October/November 1998

Over the years, I have prepared many expert witness reports and reviewed the work of many other opposing experts. Along the way, I have had the opportunity to see what works and what does not work. With the success or failure of a lawsuit often in the balance, it is imperative that the accounting expert produce a thorough, compelling, and convincing report supporting the financial issues in a case. Attorneys may find the following checklist, which I have developed over the years, helpful in reviewing the reports of accounting expert witnesses:

Dos, Don'ts, and Other Thoughts

• Do comply with Colorado Rules of Civil Procedure. (Rule 26.2)

• Do comply with professional standards.

• Don't fight battles on more fronts than you can defend.  (Report should be 20% offensive and 80% defensive)

• Don't opine on subjects outside your area of expertise.

• Don't needlessly help your opponent.

• Don't incriminate your client.

• Do have attorney review a draft of your report before issuing.

• Don't let the expert's report be an afterthought. (Accountants get caught up in numbers and often neglect words.)

• An expert's report should stand on its on. (The Judge may pick up the report months after the trial. It should be a roadmap for the Judge long after his memory of any testimony is gone.)

• Do bulletproof your expert's report by thoroughly reviewing:

• Minor premises (Facts and assumption used)
• Major premises (Methodoligies used and not used)
• Expert's analysis (The actual application of facts and assumptions to the methodologies used)

• Do make your report "look" good.

New Continuing Education Course: Divorce - Separate vs. Marital Property - The CPA's Role in Asset Tracing

On December 8^th, I will be teaching this new course in Denver, sponsored by The Colorado Society of CPAs. The course is designed for accountant expert witnesses who are called upon to produce an asset tracing to establish or refute the existence of separate property in a Colorado marital dissolution. Attending CPAs will learn how to properly prepare an asset tracing in accordance with Colorado Statutes and case law using generally accepted accounting methodologies and techniques. The course is based on my book, Accounting Guide to Asset Tracing.