Accounting Malpractice
Brien Roche
Accounting Malpractice is Similar to Legal Malpractice
Accountant malpractice is similar to legal malpractice. It is a breach of contract action. The contract is between the client and the accountant. The contract is for services. The services may be tax services, bookkeeping, auditing etc.
As is true in any professional liability claims you must establish the standard of care. You must also prove a breach of the standard of care, causation and damages .
The Basic Standards
The basic standards of care for the accounting industry are found 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
The standards may be governed by the general principle of what the reasonably prudent person would do in that case. That is, what would the reasonable accountant do.
Fraud or misrepresentation can of course always be the basis for proving liability against an accountant. This is true whether the client sues or a third party sues. The securities laws at either the federal and state level may be a source of potential violation. These may be based upon shareholder actions. They may also be based on the improper sale of securities. Call, or contact us for a free consult.
Accounting Malpractice Based on Tax Advice
Much of what accountants do revolves around tax advice. This is a very specialized area. As is true with most malpractice actions, you have to retain another accountant or tax lawyer as an expert.
This accountant or tax lawyer must explain the tax issue to the jury. The witness will testify as an expert. The expert will testify as to the standard of care that applies. They will also testify as to how the accountant fell below that standard of care. Finally they will address how the client has been damaged as a result of that substandard conduct by the accountant. Those are the basic elements of an accountant malpractice claim.
Accounting Malpractice Contact a Professional Liability Attorney
To obtain counsel in Virginia, Maryland or Washington DC as a result of the negligence or actions of an accountant, contact attorney Brien Roche.
For more information on accounting see the pages on Wikipedia.