What is Accounting Malpractice?

Issues in accounting have become more and more prevalent as it has become more common to pursue legal action against accountants who have not acted in line with the standards that they are held to. The actions of accountants have been challenged in numerous accounting fraud cases in the last decade. The most famous examples of this is probably the case of the accounting firm Arthur Anderson. This former firm worked with Enron in a major scandal that clearly served their own interests, leaving millions of people affected. Stockholders of Enron were left with nothing to show for the time and money they had invested in the company.

Accountants serving their on interests are generally the issue with accounting malpractice. When accountants are working for themselves rather than their clients, malpractice is most likely occurring. It is unfortunate when this happens, but there are written standards that accountants are taught and tested on. To practice as an accountant you must know these standards very well. These standards are defined in the GAAP and the GAAS.

• Generally Accepted Accounting Principles (GAAP): framework of guidelines for financial accounting, includes standards, conventions, and rules that accountants must follow in recording or preparing transactions summaries and financial statements
• Generally Accepted Auditing Standards (GAAS): list of ten auditing standards, including general standards, standards of field work, and standards of reporting

Contact Us

Accountant malpractice does happen and anyone can be a victim, including you. If you feel that you have been damaged as a result of accountant malpractice, contact the Chicago accounting malpractice attorneys of Friedman & Bonebrake, P.C. today at 312-466-8200 to discuss your legal rights and options.