Accountant's Liability
What is Accountant’s Liability?
An accountant's liability is the legal liability for any misstatement or fraud that happened during professional duties. It can be unintentional and can happen due to not spotting a mistake in the financial statements.
An accountant who neglected his duty may be subject to penalties or legal charges by the affected persons. An accountant is also liable for financial losses incurred from any incorrect representation.
Accountant Liability Insurance
Accountants sometimes pay money as insurance premiums to save themself from penalties and legal charges. This insurance covers:
- Network and information security offense coverage
- Security breach remediation and notification expenses
- Investment advisor coverage
- Personal fiduciary coverage
- Crisis event reimbursement coverage
- Pre-claim assistance
Tags:
Auditing
