CPA Liability Checklist

Source: Pennsylvania CPA Journal

This article lists 10 of the most important areas of potential liability for CPAs and gives protection advice. Here are a few:

• Recommending bookkeeping methods. If fraud occurs, the client may try to place liability on the CPA.
• Being personally close to an audit client can affect perceived independence.
• Absence of, or unclear provisions in, engagement letters can lead clients to expect things you never intended to provide.
• Giving advice on subjects in which you do not have expertise, especially tax.
• Sitting on a board can affect perceived independence.
• Representing two parties in an issue unless protected by a waiver.

For the complete article, click here and select Top Ten Trouble Spots: Will We Ever Learn? in the Winter 2008 issue.

From Pennsylvania CPA Journal, Winter 2008.

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