Christopher Piety outlines the top five ways accountants can make themselves vulnerable to litigation.
Mistake adherence to professional standards as a substitute for getting it right
Juries rarely care about your professional standards, rules, or disclaimers. What they care about is if you get it right. When you are preparing tax returns, or you are engaged in a review or compilation of financial statements, you are not required to verify certain types of information, but think twice. If something looks irregular, it probably is. Investigate it, document it, communicate it – and get it right.
Fail to communicate with clients in writing
Failing to document important information is a common mistake that often leads to lawsuits. If it is not in w...