Best Accounting & Auditing Lawyers in Buffalo

About Accounting & Auditing Law in Buffalo, United States

Accounting and auditing in Buffalo, United States, are governed by a mix of federal standards, New York State rules, and local practices. Accountants and auditors must follow generally accepted accounting principles - GAAP - for financial reporting, and generally accepted auditing standards - GAAS - when performing audits. Certified Public Accountants - CPAs - working in New York are licensed and regulated by the New York State Education Department Office of the Professions and the New York State Board of Public Accountancy. For audits of publicly traded companies, federal oversight includes the Public Company Accounting Oversight Board - PCAOB - and the Securities and Exchange Commission - SEC. For not-for-profit organizations and governmental entities in and around Buffalo, additional New York statutes and local rules apply, including special reporting, registration, and disclosure requirements.

Why You May Need a Lawyer

Accounting and auditing matters often involve factual complexity, legal standards, and regulatory exposure. You may need a lawyer when:

- You face an allegation of accounting malpractice or professional negligence by a client or counterparty.

- You receive a subpoena, summons, or investigatory request from the SEC, IRS, New York State Department of Taxation and Finance, or another regulator.

- You are under investigation by the New York State Board of Public Accountancy or face license-discipline proceedings.

- You need defense or representation in a civil lawsuit involving audit failures, misstatements, or breach of contract.

- You have disputes about engagement letters, fee arrangements, scope of services, or termination of services.

- You are involved in suspected fraud, embezzlement, or forensic accounting matters that could lead to criminal or civil liability.

- Your business is negotiating remediation, settlement, or disclosure obligations after discovering material misstatements or control deficiencies.

- You need help interpreting complex tax, corporate, or securities rules that affect accounting and reporting.

Local Laws Overview

Key local and state rules that matter in Buffalo include:

- Licensing and discipline - CPAs in Buffalo must meet New York education and exam requirements, maintain continuing professional education, and comply with rules enforced by the New York State Board of Public Accountancy. Complaints about professional conduct are handled through the Office of the Professions.

- State tax rules - The New York State Department of Taxation and Finance enforces state tax laws that affect accounting records, reporting, and audits. Disputes with state tax authorities may lead to administrative hearings and litigation.

- Not-for-profit regulation - The New York State Attorney General and Charities Bureau oversee charitable organizations and require specific financial reporting and registration for many nonprofits in Buffalo.

- Public-sector rules - City and county government financial reporting may be subject to state auditing standards, local procurement rules, and public records requirements such as New York Freedom of Information Law - FOIL.

- Securities and public company rules - If an entity in Buffalo is publicly traded, SEC rules and PCAOB auditing standards apply to financial statements and audit practices.

- Civil liability and statutes of limitation - Claims against accountants and auditors are governed by state civil procedure rules and case law. Different legal theories - negligence, breach of contract, fraud, or professional malpractice - can carry different limitation periods and proof requirements. The available remedies and defenses depend on the claim and the facts.

Because local application can vary with the specific facts and claim type, consult an attorney to understand how state and local rules apply to your situation.

Frequently Asked Questions

Who regulates CPAs and auditors in Buffalo, United States?

CPAs and many auditors are licensed and regulated by the New York State Education Department Office of the Professions and the New York State Board of Public Accountancy. For audits of public companies, federal regulators like the PCAOB and the SEC have oversight. Specific entities such as the New York Attorney General regulate charities and not-for-profit financial reporting.

What should I do if I receive a subpoena or regulatory inquiry about accounting records?

Preserve all requested documents and stop any routine destruction processes. Do not alter records. Contact a lawyer promptly to assess the scope of the request, protect privileged communications where applicable, and coordinate the response. Your attorney can help negotiate timing, scope, and confidentiality protections.

Can an accountant be sued for a bad audit or incorrect financial statements?

Yes. Accountants and auditors can face civil suits for negligence, breach of contract, breach of professional standards, or fraud depending on the facts. Liability often depends on whether the accountant breached duties, the foreseeability of reliance, and causation of damages. Professional liability insurance and engagement letters are important risk-management tools.

