Attorneys can benefit from employing accountants as members of their defense teams when litigation involves sophisticated financial concepts. A written retainer agreement between the attorney and the accountant should be used to formalize the relationship so that the accountant's efforts are likely to fall under the umbrella of attorney-client privilege. Strategies for effectively utilizing an accountant's expertise without risk that his investigative efforts will be subject to disclosure to the other side are discussed. It has become increasingly common in defending complicated criminal and civil cases for attorneys to employ accountants as members of the defense team. By doing so, immediately after being retained, the attorney has the advantage of the accountant's experience in developing the evidence for trial.
Examples abound of the help accountants can give lawyers.
For instance, in criminal matters such as securities law violations, tax evasion, embezzlement or fraudulent conveyances, the CPA traces funds, develops market information, and analyzes the myriad of accounting problems that always arise. In civil cases, the CPA determines damages and analyzes valuation problems and generally assists in interpreting the various accounting and tax matters which occur. Accountants help determine whether financial records are relevant in responding to subpoenas, assist counsel in preparing witnesses to testify at depositions and at trial, and in analyzing the strengths of one's own case as well as the opponent's. Accountant's familarity with computerized programs allows them to assist in setting up litigation support services such as financial statement and tax analyses and the development of other support documents. Who to Hire Having decided to retain a forensic, or investigative, accountant, the first and perhaps most fundamental question is whether the attorney should use the client's regular accountant.