In Connecticut, accountants are guilty of malpractice when they fail to provide an adequate duty for their clients. These individuals manage the financial records for businesses and individuals. When they conduct unethical practices, they create a liability that has extensive consequences. The following are instances of Accountant Malpractice in Newtown.
Improper Auditing for Financial Statements
During an audit, the accountant must find and correct any errors present in the financial records. This ensures that discrepancies are managed correctly. It also presents the company or individual with the exact value of their accounts currently. If they do not perform the audit correctly, this could lead to financial difficulties and overdrafts. It also misrepresents their financial status when they apply for financing.
Offering Erroneous Tax Advice
Accountants who provide erroneous tax advice could present the company or individual with an incorrect tax return. This, in turn, could equate to hundreds of dollars in losses or more. If they are unfamiliar with tax preparation, they shouldn’t provide advice or prepare the tax refunds for these clients. In doing so, they present further financial difficulties and fail to provide a proper duty to their client based on their lack of knowledge or skill.
Creating Errors in Inventory Records
Errors in inventory records also produce losses. These issues could to orders for products that aren’t available. This presents the company with issues and potential liabilities for the misrepresentation of their supplies and products. This leads to canceled orders and creates mistrust between the company and its customers.
Fraud for Financial Gains
Accountants who alter financial records for financial gain are conducted criminal acts. The act of embezzlement is a serious crime in which companies and individuals could lose thousands of dollars. If an accountant is suspected of this crime, the client must report them to law enforcement. They can also file a legal claim against them to reclaim their losses.
In Connecticut, accountant malpractice is committed when these service providers generate deliberate errors to rip off a client or commit fraud. These acts also include embezzlement and money laundering. Individuals and companies who believe they are the victims of Accountant Malpractice in Newtown visit Swartzculleton.com for more information now.