Analysis Group has undertaken hundreds of engagements involving the use of accounting data. Many of these have occurred in the context of litigation; others relate to regulatory investigations, valuations, or other matters. We frequently work with electronic accounting data, auditors’ work papers, and internal accounting/financial records to understand what actually happened to the firm’s financial position, revenues, costs, and/or profits. This often involves comparing actual outcomes to scenarios of what would have happened had management made different decisions.
Analysis Group has analyzed whether:
- Generally Accepted Accounting Principles (GAAP) were correctly employed
- a material adverse event occurred
- an audit was conducted in accordance with Generally Accepted Auditing Standards (GAAS)
- an entity made proper disclosure in accordance with SEC regulations
- restatements and/or adjustments to a firm’s financial statements would affect the firm’s stock price in a material manner
- a firm’s costs and/or profitability reflected unfair competition
- impairment of various assets had occurred
- revenue recognition occurred properly (in the software, high-speed rail, and pharmaceutical industries, among others)
- a transaction or information was material to a reasonable investor
Analysis Group brings the appropriate blend of litigation experience and technical expertise to accounting liability issues and damages analyses — as we employ a broad range of forensic and investigative techniques.
Our affiliates, some of whom have worked for the Securities & Exchange Commission, provide expertise in assessing specialized issues such as accounting for derivatives, tax effects of accounting decisions, and corporate governance. Our professional staff, which includes individuals with Ph.D.s in accounting, CPAs, CMAs, and CFAs, works closely with our academic affiliates.