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). b
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.
