Video: Breach of Contract

In this lesson, Nick Palazzolo, CPA, delves into the intricacies of CPA liability with a focus on breach of contract, further unpacking the torts of negligence, constructive fraud, and outright fraud. He articulates the four elements necessary to establish a CPA’s negligence and the resulting duty owed to clients. Nick enlightens on the ultramarriage decision, highlighting the limited liability it grants CPAs in certain states. He reinforces the need for thorough memorization and understanding through repetition, emphasizing its crucial role in a CPA's preparation. The lesson culminates with a practical example that illustrates how a CPA may be held liable for common law negligence, emphasizing the importance of exercising due care in auditing practices.