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The 2014 AICPA Survey on International Trendsin Forensic and Valuation Services
Copyright © 2014 American Institute of CPAs. All rights reserved.
DISCLAIMER:�7KH�FRQWHQWV�RI�WKLV�SXEOLFDWLRQ�GR�QRW�QHFHVVDULO\�UHƃHFW�WKH�SRVLWLRQ�RU�RSLQLRQ�RI�WKH�$PHULFDQ�,QVWLWXWH�RI�&3$V��LWV�GLYLVLRQV�DQG�its committees. This publication is designed to provide accurate and authoritative information on the subject covered. It is distributed with the XQGHUVWDQGLQJ�WKDW�WKH�DXWKRUV�DUH�QRW�HQJDJHG�LQ�UHQGHULQJ�OHJDO��DFFRXQWLQJ�RU�RWKHU�SURIHVVLRQDO�VHUYLFHV��,I�OHJDO�DGYLFH�RU�RWKHU�H[SHUW�DVVLVWDQFH�LV�UHTXLUHG��WKH�VHUYLFHV�RI�D�FRPSHWHQW�SURIHVVLRQDO�VKRXOG�EH�VRXJKW�
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0HPEHUV�RI�WKH�����t���$,&3$�&HUWLƂHG�LQ�)LQDQFLDO�)RUHQVLFV��&))®) Committees provided information and guidance for this white paper and advised the authors and staff. The committee members are listed below.
2013 CFF Credential Committee 2014 CFF Credential Committee
%RE�+DUULV��&KDLU� %RE�+DUULV��&KDLU5REHUW�%RQDYLWR� &KULVWLQH�%DNHUAnna Maria Cicirello Anna Maria Cicirello-RVHSK�'RROH\� -ROHQH�)UDVHUJolene Fraser Gerald FujimotoGerald Fujimoto Jeff MooreJeff Moore Timothy PearsonBarry Sussman Barry Sussman5DQG\�:ROYHUWRQ� 5DQG\�:ROYHUWRQKoutayba Yamak Koutayba Yamak Alan Zysman
Additional contributions were made by the following member volunteers:
Ted BaskervilleCorey Anne BloomTim Bryan5RQ�'L0DWWLDJim Koerber5RQ�6HLJQHXU
AICPA Staff:
-HDQQHWWH�.RJHU��9LFH�3UHVLGHQW�u�0HPEHU�6SHFLDOL]DWLRQ�DQG�&UHGHQWLDOLQJ(GG\�3DUNHU��6HQLRU�7HFKQLFDO�0DQDJHU�u�)RUHQVLF�DQG�9DOXDWLRQ�6HUYLFHV3UHVWRQ�:LOOFR[��0DQDJHU�u�)RUHQVLF�DQG�9DOXDWLRQ�6HUYLFHV
CPA Canada Staff:
)UDQN�&RODQWRQLR��'LUHFWRU�u�3URIHVVLRQDO�/HDUQLQJ�DQG�'HYHORSPHQW9DOHULH�/HDFK��3ULQFLSDO�u�3URIHVVLRQDO�/HDUQLQJ�DQG�'HYHORSPHQW0DULVRO�$UUR\R��&RRUGLQDWRU�u�3URIHVVLRQDO�/HDUQLQJ�DQG�'HYHORSPHQW
TABLE OF CONTENTS
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
The Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Top lssues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
&DVH�6WXG\����6XFFHVVLRQ�3ODQQLQJ�LQ�D�1LFKH�3UDFWLFH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . �
Insights Into Practice Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
(OHFWURQLF�'DWD�$QDO\VLV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . �
� � &DVH�6WXG\����%LJ�'DWD�0RYHV�WR�&HQWHU�6WDJH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Bankruptcy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
� � &DVH�6WXG\����7KH�$GYDQWDJHV�:KHQ�%DQNUXSWF\�DQG�)UDXG�7HDPV�-RLQ�)RUFHV . . . . . . . . . . . 10
� 'DPDJH�&DOFXODWLRQV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
� )DPLO\�/DZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Financial Statement Misrepresentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Business Industry Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
:KHUH�'LG�7KH\�:RUN". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Fraud Prevention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
� (FRQRPLF�'DPDJHV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Financial Statement Misrepresentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
� 6KDUHKROGHU�'LVSXWH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
� � &DVH�6WXG\����7ZR�&3$V�:HLJK�LQ�RQ�6KDUHKROGHU�RU�3DUWQHU�'LVSXWHV . . . . . . . . . . . . . . . . . . . 20
EXECUTIVE SUMMARY
$V�SDUW�RI�LWV�FRPPLWPHQW�WR�VHUYLQJ�PHPEHU�QHHGV��WKH�$,&3$�)RUHQVLF�DQG�9DOXDWLRQ�6HUYLFHV��)96��6HFWLRQ�UHJXODUO\�VXUYH\V�)96�SURIHVVLRQDOV�WR�JHW�D�VHQVH�RI�WKH�VWDWH�RI�practice today and of the trends these professionals will be facing in the short term. The FVS Section undertook a landmark survey that gathered input from a range of sources. This is the ILUVW�VXUYH\�WKDW�KDV�EHHQ�GLVWULEXWHG�WR�ERWK�$,&3$�DQG�&3$�&DQDGD�PHPEHUV��PDUNLQJ�LWV�debut as an international study.
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One of the most notable findings in the 2014 survey was the appearance of electronic data DQDO\VLV�u�RU�ELJ�GDWD�u�DW�WKH�KHDG�RI�WKH�WRS�LVVXHV�OLVW��:KLOH�WHFKQRORJ\�FRQFHUQV�ZHLJKHG�LQ�DW�1R����RQ�WKH�OLVW�LQ�WKH������VXUYH\��LW�ZDV�VXUSULVLQJ�LQ������WR�VHH�D�WHFK�LVVXH�UHSODFH�KLULQJ�DQG�UHWDLQLQJ�TXDOLILHG�VWDII��D�SHUHQQLDO�FRQFHUQ�WKURXJKRXW�WKH�SURIHVVLRQ�DQG�LQ�WKH�VSHFLDOL]HG�)96�VHFWRU�LQ�SDUWLFXODU��LQ�WKH�1R����VSRW��6WDIILQJ��LQ�IDFW��GURSSHG�WR�1R����on the most recent survey list. Since by all accounts conditions in the CPA hiring market have RQO\�WLJKWHQHG�LQ�WKH�ODVW�WZR�\HDUV��LW�LV�SRVVLEOH�WKDW�ELJ�GDWD�PRYHG�WR�WKH�WRS�RI�WKH�OLVW�GXH�WR�JUHDWHU�SXEOLF�DZDUHQHVV�RI�WKH�VXEMHFW��ZKLFK�KDV�SURPSWHG�GHHSHU�DWWRUQH\�DQG�FOLHQW�awareness of its potential uses.
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The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 2
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5HJDUGLQJ�SURIHVVLRQDO�UHTXLUHPHQWV��ZKHQ�DVNHG�ZKDW�FUHGHQWLDOV�UHVSRQGHQWV�UHTXLUH�RI�WKRVH�SURYLGLQJ�IRUHQVLF�DFFRXQWLQJ�VHUYLFHV��D�&3$�ZDV�WKH�PRVW�IUHTXHQWO\�UHTXLUHG�FUHGHQWLDO��7KH�&3$��FRXSOHG�ZLWK�WKH�&HUWLILHG�LQ�)LQDQFLDO�)RUHQVLFV��&))®��FUHGHQWLDO��SURYLGHV�WKH�PRVW�GHVLUDEOH�FRPELQDWLRQ�RI�FUHGHQWLDOV�LQ�WKH�DUHDV�RI��IUDXG�SUHYHQWLRQ��detection and response; financial statement misrepresentation; damages calculations; EDQNUXSWF\��DQG�HOHFWURQLF�GDWD�DQDO\VLV��/LNHZLVH��WKH�&3$�FRXSOHG�ZLWK�WKH�$FFUHGLWHG�LQ�%XVLQHVV�9DOXDWLRQ��$%9TM) credential was the most widely desired combination of credentials for valuation engagements.
The AICPA FVS Section also commissioned a study of professionals in business and industry �%,��WR�JDWKHU�WKHLU�IHHGEDFN�RQ�ZRUNLQJ�ZLWK�IRUHQVLF�DQG�YDOXDWLRQ�SURIHVVLRQDOV��7KH�VXUYH\�UHVXOWV�SURYLGH�YDOXDEOH�LQIRUPDWLRQ�IRU�&3$V�RQ�WKH�WUHQGV�DIIHFWLQJ�WKHLU�FOLHQWV��KRZ�WKH\�DUH�UHVSRQGLQJ�WR�WKRVH�WUHQGV��DQG�ZKLFK�VHUYLFHV�WKH\�PD\�QHHG�IURP�RXWVLGH�H[SHUWV��
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The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 3
THE RESPONDENTS
Who Participated
There were 443 professionals who responded to the VXUYH\������ZHUH�GHGLFDWHG�)96�SUDFWLWLRQHUV�DQG�����professionals in business and industry. Of the dedicated )96�SUDFWLWLRQHUV������ZRUNHG�LQ�SXEOLF�DFFRXQWLQJ�RU�FRQVXOWLQJ�ƂUPV��7KH�VHFRQG�ODUJHVW�JURXS�u�����u�ZRUNHG�LQ�EXVLQHVV�DQG�LQGXVWU\��([KLELW���SURYLGHV�D�complete overview.