How do licensing or disciplinary proceedings work in New York?

If a complaint alleges professional misconduct, the Office of the Professions may investigate and refer matters to the State Board of Public Accountancy. Proceedings can include hearings, sanctions, fines, probation, or suspension or revocation of a license. You should get legal representation early to respond to allegations and present mitigating evidence.

What is the difference between a tax attorney and a CPA?

A CPA is an accounting professional trained in auditing, financial reporting, and tax preparation. A tax attorney is a lawyer with legal training who can provide legal advice, represent you in court or administrative hearings, and handle privilege issues. In complex tax or enforcement matters, both professionals often work together - a CPA for technical accounting and tax work and a lawyer for legal strategy and representation.

How long do I have to sue for accounting malpractice in New York?

The time limit - statute of limitations - varies by claim type and the facts. Different legal theories such as breach of contract, negligence, and fraud may have different limitation periods and discovery rules. Because these deadlines can be strict, consult an attorney promptly to preserve your rights.

What should a business do after discovering accounting errors or suspected fraud?

Act quickly to preserve evidence and limit further loss. Stop any data destruction, secure involved systems, and engage forensic accountants if needed. Consult both an attorney and accounting forensic specialists to evaluate obligations for disclosure, regulatory notification, internal remediation, and potential legal exposure.

Can auditors rely on third-party information without verifying it?

Auditors may rely on third-party information in some cases, but professional standards require sufficient evidence and appropriate audit procedures to support conclusions. Failure to perform adequate verification can lead to findings of audit deficiency or liability, depending on the circumstances.

How much does it cost to hire a lawyer for an accounting or auditing dispute in Buffalo?

Costs vary widely based on complexity, whether the matter is defensive or offensive, the need for expert witnesses or forensic accountants, and the billing model used by the attorney. Some lawyers bill hourly, some offer capped fees or retainers, and contingency arrangements are rare for professional defense matters. Ask about estimated fees, billing practices, and whether the lawyer works with accounting experts.

How do I find the right lawyer for an accounting or auditing issue in Buffalo?

Look for lawyers experienced in professional liability, securities law, tax law, or regulatory defense as appropriate. Ask about prior cases, experience with accounting experts, familiarity with New York licensing boards, and local court experience. Consider initial consultations to assess fit, fees, and strategy. Referrals from trusted professionals, bar associations, and business advisors can help.

Additional Resources

Helpful organizations and agencies to consult or contact include:

- New York State Education Department - Office of the Professions

- New York State Board of Public Accountancy

- New York State Department of Taxation and Finance

- New York State Attorney General - Charities Bureau

- Public Company Accounting Oversight Board - PCAOB

- American Institute of Certified Public Accountants - AICPA

- Internal Revenue Service - IRS

- Erie County and City of Buffalo finance offices and auditors

- Local bar associations and the Erie County Bar Association for lawyer referrals

- Small Business Development Centers and local chambers of commerce for business support

Next Steps

If you need legal assistance with accounting or auditing matters in Buffalo, United States, follow these steps:

- Preserve evidence - Stop any routine deletion of documents and preserve relevant electronic and paper records.

- Gather key documents - Assemble engagement letters, audit workpapers, communications, financial statements, contracts, and relevant policies.

- Seek prompt legal consultation - Contact an attorney experienced in accounting, audit defense, or regulatory matters to assess risks and options.

- Consider expert help - In many cases, an accounting expert or forensic accountant will be needed to evaluate technical issues and support legal strategy.

- Protect privilege - Communicate through counsel to preserve attorney-client privilege when seeking legal advice about potential liability.

- Understand fees and timeline - Ask potential lawyers about fee structures, likely timeline, and what to expect in investigation or litigation scenarios.

- Explore alternatives - Discuss negotiation, dispute resolution, or regulatory settlement options with counsel to resolve issues efficiently when possible.

Acting quickly and working with both legal and accounting specialists gives you the best chance to manage risk, protect your interests, and achieve a practical resolution.