Avoid the Top 5 Lawsuit Magnets

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.

Posted on March 8, 2015