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.

2. Refer

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 client 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.