Accountant malpractice or accounting negligence is an accounting or auditing
error, omission or deviation from Generally Accepted Accounting Principles
(GAAP) or Generally Accepted Auditing Standards (GAAS) which results in
a negative outcome or financial loss. The rapidly changing accounting,
auditing and tax environments often lead to accounting or auditing malpractice.
Accountant malpractice victims often suffer significant, life altering
financial loss as a result of an accounting professionals’ negligence.
Accounting or auditing malpractice can be very complex litigation. If
you believe you have been a victim of accounting malpractice, contact
our accounting malpractice trial lawyers today.
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Examples of Accounting Malpractice:
- Billing Fraud
- GAAP deviations leading to fines or other damages
- GAAS deviations resulting in erroneous information for stockholders
- Manipulating financial reports to improve stock value or equity
- Accounting errors leading to tax penalties
- Improper tax advice
- Assisting in the perpetration of tax fraud or tax evasion
- Assisting with money laundering schemes
Common Accounting Malpractice Questions:
What is Accounting Malpractice and Auditing Malpractice?
Accounting malpractice is an accountant’s error, omission or deviation
from Generally Accepted Accounting Principles (GAAP) resulting in financial
loss. Auditing malpractice, similarly, is an auditor's error, omission
or deviation from Generally Accepted Auditing Standards (GAAS) resulting
in financial loss.
There are two general categories of accounting malpractice: simple negligence
and gross negligence. Simple accounting negligence occurs when an accounting
professional inadvertently deviates from GAAS or GAAP or makes an accounting
error. Gross negligence occurs when an accounting professional intentionally
deviates from GAAP or GAAS, manipulates accounts or knowingly deviates
to achieve a predetermined end result.
What elements must be shown to prevail in an Accounting Malpractice case?
The basic elements which must be established in a successful accounting
malpractice claim include:
- A duty was owed by the accounting professional to the plaintiff
- The accounting professional breached that duty
- The plaintiff was injured as a result of the accounting professionals’
breach of duty.
What is negligence?
Negligence is the result of someone failing to act in a responsible manner
and in accordance with generally acceptable guidelines. Failure to act
responsibly or ethically often causes injury to another party and the
injured party has a right to be compensated for injury sustained as a
result of the negligent act.
What guidelines are CPA professionals expected to follow?
- The Public Interest - Persons using the CPA title shall accept the obligation
to act in a way that will serve the public interest, honor the public
trust, and demonstrate commitment to professionalism.
- Due Care - Persons using the CPA title shall comply with state law and
the profession's technical and ethical standards, maintain competence
and strive to improve the quality of services, and discharge professional
responsibility to the best of the CPA's ability.
- Objectivity - Objectivity is to be maintained by persons using the CPA
title. These persons shall:
- Avoid rendering professional services where actual or perceived conflicts
of interest exist.
- Be independent in fact and appearance when providing auditing or other
How long do I have to file my Accounting Malpractice claim?
This depends on the state in which the Accounting Malpractice occurred.
Some states require Legal Malpractice claims to be filed within two (2)
years of the date the Accounting Malpractice was identified; some states
allow more time, some allow less. If you are concerned the statute of
limitations might be running out for your claim, contact one of our experienced