Can an Accountant Be Sued for Malpractice?
Like attorneys and other professionals, accountants can be sued for malpractice if they fail to provide services at a level expected of a reasonably competent accountant. What Kinds of Accountant Malpractice are There?
There are two common types of accountant malpractice: - GAAP and GAAS ¿ Accounts must follow certain accounting rules outlined in the Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS). If an accountant fails to follow these rules he may be guilty of malpractice. Most of the time, you must show that your accountant violated GAAP or GAAS rules to make a claim for malpractice.
- Securities ¿ Accountants who handle sales of securities must follow all federal and state regulations, including The Racketeer Influenced and Corrupt Organizations Act (RICO) and The Securities Acts of 1933 and 1934. If an accountant fails to obey these laws he may be guilty of malpractice. For example, an accountant who creates a false financial statement for a business in order to make an impact on the stock market, he has likely committed malpractice.
Should I Contact an Attorney about Accountant Malpractice?
If you have been accused or are the victim of account malpractice consulting an experienced malpractice lawyer can be extremely helpful. A malpractice lawyer can help you understand how the law affects your case and represent you in court. |
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