ACCOUNTANTS’ PROFESSIONAL LIABILITY: A CLEAR STANDARD UNDER KANSAS LAW

Abstract

The standards for accountants’ liability have been based upon court-made law. Each state now has a different standard. A recent Kansas court case has provided a clear standard for professional liability by applying a state statute. Kansas has held that an accounting professional is liable only to those who directly engage the firm and to those who the accounting professional knows at the time of the engagement intend to rely on the services.