| The financial forensic1 experts of today possess | | | | of Certified Fraud Examiners and requires a |
| a litany of credentials and licenses that are | | | | bachelor’s degree, two years of experience, |
| intended to promote and define their particular | | | | passing a comprehensive exam and completing |
| expertise. This article provides attorneys and | | | | twenty hours of continuing education per year. |
| clients the recipe for the “alphabet soup” | | | | REAL ESTATE: Commercial litigation and divorce |
| that follows the name of an expert in order to | | | | often require a real estate appraisal. Two very |
| assist in their hiring or cross examination in | | | | respected appraisal credentials are the MAI and |
| litigation. Simplified explanations, commentary and | | | | SRA, both of which are issued by The Appraisal |
| web page references are included for the most | | | | Institute13. The SRA is more residential-oriented. |
| common and widely-held litigation-oriented | | | | The two credentials are not acronyms like the |
| credentials2. | | | | others described in this article. Current |
| FINANCIAL: The CPA, Certified Public Accountant, | | | | requirements for the MAI and SRA include |
| is a state-issued license that is well known and | | | | completing rigorous education requirements, |
| respected by judges and juries. Currently, the | | | | submitting specialized experience descriptions and |
| CPA license requires a five-year college degree, | | | | receiving credit for a demonstration appraisal |
| passing what is perceived as one of the most | | | | report. The MAI additionally requires passing a |
| difficult of professional exams plus two years of | | | | comprehensive exam. Holders of both |
| supervised experience. CPAs are governed by the | | | | designations must adhere to a strict code of |
| holder’s state board of accountancy3 and the | | | | ethics and are subject to a peer review process. |
| AICPA, American Institute of Certified Public | | | | In the litigation context, how does one score the |
| Accountants4. CPAs must obtain forty hours of | | | | relevance of a set of letters? In addition to the |
| continuing professional education per year and | | | | education, years of experience and testing |
| must adhere to a strict code of ethics. CFAs, or | | | | required to obtain a credential, the question of |
| Chartered Financial Analysts, 5 are focused on | | | | relevance is answered by the professional |
| investment analysis and valuation. The designation | | | | standards, ethics and continuing educational |
| requires an intensive educational course, passing a | | | | requirements of the credentialing organization. The |
| rigorous exam and three years of experience, but | | | | most respected organizations require continuing |
| requires no continuing education. The CFP, | | | | education in their specific discipline and have |
| Certified Financial Planner6, is oriented towards | | | | procedures in place for public complaints and |
| personal financial planning, requires passing a | | | | disciplinary proceedings that can subject an expert |
| comprehensive exam and completion of thirty | | | | to legal and monetary consequences by way of |
| hours of continuing education every two years. | | | | suspending a credential. Most of the |
| CFAs and CFPs, along with CPAs, must adhere to | | | | above-described organizations have disciplinary |
| strict ethical and competency guidelines. The | | | | mechanisms in place, but all of the credentials |
| CDFA, Certified Divorce Financial Analyst7 is a | | | | requiring the CPA license as a prerequisite have |
| credential which requires passing an online exam. | | | | the full force and effect of state statutes |
| BUSINESS VALUATION: Valuation credentials | | | | enforced by a government agency, each |
| have become more prevalent in the last fifteen | | | | state’s board of accountancy. |
| years and are essential if one is attempting to | | | | The “alphabet soup” of credentials can be |
| qualify as an expert witness. The ABV, | | | | a jumble, but these letters can help the litigants |
| Accredited in Business Valuation8, and CVA, | | | | and judges separate the wheat from the chaff. A |
| Certified Valuation Analyst9 are issued by the | | | | practitioner attempting to qualify in court as an |
| AICPA and National Association of Certified | | | | expert should hold a recognizable and respected |
| Valuation Analysts, respectively. The CVA | | | | credential if one exists in that niche. The CPA is |
| requires an intensive valuation course or holding of | | | | essential for all things financial since judges |
| another valuation credential and passing a rigorous | | | | recognize and respect the license. The CFA and |
| exam. The ABV requires a similar exam and | | | | CFP are essential designations in |
| valuation experience. Both credentials require the | | | | investment-related matters and both boost the |
| holding of a valid CPA license, therefore the ethical | | | | expert’s credibility in divorces due to the |
| and continuing education requirements apply. The | | | | personal nature of the finances involved. The CFF |
| American Society of Appraisers issues the ASA, | | | | represents longevity and a commitment to |
| Accredited Senior Appraiser10, which requires a | | | | forensic accounting and litigation support and the |
| college degree, passing a comprehensive exam, | | | | CFE represents intensive training for fraud-related |
| five years of experience and obtaining forty | | | | engagements. A business valuation expert must |
| hours of continuing education very five years. | | | | have a CVA, ABV or ASA in order to |
| ASAs are usually not CPAs therefore they | | | | demonstrate competency in this niche and a real |
| generally have less of a background in accounting | | | | estate appraiser’s credibility is boosted greatly |
| and tax issues. | | | | if he/she has earned the MAI and/or SRA.by |
| FORENSICS: A relatively new but rapidly | | | | Robert Vance, CPA/ABV/CFF, CVA, CFP |
| expanding designation is the CFF, Certified in | | | | Visit the Valuation Services Web page |
| Financial Forensics11, which is issued by the | | | | Lattimore Black Morgan & Cain, PC |
| AICPA. The CFF requires holding a valid CPA | | | | 615-377-4600 |
| license, a minimum of one thousand hours of | | | | 1Black’s Law Dictionary defines |
| work experience and seventy-five hours of | | | | “forensic” as belonging to courts of |
| education in forensic-related disciplines. Since the | | | | justice. |
| CPA is required, the ethical and continuing | | | | 2Other very credible credentials that are less |
| education requirements apply. Almost all serious | | | | widely held exist, but were not included due to |
| fraud investigators hold the CFE, Certified Fraud | | | | space limitations. |
| Examiner12. The CFE is issued by the Association | | | | |