Accountants’ Liability Claims
FTI Consulting professionals have extensive experience providing consulting and litigation support in matters related to auditing and accounting malpractice. Our professionals include former officials with the Public Company Accounting Oversight Board (PCAOB), the Securities and Exchange Commission (SEC), The Financial Accounting Standards Board (FASB) and former partners and managers with audit firms including the Big Four and their predecessor firms.
Accountants’ Liability Overview
An audit enhances the credibility of financial information, and as a result, reduces the information risk to financial statement users. Financial statement users may be misled and suffer financial losses if the financial statements are misstated despite a “clean” audit opinion. When users believe they have been misled, the independent accountants are often singled out as one of the responsible parties with perceived “deep pockets” and sued to recoup financial losses. In addition, tax accountants face potential liability for alleged violations of IRS Circular 230 or AICPA Statements on Standards for Tax Services.
Litigation may be brought against accountants as a result of many events including the discovery of fraud, bankruptcy, restatements of financial statements, SEC/Audit Committee investigations, IRS inquiries, regulatory investigations, whistleblower allegations or failed business combinations. We have the technical accounting, auditing and tax knowledge to thoroughly understand and analyze the issues at hand and the expertise to provide high-quality consulting and expert testimony.