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How To Minimize The Damage Of Lawsuits

by Rickard Jorgensen, FCII, ACIArb., ARM   Things Beyond Your Control That Precipitate Lawsuits With the advent of the computer era and information age, the cultural and business climate of the nation, and world, has shifted. Businesses have become more complicated, as attitudes sanction greater and greater risk-taking. No longer are there sure-fire lifetime jobs […]

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An overview of the client screening process

By Rickard Jorgensen, FCII, ACIArb, ARM Extracted from Evaluating Clients – Engagement risk screening for CPA firms. There are solid reasons for screening new clients.  Many involve not getting paid, exposure to lawsuits or even the stress related to difficult individuals.  Effective client screening can avoid these problems. Implementing a formal screening process is the […]

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The Risk of Being Consistent

(How Claims Arise From Following Past Work and not Our Independent Judgment) By Ralph G. Picardi, Esq. “A foolish consistency is the hobgoblin of little minds….” When Ralph Waldo Emerson penned those words in his essay, Self-Reliance, almost 175 years ago I think it is fair to say he didn’t have accounting risk management in […]

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ADR Provision in Engagement Letters – a new approach

You may recall the blog posting about the Mediation Clause recommended by Ralph Picardi (go here for a link to the post). Recently certain firms have enjoyed success by augmenting this provision with a section step which essentially provides rules for the resolution of a claim or fee dispute by Arbitration.  While Arbitration as a process has limitations, […]

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Risk Management for Tax Engagements

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According to the AICPA, in 1990 tax engagement were responsible for 42 per cent of all malpractice claims filed against CPA. Fast-forward to today and that apportionment of losses hasn’t change much. In fact, according to the same source, tax claims against CPAs can be quantified as follows: 55% of total number of claims against […]

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Engagement letters – what should they contain

Every trial attorney will tell you that the first and most important tool in the defense of a malpractice claim against a CPA is a strong and carefully crafted engagement letter. This was brought home last week with one of our long-standing CPAGold™ clients. For years the CPA had provided corporate tax filing services to […]

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