Accounting case settlement size declines.
Securities class action filings containing accounting allegations rose to unprecedented levels in 2017, according to a new research report.
There were a record 165 accounting filings during 2017, nearly twice the 88 filed in 2016.
Document, document, document.
Camico, the California-based malpractice insurer, describes five ways CPA firms can increase their exposure to lawsuits and what preventive measures to take.
Highlights:
1. Accounting rules: While accounting rules don’t require certain procedures, e.g., confirmation of information in a compilation engagement, juries may not take that rule into consideration. So if something doesn’t seem right to you, it is best to do some probing and make sure it is right. Then be sure to document it and communicate it. READ MORE →
Plus five more clauses you might want to consider.
By Ed Mendlowitz
101 Questions and Answers
QUESTION: You state on the bottom of your invoice that you charge 1.5% for balances over 60 days. Do you actually implement that or is it just warning? Do you do it on all clients or just some? Do clients pay that or complain? If they send in payment without that, do you write off the finance charge or leave it open? READ MORE →
Warning: This article will make you question your controls and audit procedures.
by Gary Zeune, CPA
Managing Director, The Pros & The Cons
Most risk is not in the accounting records. Why not? Because the vast majority of our work as CPAs involves monetizing and measuring activities that have already occurred.
The risk starts before we do our job. Think recording sales, not making sales. In manufacturing, think cost accounting, not making widgets.
Because our work is historical, one of the major flaws, no matter the type and size of the entity, is that we usually react to change after fraud has occurred. When a new law, regulation or competition affects our employer or client, we fail to implement new controls or audit procedures to compensate for new fraud risks. READ MORE →
Insurance company beats accountant in court over lost client data. How to make sure it doesn’t happen to you.
CPA Trendlines Research
In yet another warning to firms about safeguarding client databases, insurance policies won’t necessarily protect you if the data gets lost or stolen, according to a CPA Trendlines reading of a new legal case.
The highly influential U.S. Court of Appeals for the Seventh has ruled that Nationwide Insurance Co. has no duty to defend or indemnify an accountant who lost sensitive personal information from client files.
Here’s the case, analysis and comment: READ MORE →