Assume a land development company hired an engineer and architecture firm to conduct a feasibility study on a potential land purchase. The report indicated that the land was suitable for development. Later, zoning requests are denied and the land development firm sues the engineer and architecture firm for negligence, breach of contract, restitution, and reliance.

-What are their damages or loss?

-How much compensation or reward would they expect for this event?

There may be legal questions regarding whether there was negligence on the part of the firm to perform the zoning, and we can question who is responsible for the zoning. Remember, the accountants are not attorneys.

One key here is: Can the forensic accountant place a dollar value of the damage components? We might want to think about the accountant as the economic expert as oppose to determining who is at fault or who is guilty. The accountants will work with the facts. In some cases, you might have other experts come in who are experts in specifics areas.