Accounting malpractice lawsuits commonly involve instances where an accountant commits an error, omits critical information, or deviates from normal accounting principles which contributes to legal trouble or a financial loss.
Accountants in Ohio have an obligation to uphold basic accounting standards and ethics, and to exercise professional care in preparing tax returns, reports and other crucial financial documents. Clients have the right to expect fair and honest accounting, and to get reasonable and lawful advice regarding Ohio tax laws.
Should your accountant misrepresent your company or financial statements, you may have a malpractice claim. An Ohio Accounting malpractice lawyer can assist in investigating a fraud or negligence claim, and may be able to recover significant losses that result from accounting errors.
Joe Lyon is an experienced Cincinnati fraud attorney and Ohio accounting malpractice lawyer reviewing financial negligence cases for individual plaintiffs and businesses nationwide.
Accountants Legally Accountable
Examples of accountant errors and Ohio accounting negligence that can result in a lawsuit include:
- Breach of fiduciary duty
- Not controlling a conflict of interest
- CPA Code of Conduct violation
- Improper disclosure of information
- Failure to detect embezzlement
- Misuse of funds
- Errors leading to tax penalties
- Improper tax advice
- Billing fraud
- Incorrect reporting to management or stockholders
- Manipulating financial reports
- Advising clients to engage in illegal behavior
- Assisting tax fraud or tax evasion
- License fraud
- Poorly kept financial books
- Faulty audits
- Deviations from GAAP, GAAS and PCAOB rules
Types of Accounting Negligence
There are two kinds of accounting malpractice: simple negligence and gross negligence. Certified accounting professionals are required to maintain a financial skepticism, and evaluate risks that may contribute to financial fraud. Management assumes that accountants will conduct careful audits concerning financial statements prepared for individuals and companies who use this information to make financial decisions.
The following are examples of risk factors accounting professionals can reasonably be held legally responsible for by plaintiffs and an Ohio accounting malpractice lawyer:
- Financial Incentives
- Financial Pressures
- Threatened Profitability
- Pressure to meet expectations of stockholders or management
- Pressure to meet financial targets
CPA Professionals Accounting Malpractice
Public Interest: CPA professionals must accept the obligation to act in a way that will serve the public interest, honor the public trust, and demonstrate commitment to professionalism.
Due Care: CPA accountants must comply with Ohio state law and ethical standards, maintain competence and strive to improve the quality of services.
Objectivity: Accountants must avoid rendering professional services where conflicts of interest exist. They should remain independent when providing auditing or other financial services.
