The Dangers of Dabbling – AICPA Professional Liability Spotlight

To meet evolving marketplace needs, CPAs often look to diversify their service offerings. However, undertaking a new service or providing service to a client in an industry with which the CPA is unfamiliar, frequently referred to as “dabbling,” can elevate the risk of errors and professional liability claims. Why? Reasons include inexperience and inadequate training, … Continue reading

What now? Responding to a subsequent discovery of fact – AICPA Professional Liability Spotlight

Consider the following scenario. One morning, you see your audit client’s name emblazoned across the front page of the local newspaper. The story describes a long-term business deal gone awry and hints of embezzlement by the corporate controller. Doubt enters your mind as you envision every document you inspected and recall every conversation you had during … Continue reading

Due diligence with CPA firm subcontractors – AICPA Professional Liability Spotlight

CPA firms often use subcontractors to help provide payroll, tax, accounting, and audit services or to provide administrative support to the firm. In the course of rendering these services, subcontractors may obtain access to a vast amount of confidential client data. Examples of subcontractors include part-time help hired during busy season, other accounting firms assisting with … Continue reading