Exposure Draft: Statement on Standards for Forensic Services

December 2018

2017-2018 FVS Executive Committee

Annette Stalker, Chair
Lisa Cribben
William Fellows
Jason Flemmons
Alex Gershner
Ethan Lee
Charles McGimsey
Bradley Preber
Mark Zyla
Alan Zysman

Please submit comments by February 28, 2019 to:
Barbara Andrews, Director – Forensic Services
Barbara.Andrews@aicpa-cima.com

What is the forensic standard?

The Forensic and Valuation Services Executive Committee (FVSEC) has developed a new standard for engagements of forensic services that will apply to all AICPA members and member firms. The proposed standard also provides a two-prong applicability test based on the purpose of the services being provided and not the nature of the services.  Specifically, the proposed standard would apply to professional services being provided for either a “Litigation” or an “Investigation” as defined within the proposed standard. The proposed standard also includes prohibitions on providing legal opinions and performing certain forensic services for a contingent fee.

Why is a forensic accounting standard being proposed?

In early 2017, the FVSEC developed a three-year strategic plan stemming from multiple planning sessions with all five FVS committees including the:

  • FVSEC
  • Forensic and Litigation Services Committee
  • Business Valuation Services Committee
  • Certified in Financial Forensics Credential Committee
  • Accredited in Business Valuation Credential Committee

With the continued growth of and demand for forensic services, it has become clear that the development of a forensic standard is a top strategic priority to improve consistency and quality of such services. The new standard for engagements of forensic services will:

  • provide more tailored authoritative guidance to members that perform forensic services;
  • enhance overall quality of such services; and
  • serve the public interest.

How can you help?

The FVSEC is seeking comments from members and stakeholders. Please read the proposed standard and send your comments to Barbara Andrews, Director - Forensic Services at Barbara.Andrews@aicpa-cima.com on or before February 28, 2019.