Best Accounting & Auditing Lawyers in Irvine

About Accounting & Auditing Law in Irvine, United States

Accounting and auditing law governs the duties, standards and legal responsibilities of accountants, auditors and entities that prepare or rely on financial information. In Irvine, California, those legal rules include federal requirements that apply across the United States and state or local requirements that apply within California and Orange County. Common legal topics include licensing and discipline of certified public accountants, professional standards for audits and financial reporting, tax compliance and audits, alleged accounting malpractice and civil litigation, regulatory enforcement by state and federal agencies, and criminal investigations in cases of suspected fraud.

Professionals involved in accounting and auditing include CPAs, audit firms, internal auditors, corporate controllers and outside counsel. Standards and oversight come from professional bodies such as the American Institute of Certified Public Accountants for private practice, the Public Company Accounting Oversight Board and the Securities and Exchange Commission for public companies, and state regulators such as the California Board of Accountancy. Local courts in Orange County and federal courts in the Central District of California handle related litigation and enforcement actions.

Why You May Need a Lawyer

You may need a lawyer when accounting or auditing issues raise legal risk, financial exposure or regulatory consequences. Common situations include:

- Regulatory investigations or enforcement actions from agencies such as the IRS, the California Franchise Tax Board, the SEC or the California Board of Accountancy.

- Allegations of accounting malpractice, negligence or breach of contract against an accounting firm or an individual accountant.

- Criminal investigations or charges related to alleged fraud, embezzlement, false statements or tax crimes.

- Disputes over audit reports, auditor liability, audit adjustments or auditor independence issues.

- Subpoenas or demands for production of financial records in litigation, government investigations or administrative proceedings.

- Mergers, acquisitions and financial due diligence that raise disclosure obligations, indemnity clauses and contract drafting needs.

- Whistleblower complaints or retaliation matters that invoke protections under federal or state whistleblower laws.

Lawyers experienced in accounting and auditing matters can protect your legal rights, advise on privilege and disclosure issues, manage responses to governmental requests, negotiate settlements, and represent you in court or administrative hearings. A lawyer works alongside accountants and forensic experts to prepare the legal and factual response you need.

Local Laws Overview

Key local and state legal considerations for accounting and auditing in Irvine include the following:

- California licensing and professional regulation - CPAs practicing in California must follow the California Accountancy Act and the rules enforced by the California Board of Accountancy. The Board handles licensing, renewals, disciplinary actions and professional conduct issues.

- State tax administration - California tax matters are administered by agencies including the Franchise Tax Board and the California Department of Tax and Fee Administration. State tax audits and assessments have their own procedures and appeal rights that differ from federal tax rules.

- Business and corporate requirements - California law imposes record-keeping, corporate books and financial statement obligations on corporations and other business entities. The California Corporations Code and related statutes govern many of these obligations.

- Enforcement and criminal statutes - State criminal laws for fraud, embezzlement and related offenses are enforced by local prosecutors and the Orange County District Attorney. California evidence and criminal procedure rules will apply to any investigation or prosecution.

- Local ordinances and municipal matters - The City of Irvine has business registration and licensing requirements that may affect local firms. Municipal auditing or contracting matters can involve specific procurement rules and municipal audit standards.

- Professional standards and federal overlay - Audits and financial reporting for public companies are governed by GAAP, GAAS, PCAOB standards and SEC rules. Governmental audits follow Government Auditing Standards. Federal statutes such as Sarbanes-Oxley and Dodd-Frank add compliance obligations and whistleblower provisions.

- Courts and dispute resolution - Civil cases involving accounting disputes are heard in Orange County Superior Court for state claims and in federal court for matters raising federal questions. Alternative dispute resolution - including mediation and arbitration - is commonly used to resolve accounting disputes.

Frequently Asked Questions

What is the difference between an accountant and an auditor?

An accountant prepares, analyzes and reports financial information for a business or client. An auditor independently examines financial statements and internal controls to provide an opinion on their fairness and compliance with applicable standards. In practice, auditors are often certified public accountants working under audit standards, and they have obligations to exercise independence and professional skepticism.

When should I hire a lawyer versus a CPA?

Hire a CPA for technical accounting work, tax preparation, audits and advice about accounting standards. Hire a lawyer when there are legal risks - for example, potential litigation, regulatory investigations, criminal exposure, disputes over auditor liability, privilege or confidentiality questions, or contract drafting. Many matters benefit from both professionals working together.

