Instructing a Forensic Accountant: What Attorneys Should Know

Instructing the right forensic accountant can materially affect the trajectory of a dispute. The expert's methodology, independence, and ability to communicate complex financial analysis to the court are often as important as the underlying numbers. This guide sets out what U.S. attorneys should consider when selecting and instructing a forensic accounting expert.

Choosing the right expert

Look for a CPA or forensic accountant with specific litigation experience, not general audit or tax practice. Certified in Financial Forensics (CFF), Certified Fraud Examiner (CFE) status, and business valuation credentials (such as ABV or CVA) are useful indicators of court-facing expertise.

Confirm the expert has experience in your specific type of matter: a commercial damages expert may not be the right appointment for a civil forfeiture hearing or a marital business valuation. Ask directly about comparable instructions and whether they accept jointly retained appointments if that is under consideration.

Responsiveness matters in litigation. Establish at the outset whether a senior practitioner will lead the engagement, what the conflicts check process involves, and typical timelines for your type of instruction.

The engagement letter

A clear engagement letter is the foundation of effective expert evidence. It should set out the case, the issues for the expert to address, the documents provided (and any further documents to follow), applicable procedural rules, and the timetable.

Avoid instructing the expert to reach a particular conclusion. Questions should be framed to elicit independent analysis: for example, 'What were the maintainable earnings of the business in the year before the breach?' rather than 'Confirm that profits were understated.'

For joint instructions, both parties should agree the scope before the expert begins substantive work. Disputes over scope at the draft report stage are costly and avoidable.

Party-retained vs jointly retained expert

A party-retained expert is engaged by one side and must remain objective and independent. A jointly retained expert is agreed by both parties and must demonstrate independence throughout.

Joint appointments reduce costs and expert divergence where the issues are suitable for a single opinion. They are common in marital dissolution and many commercial disputes. They are less appropriate where the parties' positions on methodology are fundamentally opposed before any expert analysis is undertaken.

If two party experts are appointed, consider whether an expert conference is likely to narrow issues and whether depositions are anticipated.

Working effectively with your expert

Provide complete financial documentation early. Incomplete records extend timelines and may limit the expert's ability to form a preliminary view. If urgent relief is sought, ask whether a preliminary assessment is available before a full report.

Maintain a single point of contact where possible and respond promptly to requests for further documents. Experts cannot opine on records they have not seen.

If the expert's preliminary view may be adverse, you need to know promptly. Reputable experts will advise at an early stage. This is not a weakness; it allows realistic case assessment and negotiation strategy.

Costs and proportionality

Discuss budget and scope at the outset. A proportionate report addressing the issues the court must decide is preferable to an unnecessarily comprehensive report that increases costs without improving outcomes.

For jointly retained appointments, agree how costs will be shared and what happens if one party fails to provide documents on time.

At Lawson Forensic, every engagement is senior-led from instruction through to report and testimony. To discuss an instruction, visit our contact page or email contact@lawsonforensic.com.