A CPA expert witness performs internal investigations into complex financial disputes. An attorney may need a forensic accountant to conduct extensive analyses of a business’s financial records and complex accounting issues. The expert witness then must be able to explain clearly these findings to a judge and jury in understandable and convincing terms.
Other Functions Of A CPA Expert Witness
Along with accounting expertise, an expert witness must also bring a superior understanding of how individual businesses and industries operate. Comparing subject companies to industry standards can be an important part of our analysis, allowing our firm to provide expert testimony in complex litigation matters.
While other accounting firms offer expert witness services among other services, Thomas Neches & Company LLP is focused solely on providing forensic accounting and expert witness services, therefore offering an unmatched record of experience in trial testimony over a variety of industries and types of litigation.
The ability to provide Business Valuation analysis and testimony in financial disputes and white-collar crimes requires extensive education, training, and experience. Thomas Neches is Accredited in Business Valuation and is a Certified Valuation Analyst.
When calculating the lost business value, Thomas Neches & Company LLP always complies with all applicable professional standards in business valuation. All business valuations involve assumptions and projections, hence different valuation analysts may arrive at materially different values for the same enterprise. An experienced CPA expert witness is needed both to reasonably value a business and to explain the reasonableness of this valuation in a convincing manner to the judge and jury.
Fraud greatly impacts the U.S. economy. Sadly, innocent people are the ones paying for it. Fraudsters infiltrate virtually every area of business. After fraud is discovered, especially fraud involving complex financial and business transactions, determining amounts owed to various parties can be challenging.
Thomas Neches & Company LLP provides expert witness services in the investigation of occupational frauds, including corruption, asset misappropriation, and financial statement fraud.
Intellectual property refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names, and images used in commerce. CPA expert witnesses calculate economic damages in which infringement of a patent, trademark, trade secret or copyright is alleged. Types of damages typically involve lost profit, unjust enrichment or a reasonable royalty.
The CPA expert witness testifying about a reasonable royalty must be familiar with the key cases impacting how damages must be calculated.
These cpa expert witness cases include:
- Panduit Corp. v. Stahlin Bros. Fibre Works, Inc., 575 F.2d 1152 (Sixth Cir. 1978);
- Georgia-Pacific Corp. v. United States Plywood Corp., 318 F. Supp. 1116 (S.D.N.Y. 1970), modified, 446 F.2d 295 (Second Cir. 1970), denied, 404 U.S. 870 (1971);
- Honeywell v. Minolta, Civil Nos. 87-4847, 88-1623 (N.D. N. J. 1992), jury instructions at 69.
Calculating the lost profit of a business is the most common assignment for which Thomas Neches & Company LLP is retained, whether for plaintiff or defendant. This typically involves projecting what a company’s historical and future revenues and expenses would have been absent the alleged wrongful acts of the defendant, and comparing this to what company’s revenues and expenses actually were and currently are expected to be. A key element of this analysis is investigating factors, other than the defendant’s acts, that may have affected the company’s financial results.
Lost profit calculations prepared by a CPA expert witness do not help unless they are clearly and persuasively explained to a judge and jury. An attorney making a case needs a CPA expert witness every step of the way to handle the research, calculation, and explanation of lost profit.
Wage and Hour Class Actions
In addition to federal labor laws, each state sets its own specific laws, and California specifically, leads the way in progressive labor laws. For businesses, it’s crucial to keep workplace policies compliant with federal and state labor laws.
Wage and hour class action lawsuits are common, and the potential financial exposures can be huge. An expert witness for wage and hour class action uses advanced database calculations to determine exact amounts owed. Our precise calculations have prevented every wage and hour class action case in which we have been retained from advancing to trial.
Wrongful termination is any firing that is done in violation of federal, state, or local laws; the terms of an employment agreement; or for reasons that go against public policy. In a manner similar to calculating lost profit, calculating economic damages in wrongful termination cases involve projecting what the historical and future earnings of the individual would have been absent the (allegedly) wrongful firing, and comparing this to what the historical earnings of the individual actually were and are currently expected to be. This typically involves the determination of the individual’s work life expectancy and life expectancy (when lost pension or other retirement benefits are at issue).
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