Accounting Malpractice Attorney in Boulder, Colorado
Accounting malpractice can have far-reaching consequences for the individuals, businesses, and organizations that rely on accurate financial reporting. When accounting professionals fail to meet the standards of their profession and those failures result in financial harm, legal action may be necessary to recover losses and hold those responsible accountable.
A malpractice attorney provides focused representation to those affected by negligent or improper conduct by accountants, auditors, or financial advisors. With over 40 years of experience in law, corporate financial management, auditing, and accounting, our firm, Howard O. Bernstein, P.C., offers comprehensive legal services to individuals and businesses affected by accounting errors.
Our practice encompasses a wide range of areas, including business law, civil and commercial litigation, tax law, and international transactions. Located in Boulder, Colorado, we serve clients throughout Nederland, Longmont, Broomfield, North Glen, and the Denver metro area. Contact us today to schedule an initial consultation.
An Overview of Accounting Malpractice
Accounting malpractice occurs when a certified public accountant (CPA), auditor, or other accounting professional breaches a duty of care owed to a client, resulting in financial damage. This could stem from negligence, misconduct, or a willful disregard of generally accepted accounting principles (GAAP).
Individuals and businesses typically rely heavily on their accountants for accurate financial data and sound advice. When that trust is broken through inaccurate reporting or financial mismanagement, the damage may not always be immediately apparent.
Over time, small errors can compound, leading to significant losses or legal exposure. An experienced business law attorney can help you pursue claims against accounting professionals who have failed in their obligations.
Common Forms of Accounting Malpractice
Accounting malpractice can take many forms, depending on the type of services provided and the nature of the relationship between the accountant and the client. Some of the more frequent types of misconduct include, but are not limited to, the following.
Misrepresentation of financial statements: This may involve overstating revenues, understating liabilities, or concealing material facts.
Negligent tax preparation or planning: Errors in filing taxes, improper deductions, or incorrect guidance on tax shelters can lead to audits, fines, or criminal investigations.
Failure to detect or report fraud: Auditors have a duty to identify signs of fraud or irregularities. Neglecting this duty can expose clients to internal theft or financial misreporting.
Conflict of interest: Accountants who fail to disclose relationships or interests that affect their objectivity may be liable if their advice leads to harm.
Breach of fiduciary duty: In some relationships, accountants are required to act in the best interests of the client. Violating that duty may support a legal claim.
Each of these instances represents a potential cause for legal action. An accounting malpractice attorney can evaluate the circumstances of your case and help you determine the best course of action based on the facts and applicable state and federal laws.
Grounds for Establishing an Accounting Malpractice Case
To file claim for accounting malpractice in Colorado, you must be able to prove certain criteria. These generally include the existence of a professional relationship, a breach of duty, and resulting damages.
The existence of a professional relationship: You must be able to prove that there was an identifiable relationship in which the accountant owed you a duty of care.
Breach of that duty: You must be able to prove that the accountant failed to act in accordance with the standards expected of a reasonably prudent professional in the same position.
Causation: You must be able to demonstrate that the breach of duty caused actual financial harm.
Damages: You must be able to show that you suffered quantifiable losses as a result of the accountant’s actions or omissions.
These elements must be supported with documented evidence, witness testimonies, expert analyses, and a review of applicable financial standards. A qualified business law attorney can help you identify the required evidence and develop a legal strategy that aligns with the circumstances of your case.
Are You a Victim of Accounting Malpractice?
Who Can Be Held Liable for Accounting Malpractice?
While most accounting malpractice claims are brought against individual CPAs or auditors, liability may extend beyond a single person. Accounting firms, partners, or other parties could also be deemed liable depending on the nature of the relationship and the decisions that led to the harm. Some parties that could be held responsible for accounting malpractice include the following:
Accounting firms who may be vicariously liable for the conduct of their employees.
Corporate officers who rely on or influence accounting decisions may be named in some cases.
Third-party advisors involved in financial reporting or tax strategy may share responsibility.
If you or someone you know has been a victim of accounting malpractice, it's important to consult an experienced attorney as soon as possible. Our attorney at Howard O. Bernstein, P.C., can review the structure of your case to determine who may be legally responsible and develop an approach to seek full recovery from all liable parties.
Colorado Statutes of Limitations and Procedural Issues
Accounting malpractice claims are subject to strict filing deadlines under Colorado law. Generally, you have two years from the date you discover, or reasonably should have discovered, the malpractice or act of omission. Missing this deadline could prevent you from recovering compensation altogether.
In addition to strict time frames, Colorado also has specific procedural requirements when filing a malpractice claim. These often include serving formal notice to the defendant, presenting expert affidavits, and complying with the rules on financial discovery. These processes can be intensive and require careful planning, which highlights why you should consult an attorney who can advocate for your interests on your behalf.
How Our Firm Can Help
When facing the consequences of accounting malpractice, finding the right attorney matters. Your attorney should be able to understand the nuances of accounting practice, identify where standards were violated, and develop a case strategy that reflects both the financial and legal realities involved.
At Howard O. Bernstein, P.C., we have focused knowledge of both Colorado law and the rules governing financial professionals. Our attorney, Howard Bernstein, is familiar with the standards applied to accountants and the legal principles governing professional liability, which enables us to provide representation that addresses both the technical and procedural demands of these cases.
In addition to pursuing recovery, we can assist with related matters, such as insurance claims, indemnity agreements, or resolving disputes with other financial stakeholders. These situations often overlap with accounting malpractice and require careful attention to avoid unintended consequences.
We can also evaluate whether a settlement is advisable based on your goals, the circumstances and strength of your case, and the willingness of the other party to engage in meaningful discussions. If resolution through negotiation isn’t feasible, we are ready to represent your interests in court.
Accounting Malpractice Attorney in Boulder, Colorado
Have you or someone you know been a victim of accounting malpractice in Colorado? If so, it's essential to speak with a knowledgeable attorney who can represent your best interests. At Howard O. Bernstein, P.C., we are committed to helping you develop a grounded legal strategy underscored by the standards that govern accounting professionals.
Located in Boulder, Colorado, we serve clients throughout Nederland, Longmont, Broomfield, North Glen, and the Denver metro area. Contact us today to schedule an initial consultation.