7KH�UHVSRQGHQWV�ZHUH�DQ�H[SHULHQFHG�JURXS��ZLWK� WZR�WKLUGV�RU�PRUH�KDYLQJ����RU�PRUH�\HDUV�RI�H[SHULHQFH�LQ�WKHLU�QLFKH�DQG�����KDYLQJ����\HDUV�RU�PRUH�RQ�WKH�MRE���5HVSRQGHQWV�LQ�ƂUPV�RIIHUHG�D�UDQJH�RI�VHUYLFHV��EXW�WKH�WRS�FDWHJRULHV�ZHUH�
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Exhibit 1
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PARTICIPANTS
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Optimism About the Future
The respondents were very enthusiastic about the opportunities for forensic and valuation services. A total RI�����RI�IRUHQVLF�DQG�����RI�YDOXDWLRQ�UHVSRQGHQWV�DUH�H[SHFWLQJ�JURZWK�ZLWK�PRVW�DQWLFLSDWLQJ�EHWZHHQ�����DQG�����JURZWK�LQ�WKHLU�SUDFWLFH�RYHU�WKH�QH[W�WZR�WR�ƂYH�\HDUV��2I�WKH������URXJKO\�����RYHUDOO�H[SHFWHG�XS�WR�D�����LQFUHDVH�LQ�GHPDQG�IRU�WKHLU�VHUYLFHV�LQ�WKH�FRPLQJ�WZR�WR�ƂYH�\HDUV��$QRWKHU�����DQWLFLSDWHG�XS�WR�D�����ULVH�LQ�GHPDQG��DQG�DERXW�����ZHUH�ORRNLQJ�WR�D�����RU�KLJKHU�VSLNH��7ZHQW\�SHUFHQW�IRUHVDZ�QR�FKDQJH��DQG�DERXW����H[SHFWHG�D�GHFOLQH�LQ�GHPDQG��
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Exhibit 2
What Services Were Offered?
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AREAS OF PRACTICE
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 5
TOP ISSUES
One of the hallmarks of every FVS Trend Survey is the UHVSRQGHQWVp�RSLQLRQ�RQ�WKH�WRS�ƂYH�LVVXHV�IDFLQJ�IRUHQVLF�DQG�YDOXDWLRQ�SURIHVVLRQDOV�RYHU�WKH�QH[W�WZR�WR�ƂYH�\HDUV��7KH�PDMRU�LVVXHV�WKLV�\HDU�ZHUH�D�GHSDUWXUH�IURP�WKRVH�LGHQWLƂHG�LQ�WKH������VXUYH\��DQG�they may be a surprise for many FVS professionals. The comparison between the two surveys can be found in ([KLELW����EXW�KHUH�DUH�VRPH�NH\�SRLQWV�
Electronic data analysis�u�DQRWKHU�WHUP�IRU�WKH�EX]]ZRUG�qELJ�GDWDr�u�GLG�QRW�DSSHDU�RQ�WKH�OLVW� LQ������EXW�MXPSHG�WR�QXPEHU�RQH�WKLV�\HDU���)RU� RQH�SUDFWLWLRQHUpV�WDNH�RQ�ELJ�GDWD��VHH�&DVH� 6WXG\���RQ�SDJH�����$V�VKRZQ�LQ�([KLELW����RQO\� ����RI�UHVSRQGHQWV�VDLG�WKH\�SUDFWLFHG�LQ�WKLV�DUHD�� but electronic data analysis may be called for in a variety of other engagements.
#VVTCEVKPI�CPF�TGVCKPKPI�SWCNKƂGF�UVCHH�UNKRRGF�VQ�PWODGT�ƂXG�HTQO�PWODGT�QPG�NCUV�VKOG� Although this VHHPV�OLNH�D�GUDPDWLF�FKDQJH��WKHUH�DUH�PDQ\�UHDVRQV�to believe that hiring and retention are still critical concerns for FVS practitioners. The CPA profession as a whole is seeing more demand for talent as the economy
rebounds and the baby boomers head into retirement. �)RU�D�ORRN�DW�VPDUW�VXFFHVVLRQ�VWHSV�LQ�DQ�)96�SUDFWLFH��VHH�&DVH�6WXG\���RQ�SDJH�����$W�WKH�VDPH�WLPH��WKH�QHHG�WR�ƂQG�WKH�ULJKW�SHRSOH�FDQ�EH�SDUWLFXODUO\�DFXWH�LQ�VSHFLDOL]HG�DUHDV�VXFK�DV�IRUHQVLF�DQG�YDOXDWLRQ�VHUYLFHV��:KLOH�VWDIƂQJ�PD\�KDYH�VOLSSHG�IURP�WKH�WRS�SODFH��LW�XQGRXEWHGO\�UHPDLQV�D�NH\�FRQFHUQ�IRU�WKRVH� in this practice area.
Increased complexity and scrutiny remain as challenges for CPAs as their approaches and methodologies come under greater scrutiny by judges and governing bodies. Taking second place in this \HDUpV�VXUYH\��WKLV�LVVXH�UHSODFHV�D�VRPHZKDW�UHODWHG�LVVXH�u�NHHSLQJ�DEUHDVW�RI�UHJXODWRU\�FKDQJHV�u� from 2011.
Although concerns about the economy dropped off the list this year, competition and fee pressure remain important issues for FVS practitioners.
Exhibit 3
Top Five Issues Facing Forensic and Valuation Professionals Over the Next Two to Five Years
25%
14%
13%
11%
9%
2014 ISSUES
25%
20%
14%
11%
7%
Electronic data analysis
,QFUHDVHG�FRPSOH[LW\�DQG�VFUXWLQ\�LQ�HQJDJHPHQWV
Competition and fee pressure
5HJXODWRU\�FKDQJHV
Attracting and retaining qualified staff
2011 ISSUES
Attracting and retaining qualified staff
Keeping abreast of regulatory changes
The economy
Competition and fee pressure
Technology
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 6
Getting an early start is the key to succession SODQQLQJ�DW�7KH�.RHUEHU�&RPSDQ\�3$��D�ERXWLTXH�business valuation and forensic accounting practice in +DWWLHVEXUJ��06��$V�DQ�H[DPSOH��WKH�VL[�SHUVRQ�ILUP�has one young professional who was hired directly out RI�FROOHJH�DQG�ZKR�KDV�EHHQ�ZLWK�WKH�ILUP�IRU�VL[�\HDUV��q:HpYH�ZRUNHG�ZLWK�KLP�RYHU�WLPH�WR�HQVXUH�KH�JHWV�WKH�WUDLQLQJ�DQG�VNLOOV�KH�QHHGV�r�LQFOXGLQJ�DWWHQGDQFH�DW�WKH $,&3$�([SHUW�:LWQHVV�6NLOOV�:RUNVKRS��VD\V�-LP .RHUEHU��&3$�$%9�&))��&9$��&)(��7R�HQKDQFH�WKHLU�VNLOOV DQG�FRQILGHQFH��.RHUEHU�OLNHV�WR�VWDUW�\RXQJ�SURIHVVLRQDOV�ZLWK�VPDOO�EXW�LPSRUWDQW�SURMHFWV��VXFK DV�VWUDLJKWIRUZDUG�GLYRUFH�RU�FRXUW�DSSRLQWHG�ZRUN��
But the firm’s outreach begins before students graduate IURP�FROOHJH��q+LULQJ�LQWHUQV�ZKR�DUH�LQ�VFKRRO�DOORZV�you to evaluate their work ethic and their aptitude for WKLV�ZRUN�DQG�WR�LQWURGXFH�WKHP�WR�LW�r�KH�VD\V��q,W�KDV�ZRUNHG�YHU\�ZHOO�IRU�XV�r�7KH�ILUP�LV�DERXW�WR�KLUH�D�woman who has just completed her master’s degree and who has worked for the firm as an intern for two years. .RHUEHU�LV�DOVR�FRQVLGHULQJ�H[SDQGLQJ�KLV�RXWUHDFK�EH\RQG�VWXGHQWV�LQ�DFFRXQWLQJ�SURJUDPV��WR�LQFOXGH�WKRVH�JHWWLQJ�PDVWHUpV��GHJUHHV��LQ�VXEMHFWV�VXFK�DV�economics or finance.
