Over the years I have collected dozens and dozens of stories of what it is that has led to problems for accountants. Such examples help inform my talks about how to avoid negligence claims. It’s also worth recognising how easy it is for things to go wrong; after all they do say that forewarned is forearmed.

So here is a selection of real life situations that have led to negligence claims against accountants. Don’t get caught out yourself:

  • Unexpected obligations to overseas tax authorities
  • Difficulties with liquidators due to auditors being officers of the company
  • Failing to provide all relevant information to successors
  • Failure to evidence independent advice as a trustee
  • Difficult clients not providing all relevant information
  • Nightmare clients who are not clear as to what they want
  • Continuing responsibilities after ceasing to act for a client
  • ‘bad’ partners in the firm
  • Counter claims when pursuing outstanding fees
  • Going beyond agreed scope of work and level of own competence
  • Failure to spot employee fraud
  • Clients who lose confidence due to poor communication
  • Lack of clarity re scope of work and responsibilities
  • Adverse media reports after disgruntled client leaves
  • Casual relationships
  • Third party (or interested party) putting pressure on client to complain
  • Failing to spot technical issues
  • Valuation related work when subsequent sale suggests a very different figure
  • Clients looking for someone to sue

I have written a 10,000 word ebook drawn from my talk on How to avoid professional negligence claims, containing tips and risk management advice for accountants in practice. You can buy the book or download a summary for free here>>>