Many Tennesseans may turn to a professional to look at their financial accounts to prepare for filing taxes and to have a better understanding of their financial situation. Accountants may perform an audit of their client’s accounts to see if there are any issues or concerns that need to be addressed. When accountants perform an audit, they are supposed to follow the Statements on Auditing Standards. If these standards are not followed, accounting malpractice can occur.
What are auditing standards?
The Generally Accepted Auditing Standards outline how an accountant is supposed to perform an audit for a client. These standards are in place to ensure that the accountant is qualified to do the audit and has the professional abilities to perform the audit effectively. Under these standards, accountants must maintain independence during the audit process and take care to perform the audit per the laws of the state in which the accountant is licensed.
The person performing the audit is responsible for planning out the audit and gaining all necessary information about the client that is needed to complete the audit. The auditor must perform the appropriate audit procedures and prepare a detailed report for the client. The report must include the opinion of the auditor about the financial statements audited or state that they were unable to form an opinion on the information provided.
Taking legal action
When someone works with an accountant for an audit or other purpose, they understandably expect professionalism that follows Tennessee’s accounting-related laws. When these standards aren’t followed, accounting malpractice may occur, leaving the client in a financial or legal bind. Anyone who believes that they are a victim of accounting malpractice can benefit from consulting an attorney.