What steps should I take if my company is under audit by the IRS or California tax authorities?

Preserve all relevant records, restrict internal communications about the audit, gather documentation requested, and consult both a CPA for tax technical issues and a lawyer for legal strategy. A lawyer can help manage information rights, negotiate protective measures, and represent you in appeals or litigation if necessary.

Can accounting errors become criminal matters?

Simple mistakes usually lead to civil claims or regulatory corrective measures. However, intentional misstatements, fraud, tax evasion or falsifying records can lead to criminal charges. Whether an error crosses into criminal conduct depends on intent, materiality and surrounding facts. Early legal counsel is important if there is any risk of criminal exposure.

Are communications with my accountant protected by attorney-client privilege?

Communications with an accountant alone are generally not covered by attorney-client privilege. Privilege can apply when a lawyer is part of the communication and the purpose is obtaining legal advice. California and federal courts recognize narrow protections for certain accountant communications in specific circumstances, but those protections are limited. Consult a lawyer before disclosing sensitive information.

What should I do if an auditor asks for access to company records?

Review the auditor engagement letter or terms that govern auditor access. Preserve the requested records and consult counsel if the request seems overbroad, implicates privileged material, or is tied to a regulatory investigation. If the request comes with a subpoena, respond promptly and seek legal guidance about any objections or necessary motions.

How long do I have to bring a claim for accounting malpractice?

Time limits are governed by statutes of limitations and can vary by type of claim, the date you discovered the issue, and whether the claim is against a public or private auditor. Deadlines often range and may include discovery rules that extend the filing period. Because these deadlines can be dispositive, consult a lawyer promptly to determine the applicable time limits in your case.

What happens if an auditor uncovers fraud in our financial statements?

The auditor may be required to report certain matters, depending on the engagement and applicable laws. For public companies, auditors often must report material fraud to those charged with governance and may have reporting obligations under federal securities laws. Internally, companies should preserve evidence, begin an internal investigation, notify counsel, and coordinate responses to regulators. Legal advice is critical to manage disclosure obligations and potential liability.

How should I respond to a subpoena for financial records?

Do not ignore a subpoena. Review it carefully to understand the scope and deadline. Preserve the requested documents and consult an attorney to evaluate privilege issues, possible grounds for objection, and procedural steps such as motions to quash or protective orders. A lawyer will help ensure your response complies with legal obligations while protecting privileged or sensitive information.

How do I choose the right attorney for accounting and auditing issues in Irvine?

Look for an attorney with experience in accounting litigation, regulatory enforcement, tax controversies or white collar defense as appropriate to your matter. Ask about specific experience with CPAs, audit firms, government investigations and relevant courts or agencies. Confirm local experience in Orange County and familiarity with California and federal rules. Ask about fees, staffing, expected timeline, use of forensic accounting experts, and client references.

Additional Resources

Helpful bodies and organizations to consult or research include the California Board of Accountancy, California Department of Tax and Fee Administration, California Franchise Tax Board, California Department of Consumer Affairs, the Internal Revenue Service, the U.S. Securities and Exchange Commission, the Public Company Accounting Oversight Board, the American Institute of Certified Public Accountants, the Orange County District Attorney, the Orange County Superior Court and the City of Irvine business licensing office. For legal referrals and disciplinary information, consult the State Bar of California and the Orange County Bar Association. For small business and nonprofit financial guidance, organizations such as local SCORE chapters or the Small Business Development Center in Orange County may be useful.

Next Steps

If you face an accounting or auditing issue in Irvine, consider these steps:

- Preserve records - immediately secure and preserve all relevant financial records, emails and documents. Do not destroy or alter materials.

- Document a timeline - prepare a clear timeline of events, communications and actions related to the issue.

- Contact professionals - retain a qualified CPA for technical accounting support and consult an attorney experienced in accounting, tax or regulatory matters to protect your legal rights.

- Limit internal discussions - restrict sensitive conversations to a small group and involve counsel before discussing the matter widely.

- Review insurance - check for errors and omissions insurance or other policies that may cover defense costs.

- Prepare for engagement - when you meet with a lawyer, bring engagement letters, audit reports, notices from regulators, subpoenas and key financial records. Ask the attorney about likely next steps, costs, potential outcomes and how they will coordinate with accounting experts.

Timely action can preserve legal rights and reduce exposure. A local attorney can provide confidential, situation-specific advice and represent you before auditors, regulators and courts in Irvine, Orange County and beyond.