5HSXWDWLRQ�LV�DQ�LPSRUWDQW�HOHPHQW�LQ�WKH�VXFFHVV�RI�DQ�)96�SUDFWLFH��ZKLFK�LV�ZK\�.RHUEHU�KDV�HQFRXUDJHG�young professionals to speak before Beta Alpha 3VL�FKDSWHUV��WR�SUHVHQW�FRQWLQXLQJ�OHJDO�HGXFDWLRQ�seminars and to write articles that have been published LQ�WKH�0LVVLVVLSSL�6RFLHW\�RI�&3$V�QHZVOHWWHUV��)LQDOO\��ZKHQ�.RHUEHU�JRHV�RQ�VLWH�YLVLWV��KH�EULQJV�D�\RXQJ�professional along so that clients get to know them and VR�WKDW�WKH\�KDYH�ILUVW�KDQG�H[SHULHQFH�ZRUNLQJ�ZLWK�WKHP��q'RQpW�ORRN�DW�WKH�VKRUW�WHUP�r�KH�DGYLVHV�RWKHU�SUDFWLWLRQHUV��q,W�FDQ�WDNH�XS�WR�ILYH�\HDUV�EHIRUH�SHRSOH�UHDOO\�PDVWHU�WKLV�DUHD�r�
Koerber also works to educate students and prospective FDQGLGDWHV�DERXW�IRUHQVLF�DQG�YDOXDWLRQ�VHUYLFHV��ZLWK�which many are unfamiliar. His firm accomplishes this through the presentations for accounting students and WKURXJK�FODVVHV�.RHUEHU�KDV�WDXJKW�DW�/68�LQ�%DWRQ�5RXJH��,Q�KLV�FODVV��.RHUEHU�WULHV�WR�EXLOG�D�VHQVH�RI�H[FLWHPHQW�E\��IRU�H[DPSOH��GLYLGLQJ�WKH�JURXS�LQWR�plaintiffs and defendants and having them work through D�FDVH��q$IWHU�HDFK�FODVV��,�ZRXOG�JHW�HPDLOV�LQTXLULQJ�DERXW�RSHQLQJV�DW�WKH�ILUP�r�KH�VD\V�
Case Study 1: Succession Planning in a Niche Practice
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 7
Electronic Data Analysis
The research company Gartner Inc. defines big data as qKLJK�YROXPH��KLJK�YHORFLW\�DQG�KLJK�YDULHW\�LQIRUPDWLRQ�DVVHWV�WKDW�GHPDQG�FRVW�HIIHFWLYH��LQQRYDWLYH�IRUPV�of information processing for enhanced insight and GHFLVLRQ�PDNLQJ�r�,Q�VLPSOH�ODQJXDJH��LWpV�DERXW�DFFHVVLQJ�DQG�DQDO\]LQJ�YROXPLQRXV�DPRXQWV�RI�LQIRUPDWLRQ��$W�WKH�HQG�RI�������,QWHUQDWLRQDO�'DWD�Corporation forecasted that the big data technology DQG�VHUYLFHV�PDUNHW�ZRXOG�JURZ�DW�D�����FRPSRXQG�DQQXDO�JURZWK�UDWH�WR�������ELOOLRQ�WKURXJK�������ZKLFK�ZRXOG�EH�URXJKO\�VL[�WLPHV�WKH�JURZWK�UDWH�RI�WKH�RYHUDOO�information and communication technology market.
This year’s results clearly indicate that this surge is KDYLQJ�DQ�LPSDFW�RQ�)96�SURIHVVLRQDOV��HYHQ�LI�WKH\�don’t work directly in this practice area. Much of the LQWHUHVW�PD\�EH�GULYHQ�E\�FOLHQWV��$�IXOO�����UHSRUWHG�WKDW�WKHLU�FOLHQWV�ZHUH�GHYHORSLQJ�LQ�KRXVH�FDSDELOLWLHV�WR�DGGUHVV�HOHFWURQLF�GDWD�DQDO\VLV�QHHGV��1RW�RQO\�GLG�HOHFWURQLF�GDWD�DQDO\VLV�OHDG�WKH�WRS�LVVXHV�OLVW�WKLV�\HDU��EXW�DOVR�����RI�UHVSRQGHQWV�H[SHFW�WR�VHH�DQ�LQFUHDVH�in time spent on electronic data analysis.
Information security is another critical concern for FVS professionals. The survey asked respondents about ORRPLQJ�WKUHDWV�LQ�WKLV�DUHD��DQG�WKHLU�DQVZHUV�DUH� VKRZQ�LQ�([KLELW����
Exhibit 4
Over the Next 2 to 5 Years, What Will Be the Biggest Information Security Threat for Organizations?
14%
14%
4%
11%
6%2%
1%
40%
8%Q�&\EHUVHFXULW\����
Q�0DOLFLRXV�LQVLGHUV����
Q�3HUVRQDO�GHYLFHV�LQ�WKH�ZRUNSODFH����
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SECURITY THREAT
INSIGHTS INTO PRACTICE AREAS
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 8
$OWKRXJK�WKH�EX]]�DERXW�ELJ�GDWD�KDV�FHUWDLQO\�EHHQ�JURZLQJ��HOHFWURQLF�GDWD�DQDO\VLV��ZKLFK�WRSSHG�WKLV�\HDUpV�OLVW�RI�WRS�LVVXHV�IRU�)96�SUDFWLWLRQHUV��LV�QRW�QHZ�WR�&3$V�LQ�WKLV�DUHD��q,WpV�VRPHWKLQJ�ZHpYH�EHHQ�GHDOLQJ�ZLWK�IRU�VRPH�WLPH�r�QRWHV�7LP�%U\DQ��&3$�&))�&,73��&,6$��(Q&(��D�IRUHQVLF�DFFRXQWLQJ�DQG�WHFKQRORJ\�VHUYLFHV�VHQLRU�PDQDJHU�DW�&URZH�+RUZDWK�LQ�6DFUDPHQWR��&$��The important changes that have moved it to center stage include new technologies that support greater data mining and the fact that clients have developed a more VRSKLVWLFDWHG�XQGHUVWDQGLQJ�RI�LWV�SRWHQWLDO��q7KH\�DUH�GHPDQGLQJ�D�KLJKHU�OHYHO�RI�GDWD�DQDO\VLV�FDSDELOLWLHV�r�Bryan says.
He describes one recent engagement that involved a governmental agency whose investigation of a company required an analysis of all sales data for that entity RYHU�D�WKUHH�\HDU�SHULRG��q:LWK�HYHU\�WUDQVDFWLRQ��WKH�FRPSDQ\�LV�JRLQJ�WR�JHQHUDWH�D�ORW�RI�GDWD��VR�ZH�ZHUH�ZRUNLQJ�ZLWK�DERXW����PLOOLRQ�OLQHV�RI�GDWD�WKDW�KDG�WR�EH�V\QWKHVL]HG�LQWR�VRPHWKLQJ�WKH�DWWRUQH\�FRXOG�XVH�WR�GHIHQG�WKH�FOLHQW�r�KH�H[SODLQV��.H\�FRQVLGHUDWLRQV�LQFOXGH�GDWD�YDOLGDWLRQ��q7\LQJ�WKH�GDWD�WR�D�VRXUFH�that you know is complete and accurate is the biggest FKDOOHQJH��IROORZHG�E\�JHWWLQJ�LW�LQWR�D�XVHDEOH�IRUPDW�r�7KLV�FDVH�UHTXLUHG�WDNLQJ�WKH�GDWD�RXW�RI�D�64/�VHUYHU��D�GDWDEDVH�WKDW�LPSOHPHQWV�WKH�VWUXFWXUHG�TXHU\�ODQJXDJH��DQG�PRYLQJ�LW�WR�WKH�ILUPpV�RZQ�64/�VHUYHU�
New Skills Required
7KLV�ZRUN�UHTXLUHV�D�EURDGHU�VHW�RI�VNLOOV��q6SUHDGVKHHW�WRROV�DUH�QR�ORQJHU�JRRG�HQRXJK�r�%U\DQ�VD\V��q'DWDEDVH H[SHULHQFH�LV�YLWDO�IRU�&3$V�LQ�WKHVH�FDVHV��$W�RXU�ILUP��ZH�KDYH�LQYHVWHG�LQ�SHRSOH�ZLWK�WKLV�H[SHULHQFH�and given them database training opportunities and encouraged obtaining certifications. Spreadsheet tool FDSDELOLWLHV�VWRS�DW�DURXQG���PLOOLRQ�URZV�RI�GDWD��ZKLFK�LV�SRZHUIXO�EXW�QRW�HQRXJK�IRU�D�FDVH�OLNH�WKLV�RQH�r
CPAs also must be able to slice and dice all that data to PDNH�VHQVH�RI�LW��q:H�DUH�UXQQLQJ�TXHULHV�DQG�VDPSOLQJ�data by query to understand it and make sure we have a
JRRG�XQGHUVWDQGLQJ�RI�WKH�GDWD�r�KH�VD\V��q7KH�DQDO\VLV�is driven by the need to answer a query or test a theory UDLVHG�E\�\RXU�VLGH�RU�D�FODLP�IURP�WKH�RWKHU�VLGH��:H DUH�DQDO\]LQJ�PDVVLYH�DPRXQWV�RI�GDWD��WU\LQJ�WR�V\QWKHVL]H�LW�WR�YDOLGDWH�RU�LQYDOLGDWH�D�WKHRU\�r��
