CPAs can limit liability risks by carefully drafting engagement letters, avoiding giving informal advice, fully vetting new clients, assessing the firm’s competence to handle clients’ issues, and maintaining appropriate data security practices.
As the COVID-19 pandemic forces firms to accelerate the adoption and overall use of virtual communication tools, practitioners need to be aware that the foundational principles of ethics and best practices still apply when using these technologies.
A well-drafted engagement letter can prevent a misunderstanding with a client over the scope of services from turning into an expensive liability claim.
It may be beneficial to consider making changes to your engagement letters and organizers this season.
Practitioners should consider taking a fresh look at their tax engagement letter policy before the next busy season.
This column explores the interrelationship of ethical and practical considerations that start before client data come into the office and continue after the return is filed.
This column considers the contractual nature of engagement letters and addresses some common criteria that should be considered, and terms that should be included in, most engagement letters.