What can CPAs do to mitigate risk of professional liability?
Minneapolis attorney Tom Shroyer discusses how CPAs can lower the risk of professional liability.
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Well, risk mitigation often falls into the categories of making sure that, first of all, you have effective and adequate professional liability insurance, systems in place for quality control for training of employees and supervision of staff that really amounts to pursuing best practices across all service platforms; and, finally, making sure that there is an awareness and appreciation and a sensitivity to the exposure the firm or the individual CPA faces really on a day-in and day-out basis to clients of all sorts and the engagement levels of all types for somebody misunderstanding a communication, for the CPA to make a mistake or, in an extreme case, for the CPA to be working with someone who is dishonest and is setting the CPA up in effect to fail.