Claims Against Accounting Firms

Litigation matters involving accounting malpractice claims require the expertise of Certified Public Accountants (CPAs) who are proficient with professional standards and are able to independently assess the application of and compliance with Generally Accepted Accounting Principles (GAAP), Generally Accepted Auditing Standards (GAAS), Statements On Standards For Tax Services, as well as other related professional standards. Holmes & Company professionals have both the knowledge and experience to understand and interpret complex financial, tax, accounting and auditing issues and communicate them into easily understood presentations for litigators and representatives of the court. Our professionals have years of hands-on experience with accounting, financial reporting and auditing in both public accounting and private industry, and they regularly provide consulting, litigation and expert witness services in accounting malpractice cases.

Accounting malpractice cases often involve allegations ranging from non-compliance with GAAS by local, regional and international accounting firms to misleading financial reporting by corporate financial executives. In connection with these matters, we are commonly retained to:

• Research, analyze and explain the application of complex accounting principles and compliance with GAAP and other professional accounting standards, including SEC financial reporting requirements
• Review and analyze auditor work paper documentation and consider compliance with GAAS and other professional accounting standards
• Investigate asset misappropriation
• Investigate allegations of auditor and accountant failure to detect fraudulent financial reporting
• Consider auditor compliance with AICPA or SEC independence and ethics standards
• Prepare economic models and financial analysis to evaluate and/or calculate damages
• Prepare expert reports
• Provide expert testimony
• Review, analyze and rebut reports of opposing experts
• Assist legal counsel with discovery requests, deposition preparation and cross examination issues
• Evaluate the adequacy of internal controls over financial reporting, including compliance with related aspects of the Sarbanes-Oxley Act
• Evaluate compliance with federal and state tax regulations