Malpractice Issues for CPAs (CPE Course)

CPE Credit: 3 hours

Course Type: Downloaded PDF materials with online test

Price (with PDF Textbook): $35

Course Description
This course explores the malpractice exposure faced by CPAs in their professional practice. It examines key legal concepts such as negligence, breach of contract, and fiduciary duty, as well as landmark case law that shapes liability to clients and third parties. The course also reviews high-risk scenarios, documentation practices, engagement letters, and strategies for mitigating malpractice claims. Through practical insights and legal frameworks, CPAs will learn how to uphold professional standards while protecting themselves from litigation and regulatory sanctions.

Author: Steven Bragg

Course Number: ET1113

Learning Objectives

  • Recognize the common law causes of action against CPAs.

  • Recall the key malpractice cases and their judicial outcomes.

  • Recognize the actions most likely to result in punitive damages.

  • Specify the legal element to prove when establishing causation in a negligence case.

  • Recall the recognized defenses against malpractice claims.

  • Recognize the reasons to maintain audit documentation.

  • Recall what distinguishes fraud from negligence in malpractice claims.

  • Recognize the impact on an audit engagement of a failure to assess internal controls.

  • Specify the legal effects of client misrepresentation in an engagement.

  • Recall the nature of due care, as defined by the AICPA Code of Professional Conduct.

  • Recognize the main purpose of expert testimony in a malpractice case.

Level: Overview

Instructional Method: QAS Self-Study

NASBA Category: Regulatory Ethics

Prerequisites: None

Advance Preparation: None

Latest Review Date: July 2025

Program Registration Requirements: Click on "Purchase Course" near the top of this page to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.

Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.

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AccountingTools, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

The NASBA sponsor identification number for Accountingtools, Inc. is 115881.

AccountingTools is an IRS Approved Continuing Education Provider. We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions). Our IRS Approved Continuing Education Provider number is 72821.