Conflicts of interest are a concern in many professions. For Tennessee accountants, ignoring a conflict of interest, and continuing to work with a client, can lead to accusations of accounting malpractice. It is the responsibility of the accountant to be aware of any conflicts of interest and to stop working with a client if such a situation arises. Victims of accounting malpractice may suffer financially, and in some cases, may face criminal charges.
Understanding conflicts of interest in accounting
Just like other professions, accountants are supposed to follow established rules and guidelines. One of these rules prevents a CPA from working with someone when there is a conflict of interest. This may mean that the accountant previously worked with a married couple who are now divorced, preventing the accountant from working with either party. Accountants can also find conflict when working with multiple people from the same family if a trust or other shared asset is involved.
Conflict of interest rules also prevent accountants from working with clients where a lawsuit has been filed against another client of the CPA. Another common conflict of interest situation is when a client receives an investment recommendation from a CPA, where the accountant holds a personal interest in the investment opportunity. When working with an accountant, the client should feel comfortable that their interests are the top priority.
Legal help when one suffers from accounting malpractice
When someone works with an accountant, they are putting much trust into that individual to have their best interests in mind. Accounting malpractice may lead to serious financial concerns for the client, and in some cases, legal trouble. Tennesseans who have been a victim of accounting malpractice can benefit from consulting with an attorney to see what legal options they have.