Accountancy Negligence : Such Cases More Common Now - By: Jessica Thomson

Before 1970s accountants were really thought to be someone who did not indulged in any malpractices’. They were the people who could not take you or for that matter any companies who sought their service up the garden path as they were seen as someone who will not commit Accountancy Negligence either knowingly or knowingly. But all that changed after the 70s as clients – individuals and companies- took them to court either for accountancy negligence or frauds. Whether the allegations against them were true or false, but the fact that they were accused of such professional misdemeanor made them vulnerable.

What had triggered off accusations of alleged Accountancy Negligence against accountants by their clients is the credit crunch suffered by business houses and individual because of the economic downturn. It is human nature to blame others and make them the scapegoat for your failure, but the fact remains whether accusations were true or false but it did see a steady rise in allegations of RICCO violations, securities fraud, failure to detect embezzlements and defalcations and tax advice. As such allegations against the accountants and their firms mounted and became common; they had no option but to rush to the legal experts who specialised in economic matter to save themselves from the legal trauma.

One of the reasons why accountants and their firms faced accusation of Accountancy Negligence is because they are seen by investors as the only ones who financially seems to be sound even as others suffers loss and even had to fold up. The most famous case that rocked UK was in 2005 when Ernst & Young firm was sued by Equitable Life- an insurance company after it was on the brink of collapse. Although the claim was later dropped but the fact remains that such allegation and legal proceeding could have proved to be very costly for the firm’s UK branch. It could have resulted in the bankruptcy of the accountant firm.

Such legal action for conveyance negligence was not confined to UK. Other accounting firms in other countries also had to undergo similar type of legal actions. But one common thread that binds all such cases is that the parties who take the accounting firm to court are the one who had failed and are at the verge of bankruptcy. Whether such allegations are proved wrong by the accounting firm against those who had taken them court depends largely on the evidences that the firms provide in the court of law, but one thing is clear that the accountant and accounting firms no longer enjoys the immunity from legal cases.

However the legal system is such both the litigator and the defendant will find legal experts who will fight the case for them. If you are a litigants filing a case against an accounting firm for Accounting Negligence you will find an attorney and if you are defending a case you will also find lawyer/attorney who will defend you from a litigator.

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For more insights and further information about Accountancy Negligence visit our site http://www.claimsland.co.uk/negligence-claim.html

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