Economic Downturns Exacerbate Liability Claims
Economic conditions have historically had a significant impact on CPA professional liability claims. In general, more claims and larger claims are filed during a downturn. The recession of 2008–09 was no exception. Public expectations and standards for the CPA profession (as opposed to CPA professional standards, or the profession's standards for itself) again became a focal point, and clients asserted their expectation that CPAs should advise and warn clients of all risks and opportunities.