Home » Practice Areas » Accounting Malpractice Claims
Our expertise in accounting and financial reporting is invaluable when alleged accounting malpractice stems from fraud not uncovered by CPAs or by failures of CPAs to follow professional standards. Some examples of malpractice claims include:
Fraud schemes that were not uncovered in a financial statement audit or review | Fraud schemes that were not uncovered in a compilation engagement | Failure to follow professional standards | Failure to comply with regulatory procedures | Failure to uncover or properly disclose conflicts of interest | Fraud committed by the accountant | Negligence and/or gross negligence
Our services, which leverage accounting and auditing knowledge with forensic investigative techniques, include:
We assess accounting malpractice allegations to advise plaintiffs or defendants if the allegation represents a viable claim. Our recommendations are usually instrumental in the decision to pursue or settle a claim for malpractice.
Professional accounting standards are complex. We have the knowledge and experience to analyze procedures performed by the CPA as required by professional standards, then to offer an expert opinion on compliance and non-compliance with those standards.
The ability to explain complicated financial concepts and standards to a trier of fact is one of our unique talents. We have vast experience serving as expert witnesses in accounting malpractice litigation.
Ralph Q. Summerford
President
Ralph Q. Summerford is the president of Forensic Strategic Solutions. Mr. Summerford has a broad range of forensic expertise, testifying as an expert witness in federal and state courts on matters involving complicated financial transaction, including fraud, economic damages, business valuation, bankruptcy and accounting malpractice.
Accounting Malpractice
When a national accounting firm was sued for its failure to follow generally accepted auditing standards which would have uncovered a scheme that duped the bankers and the purchaser of a small manufacturing company, FSS was hired to investigate the allegations and testify before an arbitration panel. A private equity fund made a stock purchase […]
READ CASE STUDYAccounting Malpractice: When CPAs Miss the Fraud | Leslie P. Littrell
Leslie Littrell, forensic analyst at Forensic Strategic Solutions, discusses accounting malpractice and the recent increase in claims as well as the importance of fraud education. Ms. Parker cites FSS’ work with Auburn University to develop its forensic accounting courses within its Master of Accountancy program as an effort to help expand the knowledge of fraud […]
WATCH VIDEOAccounting Malpractice Lawsuits: The Value a CFE Brings to Attorneys | Ralph Q. Summerford
Ralph Summerford, president of Forensic Strategic Solutions, discusses the critical value a certified public accountant (CPA) who is also a certified fraud examiner (CFE) can add to an accounting malpractice case for attorneys, whether the attorney is prosecuting or defending an accountant. One of the greatest values a CFE can add is their ability to translate […]
WATCH VIDEOAccounting Malpractice Lawsuits: The Importance of CPAs Seeking Outside Counsel | Ralph Q. Summerford
Ralph Summerford, president of Forensic Strategic Solutions, discusses the importance and benefits of CPAs hiring outside counsel if they are at the center of an accounting malpractice case. He also discusses confusion that CPAs often have surrounding accounting malpractice insurance.
WATCH VIDEOThe Benefits of Technology in Auditing | Ralph Q. Summerford
Ralph Q. Summerford, president, examines the benefits data mining and artificial intelligence provide to auditors. Ralph discusses the differences between these technologies, and how they help auditors spot trends and unusual transactions. While auditors are beginning to introduce data mining and artificial intelligence into their processes, Ralph stresses that these technologies do not allow auditors […]
WATCH VIDEOLeveraging Technology in Auditing | Ralph Q. Summerford
Ralph Q. Summerford, president, discusses technology’s presence in the world of forensic accounting, focusing on the old – data mining – and the new – artificial intelligence and digital currency, such as bitcoin. He explains how FSS has extensive experience in leveraging these technologies to take their work to the next level, and stresses the […]
WATCH VIDEOGuarding Against Embezzlement Fraud: Developing An Action Plan | Ralph Q. Summerford
We’d like to introduce our three-part educational series on Guarding Against Embezzlement Fraud. In this first installment, we will discuss preventive measures you can take. The second part will explain how embezzlement cases can bring about unexpected problems, and the third and final part of our series will discuss defensive measures. It’s not something business […]
READ FULL BLOGGuarding Against Embezzlement Fraud: What Can Go Wrong? | Ralph Q. Summerford
Welcome to the second installment of our three-part educational series on Guarding Against Embezzlement Fraud. Catch up on part one, Guarding Against Embezzlement Fraud: Developing An Action Plan. Simply adopting an action plan doesn’t necessarily eliminate the risk altogether. What can go wrong? Many varied problems. The reason unexpected situations arise is because they are unexpected. […]
READ FULL BLOGGuarding Against Embezzlement Fraud: Defensive Measures | Ralph Q. Summerford
Now that you’ve gained valuable information from the first and second parts of our educational series, Guarding Against Embezzlement Fraud, we offer insight into defensive measures. It is extremely important to understand the necessity of an adequately controlled investigation. The moment embezzlement or fraud is suspected, steps should be taken to mitigate the company’s damages while […]
READ FULL BLOGLook for the anomaly to find fraud | Ralph Q. Summerford
Events may happen in a person’s life that can lead to an act of desperation. And desperate people may take irrational actions. I am talking about bad economic times, the failure of a business, the loss of a job, divorce, a family member on drugs, disease, children in trouble, criminal acts by a family member […]
READ FULL BLOGAccounting Malpractice Is a Growth Industry | Ralph Q. Summerford
CPA’s have close relationships with their clients (especially in smaller accounting practices) and rightfully so. Who else is better to understand their client’s financial and business affairs than their trusted CPA? And the relationship generally remains close…
READ FULL BLOGCareful Out There – Ponzi Schemes are Alive and Well | Ralph Q. Summerford
With all of the publicity that surrounded the Bernard Madoff, Scott Rothstein, ZeekRewards and Allen Stanford Ponzi schemes, among many others, you would think that people would have by now received the message about Ponzi Schemes; how they work and how those investors lose their money.
