Factors to Consider in Accepting the Client
As an expert witness, there are several criteria to consider before accepting an engagement. These
considerations include the 'engaging attorney', known as the client, any prospective conflicts of
interest, their own competence and due care, the nature and scope of the engagement, and finally the
compensation (Rufus, Miller, & Hahn, pp. 49-51, 2014). It is important for the forensic accountant to
know their clients, as an expert witness the forensic accountant must be aware that the attorney always
has their clients best interest in mind. In the case listed above, the attorney does not seem to be honest,
his practices are lacking as well. Conflicts of interest can arise for forensic accountants either between
themselves and the lawyer or between the lawyer and their clients, and can impede objectivity and
independence (Rufus et. al., p. 50, 2014). Forensic accountants must ensure they have the competence
to take on the engagement otherwise serious consequences can occur, including loss of reputation and
financial sanctions. The forensic accountants knowledge of the nature and scope of the engagement
goes hand in hand with competence and due care. Without knowledge of the nature and scope it would
be impossible to know if the forensic accountant had the competence, and wouldn't have done their
due care. Finally, compensation must be within a proper range, otherwise it could be seen as bribery,
and must be written and agreed upon by all parties (Rufus et. al., p. 51, 2014). The risks of not
following these pre-engagement considerations could result in damage to the reputation of the forensic
accountant, malpractice claims, overconsumption of resources, and threats to competence (Rufus et.
al., p. 49, 2014). z
Circumstances to Accept the Case
Given the facts given about Attorney Joseph Leslie, I do not feel there would be any terms that I
would feel comfortable with accepting this engagement. The client has historically shown that they
put a heavy, stressful workload on their employees, as well as a history of demanding payments up
front but failing to pay employees or consultants in a timely manner. These are huge warnings that
could put myself, and my firm if I work with one, at risk. Not only would my reputation be questioned,
but the likelihood of future litigation seems high with this case. While all engagements must have a
written engagement letter which lists the forensic accountants’ conditions for the engagement, it is just
a contract in the long run. If the attorney were the breach the contract, it could tie up more time and
resources with a lawsuit to collect the payment due if the retainer was consumed.
The textbook tells us that we need to measure risk and rewards when deciding on a client (Rufus et al,
2015). This is the first step I would take in this situation. I understand that he has a reputation of
winning and that would help boost my reputation being part of it. I also understand that since he only
takes wealthy clients, I could see a sizable payday from this one case. If I do a good job, it could also
lead to other offers from Mr. Leslie for continuing work. However, I feel that is where the rewards part
ends. While I may have a sizable payday, it could take an extended amount of time to get paid as he is
not reliable in that sense. I also look at how he handles his business. It appears he treats his staff and
other consultants poorly. I feel this says a great deal about his integrity and professionalism. If he is
slow to provide information that I may need to put together my opinion on the case, this could affect
how I appear. I want to always appear professional and complete my tasks in a timely manner but not
having the raw data on time can affect that. I may speak to any previous consultants that he has used to
see what they may have to say. I know they may not be able to tell me much due to confidentiality but
if they are willing to say, it is worth it in the end, I may consider.
In the end, I don't believe there is a way that I would accept this engagement. I would want to achieve
an excellent reputation and feel that being attached to Mr. Leslie might have the opposite affect. A
good payday is always a bonus but if it takes 6 months, a year for that to happen, it's not worth it. He
may be an excellent lawyer but I would also prefer to work with good, professional people with high
integrity.
Screening is a process used in all sorts of different situations to try to avoid undesirable outcomes. In
forensic accounting it is important to screen engagements before accepting or rejecting the offer.
Screening involves balancing the risk versus the reward. Risks include threats to compliance and/or
competence, overuse/overextension of resources, logistical issues, legal issues, while rewards
include compensation, positive reputation, and recognition. Despite the fact that Attorney Joseph
Leslie is known for winning difficult white-collar crime cases, which could provide a boost to my
reputation, he is also known for pushing long work hours and choosing only wealthy clientele who
pay up front while still paying his own consultants in a timely manner, both of which could damage
my reputation and cause financial strife. Deciding whether or not to accept his engagement means
balancing the reward of being associated with a winning lawyer, with the risks of accepting that he
doesn’t take care of his consultants and only accepts wealthy clients. In addition to considering the
engaging attorney, it is also important to consider competence, due care, the nature of the
assignment, and compensation. If I am not an expert in white collar crime cases, I may not be the
right forensic accountant for the job. My own skill set is important to consider in the process of
accepting an engagement. The nature of the assignment is relevant to determine how easily I would
be able to do my job - not in the sense that the job itself is easy, but in that I have access to witnesses
and data, travel isn’t extensive, there are not unusual risks or other special circumstances.
Compensation is important and establishing amounts and times of payment is essential (Rufus,
Miller, & Hahn, 2015).
