This module starts with a review of services provided by accounting professionals and coverage found under Accountants Professional Liability (APL) insurance policies. The material describes the general education and experience requirements for Certified Public Accountants (CPAs) and the types of opinions auditors can provide. Technical, ethical and statutory industry standards, the roles of various standard-setting bodies, such as the State Boards of Accountancy and State Societies for CPAs, and the impact of Sarbanes-Oxley on this profession are reviewed.<\/p>\n
This module recognizes the common law duties of accountants, their duties to third parties, and how these affect the types of liabilities they incur. After explaining the specific features of APL policies and the optional coverages that may be added, a sample APL policy is interpreted. The different types and unique aspects of APL claims, defense and damage elements, and trends in APL claims are explained. As a corollary to the claims issues, study of risk management for APL exposures and the importance and use of engagement letters as a key risk management tool are detailed. The module explains how client profiles relate to APL underwriting and factors considered in pricing APL. All of this information is utilized in the evaluation of a sample APL application.<\/p>\n