Page 9 - Civil Litigation

Introduction

Purpose of This Practice Aid

This practice aid fn 1 is intended to be an educational and reference primer for the practitioner who pro-
vides, or is considering providing, civil litigation services that may be provided in accordance with
Statement on Standards for Forensic Services (SSFS) No. 1 (FS sec. 100). fn 2

Scope of This Practice Aid fn 3

This practice aid is focused on the provision of services by the practitioner in connection with civil mat-
ters litigated in the federal court system of the United States of America. Although certain material may
also be applicable to state and local courts, alternative dispute laws; rules; and procedures may vary
widely. Accordingly, practitioners are encouraged to consult with legal counsel about laws and local
court requirements that may affect the material contained in this practice aid. Practitioners are reminded
that although the material in this practice aid relates most directly to civil matters litigated in the federal
court system, SSFS No. 1 is applicable to the other types of disputes mentioned in this paragraph as well
as other types of litigation and investigations, as defined within SSFS No. 1. fn 4

Overview of Civil Litigation

Civil litigation is the legal process used to resolve a dispute. fn 5 Civil disputes are either tort or contract
cause actions. Tort actions are civil wrongs that result in a remedy of damages to the harmed party.
Contract cause actions stem from breaches or other violations of contractual terms.

During the civil litigation process, the party initiating a complaint is the plaintiff. The party subject to
the complaint is the defendant. Each party can be referred to as a litigant. The plaintiff and defendant
each engage their own attorneys to represent their interests in the matter. The attorneys, in turn, may re-
tain consultants or expert witnesses to present the financial analysis and damage calculations, as needed,

fn 1 For purposes of this practice aid, the term practitioner refers to a member in good standing with the AICPA. The prac-
titioner may be a licensed CPA and hold specialized credentials in the field of forensic accounting (such as certified in fi-
nancial forensic, or CFF) or valuation (such as accredited in business valuation, or ABV), depending on the nature of the
disputed matter. However, much of the material contained in this practice aid may be helpful to others who provide civil
litigation services.

fn 2 All FS sections can be found in AICPA Professional Standards .

fn 3 This practice aid does not intend to apply to situations in which the practitioner may be required to testify as an offi-
cial custodian of records or as a fact or lay witness, although certain portions may be helpful.

fn 4 Statement on Standards for Forensic Services (SSFS) No. 1 makes clear that such forensic services standards applicabil-
ity depends on the purpose for which the member was engaged as opposed to the skill set employed or services provid-
ed.

fn 5 There are many other ways to resolve a commercial civil dispute, including answer methods that are not addressed
specifically in this practice aid.

© 2020 Association of International Certified Professional Accountants 7