Lessons from liability claims

Article Abstract:

An Institute of Chartered Accountants in England and Wales and an Institute of Chartered Accountants in Scotland compulsory scheme effective January 1, 1989 requires all accounting firms which are authorized by the Institutes to engage in investment business to have a certain level of indemnity insurance. The insurance offers protection, but the most effective form of risk management is to maintain high work and administration standards because experts reveal that over 40% of claims against firms in 1987 were as a result of administrative failure. Case studies are described to illustrate the two most common claims: negligent taxation advice and negligent preparation of accounts.

Case studies, Liability insurance, Great Britain, Institute of Chartered Accountants of Scotland

---

Lessons form auditing claims

Article Abstract:

An analysis of the Institute of Chartered Accountants in England and Wales's professional indemnity insurance claims reveals important information about the areas where quality controls need to be placed in accounting firms. Allegations of negligent auditing practice are most common for such things as: failure to discover and report defalcations by employees and dependence on negligently audited financial statements. Case studies are discussed to illustrate important points about alleged auditing misconduct.

Accounting, auditing, & bookkeeping, Standards, Auditing, Practice, Accounting firms, Accounting services, Negligence

---

A policy for insurance

Article Abstract:

The Institute of Chartered Accountants in England and Wales has proposed that professional indemnity insurance be mandatory for chartered accountants. Conditions in the indemnity insurance market have improved in the past few years; premiums have stabilized and claims are declining, although deductibles for policy renewals are still unfavorable.

Analysis, Insurance, Malpractice insurance, Indemnity against liability, Liability indemnity

Similar abstracts:

• Abstracts: The Wray masterclass for budding millionaires. Sage
• Abstracts: Environment-strategy coalignment: an empirical test of its performance implications. The market share-profitability relationship: an empirical assessment of major assertions and contradictions
• Abstracts: Mergers and acquisitions and managerial commitment to innovation in m-form firms. Guest editors' introduction to the special issue
• Abstracts: A regression approach to conceptualizing and analyzing marketing transactions. A social cognition model of consumer problem recognition
• Abstracts: Signaling and monitoring in public-sector accounting. Collusion in auditing. Accountability, the dilution effect, and conservatism in auditors' fraud judgments

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.