Law and accounting professionals agree to adhere to
certain codes of ethics and standards. Newspapers often name the
accountants as lawsuit defendants, along with company management, related to
business failures, precipitous stock price drops, and lower than expected
earnings performance. Lawyers also are exposed to liability and monetary
damages awards in cases where their advice, with hindsight, may appear to
have been incorrect.
We consult with plaintiffs or defendants to assess
potential malpractice issues relating to accounting principles and auditing
standards. Through review and analysis of accountants’ working papers,
calculation of financial ratios and other accounting analyses, we seek to
provide an objective evaluation of the accountants’ compliance with relevant
principles and standards. Our skills are also quite valuable for legal
malpractice matters where counsel is accused of misappropriation of trust
funds or inappropriate use of business information or other accounting
data. Where appropriate, we calculate damages resulting from the
Our professionals assisted counsel in the following
Evaluated the reported financial results for a failed credit card company and its wholly owned bank subsidiary. Based upon company records and the working papers of its outside auditor, determined material misstatements in operating results when GAAP was inappropriately applied.
Analyzed a law firm’s financial transactions through its client trust account in response to allegations stemming from a State Bar investigation.
Evaluated audit working papers given the professional audit standards. Established the auditor’s failure to detect employee embezzlement.
Reviewed and rebutted damages asserted in conjunction with alleged legal malpractice by a major law firm.
Assisted in the defense of criminal charges against the CFO of a failed computer game company by demonstrating that the CFO reasonably relied upon the outside auditors to evaluate internal controls and test for accounting misstatements.
Performed an in-depth assessment of a major chemical company’s accounting policies and internal controls, generally accepted auditing standards for the evaluation of internal controls, and industry practices related to construction-type projects to prove that an environmental cost reimbursement claim predicated solely upon an audit opinion and accompanying audited financial statements is insufficient and unreliable.