 |
Journal of Accountancy PodcastAuthor: AICPA & CIMA
The Journal of Accountancy podcast discusses the key issues facing the accounting profession. Language: en-us Genres: Business, Business News, News Contact email: Get it Feed URL: Get it iTunes ID: Get it |
Listen Now...
Liability lessons on documentation, high-profile clients, CAS engagement letters
Thursday, 2 April, 2026
Sarah Ference, CPA, a risk control director at CNA, joins the Journal of Accountancy podcast to discuss recent topics of the JofA's Professional Liability Spotlight column. The conversation covers lessons learned from claims involving bankrupt clients, the importance of strong and consistent documentation, and the particular risks associated with serving high-net-worth or high-profile clients. The episode also highlights the April column on writing effective engagement letters for client advisory services. The articles discussed in the episode: January: "Don't Let a Bankrupt Client Bankrupt You." February: "Tell a Story With Your Documentation." March: "Luxury Liabilities: Serving High-Net-Worth Clients." April: "Tips for Writing CAS Engagement Letters." What you'll learn from this episode: The reasons CPA firms can be drawn into litigation when clients face bankruptcy. How strong client acceptance and continuance practices can help firms identify and manage higher‑risk engagements before problems arise. Why documentation acts as a firm's voice in a professional liability claim — and how gaps or inconsistencies can weaken defense of a claim. Why Ference has been told that "celebrities and CPA firms don't mix." What makes high‑net‑worth and celebrity clients higher risk and why firms should avoid relaxing standard risk management protocols for them. Why for engagement letters related to CAS, Ference said: "The devil is really in the details of that engagement letter."
