Malpractice Web Site Aids Accountants

A new Web site, has surfaced with the goal of providing accountants with information they can use to protect themselves against potential malpractice claims.

The site, just three months old, was developed by Mark Cheffers, CPA, formerly of PricewaterhouseCoopers. Resources available at the site include:

  • A library of 250 malpractice cases filed against accountants, including court documents pertaining to the cases
  • Reports on liability risks, issues, and trends involved in accounting for specific industries
  • Malpractice Primer, an eBook account of the emerging liability standards
  • CD-ROM video presentations regarding malpractice exposure and discussions on strategic planning

Three to four thousand malpractice claims against accountants are filed annually. It is estimated that one out of every 120 accountants is sued each year. Such claims were rare before the 1970s.

According to a recent report, reasons for the increase in malpractice claims include:

  • Juries are starting to hold accountants to higher standards.
  • Investors are looking for ways to recoup investments that have gone sour.
  • Companies face more pressure to alter financial records in an effort to meet Wall Street's profit expectations.

You may like these other stories...

We've all been there. Trying to make our work-lives more efficient, transfer knowledge to newer team members, and leverage our practices. Sometimes it works, and sometimes, well, the result is embarrassing at best.Here...
From May 20-23, the Association for Accounting Marketing (AAM) held its annual conference. Frequent contributor Sally Glick picked up some ideas that she will be sharing with us in the coming days, as she has done in...
Success, for a practitioner in a busy CPA firm, requires the ability to handle multiple tasks effectively. To get everything done, CPAs typically track their agenda with a "to do" list or other open-item systems to...

Upcoming CPE Webinars

Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.
Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.