The accounting profession is governed by the states who have the power to license and discipline members of the accounting profession. Uniformity of the law in the various states is ensured by the National Association of State Boards of Accountancy (NASBA).
Accountants and accounting firms generally have liability for the following:
In general, accountants must follow "generally accepted accounting principles" (GAAP). GAAP rules include all material activities that accountants are involved in. Proof that an accountant or accounting firm did not follow GAAP rules is often very detrimental in an accountant liability case
Claims against accounting firms tend to be factually intensive, document intensive and expensive to litigate. For example, in order to prove that an accounting firm did not follow professional standards, the plaintiff must carefully review the defendant's many work documentation as well as the financial records of the accountant's client and the professional literature to determine whether or not sub-standard practice was involved.
The following list gives a potential litigant things to consider before entering into an accountant liability suit.
The profession and its regulators have created a variety of disciplinary procedures so that those accountants not observing standards can be sanctioned or barred from the practice.
Accountant liability cases are extremely complicated, time consuming, and expensive. If a business is out large sums of money due to accountant wrongdoing it may be worth hiring a lawyer to sue the individual or firm. Those with losses of smaller amounts may wish to contact a lawyer to determine whether proceeding with a suit is financially wise.
Last Modified: 12-06-2012 03:49 PM PSTLaw Library Disclaimer
We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.