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If you are selling or acquiring an accounting practice, you need to read the AICPA’s new guidance “Transfer of Files and Return of Client Records in Sale, Transfer, Discontinuance or Acquisition of a Practice,” which clarifies the obligations of the selling and the acquiring parties and explains how to deal with clients that do not respond to the notification of the transaction.
Continue Reading Accountants M&A Alert: New AICPA Guidance on Transfer of Client Files

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As anticipated, the Centers for Medicare & Medicaid Services (CMS) has released new regulations addressing the use of arbitration agreements in nursing home admission agreements applicable to facilities that participate in Medicaid and Medicare programs. However, the scope has far exceeded what was expected. The proposed regulations only sought to ban mandatory arbitration agreements as a condition of admission. The actual regulations prohibit “pre-dispute” arbitration agreements instead.
Continue Reading Is This the End of Arbitration in Nursing Home Litigation?

We have assisted many accounting firms in the creation or revision of their client engagement letters. They very often question the need to include certain provisions intended to limit their liability to their clients and sometimes ask whether the provision is even enforceable. Whether the provision will be enforced is uncertain due to the very limited case law addressing liability-limiting provisions in accountants’ client engagement letters, and there could be variations in enforcement from state to state. Nevertheless, we regularly advise our clients to include the provisions, even if enforcement is uncertain, because the provision might just be accepted and never challenged, thereby serving its purpose, even if a court strikes it down after a legal challenge. Continue Reading Deloitte’s $500 Million Sentence

Federal courts correct bad litigation behavior, eventually.

People take being sued personally, and lawsuits can take an emotional toll on defendants, whether as an individual or as a representative of an employer. Anger and frustration always lead to the same questions: Can we sanction them for lying? Can I get my fees (or my insurance deductible) back? Won’t the court do something?
Continue Reading The Punishing Effect of Rule 11

468453132On April 3, 2016, the public learned that millions of client documents from the Panamanian law firm and corporate services provider Mossack Fonseca & Co. (MF) had made their way to an international organization, the International Consortium of Investigative Journalists (ICIJ), and that the information would be used to publish potentially damaging stories. In addition, authorities across the globe, from Japan to Switzerland to the United States, are reviewing the documents and investigating potential tax implications, regulatory violations and criminal activity.
Continue Reading What Attorneys Can Learn from History’s Largest Data Breach