Best Accounting & Auditing Lawyers in Islandia

About Accounting & Auditing Law in Islandia, United States

Islandia is a village in Suffolk County, New York. People and organizations in Islandia are governed by New York State professional accountancy rules, federal securities and tax laws, and widely adopted professional standards. Accounting and auditing law touches how financial statements are prepared, examined, and presented, who is allowed to provide attest services, how client information is protected, and what happens when the government audits your taxes or your entity needs a required independent audit.

Licensed Certified Public Accountants provide services under New York Education Law and regulations issued by the New York State Education Department Office of the Professions. Audits and attest work are further shaped by professional standards issued by the AICPA for private entities, PCAOB standards for public companies, and the GAO Yellow Book for governmental or grant funded audits. Tax audits and disputes are governed by federal law through the IRS and by New York State tax law through the Department of Taxation and Finance.

For businesses, not-for-profits, and governmental bodies in and around Islandia, compliance obligations may include annual financial reporting, independent audits or reviews, internal control and audit committee oversight, donor and grant reporting, and adherence to state and federal tax rules. When questions or disputes arise, a lawyer familiar with accounting and auditing issues can help you understand your obligations, protect your rights, and coordinate with your CPA or auditor.

Why You May Need a Lawyer

Accounting and auditing issues often seem purely financial, but they can raise significant legal risks. Consider legal help in situations such as:

- You or your business received an audit notice from the IRS or the New York State Department of Taxation and Finance and you need representation, strategy, and deadline management.- Your not-for-profit meets revenue or funding thresholds that trigger an independent CPA review or audit and you need to set up required audit oversight, conflict of interest, and whistleblower policies.- Your company plans to raise capital, issue financial statements to lenders, or enter a merger or sale and you need assurance that financial disclosures, auditor independence, and internal controls meet legal requirements.- You suspect fraud, embezzlement, or financial statement misstatements and need an independent investigation, evidence preservation, and advice on reporting duties.- You believe an accountant made an error that caused financial harm and want to evaluate a potential professional malpractice or breach of contract claim, or you need a defense to such a claim.- You are forming or restructuring a CPA firm and need guidance on licensing, ownership, firm registration, and mandatory peer review.- Your entity receives federal or New York State funding that may trigger Single Audit or specific grant compliance and you need to confirm scope and timing.- You face confidentiality, data security, or record retention questions about client or donor information under the New York SHIELD Act or other laws.- You are a public company officer, audit committee member, or auditor navigating PCAOB standards, SOX internal control issues, or whistleblower reports.- You received a subpoena for audit workpapers or tax records and need to manage privilege, confidentiality, and compliance.

Local Laws Overview

- Professional licensing and practice in New York: Only licensed CPAs and public accounting firms registered with the New York State Education Department may perform attest services such as audits, reviews, and examinations. New York requires continuing professional education each year and firm enrollment in an approved peer review program if the firm performs attest or compilation engagements. Most CPA firm owners must be licensed CPAs, with limited room for non-CPA ownership subject to state rules.

- CPA conduct and standards: New York adopts professional standards for independence, integrity, and objectivity. For audits of public companies, PCAOB standards and SEC independence rules apply. For audits and reviews of private entities, AICPA standards apply. Governmental audits and many grant audits follow GAO Yellow Book standards.

- Not-for-profit governance in New York: The Nonprofit Revitalization Act and related Attorney General rules require conflict of interest and whistleblower policies, and for organizations that must file an independent audit, audit oversight by independent directors or an audit committee. As of 2024 to 2025, most New York charities that register with the Attorney General must obtain an independent CPA audit if their annual revenues exceed 1,000,000 dollars, and must obtain at least a review if revenues are between 250,000 and 1,000,000 dollars. Thresholds and categories can change, so organizations should confirm current requirements before filing.

- Tax audits and disputes: The New York State Department of Taxation and Finance audits sales and use tax, withholding, corporate franchise tax, and personal income tax. You generally have strict deadlines to respond to a Notice of Proposed Assessment or a Notice of Determination. Options often include a conciliation conference through the Bureau of Conciliation and Mediation Services, or a petition to the Division of Tax Appeals. IRS procedures include examinations, appeals, and potential litigation in Tax Court or federal court.

- Accountant-client confidentiality in New York: New York recognizes a limited accountant-client privilege for confidential communications with a CPA, but it has important exceptions and does not create a federal privilege. Attorney-client privilege and attorney work product protections can apply when lawyers are engaged. Joint engagement of counsel and a CPA can help preserve confidentiality in sensitive matters.

- Record retention and documentation: New York law and professional standards require CPA firms to retain audit documentation for defined periods. For public company audits, federal law requires retention of key audit documentation for at least seven years. Retention periods can vary for other services, so firms should apply the longest applicable rule and a written retention policy.

- Single Audit and government funding: Entities that expend 750,000 dollars or more in federal awards during a fiscal year are generally subject to a Single Audit under Uniform Guidance. New York State and Suffolk County grants may include additional audit or agreed upon procedures. Compliance supplements and grant terms define the scope.

- Data security and breach notification: The New York SHIELD Act requires reasonable safeguards for private information of New York residents and imposes breach notification duties. Accounting firms and businesses that store client or employee data must maintain administrative, technical, and physical safeguards and have an incident response plan.

- Local government context: The New York State Office of the State Comptroller oversees many audits of municipalities and public authorities. In Suffolk County, the County Comptroller and local agencies may audit county programs and vendors. Businesses contracting with public entities should expect compliance testing and record requests.

- Statutes of limitation for claims against accountants: In New York, nonmedical professional malpractice claims against accountants generally have a three year limitation measured from when the services are completed, subject to doctrines like continuous representation. Breach of contract claims are often six years. Fraud claims have different timing rules. Specific deadlines depend on the facts, so early legal advice is critical.

Frequently Asked Questions

What is the difference between a compilation, a review, and an audit?

A compilation presents financial information based on management representations without assurance. A review provides limited assurance using inquiry and analytical procedures. An audit provides reasonable assurance that financial statements are free of material misstatement using substantive procedures and testing of internal controls as appropriate. Only licensed CPAs and registered firms may perform reviews and audits in New York.

Do not-for-profits in Islandia need an independent audit?

It depends on revenue and funding. As of 2024 to 2025, many New York charities must obtain a CPA audit if annual revenues exceed 1,000,000 dollars, and at least a review if revenues are between 250,000 and 1,000,000 dollars. Federal funding of 750,000 dollars or more in a fiscal year can trigger a Single Audit. Always confirm current thresholds and any grant specific requirements.

What should I do if I receive a New York State tax audit notice?

Note the deadline, avoid calling without preparation, and consider engaging a tax attorney and a CPA. Gather returns, workpapers, and support. Do not ignore the notice. You may be able to resolve issues through information requests, a conciliation conference, or an appeal to the Division of Tax Appeals if you act on time.

Does New York recognize an accountant-client privilege?

New York provides a limited privilege for confidential communications with CPAs under state law, but there are exceptions and it does not apply in many federal proceedings. In sensitive matters, engaging an attorney and using the attorney to retain the CPA can help extend attorney-client and work product protections where available.

How can I verify a CPA or firm is properly licensed in New York?

You can check license and firm registration status through the New York State Education Department Office of the Professions. A lawyer can also help you evaluate disciplinary history, peer review results, and independence concerns.

What are my rights if I disagree with an IRS audit result?

You can request a conference with the IRS Independent Office of Appeals, or file a petition with the United States Tax Court within the time stated in a Notice of Deficiency. Deadlines are strict. A tax attorney can help decide the best forum and strategy and coordinate accountant support.

What is a Single Audit and who needs it?

A Single Audit is a comprehensive audit of an entity that expends 750,000 dollars or more of federal awards during a fiscal year. It tests compliance with federal program requirements and internal controls, in addition to financial statements. Many New York municipalities and not-for-profits fall under this rule when federal funds are used.

What are the independence rules for auditors?

For public companies, SEC and PCAOB rules prohibit certain financial interests and services that impair independence, such as management decision making or certain consulting. For private entities, the AICPA Code of Professional Conduct applies. New York also has independence and ethics rules. Violations can invalidate an audit and lead to penalties.

How long should I keep accounting records and audit workpapers?

Businesses should follow tax and legal retention schedules, often at least seven years for key tax and financial records. CPA firms must follow professional and legal retention rules that typically require at least seven years for public company audit documentation and often five to seven years for other engagements. When in doubt, keep records longer and use a written retention policy.

What if I believe my accountant made a costly mistake?

Consult a lawyer promptly to assess potential malpractice or contract claims and to preserve evidence. Do not alter records. Your lawyer can coordinate with an independent CPA expert to evaluate standard of care, causation, and damages, and can communicate with the insurer for potential resolution.

Additional Resources

- New York State Education Department Office of the Professions - Public Accountancy- New York State Board of Public Accountancy- New York State Department of Taxation and Finance- New York State Office of the Attorney General - Charities Bureau- New York State Office of the State Comptroller- Internal Revenue Service- Public Company Accounting Oversight Board- United States Securities and Exchange Commission- American Institute of Certified Public Accountants- New York State Society of Certified Public Accountants- Suffolk County Comptroller

Next Steps

- Define your goal and timeline. Write down what triggered your need, any deadlines on notices, and potential risks if nothing is done.- Gather documents. Include engagement letters, prior financial statements, trial balances, bank records, tax returns, correspondence with auditors or tax agencies, grant agreements, and board minutes.- Preserve confidentiality. Avoid broad email distribution. Consider engaging a lawyer first so communications with your CPA may be structured to preserve privilege where available.- Choose the right professional team. For audits, tax disputes, or investigations, a lawyer with accounting and auditing experience can coordinate with a CPA or forensic accountant and manage legal exposure.- Confirm compliance gaps. If you are a not-for-profit, review governance policies and whether an audit or review is required. If you contract with public entities, identify grant or procurement compliance requirements early.- Plan your response path. For tax matters, calendar protest and appeal deadlines. For financial reporting, align the audit timeline with lender or grantor due dates. For suspected misconduct, implement an investigation plan and document preservation.

This guide is informational and not legal advice. For advice on your situation in Islandia or elsewhere in New York, consult a qualified attorney and a licensed CPA.