Fiduciary Duty Problems by Jim Rigos WEBCAST

Overview

Most CPA firm E and O Insurance Companies report that way too many CPAs do not appreciate the unknown risks that they encounter when they perform a client engagement that is later determined to be in the fiduciary duty role.  What this 2-hour CPE course covers is exactly where the fiduciary engagement risks are high such that our members could later be potentially subject to “Fiduciary Duty” liability.  If they are so categorized, the burden of persuasion and proof shifts to the CPA and that may be a difficult showing to make.  CPAs that do this type of work for their clients need to understand exactly where and how these unexpected dangers may develop.    

Most CPA firms’ insurance policies exclude fiduciary claims outright or require a specific rider.  In recent years, this category of claims has grown substantially.  Right now about 9% of the national legal claims filed in civil courts against an individual CPA and/or a CPA firm involve counts involving breach of fiduciary duty claims.  The real problem is that many of our Washington CPA members are potentially subject to this liability even though they are not aware of it or the magnitude of the risks they are assuming.  

Worse still is that the burden of persuasion shifts to the CPA if arising in a fiduciary type of activity such as custodial of client assets, trustee, personal representative, investment advice, financial planning, serving as a client’s Company director, Involvement with a client’s withheld payroll taxes, almost all elderly client advice and accounting for fiduciary etc.   In the course I cite and will discuss a number of actual professional disciplinary and court decisions on point so our members can read the actual cases and thereby better understand the real potential risks from serving in the fiduciary role. 

Highlights

Fiduciary duty relationship requirements. AICPA position. Legal standard aggravator. Problematic fiduciary engagements. Elderly /probate/trust engagements. Trustee tax and ERISA. Competition with client. Investment advice in financial planning. Directorships corporate and charitable. For profit corporations. Not-for-profit entity. Suggested CPA director fiduciary safeguards. Table of reported cases presented.

Prerequisites

None.

Designed For

CPAs in public or industry.

Objectives

This course focuses on various CPA roles that could create and/or aggravate the fiduciary role and therefore potential liability.

Preparation

None.

Notice

None.