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The Litigation Side of Forensic Accounting Copyrighted 2001 D. Larry Crumbley, CPA, Cr.FA, CFD KPMG ... - page 117 / 275

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© D.L. Crumbley

Top 10 Risks During Electronic Evidence Discovery in Litigation

Lack of distinction between disaster-recovery backup and business archiving. Corporations save too much unnecessary information for too long, adding to inefficiencies during information restoration and review. Most corporations save absolutely everything in preparation for disaster recovery and rely on the same store of information as a long-term business archive; in fact, different information is needed for each.

Backup systems that cannot easily be restored. Corporations regularly update software and hardware with little regard to their existing backup collection. When faced with litigation, a corporation is obligated to pay for restoring or recreating data from a legacy system. Accomplishing this can often take several months and millions of dollars.

FTI consulting (www.nysscpa.org/cpajournal/2003/1003/nylny11).

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