Table of Contents
Can an accountant be liable?
Accountants are liable for any misstatements that occurred while auditing and preparing financial documents for a client. Because accountants are held responsible for any inaccuracies and as a result can face legal charges or monetary losses, they often take out professional liability insurance.
What happens if you make a mistake as an accountant?
Ultimately, the responsibly for that work is the company's, so even if the accountant makes a mistake, it is the company that is liable for any fines or additional fees that arise.
Who holds accountants accountable?
As part of its oversight duties, the AICPA maintains an extensive document that lists the responsibilities of accountants, including accountability and ethics. In its most recent update, the organization lays out six core principles of ethical responsibility for certified public accountants (CPAs).
Who is responsible for accounting errors?
The responsibility and liability for the accuracy and timeliness of your tax submissions rests with your company. An important part of your duties as the director is to ensure the company meets all of its statutory requirements.
Is accountant responsible?
Accountants are liable for any misstatements that occurred while auditing and preparing financial documents for a client. Because accountants are held responsible for any inaccuracies and as a result can face legal charges or monetary losses, they often take out professional liability insurance.