The availability of big data is behind several new cases that Bryan has seen in wage and hour litigation. State and federal labor laws require employers to offer workers a certain amount of break time and an uninterrupted lunch break. Employees must clock in or out before and after HDFK�EUHDN�RU�OXQFK��EXW�LI�WKH\�DUH�UHTXLUHG�WR�GR�VR�ILYH�PLQXWHV�HDUO\��VD\��WKDW�FRXOG�DGG�XS�WR�VLJQLILFDQW�RYHUWLPH�GXULQJ�D�\HDU��,Q�RQH�FDVH��qZHpUH�GRZQORDGLQJ�\HDUV�DQG�\HDUV�RI�WLPHVOLS�OHYHO�GDWD�RQ�HYHU\�VLQJOH�HPSOR\HH�r�%U\DQ�VD\V��q,W�ZLOO�DOO�EH�XVHG�WR�GHWHUPLQH�trends and whether the employees are getting their EUHDNV�DQG�PHDO�WLPHV�r�:DJH�DQG�KRXU�OLWLJDWLRQ�LV�QRW�QHZ��EXW�WKHUH�LV�D�QHZ�GHPDQG�IRU�DQ�DQDO\VLV�RI�UDZ�GDWD��q$W�WKH�HQG�RI�WKH�GD\��GDWD�LV�JRLQJ�WR�WHOO�WKH�WUXWK�r�KH�QRWHV�
Gearing Up
,Q�KLV�KLULQJ��%U\DQ�LV�VHHNLQJ�SHRSOH�ZKR�FDQ�DGG�,7�DELOLWLHV�WR�WKHLU�&3$�VNLOO�VHW���q,Q�DGGLWLRQ�WR�D�&3$��,�ORRN�IRU�FRXUVH�ZRUN�RU�PLQRUV�LQ�LQIRUPDWLRQ�V\VWHPV�r�KH�VD\V��q:H�DOVR�RIIHU�LQWHUQDO�WUDLQLQJ��:H�KDYH�RQH�SHUVRQ�GRLQJ�FRQWLQXLQJ�HGXFDWLRQ�LQ�XQLYHUVLW\�OHYHO�classes in 5��D�SURJUDPPLQJ�ODQJXDJH�r
2QH�SRWHQWLDO�VWXPEOLQJ�EORFN�IRU�RUJDQL]DWLRQV�LV�WKH�failure to have the requisite systems to efficiently and HIIHFWLYHO\�PDQDJH�GDWD�DQDO\WLFV��q<RX�KDYH�WR�EHHI�XS�\RXU�V\VWHPV�DQG�KDUGZDUH�DQG�NQRZ�KRZ�WR�XVH�WKHP�r�KH�VD\V��1HZ�DSSURDFKHV�UHTXLUH�WDNLQJ�D�PRUH�KROLVWLF�approach that goes beyond sampling to consider every transaction. Bryan recommends taking some data analysis courses related to big data which can easily be found RQOLQH�DQG�DUH�RIWHQ�IUHH��q,WpV�D�JUHDW�ZD\�WR�LQWURGXFH�\RXUVHOI�WR�WKH�VXEMHFW��DQG�WKH�SULFH�LV�ULJKW�r�KH�VD\V��q:KHQ�FOLHQWV�QHHG�GDWD�DQDO\VLV��WKH\�WKLQN�RI�&3$V�� DQG�WKH\�H[SHFW�XV�WR�KDYH�WKH�VNLOO�VHW�WR�JHW�LW�GRQH�r
Case Study 2: Big Data Moves to Center Stage
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 9
Bankruptcy
:KHQ�LW�FDPH�WR�SUHSDFNDJHG�EDQNUXSWFLHV��D�KHDOWK\�����H[SHFWHG�DQ�LQFUHDVH�RYHU�WKH�QH[W�WZR�WR�ILYH�\HDUV��:KDW�DUH�UHVSRQGHQWV�ZRUNLQJ�RQ�QRZ"�$�WRWDO�RI����VDLG�WKDW�FRUSRUDWH�EDQNUXSWF\�PDGH�XS�����WR������RI�WKHLU�SUDFWLFHV��ZKLOH�DQRWKHU����VDLG�LW�PDGH�XS�����WR������3HUVRQDO�EDQNUXSWFLHV�PDGH�XS�D�PXFK�smaller portion of their work.
The top five roles being performed in bankruptcy practices demonstrate the range of roles that FVS professionals can play in this area. They were:
([SHUW�IRU�UHFHLYHU�WUXVWHH
([SHUW�IRU�FUHGLWRUVp�FRPPLWWHH
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FVS practitioners are used to working with attorneys and other professionals. One CPA has seen the value of FRPELQLQJ�WKH�NQRZOHGJH�IURP�WZR�DUHDV��EDQNUXSWF\�DQG�IRUHQVLFV��XQGHU�WKH�)96�XPEUHOOD��&RUH\�$QQH�%ORRP��&3$�&))��&$��&$ũ,)$��&)(��D�SDUWQHU�RI�WKH�ILUP�RI�013�//&�LQ�0RQWUHDO��&DQDGD��EHOLHYHV�WKDW�there often is an assumption that bankruptcy is due to PLVPDQDJHPHQW��%XW�LW�FDQ�DOVR�EH�D�UHVXOW�RI�IUDXG� or even a combination of both.
6KH�EHOLHYHV�WKDW�WKH�FRPSOH[LW\�DQG�RU�PDJQLWXGH�of the fraud or suspected fraud can be a factor in determining when bankruptcy professionals should turn WR�IRUHQVLF�H[DPLQHUV�WR�DVVLVW�ZLWK�WKH�PDQGDWH��,Q�WKHVH�VLWXDWLRQV��WKH�UROH�RI�WKH�&))�RU�,)$�PD\�YDU\��,W�PD\�LQFOXGH��WKH�JDWKHULQJ�DQG�VHFXULQJ�RI�WKH�HYLGHQFH��including electronic evidence; performing forensic analysis; identifying improper or irregular transactions; DQG�DVVLVWLQJ�LQ�WKH�UHFRYHU\�RI�WKH�IXQGV��q7KH�IRUHQVLF�team may also assist with technology and call upon its forensic technology services to secure evidence and SURWHFW�GDWD�r�%ORRP�VD\V��
,Q�D�FDVH�LQYROYLQJ�WKH�EDQNUXSWF\�RI�D�ODUJH�FRPSOH[�UHDO�HVWDWH�LQYHVWPHQW�FRPSDQ\��WKH�WUXVWHHV�VXVSHFWHG�that fraud may have been present and invited the forensic team to review detailed information. The forensic team assisted in the determination of whether fraud indicators were in fact present and whether fraud had played a key role in the company’s bankruptcy.
Bloom’s advice is simple. She advises professionals to JHW�WKH�ULJKW�WHDP�DQG�H[SHUWLVH�LQ�SODFH�LQ�D�EDQNUXSWF\�case where fraud is suspected. That may include the WHDP�KDYLQJ�NQRZOHGJH�RI�D�YDULHW\�RI�DUHDV�LQFOXGLQJ��DPRQJVW�RWKHUV��IRUHQVLF�,7��DFFRXQWV�UHFHLYDEOH�DQG�SD\UROO��6KH�FRQFOXGHV��q,I�\RXpUH�QRW�VXUH�LI�\RXpUH�GHDOLQJ�ZLWK�IUDXG�LQ�D�EDQNUXSWF\�VLWXDWLRQ��EULQJ�LQ�WKH�IRUHQVLF�H[SHUWV��7KHUH�DUH�D�ORW�RI�EHQHILWV�ZKHQ�RIILFHV�encourage bankruptcy and forensics professionals to ZRUN�WRJHWKHU�r
Case Study 3: The Advantages When Bankruptcy and Fraud Teams Join Forces
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 10
Damages Calculations
To offer FVS professionals an overview of what their SHHUV�DUH�GRLQJ�LQ�SUDFWLFH��WKH�VXUYH\�TXHVWLRQV�LQ�this area generally focused on practical approaches. )RU�H[DPSOH��WKH�VXUYH\�IRXQG�WKDW�ZKHQ�LW�FRPHV�WR�GDPDJHV�FDOFXODWLRQV������DUH�XVLQJ�D�K\EULG�DSSURDFK������H[�DQWH�DQG�����H[�SRVW�
The survey also asked whether respondents calculated damages for:
:KHQ�GLVFRXQWLQJ�IXWXUH�GDPDJHV�EDFN�WR�SUHVHQW�YDOXH������XVHG�ERWK�DVVXPSWLRQV�DQG�D�GLVFRXQW�UDWH��6L[WHHQ�SHUFHQW�XVHG�RQO\�WKH�GLVFRXQW�UDWH�DQG����XVHG�DVVXPSWLRQV��)RUW\�RQH�SHUFHQW�ZHUH�LQYROYHG�LQ�GDPDJHV�FDVHV�LQYROYLQJ�EUHDFK�RI�FRQWUDFW������EXVLQHVV�WRUWV������PHUJHUV�DQG�DFTXLVLWLRQV������LQWHOOHFWXDO�SURSHUW\������HDFK�IRU�SHUVRQDO�LQMXU\�DQG�HPSOR\PHQW������ZURQJIXO�GHDWK�DQG�����XQIDLU�FRPSHWLWLRQ�� 7KLUW\�QLQH�SHUFHQW�VDLG�WKDW�HFRQRPLF�IDFWRUV�KDG�changed their approach to the damages assessment.
