Content area
Full text
Taming the Books Without Being Bitten
Inevitably, like doctors, lawyers and other professionals, all accountants are asked to donate their time or expertise to charitable or nonprofit organizations. CPAs donate their time in a myriad of ways - as Little League or soccer coaches, as Boy Scout leaders, as community musicians and even as manual laborers. However, the area in which CPAs possess professional expertise can offer both valuable volunteer opportunities and potential liability pitfalls. Although most malpractice claims against CPAs arise from paid work (particularly tax or attest services), the gratuitous provision of professional services can expose a CPA to liability for such work. Thus, before accepting any volunteer assignments for a non-profit organization, a CPA should weigh the risks associated with performing the work to the benefits to be derived - personally and professionally. The purpose of this article is to provide cautionary instructions to CPAs contemplating volunteer work in order to avoid claims of malpractice and the risk that such claims pose. By adherence to several simple ground rules, CPAs can pursue praiseworthy and valuable work while being relieved of worry over undue and unexpected exposure to lawsuits.
The Value of CPA Pro-Bono Work
As experts at what they do, CPAs can offer valuable skills to those in need through volunteer activities. It is well documented that CPAs can have an impact on their communities through volunteer work. Recent articles in this publication and in the Journal of Accountancy have trumpeted the salutary effect of such work. In a November 1999 Journal of Accountancy article entitled "Giving Back: Pro Bono Accounting Services," the authors cite several organizations that have successful pro bono programs, including
Accountants for the Public Interest (API). API has 21 affiliate organizations nationwide that coordinate pro bono efforts by matching CPA volunteers with individuals or organizations needing their expertise. API has two affiliates in Pennsylvania - Community Accountants of Philadelphia; and Western Pennsylvania Community Accountants, Inc., in Homestead (near Pittsburgh). In Illinois, the Community Service Division of the Illinois CPA Society and CPAs for the Public Interest provide direct volunteer assistance, workshops and collaborative projects to assist nonprofit organizations in improving financial management. The PICPA has traditionally encouraged its members to become involved in volunteer services through...