Calculation of Damages from Personal Injury, Wrongful Death, and Employment Discrimination, Practice Aid 98-2

1. INTRODUCTION

.01 Litigation and dispute resolution services are provided by a CPA using accounting and consulting skills to assist a client in a matter that involves a pending or potential formal legal or regulatory proceeding before a "trier of fact" (for example, a judge, jury, arbitrator, mediator, or special master) in connection with the resolution of a dispute between two or more parties.¹ Litigation services may be provided by a CPA acting as a consultant, usually to an attorney, or as an expert witness.² The services provided may include factfinding (such as assistance in the discovery and analysis of data), damage calculations, document management, preparation of demonstrative evidence, expert testimony, and other professional services. Litigation services also include services to parties of interest in pending or potential bankruptcy proceedings (bankruptcy services), reorganization, insolvency, and fraud investigations, among other services. Litigation services are classified as transaction services subject to the Statement on Standards for Consulting Services (SSCS), and are subject to the SSCS, as well as to the professional standards embodied in the AICPA Code of Professional Conduct.³

¹ See the definition of litigation services in the Interpretation of Statement on Standards for Attestation Engagements, "Attestation Standards: Attestation Engagements Interpretations of Section 100" (AICPA, Codification of Statements on Standards for Attestation Engagements, AT sec. 9100.48).

² The Practice discipline of litigation services includes actual and potential disputes that may or may not proceed to formal litigation. Throughout this practice aid, the term litigation services includes litigation and dispute resolution services, unless otherwise indicated.

³ Statement on Standards for Consulting Services (SSCS) No. 1, effective January 1, 1992, states that litigation services as part of the full definition of consulting services are subject to the following standards: professional competence, due professional care, planning and supervision, sufficient relevant data, client interest, understanding with client, and communications with client. See SSCS, No. 1, Consulting Services: Definitions and Standards (AICPA, Professional Standards, vol. 2, CS sec. 100) for further explanation.

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