When it comes to accountant malpractice actions, a plaintiff will typically need to establish that:
- The professional owed a certain standard of care to the plaintiff;
- The professional failed to uphold that standard of care; and
- The plaintiff suffered losses as a result of that failure.
The “standard of care” may be established as the level of care that a reasonably prudent professional in the same line of work and similar circumstances would have exercised. For an attorney, as an example, malpractice may include such acts as: failing to file documents in a timely manner; failing to show up in court; or misuse of client funds. Any type of negligence or wrongdoing that results in substandard care may be considered malpractice and provide sufficient grounds for a lawsuit and for recovery.
An accountant malpractice attorney should be able to ascertain whether the improper conduct in question amounts to regular negligence or gross negligence. Gross negligence involves malpractice which largely differs from generally accepted accounting standards. Some examples of accounting malpractice include:
- Materially inaccurate tax returns
- Incorrect accounting advice
- poorly kept financial records
- Failure to act with standard of care expected of accountants
- Faulty audits and failure to detect fraud
- False certification of financial statements
- Accounts Receivable errors
- Failure to act in accordance with GAAP, GAAS and PCAOB rules
Accountants are required to maintain a certain level of skepticism concerning factors that may contribute to fraud. Accounting malpractice lawsuits are increasing. Our accountant malpractice attorneys are committed to the representation of clients or third parties injured as a result of the negligence or gross negligence of their accountants.