Final Paper Topics
ACC 541 - Forensic Accounting
A7, 2007

x = topic taken

1. Economists versus accountants in litigation services

• Definitions and legal standards for experts
• Definitions of each type of expert
• Strengths and weaknesses of each
• Appropriate use of each in
  • Lost profits
  • Individual damages
  • Antitrust
• Conflicts and coordination between the two types of experts
• Any general trends you can document involving changes in the use of the two types of experts in various types of cases.

2. Lost profits damages and the new business (i.e. not yet begun or less than 1 year's operation)

• Definitions and legal standards
• Highlight any differences between Federal and Florida standards and methodologies
• Discussion and explanation of the impact of the major factors considered, such as franchise, prior experience, e-business, etc.
• Specific calculations and methodologies relating to a new business
• Summary and discussion of “landmark” cases in this area.

3. Damages in copyright infringement

• Definitions and legal standards
• Discussion and explanation of lost profits versus infringer’s profits approaches including methodologies, the CPA’s role, advantages and disadvantages of each, and when each would be most appropriate.
• Summary and discussion of “landmark” cases in this area

4. Cash collateral in bankruptcy

• Definitions and legal standards
• Discussion and explanation of this concept in practice, standard approaches to accounting and protecting cash collateral, and the CPA expert’s role.
• Summary and discussion of several recent cases involving cash collateral problems

5. Environmental damage to residential property in Florida, including both direct and indirect damage, such as loss of value

• Definitions and legal standards
• Discussion and explanation of the typical causes of damage actions of this type, theories of recovery, major factors considered, the CPA expert’s role, and approaches and methodologies of damage calculations

6. Professional licenses and professional goodwill in Florida divorce actions

• Definitions and legal standards
• Discussion and explanation of Florida statutes and case law relating to consideration in alimony, child support, and property settlement
• Discussion and explanation of the specific role of the CPA expert in these situations and specific methodology relating to calculations of these amounts per Florida statute and case law

7. Defined benefit pensions of State of Florida employees in Florida divorce actions.

• Definitions and legal standards
• Discussion and explanation of Florida statutes and case law relating to consideration in alimony, child support, and property settlement
• Discussion and explanation of the specific role of the CPA expert in these situations and specific methodology relating to calculations of these amounts per Florida statute and case law

8. Imputed versus actual income in Florida divorce actions.

• What is the Florida definition of imputed income in divorce cases. Cite specific statutes and cases.
• Under what circumstances is income imputed in a divorce action? When is it not?
• Are the differences in imputed income for alimony and child support purposes?
• Are there any differences between the various Florida judicial districts?
• Can the amount of imputed income be changed in a later modification order, or can only actual income be changed?
• Discuss any other relevant issues related to imputed income in divorce actions. All positions must be clearly and fully supported.

9. Delays in construction contracts at various levels (owner, general contractor, subs)

• Definitions and legal standards
• Discussion and explanation of the theory of delays, standard clauses relating to delays in various AIA standard form contracts, types of delays generally subject to damages, the roles of the CPA expert in these disputes, and methodologies to calculate damages in these cases.

10. Use of the various private market transaction data sources in the market approach to business valuations

• For each of the four major data sources (IBA, Bizcomps, Pratt’s Stats, Done Deals), explain what they include for each transaction, number of transactions available, time period covered, source and reliability of data, price of service (subscription and individual search if available), number of subscribers, major advantages and disadvantages of the particular database, and when each would be appropriately used by the business valuator

11. Personal versus business goodwill in a business valuation in Florida (e.g. a dental practice)

• Define each and support per Florida statutes and case law
• Explain the correct treatment of these in a business valuation for each of the following five purposes (in Florida): Eminent domain, divorce, gift and estate tax (federal), partnership dissolution, and lost profits.
• Clearly discuss any differences in treatment and the legislative or judicial justification for those differences.
• Also discuss (at the appropriate points) any differences between Florida and other major states (CA TX NY IL)

12. Avoidance of contracts, leases and transactions in bankruptcy

• Explain the concept of avoidance in bankruptcy and cite specific statutes and cases
• Under what circumstances can contracts, etc be avoided in a bankruptcy action? Support.
• Can the court avoid some contracts and not avoid others (selective avoidance)? When?
• When would the court want to avoid a contract or lease and when would it not? Be clear and specific and give an actual recent example of each side.
• Discuss the role that the CPA forensic accountant can play in contract/lease avoidance in bankruptcy. Be sure to indicate any differences if he/she is working for the debtor in possession, a creditors committee, or the trustee.

