Accountant's Liability

Accountant's Liability

The legal responsibility an accountant has for fraud or gross negligence. That is, the accountant's liability is the potential exposure he/she has to a lawsuit. In general, an accountant who does not conform (whether deliberately or accidentally) to the Generally Accepted Accounting Principles or the Generally Accepted Auditing Standards is more likely to face legal action. See also: Accountants Liability Insurance.
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In addition to practicing in such areas of insurance/reinsurance coverage disputes, shareholder derivative actions, ERISA disputes, professional negligence defense, accountant's liability actions, catastrophic personal injury defense and complex construction disputes, Ragsdale Liggett also maintains a well respected lobbying government relations and mediation groups and practices equine law as well.
In that case, the state high court held that an accountant's liability for general negligence in conducting an audit of its client's financial statements is confined to the client.
Alternatively, in states that have eliminated joint liability for economic damages if the accountant's fault is below a minimum level, the accountant's liability is uncertain.
This list is adapted from the Accountant's Liability Newsletter, Second Quarter 1994 ([C] 1994, Aon Insurance Services, Trevose, Pennsylvania.
He has handled commercial litigation matters involving insurance, intellectual property, information technology, director and officer liability, antitrust, lender liability, accountant's liability, civil RICO, and ERISA.
In addition to practicing in such areas of insurance/ reinsurance coverage disputes, shareholder derivative actions, ERISA disputes, professional negligence defense, accountant's liability actions, catastrophic personal injury defense and complex construction disputes, Ragsdale Liggett also maintains a well respected lobbying government relations and mediation groups.
Courts were often willing to expand the accountant's liability beyond the primary beneficiary (client) rule of a firm's services established in the landmark decision, Ultramares Corp.
In adopting a middle ground, an accountant's liability was limited to parties that the accountant intended to rely on his or her report or to parties an accountant knew the client intended to influence with his or her report.
He has significant expertise in complex damage analyses involving lost profits, reasonable royalty, prejudgment interest, convoyed sales, accelerated reentry, unjust enrichment and lost sales on disputes involving breach of contract, intellectual property, class actions, accountant's liability and fraud.
The Restatement rule would extend the accountant's liability not only to those persons with whom the accountant is in privity or near privity but also to those third parties who were foreseen and intended--that is, who were known by the accountant to be intended users or beneficiaries of the information presented in the accountant's report.
Martens specializes in client matters involving: complex accounting and financial irregularities; securities litigation; accountant's liability litigation; SEC and other regulatory inquiries and investigations; anti-corruption and FCPA compliance consulting services; trade sanctions compliance (such as U.
The time-worn platitude "an ounce of prevention is worth a pound of cure" is extremely appropriate with regard to the issue of accountant's liability.

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