civil litigation (as much as 90 percent in complex cases),
1
the role that forensic
accountants play in the discovery process is particularly significant.
Discovery is the formal process that litigants use to obtain information from opposing
parties (Sinclair, 2008; Crumbley et.al., 2013). The discovery process, in theory, enables the
parties to know before trial begins what evidence may be presented. This process minimizes
surprises, lowers the transaction costs of dispute resolution, increases the percentage of settled
cases, improves the accuracy of trials and filters out frivolous disputes (Kim and Ryu, 2002).
* The authors are, respectively, Professor of Accounting at Florida Atlantic University, Associate Professor of
Accounting at the University of South Florida-St. Petersburg, and Associate Professor of Accounting at Florida
Atlantic University.
1 Memorandum from Paul Niemeyer, Chair, Advisory Comm. on Civil Rules to Hon. Anthony J. Scirica, Chair,
Comm. on Rules of Practice and Procedure (May 11, 1999), 192 F.R.D. 340, 357 (2000).
Journal of Forensic & Investigative Accounting
Vol. 6, Issue 2, July - December, 2014
53
How the course of discovery proceeds, in practice, is a decision made by the parties to the
lawsuit.
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