Accountant malpractice is premised on the existence of some contractual relationship between the client and the accountant. Establishing third party liability is a bit more difficult and would have to be premised upon some fraud or misrepresentations or securities law violation committed by the accountant. Third-party liability would include instances wherein the accountant and the client do not have a direct contractual relationship.
The basic standards of care for the accounting industry are set forth in:
- The Financial Accounting Standards Board’s Generally Accepted Accounting Principles.
- The American Institute of Certified Public Accountants’ Generally Accepted Auditing Standards
- The Sarbanes-Oxley Act
Fraud or misrepresentation can of course always be the basis of liability against an accountant whether it be a claim brought by the actual client of the accountant or some third-party. In addition, the securities laws at both the federal and state level may be a source of potential violations based upon either shareholder actions or due to the improper sale of securities.
If you have been injured in Virginia, Maryland or Washington DC as a result of the negligence or actions of an accountant, contact malpractice attorney Brien Roche.
