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Tag Archives: engagement letters

Using the engagement letter to reduce cyber liability exposure

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By Nick Matarazzo In this digital age, accountants are being forced to deal with all sorts of cyber threats. A well-worded engagement letter can help guard you against a cyber-related liability claim from your client and minimize your overall firm liability. Even if you are careful about your clients’ data, you may still be held […]

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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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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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Fee Collection – a malpractice risk

Counter suits arising from fee disputes are one of the most common sources of malpractice claims against CPAs. In fact, such suits are a great risk for many professionals. Any steps taken to avoid a collection becoming a malpractice claim are essential. One of the key areas of attention should be a documented Collection Procedure.  […]

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How to get sued……

There have been many articles about how to avoid law suits and what you should not do to attract problems with clients. So with a tongue firmly implanted in the cheek, we thought it would be fun to tell you what you should do to get sued. Accept an assignment that is beyond your expertise […]

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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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Examples of Limitation of Liability Clauses

By Seth L. Laver, (with additional remarks by Rickard Jorgensen). Following the recent article (here) about limitation of liability clauses, I asked Seth L. Laver if he could suggest a limitation of liability wording for engagement letters.  This was the response: Before we get to the proposed language, a disclaimer: the enforcement of these clauses vary […]

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Example Of Mediation Provision For Engagement Letters

The wording of an Alternative Disputes Resolution clause in an engagement letter has been discussed on various occasions in the past.  Schools of thought have vacillated between a formal arbitration clause to a voluntary mediation clause. Ralph Picardi, Esq., the risk management consultant to the CPAGold program recommends the following language for a Mediation Clause: […]

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Limitation of Liability Clause Not Enough to Protect Accountant

Another great article from our friends at Goldberg Segalla LLP.  By Seth L. Laver, Jennifer M. Mannion and Peter J. Biging At CPAGold we have mentioned on numerous occasions about the importance of an engagement letter.   The engagement letter is a critical tool for setting expectations and managing risks.  As we have said before a well […]

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