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Respondent's third expert, James Earnest Wheeler, was
recognized by the Court as an expert in financial and tax
accounting. Dr. Wheeler is a professor of accounting at the
University of Michigan, and he holds a Ph.D. in accounting from
the University of Illinois. Dr. Wheeler specializes and teaches
in the fields of Federal taxation and accounting, and he has
written frequently on those subjects.
The Court also recognized as experts two other witnesses
called by petitioner during rebuttal; namely, Charles Bates and
James Bradow. Both of these witnesses were qualified as experts
for the sole purpose of rebuttal. Dr. Bates was recognized as an
expert on tax accounting for purposes of rebutting Dr. Fienberg.
He is a principal with KPMG Peat Marwick, heading its economic
analysis group with a particular focus on statistical application
to the field of economics (econometrics). He has a master's and
a Ph.D in economics from the University of Rochester. Mr. Bradow
was recognized as an expert in econometrics for purposes of
rebutting Dr. Wheeler. Mr. Bradow is a C.P.A. and a partner of
E&Y.
II. Best Accounting Practice
Petitioners contend that their method of estimating
shrinkage conforms to the best accounting practice in the
industry. Respondent alleges to the contrary. Respondent argues
that the retail industry does not have "one per se industry
standard for estimating shrinkage" because other retailers use
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