Question

Larry Sampson is a CPA and is serving as an expert witness in a trial concerning a corporation's financial statements. Which of the following is true?

1. Sampson's status as an expert witness is based upon his specialised knowledge, experience, and training.
2. Sampson is required by the AICPA ruling to present his position objectively.
3. Sampson may regard himself as acting as an advocate.

Answer 1

Larry Sampson's status as an expert witness is based on his specialized knowledge, experience, and training. He is required to present his position objectively as per AICPA rules, and he should not regard himself as acting as an advocate.

Step-by-step explanation:

The correct statement is option 1. Larry Sampson's status as an expert witness is based upon his specialised knowledge, experience, and training. Expert witnesses in a trial are typically individuals who have extensive knowledge and expertise in a specific field, such as accounting in Larry Sampson's case since he is a CPA. Their role is to provide expert opinions or analysis on matters within their area of expertise to help the court make an informed decision.

It is important for expert witnesses to remain objective and present their position based on their expertise. Therefore, statement 2 is also true. The AICPA (American Institute of Certified Public Accountants) requires CPAs, like Larry Sampson, to adhere to professional standards that include objectivity in their work.