How to protect your FVS practice against malpractice

The good news: The vast majority—93%—of respondents to a recent poll of BV and accounting firms said that in the past 10 years, they have never had to defend a malpractice suit in their forensic and valuation services (FVS) practice. Only 4% of respondents had experienced one or two claims over the prior decade; 3% had taken on three to five claims; but none had fought six or more claims.

What were the participants’ top three worries regarding the risk of an FVS malpractice suit?

• Not being provided with important information (52%);
• Lawyers who don't communicate well or don’t provide the complete story (51%); and
• The client's or a lawyer's unrealistic expectations for a specific result (47%).

Interestingly, non-CPAs who practice in the forensic arena worry more about collecting fees or not having adequate insurance coverage, but CPAs are troubled by deadlines and client expectations. The survey also breaks down responses by firm location and specialty in family law/litigation consulting.

Are you at risk of committing malpractice in the FVS world? For the answer—plus complete survey results—you’ll have to attend the session by Michael Corso (Henderson Franklin Starnes & Holt), Michael Crain (FVG), and Gail Markham (Markham Norton Mosteller Wright & Co.) at the 2012 AICPA Forensic & Valuation Services Conference in Orlando, Fla., on November 11-13. To register, click here.