Being sued for something you've done wrong is bad enough, but getting sued when you have performed your work diligently and correctly can be devastating. Yet that's what oftentimes happens when accountants fail to communicate with their clients exactly what to expect.
"The result is that firms are being sued for work that goes beyond the scope of the services they were assigned to perform," said Ricard Jorgensen, president and chief underwriting officer at Jorgensen & Co., a professional liability and risk management consulting firm. "In one case, a claimant alleged failure to detect a fraud, when the firm merely performed tax services. This places the firm in a defensive position where they must prove a negative -- that they were not assigned, or paid for, the services alleged."
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