Dealing with Certified Public Accountant malpractice can be overwhelming. This article explains what CPA malpractice is, how to identify it, and how 1818 can help you take legal action.
What is a CPA?
To address CPA malpractice, it’s important to first understand what a CPA is. A CPA is an accountant who passes a state exam and is licensed under the State Public Accounting Act. CPAs work in various fields, such as:
- Public Accounting
- Corporate Accounting
- Government Accounting
- Consulting Services
Their role involves providing accurate and impartial financial advice to companies, individuals, and governments. Typical CPA responsibilities include:
- Financial Accounting
- Tax Preparation and Planning
- Internal and External Auditing
- Financial Consulting
- Budget Management and Forecasting
- Fraud Detection and Prevention
What is CPA Malpractice?
CPAs have a legal duty to follow industry standards when managing your finances. If they fail to meet these standards and cause harm, it may be malpractice. An 1818 attorney can help you file a malpractice claim.
Examples of CPA malpractice include:
- Misusing Client Funds
- Failing to Detect Fraud
- Errors in Financial Statements
- Non-Compliance with Regulations
- Giving False or Fraudulent Tax Advice
- Not Disclosing Critical Financial Issues
- Other Breaches of Fiduciary Duties
What Should You Do if You Suspect CPA Malpractice?
If you suspect that your CPA has acted in a manner consistent with any of the malpractice categories outlined above, you must address these concerns as soon as possible. In Illinois, the statute of limitations typically bars CPA malpractice claims brought more than two years after the act of malpractice occurred. Even if you were unaware of your CPA’s malpractice until later, a court may bar you from bringing a malpractice claim outside of two years if it determines that you reasonably should have discovered your CPA’s breach of fiduciary duty within the allotted time frame.
In many cases, Illinois courts may apply the Continuous Course of Treatment Doctrine in medical malpractice cases. This doctrine extends the time that a party has to file a malpractice suit against a physician by stipulating that the statute of limitations for a medical malpractice claim does not begin until the treatment in question has ceased. However, in recent years, Illinois courts have clarified that the Continuous Course of Treatment Doctrine does NOT extend to non-medical malpractice cases. Thus, even if your CPA’s malpractice stretches over a multi-year period with the most recent activity falling within the two-year restriction, an Illinois court may bar you from recovering any damages resulting from your CPA’s malpractice outside the scope of the last two years. Therefore, it is imperative that you swiftly confront any concerns you may have regarding your CPA’s potential malpractice.
Why Choose 1818 for Your CPA Malpractice Concerns?
Don’t let time run out on your Certified Public Accountant malpractice claim. The attorneys at 1818 specialize in these cases and will fight to protect your interests. If you’re unsure about your claim or have questions, call us at (312) 779-1818 or fill out our online contact form.
