Question

The preferred compensation arrangement for a forensic accountant is:

A. Percentage of the damage award
B. Contingent fee based on the final outcome on an engagement
C. Hourly fee with a replenished retainer
D. All of the above

Answer 1

The preferred compensation arrangement for a forensic accountant is an hourly fee with a replenished retainer.

Step-by-step explanation:

The preferred compensation arrangement for a forensic accountant can vary depending on the specific engagement and the agreement reached between the accountant and their client. However, a common arrangement is an hourly fee with a replenished retainer. This means that the accountant charges an hourly rate for their services and requires the client to provide a retainer upfront, which is then replenished as the work progresses.

While percentage of the damage award and contingent fee based on the final outcome are also possible compensation arrangements in some cases, they may not be as prevalent in forensic accounting as they are in other types of legal engagements.

Overall, the most accurate option for the preferred compensation arrangement of a forensic accountant is Hourly fee with a replenished retainer.