Managing professional liability

Article Abstract:

Accountants are increasingly being threatened by litigation. It is therefore paramount that accounting professionals manage their exposure in the best way possible. To help accountants cope with professional liability lawsuits, the Institute of Chartered Accountants in England and Wales revised its Members Handbook, replacing outmoded guidelines pertaining to liability with new ones. The statement, referred to as Managing the Professional Liability of Accountants, identified four elements of an effective strategy against lawsuits. They are close communication with the client and third parties, controlled use of reports, limitation or exclusion of liability, and use of indemnities. Accountants must always declare the limitation and scope of their work and use engagement letter forms as their contract with their clients.

Management, Liabilities (Accounting), Malpractice

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Where the accountant comes in

Article Abstract:

Accountants are often asked to assist lawyers in cases involving the defense and/or pursuit of personal injury claims. Typically, the cases that require the services of forensic accountants are those that involve injuries that severely affect the plaintiff's capacity to work, complicated accountancy or taxation issues, and/or a sizeable claim for loss of earnings. The role of forensic accountants usually involve preparing reports to be given to the other party and later to be used as court evidence, providing advice on financial matters, negotiating with the accountant of the other party, and acting as an expert witness in court. Forensic accountants are advised to remain unbiased and reasonable at all times if they want their preserve their credibility and prevent their client's case from being unduly prejudiced.

Accounting and auditing, Practice, Personal injuries

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The role of the forensic accountant

Article Abstract:

Forensic accounting is a service of many accounting firms in which accountants are called to the witness stand to provide evidence as litigation experts. It is proving to be a good source of income for many firms, partly because the corporate world of the 1990s has become more litigious. The forensic accountant's many contributions to litigation includes giving preliminary advice on quantum, identifying vital documents to be used as evidence, assisting in settlement negotiations, giving advice to solicitors and counsel during the trial, and giving oral testimony at the trial when necessary.

Evidence, Expert, Expert evidence

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