This is not a case that I would accept at all. The potential boost to my reputation of being associated
with a winning attorney does not outweigh the hit my reputation could take for being associated with
an attorney who doesn’t respect the time and work of his consultants and experts. Even if I were to
ignore the treatment of those he engages, I would need to know the details of the case to ensure that
I am competent to serve as an expert witness, as I would not engage myself in a case where I do not
meet the criteria set forth for expert witnesses. I would also need information on the nature of the
assignment. I can not accurately gauge unusual risk or special circumstances without it.
Additionally, I would need compensation information, with specifics (as we’ve established he
doesn’t pay in a timely manner and demands many work hours). All that being said, my reputation is
very important to me, and I don’t see a situation where the reward outweighs the risk in this scenario.
If attorney Joseph Leslie wants to hire me to serve as an expert witness for a recently accepted
engagement, then there would be a contract that would need to be signed concerning some rules and
regulations. If he wants me to be an expert witness then he would have to pay me up front, a set fee.
One major red flag when it comes to deciding whether or not to accept an engagement would be the
pay and if the lawyer pays within a timely manner. “When lawyers ask experts to keep their fees low
because a case is “small,” the expert faces a magnified risk of not being paid. Any time an expert feels
uneasy about accepting a case, the expert will usually be well served by trusting his instincts and
declining the offer” (ExpertPages, 2022). The factors that I would consider in deciding whether or not
I would accept the engagement would be the amount that I would get paid, how many days I would
have to testify, and what specifically I would be testifying for or against. Time is money and it is
relevant that I be paid for expertise, training, and knowledge. I would also have to consider what the
expert final option is going to be, gather all the facts and data that will support my opinion, check the
list of any previous cases that this attorney has taken to court and what the outcome was.
I would probably not accept this engagement because of the way that the attorney treats his employees
and his slow fullness to pay them. I would not trust testifying on this attorney’s behalf because if he
does not pay his workers in a timely manner, then I am quite sure that they have some resentment
towards him and they would not get me the evidence and supplies that I would need to adequately be
able to testify accurately and honestly. It seems that this attorney is very greedy, and he would not be
willing to pay me for what I am worth for testifying. Only if this attorney were better to his employees,
paid them on time, was not greedy, and did not push his staff to work long hours, I might would
consider accepting the engagement. Speaking from experience, a person can only take so much and
after working for so many hours you began to lose focus and can overlook some important stuff.
Before accepting a new client, there are several factors that must play a part in determining the best
decision for you and the accounting firm. For starters, you must analyze the engaging attorney. While
Joseph Leslie may have won every “white collar” case he’s had, that doesn’t necessarily mean he is
good client to accept. An example of a bad client from our text states that if an attorney has a
reputation for expert abuse, such as demanding rush assignments, it is a red flag (Rufus, Miller, &
Hahn, 2014, p. 49). On the other hand, a good client shows respect to the expert witness and does not
rush the witness to provide results. Another factor that I would consider before accepting this
engagement is compensation. The prompt says that Leslie is known for not paying his consultants and
experts in a timely manner. Therefore, an expert witness should ask for a retainer that is based on the
nature of the case and the investment of time it will require (Expert Pages, 2022). Also, it is wise to
enter into a fee agreement with the lawyer to guarantee payment. Fee agreements resolve any doubt
about the basis for an expert’s compensation (Expert Pages, 2022). I would also need to have a
meeting with the prospective client to make sure they are not a professional liability to our accounting
firm. This will involve consider asking for references from attorneys, bankers and major vendors or
customers, and possibly, a background check on key members of the company’s management (Rood,
2013).
If I had to make a decision based on the details that have been presented, I would have to say I would
not feel comfortable accepting the engagement. There are noticeable red flags with the engaging
attorney that could hinder me from gathering sufficient evidence. While the client may be forthcoming
and want to cooperate as much as possible with the investigation, I personally would feel rushed by
the attorney because he just wants to win, but not give the time needed to develop the case properly.
Also, he hardly does any work himself, which proves he wants to everyone else to do the grunt work,
while he only presents the case. This behavior is not acting in the best interest of the client, or the
expert witness.
References
Expert Pages. (2022, September 21). 4 Ways That Expert Witnessess Can Protect Their Fees.
Retrieved from https://www.expertpages.com/library/4-ways-that-expert-witnesses-can-protect-their-
fees
Rood, D. K. (2013, July 1). Is this client the right fit for your firm? Retrieved from Journal of
Accountancy: https://www.journalofaccountancy.com/issues/2013/jul/20137770.html
Rufus, R., Miller, L., & Hahn, W. (2014, p. 49). Forensic Accounting. Pearson.
ExpertPages. (2022). 4 Ways That Expert Witness Can Protect Their Fees. Retrieved from:
https://www.expertpages.com/library/4-ways-that-expert-witnesses-can-protect-their-fees
Rufus, R. J., Miller, L. S., & Hahn, W. (2015). Forensic accounting. Pearson.
