The downside of Y2k consulting, however, may be much steeper and more dramatic than its upside. Accountants run a risk of taking on too many engagements or ones that are beyond their skill sets, because so much work is available. IDC reports that 44 percent of companies will not have their Y2k compliance completed until sometime in 1999. Also, there's a general sense that middle-market companies, the bread and butter of many CPA firms, have been the tardiest in this area, and time for a fix is dwindling. The software won't work and resources to take care of this in time are scarce.
Malpractice is an even greater risk.
N.J. He said that that lack of awareness could cause companies to sue their CPAs in a knee-jerk reaction after their systems fail on or about January 1, 2000. Meanwhile, technology and insurance industry observers are braced for a potential avalanche of Y2k lawsuits that could be felt especially hard by accountants. He added that Year 2000 liability is the fastest growing practice area in the legal profession. Several software vendors, including SBT and Intuit, have already been sued because of alleged Y2k deficiencies in their software. With a full 18 months until 2000, more such suits against vendors will also undoubtedly emerge.