'Dabbling' Is Dangerous.
Position | Tip of the Month - Accounting firm issues - Brief article |
"Dabbling" in high-risk work without doing enough of it to stay proficient is dangerous. Claims data show high-loss ratios for services that comprise less than 15 percent of a firm's work. By the same token, loss ratios are low for services that comprise 65 percent or more of a firm's work.
Part of the client screening process includes making sure the engagement is a good fit for the firm's expertise, and proficiency in any type of engagement includes the ability to identify risk stress points. CPAs are expected to have a thorough understanding of the client's business and industry to identify those stress points. Establish a policy for what...
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