,Q�SUHGLFWLQJ�IXWXUH�GHPDQG������IRUHVDZ�PRUH�LQWHUHVW�LQ�EUHDFK�RI�FRQWUDFWV������LQ�LQWHOOHFWXDO�SURSHUW\������LQFUHDVH�LQ�EXVLQHVV�WRUWV�FDVHV������LQ�PHUJHUV�DQG�DFTXLVLWLRQV������LQ�HPSOR\PHQW������LQ�XQIDLU�FRPSHWLWLRQ������LQ�SHUVRQDO�LQMXU\�DQG����LQ�ZURQJIXO�GHDWK��)RUW\�VL[�SHUFHQW�RI�UHVSRQGHQWV�VDLG�WKH�FDVHV� in which they were involved never went to trial.
Family Law
7KLV�UHPDLQV�D�VROLG�SUDFWLFH�DUHD��ZLWK�PDQ\�SURIHVVLRQDOV�VHHLQJ�JURZWK��,Q�IDFW��ZLWKLQ�WKH�ODVW�\HDU������VDZ�D�MXPS�LQ�GLYRUFH�FDVHV�DQG�DQRWKHU�����PDLQWDLQHG�WKH�VDPH�QXPEHU�RI�HQJDJHPHQWV��:KHQ�DVNHG�WKH�UHDVRQ�IRU�WKDW�LQFUHDVH��WKH�PRVW�SRSXODU�FKRLFH�ZDV�WKH�HFRQRP\��ZKLFK�ZDV�FLWHG�E\�����RI�respondents. This may be because a stronger economy has enabled couples to afford two households and made them more willing to split or sell assets now that asset values have risen again.
Daubert Doings
$PRQJ�WKRVH�WR�ZKRP�LW�DSSOLHG������KDG�IRXQG�����RU�IHZHU�RI�WKHLU�FDVHV�VXEMHFW�WR�D�'DXEHUW�FKDOOHQJH��ZKLOH����KDG�IDFHG�WKHVH�FKDOOHQJHV�LQ�����WR�����RI�WKHLU�FDVHV�DQG����LQ�����WR�������,Q�FDVHV�ZKHUH�DQ�RSLQLRQ�RU�WHVWLPRQ\�KDG�EHHQ�FKDOOHQJHG��WKH�PRVW�OLNHO\�FDXVHV�ZHUH�PHWKRGRORJ\������RI�SDUWLFLSDQWV���ODFN�RI�HYLGHQFH� �����RU�TXDOLILFDWLRQV������
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0 year
1 year
3 years
5 years
10 years
In perpetuity
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 11
Among other key findings:
����KDYH�VHHQ�DQ�LQFUHDVH�LQ�DOWHUQDWLYH�GLVSXWH�UHVROXWLRQ��ZLWK�WKH�ODUJHVW�MXPS�LQ�WKH�XVH�RI�PHGLDWLRQ��IROORZHG�E\�DUELWUDWLRQ��FROODERUDWLYH�resolution and binding arbitration
7KLUW\�IRXU�SHUFHQW�KDG�VHHQ�JUHDWHU�XVH�RI�PXWXDOO\�DJUHHG�XSRQ�H[SHUWV�DQG�����KDG�VHHQ�D�ULVH�LQ� FRXUW�DSSRLQWHG�H[SHUWV��$�WRWDO�RI�����KDG�VSHQW� XS�WR�����RI�WKHLU�WLPH�VHUYLQJ�DV�D�MRLQW�H[SHUW�
)RUW\�IRXU�SHUFHQW�VSHQW�XS�WR�����RI�WKHLU�WLPH�WUDFLQJ�separate property as a key component of their tasks. The majority of cases in which respondents were LQYROYHG�������QHYHU�ZHQW�WR�WULDO�
Exhibit 5
In Family Law Cases, What Types of Analyses Do You Perform?
40%
19%
16%
13%
11%
Valuation
Equitable distribution
0DULWDO�YV�QRQ�PDULWDO
Separate vs community property
Standard of living
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 12
Valuation
This was another area in which strong growth was H[SHFWHG��7HQ�SHUFHQW�KDG�D�����LQFUHDVH�LQ�VHUYLFHV�GXULQJ�WKH�ODVW�\HDU��DQG�����HQMR\HG�D�����ULVH��$� WRWDO�RI�����RI�UHVSRQGHQWV�H[SHFWHG�PRUH�GHPDQG� IRU�YDOXDWLRQ�VHUYLFHV�RYHU�WKH�QH[W�WZR�WR�ILYH�\HDUV��
:KHQ�DVNHG�DQ�RSHQ�HQGHG�TXHVWLRQ�DERXW�DUHDV�LQ�ZKLFK�WKH\�KDG�VHHQ�LVVXHV�HPHUJH�GXULQJ�WKH�ODVW�\HDU��areas they cited included:
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Closely held systematic risk premium determinations
Competitive bidding for work
Contributory asset charges
Cost competition
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Incorporating the recession into both current data and future assumptions
Intangible assets
Municipal property assessment fluctuations
Purchase price allocations
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Shareholder disputes
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Technical requirements for contingent analysis �HVSHFLDOO\�IRU�FRQWLQJHQW�FRQVLGHUDWLRQ�LQ�SXUFKDVH�price allocations and use of simulations)
Emerging use of quantitative models for discounts IRU�ODFN�RI�PDUNHWDELOLW\�RQ�WD[�HQJDJHPHQWV�
5HVSRQGHQWV�KDG�VHHQ�D�ULVH�LQ�GHPDQG�IRU�
6KDUHKROGHU�RU�SDUWQHU�GLVSXWH�FDVHV������VHH�&DVH�Study 4 on page 20 for more on these disputes)
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7KLUW\�ILYH�SHUFHQW�RI�YDOXDWLRQ�UHVSRQGHQWV�KDG� ���RU�PRUH�\HDUV�RI�H[SHULHQFH�LQ�YDOXDWLRQ�� 7KLUW\�VHYHQ�SHUFHQW��WKH�ODUJHVW�JURXS��ZRUNHG�LQ�ILUPV�ZLWK�XS�WR�ILYH�SURIHVVLRQDOV��DQG�D�WRWDO�RI�����ZRUNHG�LQ�ILUPV�ZLWK����RU�IHZHU��7KH�ODUJHVW�VHJPHQW�������KDG�GHYRWHG�XS�WR�����RI�WKHLU�LQGLYLGXDO�KRXUV�WR�YDOXDWLRQ�LQ�WKH�SDVW�\HDU��7KLUW\�IRXU�SHUFHQW�XVHG�KHOS�IURP�DQ�RXWVLGH�WKLUG�SDUW\�WR�SURYLGH�VHUYLFHV��
In considering how their valuation practices had changed their uses of resources:
����KDG�LQFUHDVHG�WKHLU�XVH�RI�WKLUG�SDUW\�UHVRXUFHV
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2QO\�����KDG�QRWLFHG�PRUH�ODZ�ILUPV�EULQJLQJ�YDOXDWLRQ�SURIHVVLRQDOV�LQ�KRXVH��DQG�DPRQJ�WKDW�JURXS������had seen a resulting impact on the engagements they received from those firms.
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 13
Most did not believe their practices would be affected by standards being proposed by the Private Company &RXQFLO��������EXW�����WKRXJKW�WKH\�ZRXOG�EH�VRPHZKDW�DIIHFWHG�DQG����KLJKO\�DIIHFWHG��
Financial Statement Misrepresentation
:KDW�NLQGV�RI�PLVUHSUHVHQWDWLRQ�GLG�UHVSRQGHQWV�H[SHFW�WR�VHH�LQ�WKH�QHDU�IXWXUH"�7ZHQW\�QLQH�SHUFHQW�EHOLHYHG�valuation of assets carried at fair value would be the most prevalent financial statement misrepresentation LVVXH�LQ�WKH�QH[W�WZR�WR�ILYH�\HDUV��$QRWKHU�����FLWHG�inadequate disclosures of material transactions and IUDXG������WDSSHG�UHYHQXH�UHFRJQLWLRQ�DQG�����WKH�WUHDWPHQW�RI�RII�EDODQFH�VKHHW�DVVHWV�DQG�OLDELOLWLHV��6HYHQW\�IRXU�SHUFHQW�H[SHFWHG�WKDW�DOOHJDWLRQV�RI�inadequate control over financial reporting would be a prevalent issue in conjunction with other issues in the QH[W�WZR�WR�ILYH�\HDUV��ZKLOH�����VDZ�LW�DV�D�SUHYDOHQW�standalone issue. The rest did not believe it would be significant. Investing and wealth management entities ZHUH�PRVW�OLNHO\�WR�H[SHULHQFH�WKH�PRVW�DOOHJDWLRQV�RI�financial statement representations in the respondents’ RSLQLRQ��������IROORZHG�E\�OHQGLQJ�LQVWLWXWLRQV��������VHUYLFH�RUJDQL]DWLRQV��VXFK�DV�KHDOWK�FDUH�������DQG�KLJK�WHFK�FRPSDQLHV��������6HYHQW\�SHUFHQW�RI�UHVSRQGHQWV�said their financial statement misrepresentation cases never went to trial.
