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Prevailing Wage Analyses |
14 |
1 credit recommended |
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As
our society becomes more litigious, CPAs are called more and more often
to testify in courts regarding financial matters, including matters
related to "prevailing wages". This testimony must be both
relevant and reliable. In March of 1999, the United States Supreme Court
issued a ruling in the Kumho Tire Co. v. Carmichael, 526 U.S. 137 (1999)
case that defined when a reliability challenge exists. The Supreme Court
ruled that reliability must be established in all types of expert
testimony, both scientific and nonscientific. The Court
held that the role of a trial judge was that of "gatekeeper"
regarding both the relevance and reliability of all expert testimony.
The Court stated that the Daubert opinion (Daubert v. Merrell Dow
Pharmaceuticals, 509 U.S. 579 (1993)) was not intended to be limited to
scientific cases only. Instead, it should apply to all fields of expert
testimony. Providers of expert witness testimony must be prepared to
describe why an analysis was utilized and why the analysis and related
data can be considered reliably sufficient. For "reliability",
the Supreme Court has established four separate, nonexclusive tests: 1)
it can be illustrated that the theory or technique can be tested, 2) the
data has been subjected to peer review and publication, 3) there is a
known or potential rate of error (i.e., the Standard Error) and 4) there
is a level of general acceptance in that particular discipline's
community. In addition, the area of "prevailing wages" has
several U.S. Government Regulations (GAL 01-00 and 2-98) that govern
prevailing wage analyses. This course is designed to assist the first
time CPA (or one who wishes to refresh his or her knowledge) regarding the
demands placed on the expert witness in these matters and the necessary
knowledge required for submission of an alternative salary survey. |
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