Understanding Accountant's Legal Liabilities and Professional

School: Eastern Gateway Community College - Course: ACC 111 - Subject: Accounting

Professional accountants or CPAs (Certified Public Accountants) are required to meet specific education requirements. Some required steps may include obtaining a bachelor's degree, having experience through an internship or entry-level work, and passing required exams. Just like many other skilled services, accountants have legal liabilities. Accounts must ensure that their work, whether performing audits, preparing financial documents, or account analyses for clients, is accurate, does not have errors, discrepancies, omissions, or misstatements, and is prepared in good faith. If an accountant is negligent or proven guilty of fraud, they could face legal charges, fines, and even jail time. Professional liability insurance can be purchased to protect accountants. Insurance can cover losses incurred from sensitive information security breaches, poor financial recommendations, tax return mistakes, financial oversight issues, interest penalties, and other expenses caused by malpractice. Successful accountants build strong relationships with clients by refraining from unethical practices, taking care to be vigilant in their work, and professionally conducting themselves. Accountant's Liability: What it Means, How it Works. (2022, September 7). Investopedia. https://www.investopedia.com/terms/a/accountant-liability.asp Campos, M. M. (n.d.).Understanding An Accountant's Legal Liabilities. Understanding an Accountant's Legal Liabilities.https://www.dvphilippines.com/blog/legal-liabilities-of- an-accountant Hello Kyle, Integrity and honesty are essential to business ethics; however, historically, there have been many cases in which accountants have been corrupt, committed fraud, or malpractice. As you stated, ethics can be affected by individual, social, and opportunity when someone does not hold ethics in high regard. Even with examples like Enron, which resulted in new laws, there are still many new cases with individuals in high positions, such as with political influence. The Sarbanes-Oxley Act is critical to provide oversight and enforcing accountability for fraudulent financial activities. Thank you for your post, Oceana Hello Rebecca, I appreciate that you stated that it is important what a person uses to decide what is right or wrong, not only for themselves but in judgment of the actions of others. Not everyone applies ethics on how it affects others, only themselves personally. As an employee, it is helpful to have company policies to adhere to that managers enforce. Societal norms and culture can also have a major impact on a person's

ethical standards. Withholding information, such as with sales, is ethically questionable, however unfortunately and oftentimes the norm in the industry. Thank you for your post,