WHAT SHOULD ACCOUNTANTS AND THEIR COUNSEL KNOW ABOUT THE CURRENT ACCOUNTANT MALPRACTICE LANDSCAPE?
Accounting malpractice claims continue to rise, especially those involving CPAs who have allegedly failed to detect fraud.
In this tip sheet, we lay out some crucial questions companies and their CPAs should review to determine if fraud is on their radar and whether CPAs are focused on detecting fraud. Failures to adequately plan to detect fraud will usually result in an accounting malpractice claim. These tips include:
- Are CPAs aware of their professional responsibilities?
- Do CPAs have a professional responsibility to detect fraud?
- What are some of the types of malpractice claims CPAs face?
- How can CPAs better protect themselves?
Many experienced CPAs who started their career before the 1997 accounting standards took effect still believe they are not responsible for detecting fraud. Prior to that, CPAs were taught that it was not their duty to look for fraud – only to let their clients know if they saw or suspected any “defalcations.”
Forensic Strategic Solutions is a national financial investigation firm that specializes in accounting and financial reporting issues, whether the alleged malpractice stems from fraud that was not uncovered by CPAs or from a failure by CPAs to follow professional standards.