CAMICO – CPA Professional Liability Insurance provider for over 30 years – has developed a wealth of information about what causes disputes between CPAs and their clients. Here are five pitfalls that are especially prone to litigation (CPA Malpractice).

Learn more about how CAMICO helps accountants by providing valuable services and resources at no additional cost. Visit www.camico.com/testimonials

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1. Suing your client for fees

This is a guaranteed cross complaint for malpractice, and more importantly, your insurance policy might not cover a counter suit to your suit for fees. So think twice, and call your risk adviser for guidance.

2. Advising both parties to a transaction, or helping them to resolve a dispute.

Disputes between owners or partners often result in advice that is perceived by one or more of them as favoring one partner to the detriment of another. This in turn results in malpractice claims.

3. Participating in business deals with clients.

Clients perceive CPAs as a competent advisor with their best interests at heart. If the deal falls apart, the client’s perception of the CPA may change and juries often tend to sympathize with clients.

4. Failing to communicate with clients in writing.

Failing to document important information is a common mistake that often leads to lawsuits. If it is not in writing, it may be presumed later in a court of law that it didn’t happen

5. Mistaking adherence to the professional standards as a substitute for “getting it right.”

Juries rarely care about your professional standards, rules or disclaimers. What they care about is the CPA getting it right. If something looks irregular – investigate it, document it, communicate it, and get it right.

CAMICO has developed the insight needed to anticipate danger areas and the expertise needed to advise policyholders on how to best protect their practices.

CAMICO was founded by the California Society of CPAs and has been directed and managed by CPAs for over 30 years. When you become a policyholder, you have access to the best Loss Prevention and Risk Management services on the market, and you have CAMICO as your trusted advisor. Accountants who are with CAMICO rely on our expertise to help them learn how to improve their practices.

Learn more about how CAMICO helps accountants by providing valuable services and resources at no additional cost. Visit www.camico.com/testimonials

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