Fraud
)LIW\�HLJKW�SHUFHQW�H[SHFWHG�WKDW�ILQDQFLDO�VWDWHPHQW�fraud committed by company personnel would increase LQ�WKH�QH[W�WZR�WR�ILYH�\HDUV������DQWLFLSDWHG�IUDXG�E\�FRPSDQ\�SHUVRQQHO�LQ�FROOXVLRQ�ZLWK�WKLUG�SDUWLHV��DQG�����H[SHFWHG�D�ULVH�LQ�IUDXG�E\�WKLUG�SDUWLHV��'XULQJ�WKH�VDPH�SHULRG��DQRWKHU�����WKRXJKW�WKDW�HPEH]]OHPHQW�FRPPLWWHG�E\�FRPSDQ\�SHUVRQQHO�ZRXOG�ULVH������H[SHFWHG�PRUH�HPEH]]OHPHQW�E\�FRPSDQ\�SHUVRQQHO�LQ�FROOXVLRQ�ZLWK�DQ�RXWVLGHU�DQG����IRUHVDZ�PRUH�IURP�third parties.
,Q�WKH�FDVHV�LQ�ZKLFK�UHVSRQGHQWV�ZHUH�LQYROYHG��IUDXG�was detected using:
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/RRNLQJ�DKHDG�RYHU�WKH�QH[W�WZR�WR�ILYH�\HDUV��respondents thought there could be significant improvements in preventing fraud by using internal FRPSXWHU�EDVHG�WRROV��������LQWHUQDO�QHZ�HPSOR\HH�VFUHHQLQJ��������DQ�LQWHUQDO�IUDXG�ULVN�PDQDJHPHQW�SURJUDP��������LQWHUQDO�SK\VLFDO�FRQWUROV��������DQG�LQWHUQDO�ZKLVWOHEORZHU�KRWOLQHV��������$PRQJ�H[WHUQDO�FRQWUROV��UHVSRQGHQWV�WKRXJKW�LPSURYHPHQWV�ZRXOG�EH�VHHQ�GXH�WR�H[WHUQDO�ZKLVWOHEORZHU�KRWOLQHV��������H[WHUQDO��6(&�RU�,56��FRPSXWHU�EDVHG�FRQWUROV��������H[WHUQDO��6(&�RU�,56��LQFUHDVHG�DQG�EHWWHU�WUDLQHG�LQWHUQDO�DXGLW��������DQ�H[WHUQDO�IUDXG�ULVN�PDQDJHPHQW�SURJUDP��������H[WHUQDO�HQIRUFHPHQW�RI�FRPSUHKHQVLYH�YHQGRU�DQG�HPSOR\HH�FRGHV�RI�FRQGXFW��������H[WHUQDO�QHZ�HPSOR\HH�VFUHHQLQJ��������H[WHUQDO�SK\VLFDO�FRQWUROV�������DQG�H[WHUQDO�FXUUHQW�HPSOR\HH� VFUHHQLQJ��������
In the wake of the new SEC whistleblower rules and UHFHQW�IUDXG�FDVHV������GLG�QRW�XVH�DQ�LQYHVWLJDWLYH�UHVSRQVH�SODQ������GLG�QRW�SODQ�FKDQJHV�DQG�����GLG��)RUW\�RQH�SHUFHQW�RI�WKH�RUJDQL]DWLRQV�GLG�QRW�SURYLGH�IUDXG�ULVN�WUDLQLQJ��EXW�����KDG�LQFUHDVHG�WKLV�training because of recent developments. The training they believed was most useful was forensic accounting DQG�LQYHVWLJDWLYH�SURFHGXUHV��������WKH�QDWXUH�DQG�YXOQHUDELOLW\�RI�WHFKQRORJ\��LQFOXGLQJ�FRPSXWHUV��������knowledge about internal control in general and fraud ULVN�LQ�SDUWLFXODU��������NQRZOHGJH�DERXW�FRPSXWHU�GULYHQ�LQWHUQDO�FRQWUROV������DQG�DXGLWLQJ�VWDQGDUGV�������)LIW\�HLJKW�SHUFHQW�RI�WKH�IUDXG�FDVHV�LQ�ZKLFK�respondents were involved did not go to trial.
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 14
BUSINESS AND INDUSTRY RESPONDENTS
Where Did They Work?
$�WRWDO�RI�����RI�EXVLQHVV�DQG�LQGXVWU\�UHVSRQGHQWV�ZRUNHG�LQ�SULYDWHO\�KHOG�8�6��FRPSDQLHV������ZRUNHG� LQ�SXEOLF�FRPSDQLHV������LQ�JRYHUQPHQW��HGXFDWLRQ�RU�QRW�IRU�SURILWV�����ZRUNHG�IRU�IRUHLJQ�HPSOR\HUV�DQG� ���IRU�RWKHUV��
7ZHQW\�ILYH�SHUFHQW�ZHUH�HPSOR\HG�E\�RUJDQL]DWLRQV�ZLWK�UHYHQXHV�RI����ELOOLRQ�RU�PRUH��ZKLOH������WKH�QH[W�ODUJHVW�VHJPHQW��ZRUNHG�IRU�FRPSDQLHV�ZLWK�����PLOOLRQ�WR�����PLOOLRQ�LQ�UHYHQXHV��7ZHQW\�RQH�SHUFHQW�ZHUH�LQ�FRPSDQLHV�ZRUWK�����PLOOLRQ�DQG�XQGHU��ZKLOH�����worked for those worth $50 million to $100 million. The ODUJHVW�SHUFHQWDJH�u����u�ZRUNHG�LQ�PDQXIDFWXULQJ��IROORZHG�E\�����LQ�ILQDQFH�RU�LQVXUDQFH�����LQ�EDQNLQJ�DQG����IRU�D�KHDOWK�FDUH�SURYLGHU��7KH�RUJDQL]DWLRQV�involved employed CPAs with valuation skills in the DFFRXQWLQJ�FRQWUROOHU�IXQFWLRQ��������FRUSRUDWH�ILQDQFH��������WD[��������WUHDVXUHU�������DQG�DFTXLVLWLRQV�������$�WRWDO�RI�����RI�WKH�RUJDQL]DWLRQV�XVHG�WKLUG�SDUW\�YHQGRUV�WR�SURYLGH�YDOXDWLRQ�VHUYLFHV��7KLUW\�HLJKW�SHUFHQW�RI�WKRVH�ZHUH�FKRVHQ�EDVHG�RQ�D�UHIHUUDO�IURP�WKH�H[WHUQDO�
DXGLWRU������EDVHG�RQ�D�UHIHUUDO�IURP�DQ�LQWHUQDO�DXGLWRU�DQG�����IURP�D�UHIHUUDO�IURP�H[WHUQDO�FRXQVHO��7ZHQW\�VL[�SHUFHQW�XVHG�RWKHU�PHWKRGV��LQFOXGLQJ�DXGLW�FRPPLWWHH�VHOHFWLRQ��ZRUNLQJ�UHODWLRQVKLSV�DQG�UHIHUUDOV�IURP�bankers or board members. The largest number of the H[WHUQDO�YDOXDWLRQ�VSHFLDOLVWV�u�����u�ZDV�HPSOR\HG�E\�D�EXVLQHVV�YDOXDWLRQ�ILUP��$QRWKHU�����ZRUNHG�IRU�D�&3$�ILUP������IRU�D�FRQVXOWLQJ�ILUP�DQG����IRU�DQ�LQYHVWPHQW�banking firm.
Fraud Prevention
The survey offered a unique opportunity to gauge what kinds of fraud prevention and detection techniques DUH�EHLQJ�XVHG��VHH�([KLELWV���DQG�����5HVSRQGHQWVp�employers used a wide range of methods. The most popular prevention response was general internal FRQWUROV��������IROORZHG�E\�GLYLVLRQ�RI�UHVSRQVLELOLWLHV�������DQG�DSSURSULDWH�RYHUVLJKW�E\�PDQDJHPHQW�DQG�GLUHFWRUV��������)RU�GHWHFWLRQ��WKH�WRS�FKRLFHV�ZHUH�JHQHUDO�LQWHUQDO�FRQWUROV��������DSSURSULDWH�PDQDJHPHQW�RYHUVLJKW�������DQG�SK\VLFDO�FRQWUROV�������
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 15
Exhibit 6
What Methods Does Your Organization Use to Prevent Fraud?
83%
77%
76%
69%
67%
67%
61%
49%
27%
25%
17%
12%
12%
General internal controls
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Appropriate oversight by management and directors
Background investigation of new employees
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Physical controls
Employee and vendor codes of conduct
Internal audit function including conduct of fraud risk assessments
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Mandatory vacations
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Cybercrime prevention training
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 16
Exhibit 7
How Did Respondents Detect Fraud?
85%
81%
69%
62%
47%
44%
25%
General internal controls
Appropriate oversight by management and directors
Physical controls
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Internal audit function including conduct of fraud risk assessments
:KLVWOHEORZHU�KRWOLQH
Cyber information security procedures
RESPONSE
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 17
9LUWXDOO\�QRQH�RI�WKH�RUJDQL]DWLRQV�KDG�VHHQ�DQ�HPHUJHQFH�RI�WKH�XVH�RI�YLUWXDO�FXUUHQFLHV��VXFK�DV�ELWFRLQ���DQG�QRQH�had seen fraud associated with that use.
0RUH�WKDQ�KDOI�RI�WKH�VXUYH\�UHVSRQGHQWV�������KDG�H[SHULHQFHG�IUDXG�LQ�WKH�SDVW�\HDU��$PRQJ�WKH�PRVW�FRPPRQ�W\SHV�RI�IUDXG������KDG�EHHQ�YLFWLPV�RI�FKHFN�IUDXG������RI�HPSOR\HH�H[SHQVH�IUDXG������RI�WKH�PLVXVH�RU�GLYHUVLRQ�RI�DVVHWV�����RI�IDOVH�RU�ILFWLWLRXV�vendor invoices.
Exhibit 8
What Types of Fraud Did Your Organization Experience in the Past Year?
47%
15%
12%
10%
8%
6%
5%
4%
3%
2%
1%
0%
:H�GLG�QRW�H[SHULHQFH�DQ\�IUDXG
Check fraud
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Misuse or diversion of assets
False or fictitious vendor invoices
Fraudulent billing or credit scheme
Contract or vendor fraud
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7KHIW�RI�LQWHOOHFWXDO�SURSHUW\��WUDGH�VHFUHWV
Fictitious employees and other forms of payroll fraud
Financial statement misrepresentation
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RESPONSE
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 18
Internal inquiry or tipoff was the top method of GHWHFWLQJ�IUDXG��������IROORZHG�E\�LQWHUQDO�DXGLW��������H[WHUQDO�LQTXLU\�RU�WLSRII�������DFFLGHQW�������ZKLVWOHEORZLQJ�������ODZ�HQIRUFHPHQW�LQYHVWLJDWLRQ������DQG�UHJXODWRU\�LQYHVWLJDWLRQ������
:KHQ�LW�RFFXUUHG������RI�WKH�WLPH�IUDXG�ZDV�FRPPLWWHG�E\�DQ�HPSOR\HH�EHORZ�WKH�VHQLRU�PDQDJHPHQW�OHYHO��ZLWK����DW�WKDW�OHYHO�DQG����DW�WKH�RIILFHU�RU�GLUHFWRU�OHYHO��7KH�DJJUHJDWH�ILQDQFLDO�DPRXQW�IHOO�EHORZ�������������RI�WKH�WLPH�DQG�EHWZHHQ���������DQG�������������of the time.
Frauds typically occurred in a wide variety of parts of the RUJDQL]DWLRQ��7KH�KLJKHVW�UHVSRQVHV�ZHUH�LQ�VDOHV�DQG�PDUNHWLQJ�������SXUFKDVLQJ�DQG�DFFRXQWV�SD\DEOH������DQG�FXVWRPHU�VHUYLFH�������
Economic Damages
$�WRWDO�RI�����RI�UHVSRQGHQWVp�RUJDQL]DWLRQV�KDG�QRW�been involved in an economic damages case during WKH�SDVW�\HDU��$PRQJ�WKRVH�WKDW�ZHUH��WKH�FDVHV�PRVW�IUHTXHQWO\�LQYROYHG�HPSOR\PHQW�������SHUVRQDO�LQMXU\������DQG�EUHDFK�RI�FRQWUDFW�������
,Q�WKH�ODUJHVW�SHUFHQWDJH�RI�FDVHV��RUJDQL]DWLRQV�UHOLHG�RQ�D�UHIHUUDO�IURP�H[WHUQDO�FRXQVHO�LQ�VHOHFWLQJ�WKH�H[SHUW�ZKR�WHVWLILHG�LQ�DQ�HFRQRPLF�GDPDJHV�FDVH�������Five percent used a referral from internal counsel and ���IURP�WKHLU�H[WHUQDO�DXGLWRU��
7KH�TXDOLILFDWLRQV�IRU�WKHVH�H[SHUW�ZLWQHVVHV�LQFOXGHG�WKH�&3$�������0%$�������&3$�$%9�������$6$������DQG�&3$�&))�������
Financial Statement Misrepresentation
2QO\����RI�WKH�RUJDQL]DWLRQV�LQYROYHG�H[SHULHQFHG�financial statement misrepresentation during the SDVW�\HDU��)RU�WKRVH�DIIHFWHG��WKH�FDVHV�LQYROYHG�DQ�RYHUVWDWHPHQW�RI�DFFRXQWV�UHFHLYDEOH��LQYHQWRU\��VHFXULWLHV�RU�RWKHU�DVVHWV��������ILFWLWLRXV�RU�RYHUVWDWHPHQW�RI�UHYHQXHV��������RU�LQWHQWLRQDO�RPLVVLRQV�RU�LPSURSHU�GLVFORVXUHV�������7KH�FDVHV�ZHUH�PRVW�RIWHQ�GHWHFWHG�WKURXJK�DQ�LQWHUQDO�DXGLW��������LQ�DQ�H[WHUQDO�DXGLW�RU�E\�DFFLGHQW������HDFK��RU�WKURXJK�ZKLVWOHEORZLQJ������
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 19
:LOO�WKH�RQJRLQJ�UHWLUHPHQW�RI�WKH�EDE\�ERRP�generation and an improving economy spur more VKDUHKROGHU�RU�SDUWQHU�GLVSXWHV"�q7KHUH�LV�QRW�D�EULJKW�OLQH�FRQQHFWLRQ��EXW�LWpV�FHUWDLQO\�WUXH�WKDW�DV�WKH�HFRQRP\�DQG�DQG�HQWHUSULVH�YDOXHV�LPSURYH��WKLQJV�DUH�RIWHQ�PRUH�ZRUWK�ILJKWLQJ�RYHU�r�VD\V�5RQ�6HLJQHXU��&3$�$%9�&))��&*0$��$6$��&9$��PDQDJLQJ�SDUWQHU�RI�6HLJQHXU�*XVWDIVRQ��//3��LQ�/DNHZRRG��&2��+H�reports seeing a spike in interest from attorneys or from partners or shareholders who aren’t getting along.
5RQ�'L0DWWLD��&3$�$%9��&0$��SUHVLGHQW�RI�&RUSRUDWH�9DOXH�3DUWQHUV�LQ�5RFN\�5LYHU��2+��EHOLHYHV�WKDW�&3$V�and attorneys are doing a better job of talking about YDOXDWLRQ�LVVXHV�ZLWK�FOLHQWV��ZKLFK�PDNHV�WKHP�PRUH�aware of the need to hire a professional to help them navigate the process.
Get It in Writing
,Q�WKHVH�GLVSXWHV��6HLJQHXU�RIWHQ�VHHV�FRUSRUDWH�OHJDO�documents that don’t adequately set forth what will happen if the owners differ on critical issues or decide WR�VSOLW��q7KH�RSHUDWLYH�OHJDO�GRFXPHQWV�RIWHQ�GRQpW�adequately define the standard of value that should be used or how qualified business appraisers will be FKRVHQ�r�KH�VD\V��+H�UHFRPPHQGV�D�ERRN�E\�YDOXDWLRQ�H[SHUW Chris Mercer��Buy-Sell Agreements: A Ticking Time Bomb or Reasonable Resolution?��EHFDXVH�LW�RIIHUV�H[DPSOHV�RI�ZRUNDEOH�DQG�IODZHG�DJUHHPHQWV���
7KH�ODFN�RI�VDWLVIDFWRU\�EX\�VHOO�DJUHHPHQWV�LV�DQ�RSSRUWXQLW\�IRU�&3$V��6HLJQHXU�REVHUYHV��q<RX�FDQ�review the legal documents with your clients before they DUH�JRLQJ�WKURXJK�D�WULJJHULQJ�HYHQW��VXFK�DV�D�EXVLQHVV�GLYRUFH��ZKHQ�WKH�SDUWQHUV�DUH�JHWWLQJ�DORQJ�RU�HYHQ�DW�WKH�SRLQW�RI�EXVLQHVV�IRUPDWLRQ�r�KH�DGYLVHV��q/RRN�IRU�details on how a dispute or split will be handled and for ODQJXDJH�RQ�WULJJHULQJ�HYHQWV��VR�WKDW�D�GLVSXWH�ZLOO�QRW�KDYH�WR�RFFXU�GRZQ�WKH�URDG�r�6HLJQHXUpV�ILUP�GRHV�D�JUHDW�GHDO�RI�H[LW�SODQQLQJ�ZRUN��DQG�KH�RIWHQ�ILQGV�WKDW�an owner who has not saved enough for retirement who QRZ�KDV�XQUHDOLVWLF�H[SHFWDWLRQV�DERXW�ZKDW�WKH\�VKRXOG�EH�DEOH�WR�WDNH�RXW�RI�D�EXVLQHVV��ZLOO�W\SLFDOO\�OHDG�WR�D�GLVSXWH��$�ZHOO�VWUXFWXUHG�EX\�VHOO�DJUHHPHQW�FDQ�KHOS�prevent the problem.
