Malpractice Issues for CPAs

Manage malpractice risk by understanding the legal standards that govern CPA practice. This course explains negligence, breach of contract, fiduciary duty, and the landmark case law that defines liability to clients and third parties. You will analyze high-risk scenarios, refine documentation practices, draft effective engagement letters, and implement strategies that reduce exposure to claims. By integrating legal principles with practical safeguards, the course helps protect your firm from litigation and regulatory action.

Format

PDF Course

Course Lists

Duration

3 Hours

Course Information

Author: Steven Bragg
NASBA Category: Regulatory Ethics
Course Number: ET 1113
Not Acceptable For: Enrolled Agents

Learning Objectives

Recognize the common law causes of action against CPAs.
Recall the key malpractice cases and their judicial outcomes.
Recognize the actions most likely to result in punitive damages.
Specify the legal element to prove when establishing causation in a negligence case.
Recall the recognized defenses against malpractice claims.
Recognize the reasons to maintain audit documentation.
Recall what distinguishes fraud from negligence in malpractice claims.
Recognize the impact on an audit engagement of a failure to assess internal controls.
Specify the legal effects of client misrepresentation in an engagement.
Recall the nature of due care, as defined by the AICPA Code of Professional Conduct.
Recognize the main purpose of expert testimony in a malpractice case.

Instructional Method: QAS Self-Study

Prerequisites: None
Program Knowledge Level: Basic

Advance Preparation: None

Latest Review Date: July 2025

Program Registration Requirements: Click on the Enroll button to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.

Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.

AccountingTools, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

The NASBA sponsor identification number for Accountingtools, Inc. is 115881.

AccountingTools is an IRS Approved Continuing Education Provider. We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions). Our IRS Approved Continuing Education Provider number is 72821.