As many other professions accountants may be liable for damages, the civil liability, in relation to their disciplinary responsibility, and also in relation to their criminal liability.
Bergenser Law Firm is experienced in all three types of liability just as we have insight in the special conditions under which the accountants conduct their business, including the regulatory regulation.
Bergenser Law Firm has extensive experience in litigation and arbitration in relation to the liability of accountants. Furthermore we have extensive experience in counseling regarding disciplinary issues at the Auditors Board and in relation to supervision by the Auditors’ Supervision, just as Bergenser Law Firm represents accountants in relation to criminal prosecution.
When conducting their business accountants are subject to a very detailed regulation with requirements on how to perform the work, including the strict requirements to ensure evidence for their work by saving internal working papers. Even more detailed are the requirements to the accountants’ work regarding financial companies and listed companies, just as special requirements apply to special assignments, e.g. prospect review and statements regarding the financial status and appraisal of companies.
Bergenser Law Firm has profound knowledge about the international accounting standards which apply to the Danish accountants, just as Bergenser Law Firm has extensive experience with the Danish Financial Statements Act and the “going concern-term”. Our knowledge includes insight into knowing when it is relevant for the external accountants to make a reservation in relation to going concern, or merely give additional information in the annual report.
In relation to the liability of accountants the question on the legal norm “generally accepted auditing practices”, cf. section 16, 1 of the Danish Act on Approved Auditors and Audit Firms, is crucial especially to the work conducted by an accountant when within the scope of the Danish Act on Approved Auditors and Audit Firms, when the accountant acts as the representative of the public.
Bergenser Law Firm has extensive experience in issues where fraud etc. has been committed in a business and where the accountant is blamed that the criminal act was not uncovered by the accountant. On that note it is important to stress that the relevant accounting standard states that it is not the purpose of the audit to uncover fraudulent acts.
Furthermore Bergenser Law Firm has extensive experience with the liability of accountants in relation to the work that is not within the scope of the Danish Act on Approved Auditors including accounting and tax-related counseling in connection to restructuring, fund raising, mergers and other corporate affairs, where accountants often play an important role. In this relation it is one of the core compentences of Bergenser Law Firm that we also have a profound knowledge of the limits between the liability of company managements and other relevant professionals with whom the accountants often work in these matters including lawyers, real estate brokers, banks, business brokers etc.