In addition, the firm should attempt to gain an understanding about how juries perceive the public accounting profession and the firm's responsibilities to its clients. By gaining insight into the beliefs of juries, the firm should be better equipped to manage risk. Many CPAs think that they are protected from liability lawsuits because they follow the rules. They also think that the professional standards represent the ceiling on their legal liability. Unfortunately, that is often not the case when defending a liability claim before a jury.
Professional standards are vitally important.
However, CPAs should realize that it is not uncommon for a jury to consider professional standards as only the minimum requirements a firm should meet. To a jury, complying with professional standards may not be sufficient to avoid liability. CPAs are expected not only to follow standards, but to always get the right answer. Practitioners Publishing Company. All rights reserved.