Documentation, Engagement Letters Key to Tax Risk Management

CPA liability exposures during tax season are always a concern, regardless of economic or professional conditions. CAMICO’s claims experience shows that many high-exposure tax claims have certain characteristics in common, primarily as follows:

  • The services for which the client had engaged the CPA were unclear.
  • The CPA had not clarified his or her role or the client’s expectations, usually because an understanding between the CPA and the client had not been reached or adequately documented.

Pages

Latest Articles

  • 14 Aug

    Cyber Claims Trends That Accountants Should Know

    Cyber claims trends have increased over the past year. CAMICO Mutual Insurance provides critical cyber coverage to accountants for cyber risks through an arrangement with NAS Insurance and explains the update on current cyber claims trends below.


    read more

  • 09 Aug

    Protect Your Clients and Your Firm from Hackers

    With cyber-attacks and data breach incidents growing in frequency, it is critical to ensure that your firm has taken all reasonable measures to protect your clients and the firm from hackers.

    Consider the following questions. If your answer to any of them is "no," your ... read more

  • 05 Jul

    Engagement Letter Do’s and Don’ts

    Engagement letters help improve communication with clients, document engagements, and protect you from litigation. By clearly defining an engagement’s scope and services, you can better avoid misunderstandings.

    What you should do: