In the state of Mississippi, the statute of limitations for filing a suit against a professional for breach of contract or negligence is three years. That means any action must be filed within three years from the time the wrongdoing occurs or accrues. Certain mistakes an accounting professional has made due to negligence, such as a poorly performing audit that led to a payment of back taxes that were not owed, will hopefully come to light within this time frame. If there are some questions about your accountant’s performance, consulting with an accounting malpractice attorney should take place to help increase the chances of not missing the three-year deadline.
Examples of Accounting Malpractice
Manipulating Financial Statements
This has happened many times with the accounting department misrepresenting profits and losses to bolster the price of a stock.
Incorrectly Classifying Data
A business accountant may not properly classify an item as an asset or liability, rendering the balance sheet incorrect which may lead to a tax problem
Errors of Omission
Data entry mistakes including not entering up to date information on a business’ inventory and other types of information will also affect the balance sheet
This can include the misrepresentation of oneself as a CPA.
Accounting Malpractice Lawsuits in Mississippi
To win an accounting malpractice case in the state of Mississippi, the existence of an accountant-client relationship must be proven. The negligence in the handling of the client’s affairs must also be proven. The cause of injury to the client must be shown and expert testimony must be offered to prove the accountant failed to exercise his knowledge, skill, or ability.
The accounting malpractice attorneys at Rushing & Guice have proven many cases in the past using this formula and can do the same for you and your business. Accounting misrepresentations whether by mistake or on purpose can damage your reputation and there must be compensation given when this occurs. But time is of the essence due to the statute of limitations, so if irregularities are suspected, consult with Rushing & Guice today.