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Reducing professional liability on audits


Accountants are often in high demand during this time of year. However, due to the fact that their position deals with sensitive information, they sometimes face a high risk of encountering legal problems. According to Accounting Web, certain tips have been frequently suggested by errors and omissions insurance providers for years, as they may help limit their risk of a claim being brought against them.

Getting rid of high-risk clients may be a helpful defense tactic against the potential for a future dispute, the source suggests. Uncooperative troublesome clients can sometimes be spotted from the beginning.

Balancing professional judgement and professional skepticism is also an important tool for accountants, according to the source. Though it is important for accountants to have positive non-judgemental relationships with clients, when this goes too far, some may lose the distance they need to clearly be able to question clients concerning information they provide.

The limited use of reports in high-risk circumstances can also help prevent professional documents from getting into the wrong hands. The source warns that some reports maybe interpreted differently by others and could possibly be used against an accountant if not distributed with discretion.

Taking these steps may help some accountants shield themselves against the potential for unfounded claims being brought against them. 

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