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

The importance of tax quality control – AICPA Professional Liability Spotlight

Quality control (QC) is of utmost importance when delivering professional services, including tax planning and compliance services. In 2014, 67% of the claims in the AICPA Professional Liability Insurance Program were related to tax planning and compliance services. Unfortunately, almost all of these claims included a failure in quality control. When a professional liability claim is … Continue reading