READ FULL BLOGA Lesson on Investigating Fraud from A Fictional Investigator | Ralph Q. Summerford
As a frequent speaker on the subject of fraud, people often ask me, “How do you investigate fraud?” My answer is always the same: You look for the anomaly. To me, it sounds so simple until I step back and realize that most people cannot see the anomaly, although it is usually right in front of them.
READ FULL BLOGBenefits of Seeking Independent Counsel in an Accounting Malpractice Lawsuit | Ralph Q. Summerford
Most CPAs will never face the underbelly of an accounting malpractice lawsuit. Those who do, however, will say the challenges are something they never want to experience again in their lives.
READ FULL BLOGThe Give and the Take in Charitable Giving | Ralph Q. Summerford
Charitable giving, while good with intent, is not always received as expected. Let’s say you and I give to a seemingly worthwhile charity. You may be surprised at who really takes from the charity – frequently, it’s the fundraisers and executives. Oftentimes the fundraisers and executives are one in the same, since many founders will leave the charity to start a consulting and fundraising business to contract with the charity. This is really where it begins to get out of hand.
READ FULL BLOG28th Annual ACFE Global Fraud Conference in Nashville — Like a Fine Wine | Ralph Q. Summerford
The premier annual conference for anti-fraud professionals just concluded in Nashville at Music City Center. Nashville has every reason to beat its chest about this new venue — it is just fantastic. It’s as good as, if not better than, any conference center in any major city across the country.
READ FULL BLOGTechnology is Changing Auditing | Ralph Q. Summerford
Or… has technology already changed auditing?
The accounting and auditing world is buzzing with talk of how automation and other technologies will reshape the accounting profession. Oh, how slow this world catches on! The reshape should have already taken place as both technology and automation have far surpassed the capabilities and knowledge of most auditors.
READ FULL BLOGBig 4 CPA Firm Knew in Advance Which Audits Would Be Inspected by Government Watchdogs | Ralph Q. Summerford
This is violation of trust, and it matters! Auditors must design their audits to look for fraud, and failure to do so may cause massive losses for stakeholders, investors, creditors and retirees. Neglecting to detect fraud can be truly life-altering — especially for retirees. While teaching a business ethics class in Jackson, Mississippi, I was […]
READ FULL BLOGAuditors Who Stole the Exam Are Convicted of Fraud | Ralph Q. Summerford
This failure of duty matters – it violates public trust and costs innocent people their jobs, their pensions and above all – faith in a system. The Wall Street Journal reported on March 11, 2019 that David Middendorf, the former national managing partner for audit quality and professional practice at KPMG, and co-defendant, Jeffrey Wada, […]
READ FULL BLOGBrilliance v. Ethics – Which One Wins? | Ralph Q. Summerford
Originally published by ACFE Insights. Smart people commit fraud every day. A recent case gives us a prime example. A federal judge asked Donald Watkins, Sr. to step away from the jury box as Watkins, Sr. made an impassioned plea in his closing argument. Watkins, Sr. was in the personal space of front-row jurors, who were […]
READ FULL BLOGAccountant Malpractice Claims Are Likely to Rise. Are You Prepared? | Ralph Q. Summerford
CPAs, especially those in smaller accounting practices, usually have close relationships with their clients—and rightfully so. After all, who else is better positioned to understand clients’ finances and businesses than their trusted accountants? That is until they suffer a financial fraud scheme that a CPA has failed to uncover. Then, what I call the “client […]
READ FULL BLOGHow Getting Too Close to Clients Can Lead Accountant Malpractice Claims | Ralph Q. Summerford
Accountant malpractice claims have been a growth industry for litigators for more than two decades, thanks to increasingly strict professional standards for auditors and accountants. And there’s no letup in sight. In fact, even in 2020, with the coronavirus wreaking havoc with the business community, regulators have continued to crack down on auditors who […]
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