Litigation Support & Expert Witnessing Flashcards

Which Federal Rule of Evidence allows an expert to base an opinion on facts or data that are not themselves admissible, if experts in the field would reasonably rely on them?

Answer: FRE 703

FRE 703 permits experts to rely on inadmissible facts or data of a type reasonably relied on by experts in the field.

Which Federal Rule of Evidence allows a party to present voluminous financial records through a chart or summary when the records cannot conveniently be examined in court?

Answer: FRE 1006

FRE 1006 allows summaries, charts, or calculations of voluminous writings, provided the underlying records are made available.

Under FRE 704, can an expert give an opinion on an ultimate issue the trier of fact must decide?

Answer: Yes, with an exception for a criminal defendant's mental state that is an element of the crime

FRE 704(a) generally allows ultimate-issue opinions, but 704(b) bars opinions on whether a criminal defendant had the required mental state.

Which rule permits the court on its own to appoint a neutral expert witness?

Answer: FRE 706

FRE 706 allows the court to appoint an expert witness of its own choosing or one the parties agree on.

Under the AICPA Code of Professional Conduct, which fee arrangement is prohibited when a CPA serves as a testifying expert?

Answer: A fee contingent on the outcome of the litigation

Contingent fees impair objectivity, and AICPA rules prohibit them for expert witness services.

Which professional standard specifically governs AICPA members who provide litigation and other forensic services?

Answer: Statement on Standards for Forensic Services No. 1 (SSFS No. 1)

SSFS No. 1, effective in 2020, sets standards for AICPA members performing litigation and investigation engagements.

In a shareholder oppression case, a court values a minority interest without discounts for lack of control or marketability. Which standard of value is the court most likely applying?

Answer: Fair value

Fair value, the statutory standard in many oppression and appraisal cases, often excludes minority and marketability discounts.