Question

What professional standards apply to accountants who perform litigation services? How does the knowledge, skill, experience, training, and education that accountants are expected to have and use in performing litigation services compare with what they are expected to have and use when performing other types of professional services?

Answer 1

ANSWER:

The accountants who perform the litigation services must comply with:

-- the accounting profession general standards contained in the AICPA Code of Professional Conduct such as independence, professional competence, objectivity and integrity, conflicts of interest, and confidential client information;

-- relevant established standards by accountancy state boards; and

-- guidance in special reports by AICPA, inclusive of Consulting Services Special Report 03-1 of AICPA: AICPA Special Report - Litigation Services and Applicable Professional Standards.

While performing the litigation advisory services, accountants use the similar abilities, experience, knowledge, skills, education, and training to support legal actions that they require while performing other professional services. The profession of accounting holds four main sets of technical standards: auditing standards; management consulting services (MCS) standards; attestation standards; and accounting and review services standards. The litigation services by professional accountants are mainly subject to the management consulting services standards and exempt from the others. It includes valuation services, insolvency services, preparation of information for finance obtaining, potential merger or acquisition analysis, and litigation services