Risk mitigation strategies for public accountants
1. Have appropriate documentation in place
Ensure that the terms of engagement are documented and communicated each time a professional service is provided for a client. This document needs to be reviewed regularly to ensure that it remains an accurate reflection of the services provided.
Accept work which is within your professional capacity – do not provide services where your skill base is limited.
3. Review your client list regularly
Only undertake or continue relationships where you have considered the integrity of the client. The review of clients should include recurring client engagements.
4. Know your employees
Perform quality checks on your employees, particularly when recruiting new employees. This includes a police check.
5. Have appropriate insurance and work with your insurer in the event of a claim
Ensure that your professional indemnity insurance cover is appropriate for the services that you provide.
Notify your insurer immediately in the event of a potential or notified claim and utilise the expertise of your insurer or mediation service to explore all dispute resolution options.