Page 81 - Expert Witness

fused access by the two opposing owners. After visiting with her client, Betty prepares her written report
of the investigation. fn 33 The report includes the following:

1. The objectives of the investigation

2. The scope of the investigation

3. Background information on the company and the purpose of the investigation

4. Source documents used

5. A summary of procedures performed

6. Her findings and opinions

7. A conclusion

8. The restrictions on the findings, opinions, and use of the report

9. The assumptions used during the investigation

10. All exhibits

11. Her qualifications

12. Her compensation

13. A list of other cases in which she testified

14. Her signature

Betty’s report states that she found almost $500,000 in transactions, and it indicates that the other two
owners conspired to utilize assets of company A to facilitate the opening of company Z. Her client is
appalled at the amount. He and his attorney meet with his co-owners to discuss the matter. The manag-
er/co-owner denies the allegations and refuses to reimburse company A. The CPA/co-owner is silent.

Mediation and Arbitration

Betty, Betty’s client, and his attorney meet to discuss the options. The attorney mentions two options
that would avert a court proceeding: mediation and arbitration.

In mediation, an impartial third person assists the parties in reaching a resolution of the dispute. The
mediator does not decide who should win but instead works with the parties to reach a mutually agreea-
ble settlement.

fn 33 See AICPA Practice Aid, Communications in Litigation and Dispute Services, for more information.

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