13. Reorganization of a troubled business in Florida without filing bankruptcy.

• What specific legal courses of action are available in Florida for a financially troubled business to reorganize (including reduction of debts and contract avoidance). Cite specific statutes and case law.
• Explain step-by-step how such a reorganization would proceed and who the players would be.
• Discuss the roles that the CPA forensic accountant could serve in such a reorganization.
• Under what circumstances (be specific) might this type of reorganization be preferred to a Chapter 11 bankruptcy reorganization?

14. Royalty audits

• Define them and who the parties are.
• What is the legal authority for a royalty audit?
• Under what circumstances and for what purposes (be complete with examples) might a royalty audit be performed?
• What type of CPA engagement is it and what specific accounting standards apply (be complete)?
• What legal standards apply?
• Is it an adversarial engagement? Support your position fully

15. Arbitration

• What is arbitration? What legal standards apply? (Federal, Florida, other) Support. Be sure to differentiate from mediation (not the topic here).
• Discuss the specific use of arbitration, including applicable statutes and legal bases, in each of the following five areas:  Labor disputes, contractual disputes, partnership disputes, malpractice allegations, and divorce cases.
• Under what circumstances would arbitration be preferable to litigation? Be specific for each type of case stated above.
• When would an expert witness be used in arbitration? Are there any restrictions on the use of expert witnesses in arbitration? If so, when? Support your answer.
• Is arbitration an adversarial proceeding? To what extent?

16. Recovery from a third party under a fraudulent transfer

• What is a fraudulent transfer? Give some examples.
• What types of forensic accounting situations might involve a fraudulent transfer?
• Compare the "standard" Uniform Fraudulent Transfer Act (http://www.law.upenn.edu/bll/archives/ulc/fnact99/1980s/ufta84.htm) with the Florida law (Chapter 726). What elements are the same, which are different?
• Under the Florida statute and applicable case law, what elements need to be shown to sustain an action? List and discuss each.
• How specifically might the CPA forensic accountant be involved in a Florida fraudulent transfer action? Be complete and give examples.
• What type of CPA engagement is it and what specific accounting standards apply (be complete)?

17. Damages from violation of employment contract non-compete clauses in Florida

• Under what circumstances can a former employee be held to non-compete (including prohibitions against employment by competitors) under Florida law and cases? Be specific and support.
• Assuming the employee were liable, under what theories would damages be computed? What specific methods would be used? Why? Support your position.
• Under what circumstances could the new employer be held liable for damages to the old employer due to a breach of the employment agreement by the employee?
• Assuming there was liability on behalf of the new employer, under what theories would damages be computed? What specific methods would be used? Why? Support your position.
• If the CPA forensic accountant were hired by the Plaintiff (former employer) in the case, what roles might they fulfill, what type of engagement is it, and what specific accounting standards apply (be complete)?

18. Use of forensic accountants in Mergers and Acquisitions

• What is due diligence? Who are the various parties in an acquisition and what are their roles and interests?

• How is it used in M&A? Are there various stages to due diligence? If so, what are they and how do they differ.

• What are the more common uses of forensic accountants in the due diligence process?

• What determines whether or not a forensic accountant might be employed?

• What parties in an acquisition might use a forensic accountant? Is there a difference in how forensic accountants are used by the different parties? Why?

• What are the most common liability exposures of a FA in M&A work? How can these exposures be minimized

- 10/19/2007 - last updated 10/25/2009 -

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