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Latham is a community in Albany County, New York, and accounting and auditing matters there are governed by a mix of federal standards, New York State rules, and local practices. Professionals who prepare financial statements, perform audits, or give tax and financial advice must follow generally accepted accounting principles and auditing standards as applicable - for public companies that means Public Company Accounting Oversight Board rules and for nonpublic entities commonly AICPA standards or other accepted frameworks. Licensing, discipline, and some practice rules for certified public accountants are administered by New York State authorities. In addition, local government and municipal accounting follow government accounting standards and oversight from state offices responsible for public funds.
Accounting and auditing disputes often involve complex legal and technical issues. You may need a lawyer when facing one or more of the following situations:
- Regulatory investigations by state or federal agencies, including the New York State authorities, the IRS, or the SEC for public entities.
- Allegations of financial statement misrepresentation, fraud, or securities violations.
- Professional discipline or license investigations affecting a CPA license or firm registration.
- Disputes with auditors or clients about fees, scope of work, or alleged negligence and malpractice claims.
- Tax controversies, criminal tax exposure, or collection actions by tax authorities.
- Subpoenas, litigation, or government enforcement that require responding to document requests or witness testimony.
- Contract disputes tied to accounting engagements, such as breaches of engagement letters or confidentiality obligations.
- Need for forensic accounting services coupled with litigation support, asset tracing, or recovery efforts.
Key legal frameworks and local rules relevant in Latham include federal law, New York State law, and local government rules. Key aspects to understand are:
- Licensing and discipline: CPA licensing and professional conduct in New York are regulated through New York State agencies and the Office of the Professions. Complaints against CPAs can trigger investigations and administrative proceedings.
- Auditing standards: Public company audits are subject to PCAOB rules. Nonpublic audits typically follow AICPA standards or other accepted frameworks. Governmental audits follow Governmental Accounting Standards Board principles and state requirements for municipal audits.
- Tax law: Federal tax law is administered by the IRS. New York State tax matters are handled by the New York State Department of Taxation and Finance. Both can initiate audits, assessments, and enforcement actions.
- Reporting and disclosure: Public companies and certain regulated entities must comply with federal securities laws and state reporting requirements. Municipalities and public authorities have specific reporting and audit obligations under state law.
- Privilege and confidentiality: Accountant-client confidentiality is not equivalent to attorney-client privilege. Communications that combine legal advice and accounting analysis may raise complex privilege issues. Lawyers can help evaluate protection options.
- Statutes of limitation and remedies: Civil claims like malpractice have state-specific limitation periods. Criminal exposure for fraud or tax evasion follows different timelines and procedures. Local counsel can advise on applicable deadlines.
An accountant typically prepares financial records, tax returns, and provides financial advice. An auditor is usually an independent professional who examines financial statements and internal controls to express an opinion on their fairness and compliance with applicable standards. The auditor role emphasizes independence and verification.
Hire a lawyer when legal rights, regulatory exposure, potential litigation, or criminal tax issues arise. CPAs provide technical accounting and tax advice, but only lawyers can give legal counsel, represent you in court, or assert legal privileges.
Yes, credentialed professionals such as CPAs, enrolled agents, and attorneys may represent taxpayers before the IRS. For complex legal exposure or criminal tax issues, it is advisable to include an attorney in your representation team.
A state investigation can lead to administrative hearings, disciplinary actions, fines, license suspension, or revocation. You should consult an attorney experienced in professional discipline and licensing matters and consider parallel representation from counsel familiar with accounting regulation.
Generally, accounting work papers are not protected by the same privilege as attorney-client communications. In some limited circumstances communications prepared at a lawyer's direction may be protected. If privilege may be an issue, seek legal advice before sharing documents with third parties.
Preserve the requested records and avoid altering them. Contact a lawyer immediately to evaluate the subpoena, determine compliance obligations, assert any applicable objections, and coordinate responses to protect privilege and confidentiality where appropriate.
Time limits for malpractice claims vary depending on the claim type and applicable statutes. New York has specific limitation periods and discovery rules that affect when a claim must be filed. Consult a local attorney promptly to determine deadlines that apply to your situation.
Public company audits are overseen by the PCAOB and must meet PCAOB standards. If the company is subject to federal securities laws, the SEC may also play a role. Investigations can involve documentation reviews, interviews, and potential enforcement actions.
If the dispute is limited to correcting errors and preserving business relationships, accountants and mediators may resolve it. If there are allegations of negligence, breach of contract, fraud, or potential litigation, consult a lawyer to assess legal claims, remedies, and risk management strategies.
Look for attorneys with experience in tax law, securities law, regulatory defense, professional liability, or forensic accounting. Check qualifications, discipline history, and client reviews. Local bar associations and professional organizations can help you identify lawyers familiar with New York accounting regulation and local practice.
When seeking more information or official guidance, consider these organizations and agencies that operate in New York and nationally:
- New York State Education Department - Office of the Professions for CPA licensing and discipline.
- New York State Department of Taxation and Finance for state tax issues and audits.
- New York State Office of the Comptroller for municipal and local government audit oversight.
- Internal Revenue Service for federal tax enforcement and audit procedures.
- Public Company Accounting Oversight Board for standards and inspections of public company auditors.
- American Institute of Certified Public Accountants for professional standards and guidance for nonpublic audits.
- New York State Society of Certified Public Accountants for local professional resources and referrals.
- Albany County Bar Association or local bar referral services to find qualified attorneys in the Latham/Albany area.
If you need legal assistance with an accounting or auditing matter in Latham, follow these practical steps:
- Preserve documents: Immediately secure and preserve relevant financial records, engagement letters, emails, work papers, bank records, and backup files.
- Assess risk: Note deadlines, regulatory contacts, or pending actions and prepare a timeline of events and communications.
- Seek counsel: Contact a lawyer with experience in accounting-related matters - tax, regulatory defense, professional liability, or forensic accounting support as appropriate. Use local bar referral services or professional organization recommendations.
- Prepare for the first meeting: Bring a concise chronology, copies of key documents, and a list of questions. Ask about the attorney's experience with similar cases, estimated fees, possible outcomes, and engagement terms.
- Coordinate professionals: If needed, consider engaging both a lawyer and a forensic accountant or CPA to address technical and legal issues simultaneously.
- Follow legal advice: Rely on counsel to handle communications with regulators, prepare responses to subpoenas, and evaluate settlement versus litigation options.
Getting timely, experienced legal help can protect rights, limit exposure, and preserve professional reputation when accounting or auditing matters become legal issues.
