“War Stories” are drawn from the claims files of Camico, a CPA-directed insurer and risk management program for accountants, and illustrate some of the dangers and pitfalls in the accounting profession. All names have been changed.

In this edition, we explore the risks involved in trustee services. Claims experience shows that one of the most common sources of risk in trusteeships is a lack of understanding of—or appreciation for—the duties and responsibilities of a trustee. CPAs should ensure that they are educated and competent in the skills needed to render trustee services before attempting to offer them. 

Meetings fill an increasing number of hours in the workday, but for many professionals, they aren’t always worth the effort: In a recent survey of 2,066 employees conducted by Harris Interactive, respondents said they spent 4.5 hours a week in general status meetings, up from 4 hours a week when the poll was conducted four years ago. More telling, though, is that over one-third of respondents called these mandatory powwows a waste of time, with three in five staffers admitting that they tune out or do other work during meetings. 

This summer, many of our chapters participated in an important Society tradition: They gave high school juniors throughout the state a glimpse into our profession through the NYSSCPA’s  Career Opportunities in the Accounting Profession program (COAP). A free summer program held on 11 college campuses, COAP is designed to teach students about the breadth and depth of accounting as a career choice, through workshops, field trips and interaction with businesses and firms in their own communities. Now in its 28th year, COAP is just one of the ways in which we introduce the next generation to the opportunities afforded those who hold a CPA license, but it serves another key purpose. With a keen focus on underrepresented populations in our professional community, it gives us an opportunity to ensure that as the face of the country changes—and as technology moves us toward being a true global village—the CPA world keeps pace. 

An external auditor was brought in to audit the financial statements of a multistate grocery store chain. During the engagement, he uploaded payroll and pension plan data for some 5,000 employees onto his laptop, which he planned to encrypt once he got back to his office. On his way there, he stopped for lunch at a restaurant and left his laptop in the car. When he returned, the doors had been unlocked and the computer was missing.

The fundamental principles of risk management for CPAs have remained remarkably consistent over the years, despite the variety and complexity of changes that continue to take place in regulatory and professional standards. This constancy is mainly due to the high expectations the public has for CPAs. Their assumptions of how CPAs should conduct themselves affect the way CPAs are perceived in the world of professional liability, where jurors, judges and arbitrators generally have a limited understanding of the accounting profession.

“Wait for your ship to come in.” “Let your work do the talking for you.” Some of you may recall hearing these or similar adages early on in your careers. You might have even repeated them yourself. After all, for years, it was considered standard advice, the key to making it in just about any profession: Do a good job, and advancement will naturally come your way.