It is ironic that the profession that’s dedicated to reducing the company’s financial threats is always full of risks. A chartered accountant works hard to ensure that the company’s financial health is always in tip-top condition. It is impossible to brush off the possible risks that come with performing his duties.
A chartered accountant’s life is never easy. It is important to provide the clients with the results they expect to get. Sometimes, errors or miscalculations are inevitable to happen. Considering this, it is about time to think about getting chartered accountant insurance to have something as a sort of cushion when things get ugly.
The Risks of Being a Chartered Accountant
It is common for a chartered accountant to give advice to a client. The tasks may include:
- Investment advice
- Migration services
- IT consultancy
- Forensic accounting
- Business valuations
- Accounts management and preparation
Chartered accountants must bear in mind that even the best one in their field may encounter some mishaps that affect the client. One of the most dreadful things that a chartered accountant must face is losing the good reputation that took him years to build and nurture. Sometimes, a single mistake is all it takes to leave an unsightly stain on his track record. He may be able to recover his losses, but it may take time to remove the unsightly mark.
It is necessary to comply with the needs or requirements of the client. Chartered accountants do not want to face a lawsuit and worry whether they have proper financial resources to deal with the situation. Some of the risks that a chartered accountant may face are:
- Conflict of interests
- Invasion of privacy and confidentiality infringement
- Misinterpretation of statements
- Professional negligence
- Claims that are performance-related
- Breach of duty
- Untimely or incorrect tax returns
A chartered accountant knows how important it is to do his work with diligence, but some errors may still occur. Getting a chartered accountant insurance policy usually protects the accountant against breach of professional duty. It can also cover breach of intellectual property rights, defamation, and others.