'L0DWWLD�DGYLVHV�&3$V�WR�KDYH�UHJXODU�FRQWDFW�ZLWK�WKHLU�clients and to talk about valuation issues as part of those FRQYHUVDWLRQV��q7KH�EXVLQHVV�LV�UHODWLRQVKLS�EDVHG�DQG�WUXVW�EDVHG�r�KH�VD\V��q7KH�FOLHQW�RU�NH\�SHRSOH�ZKR�LQIOXHQFH�WKH�FOLHQW�KDYH�WR�NQRZ�\RX�r�,Q�GLVFXVVLQJ�WKH�VHUYLFH�ZLWK�FOLHQWV��KH�HPSKDVL]HV�WKH�JRDO�RI�PDNLQJ�WKH�EHVW�RI�D�WUDQVDFWLRQ��UDWKHU�WKDQ�WKH�SRWHQWLDO�IRU�disputes and he spends time with clients discussing KRZ�YDOXDWLRQ�FRQFHSWV�UHODWH�WR�WKHLU�RSHUDWLRQV��q$Q�understanding of valuation is a gift that clients can use LQ�WKHLU�EXVLQHVVHV�HYHU\�GD\�r�KH�VD\V�
Case Study 4: Two CPAs Weigh in on Shareholder or Partner Disputes
Shareholder Dispute
7ZR�SHUFHQW�RI�WKH�RUJDQL]DWLRQV�KDG�H[SHULHQFHG�D�shareholder dispute. The cases cited involved dissenting VKDUHKROGHUV��RSSUHVVHG�VKDUHKROGHUV�DQG��LQ�RQH�VLWXDWLRQ�LQ�WKH�qRWKHUr�FDWHJRU\��D�ODUJH�VKDUHKROGHU�purchase. Fair market value was the standard of value XVHG�����RI�WKH�WLPH�DQG�LQYHVWPHQW�YDOXH�LQ�WKH� other cases.
7KLV�DSSHDUV�WR�EH�D�ORZ�QXPEHU�EXW��DV�SUHYLRXVO\�VWDWHG������RI�YDOXDWLRQ�SURIHVVLRQDOV�KDYH�VHHQ�DQ�LQFUHDVH�LQ�WKLV�EXVLQHVV�RYHU�WKH�SDVW�\HDU�DQG�����H[SHFW�WR�VHH�LQFUHDVHG�GHPDQG�RYHU�WKH�QH[W� ����\HDUV�
The 2014 AICPA Survey on International Trends in Forensic and Valuation Services | 20
The Standard of Value
One sticking point in disputes is often the standard of value to be used. The possibilities might be fair market YDOXH��LQYHVWPHQW�YDOXH�RU�IDLU�YDOXH��DQG�WKH�FKRLFH�LV�D�legal issue that is not determined by a CPA. In a merger RU�DFTXLVLWLRQ��WKH�VWDQGDUG�RI�YDOXH�XVHG�LV�LQYHVWPHQW�YDOXH��6HLJQHXU�VD\V��q0RVW�&3$V�OLYH�LQ�D�IDLU�PDUNHW�YDOXH�ZRUOG��EHFDXVH�WKDWpV�ZKDWpV�XVHG�LQ�HVWDWH�SODQQLQJ�DQG�RWKHU�WD[�UHODWHG�HQJDJHPHQWV�r�+H�QRWHV�WKDW�ZKHQ�ZRUNLQJ�ZLWK�LQYHVWPHQW�YDOXH��WKHUHpV�QRW�DV�much reliable empirical data available. He recommends GF�'DWD�DV�RQH�OHVV�FRVWO\�VRXUFH�RI�HPSLULFDO�YDOXHV�
The Client Viewpoint
2XWVLGH�RI�EXVLQHVV�FRQVLGHUDWLRQV��'L0DWWLD�DGYLVHV�maintaining some perspective on what the issues PHDQ�WR�WKH�FOLHQW��q$Q\�WUDQVLWLRQ�LV�HPRWLRQDO�r�KH�VD\V��q)RU�WKH�VHOOHU��LW�PD\�EH�WKH�RQO\�WUDQVDFWLRQ�of this magnitude in his or her life. The asset they are selling may be as important to them as their family. 2Q�WKH�RWKHU�KDQG��WKH�EX\HU�PD\�KDYH�D�JUHDW�GHDO�RI�XQFHUWDLQW\�DERXW�WKH�GHDO��HVSHFLDOO\�LI�LW�ZLOO�EH�KLJKO\�OHYHUDJHG�r��8QOLNH�LQ�HQJDJHPHQWV�WKDW�DUH�ODUJHO\�FRPSOLDQFH�GULYHQ��LW�PD\�EH�GLIILFXOW�IRU�HDFK�VLGH�WR�remain economically impartial in a buyout or sale.
One complication is the lack of any real market test for WKH�RZQHUVKLS�LQWHUHVWV��,Q�WKH�DEVHQFH�RI�WKLV�WHVW��WKH�valuation can offer comfort and reassurance about the SURSHU�YDOXHV��'L0DWWLD�QRWHV�WKDW�YDOXDWLRQV�DUH�QRW�QHFHVVDULO\�WKH�ILQDO�GHWHUPLQDWLRQ��q,Q�PDQ\�FDVHV��WKH�WZR�VLGHV�ZLOO�XVH�WKH�YDOXDWLRQ�WR�QHJRWLDWH�r�KH�VD\V��q7KDWpV�ZK\�D�ZHOO�GRFXPHQWHG�YDOXDWLRQ�LV�VR�important. You’re educating the buyer and seller about WKH�LVVXHV�LQYROYHG�r�
'HDO�VWUXFWXUH�LV�DQRWKHU�FULWLFDO�FRQFHUQ�DQG�RQH�that can offer chances for negotiation. He cites a hypothetical case in which the ownership interest is ZRUWK����PLOOLRQ��7KH�EX\HU�FDQ�RQO\�ERUURZ�����������VR�WKH�VHOOHU�FDUULHV�D�QRWH�IRU�����������q7KDW�QRWH�ZLOO�GLIIHU�IURP�RQH�JLYHQ�E\�D�EDQN�r�'L0DWWLD�VD\V��q7KH�VHOOHU�PD\�DJUHH�WR�WHUPV�WKDW�D�EDQN�ZRXOG�QRW��VXFK�DV�DQ�LQWHUHVW�IUHH�ORDQ�IRU�WKH�ILUVW�IHZ�\HDUV�r�Other options might allow a moderate interest rate in H[FKDQJH�IRU�D�VHDW�RQ�WKH�FRPSDQ\�ERDUG�RI�GLUHFWRUV��q7KH�VHOOHU�RIWHQ�ZDQWV�WR�PDLQWDLQ�VRPH�NLQG�RI�LQYROYHPHQW�LQ�WKH�EXVLQHVV��VR�WKH\�PD\�EH�ZLOOLQJ�WR�QHJRWLDWH�WHUPV�LQ�H[FKDQJH�IRU�VRPH�VHQVH�RI�FRQQHFWLRQ�DQG�FRQWURO�r�
Pumping Up the Practice Area
Seigneur offers this advice for those who are interested in this practice area:
*HW�WUDLQLQJ�LQ�H[SHUW�ZLWQHVV�VHUYLFHV��7KHVH�GLVSXWHV�are often litigation engagements that will involve UHQGHULQJ�DQ�RSLQLRQ�LQ�FRXUW��q,�RIWHQ�JHW�KLUHG�EDVHG�RQ�P\�UHSXWDWLRQ�DV�D�WHVWLI\LQJ�H[SHUW�DV�PXFK�DV�P\�UHSXWDWLRQ�LQ�EXVLQHVV�YDOXDWLRQ�r�6HLJQHXU�VD\V��q7KH�attorneys know we have the credentials. They also want to be sure we can defend our opinion in court DQG�DUWLFXODWH�RXU�SRVLWLRQV�r�2QH�WUDLQLQJ�UHVRXUFH� is the $,&3$�([SHUW�:LWQHVV�6NLOOV�:RUNVKRS.
3XPS�XS�\RXU�LQWHOOHFWXDO�SURSHUW\�H[SHUWLVH��q$�ORW�RI�YDOXH�UHODWHV�WR�LQWHOOHFWXDO�SURSHUW\�r�6HLJQHXU�QRWHV��%H\RQG�SDWHQWV�DQG�WUDGHPDUNV��WKHVH�HQJDJHPHQWV�PD\�DOVR�LQFOXGH�ZRUNIRUFH�LQ�SODFH��SURSULHWDU\�SURFHVVHV��DUWLVWLF�HQGHDYRUV�DQG�ORJRV�
0DUNHW�\RXUVHOI�WR�DWWRUQH\V��q7KDWpV�ZKHUH�ZRUN�FRPHV�IURP�r�KH�QRWHV��+H�UHFRPPHQGV�PDNLQJ�WKH�most of chances to write for legal publications or speak to attorney groups.
Case Study 4: Two CPAs Weigh in on Shareholder or Partner Disputes �&RQWLQXHG�
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