South Florida Personal Injury Lawyer Helps Defend Accountants Who Are Sued For Professional Malpractice
According to a South Florida personal injury lawyer, accountants can be sued for malpractice much like healthcare professionals and lawyers. If an accountant fails to provide services at a level expected for a reasonably competent accountant and their client suffers an injury as a result, the client may sue for damages and the accountant found liable.
There are a number of ways accountant malpractice lawsuits differ from medical or legal malpractice lawsuits. One of the more important differences is the role played by the rules of conduct for the auditing and accounting professionals. These rules known as Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS) are frequently referred to during accountant malpractice lawsuits.
Fort Lauderdale personal injury lawyers tell us that accountants, while adhering to these principles and standards is not an absolute difference to liability, it is difficult for a plaintiff to prove an accountant who acted within the guidelines of these rules committed negligence.
The other difference in many accountant malpractice lawsuits are based on violations of state and federal statutes relating to the sale of securities. Accountants often generate financial statements which are frequently used in connection with securities offerings and are often submitted with periodic filings and annual reports companies must make in compliance with the Securities Exchange Commission requirements.
Fort Lauderdale personal injury attorney states that accountants who submit erroneous financial statements, that lead to a negative on the securities markets, investors may try to recoup their losses by asserting claims against being accountants who prepared the financial statements. The most common statutes used to bring such claims are the Securities Act of 1933, the Securities Act of 1934 and the Racketeer Influenced and Corruption Organizations Act (RICO). These acts are far-reaching and have brought down several corrupt organizations including mafia and mobsters all across the country.
Unlike the other professional malpractice lawsuits, malpractice lawsuits against accountants do not have to prove the four elements necessary for negligence – duty of care, breach of duty, injury and proximate cause.