basic risk management strategies too often overlooked.
by sarah beckett ference, cpa
cna financial corp.
when money is lost, whether from embezzlement, a poor investment, or just a bad business decision, a cpa firm’s clients and third parties can be quick to assign blame to someone else. often, that “someone else” is their cpa.
anybody can sue a cpa firm… for anything… at any time. all it takes is some paperwork and minimal court filing fees. courts may even permit plaintiffs to fix insufficient allegations and re-plead their case. and, unfortunately, a cpa can do nothing about it. while the actions of clients and third parties can’t be controlled, there are some fundamental activities and behaviors cpas can employ to help reduce the potential of a professional liability claim or, should a claim be made, improve its defensibility.
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