Warning Signs of an Impending Liability Claim
The Ohio CPA Journal has published an in-depth article explaining the likelihood of CPAs being faced with liability claims and how risk can be mitigated.
The article suggests that working with a risk advisor can increase the odds of:
- avoiding a claim
- controlling the situation
- keeping a lid on damages, or
- prevailing when litigation occurs.
The article explains the expectations of insurance companies, and offers six warning signs of an impending claim:
- Clients who won't pay
- Uncooperative clients
- Fraud/embezzlement defalcation
- Gray tax positions/IRS audits
- Divorce or partnership disputes
Take a few minutes to read the complete article and you will surely gain some insight into a complicated and important area of public practice.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.