Matches in DBpedia 2014 for { ?s ?p Legal liability of Certified Public Accountants (CPAs) is the “responsibility of the auditor (an independent person) to the client and third parties relying on the accountant's work. Accountants can be sued for fraud and negligence in performance of duties”.Certified Public Accountants (CPAs) opinions affect their clients and their judgments can further affect investors, stockholders, firm creditors, or even partners. Large public accounting firms perform thousands of audits annually. Ultimately they will find unmodified reports on financial statements that could appear to be misleading. If CPAs fail to modify the audit report on financial statements that are materially misstated, investors and firm creditors may experience substantial losses. As a result of litigation against public accounting firms, amounts in excess of $300 million have been awarded to these parties. Even with professional liability insurance to cover such losses, occasionally the total amounts granted to plaintiffs have surpassed the maximum amounts the insurance can or will cover. If investors sustain losses they will attempt to recover them as long as the price to bring suit is low and there is a chance for recovery. Any public accounting firm may find itself in litigation no matter how careful the CPAs were. CPAs are often required to make further payments for investors and creditors uninsured losses. The firm itself can make these payments, as can personnel who have worked on the engagement.. }
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- Legal_liability_of_certified_public_accountants abstract "Legal liability of Certified Public Accountants (CPAs) is the “responsibility of the auditor (an independent person) to the client and third parties relying on the accountant's work. Accountants can be sued for fraud and negligence in performance of duties”.Certified Public Accountants (CPAs) opinions affect their clients and their judgments can further affect investors, stockholders, firm creditors, or even partners. Large public accounting firms perform thousands of audits annually. Ultimately they will find unmodified reports on financial statements that could appear to be misleading. If CPAs fail to modify the audit report on financial statements that are materially misstated, investors and firm creditors may experience substantial losses. As a result of litigation against public accounting firms, amounts in excess of $300 million have been awarded to these parties. Even with professional liability insurance to cover such losses, occasionally the total amounts granted to plaintiffs have surpassed the maximum amounts the insurance can or will cover. If investors sustain losses they will attempt to recover them as long as the price to bring suit is low and there is a chance for recovery. Any public accounting firm may find itself in litigation no matter how careful the CPAs were. CPAs are often required to make further payments for investors and creditors uninsured losses. The firm itself can make these payments, as can personnel who have worked on the engagement.".