Unethical Accounting Practices: Reporting and Consequences
Reporting Unethical Behavior and Seeking Counsel
Great care is needed when falsely reporting information. Unethical practices result in short-term gains, long-term consequences. Contact agencies to report fraudulent activity. Seek counsel for unethical behavior. Plagiarism is unethical. Lying to spouse about spending is unethical. Referrals find trustworthy accountants. False accounting is fraud covered by laws. You may sue negligent accountant. Accountant is liable for mistakes. Accountants give strategic advice. Report accountants to Financial Reporting Council.
Making a Complaint Against an Accountant
How do I make a complaint against an accountant?
If you want to make a complaint about your accountant/auditor or a firm of accountants/auditors, you should initially contact the Prescribed Accountancy Body (‘PAB’) of which the accountant/auditor/firm is a member. Complaints against Alberta CPAs should be filed under the Complaints and Discipline process. Complaints of a general nature should be sent to the appropriate CPA Alberta department.
False accounting is a criminal offence. If you’ve been a victim of false accounting fraud, you should file a written complaint.
If the accountant claims that there are no errors to fix, or if they refuse to pay back your IRS penalties that they are responsible for making, then you may be able to sue your accountant for malpractice.
In order to make a successful claim for professional negligence against your accountant, you will need to prove that the actions of your accountant have caused you or your business to suffer a financial loss.
Ideally, you should meet with your accountant about twice per year. If you can prevail in a malpractice claim against your accountant, you may be able to recover compensation for the fines, penalties, and interest you had to pay, as well as expenses incurred in correcting your tax return.
The Consequences of Unethical Accounting
Unethical accounting practices are motivated by greed, pressure, and incentives, leading to damaging long-term consequences for a business. These practices can result in criminal penalties, undermine professional standards, and harm careers. Ethics in accounting contribute to financial transparency and maintain public trust.