Steve, thank you for your reply...
My answer is based on scenario if I were the accountant and my client was considering a claim against me for negligence ..
I will look at the letter of engagement to ascertain what my responsibilities are in this engagement.. was advising on VAT matters as part of the terms of engagement?
If yes, did I give proper advise expected of me as a professional. Do I have notes to support the basis of my advise.
I would contest the claim if I am fairly convinced that:
The advice was outside my terms of engagement or
If within, I had given proper advise and I can support it from my notes etc.
For your friend, in order to succeed, he would have to prove that:
He had asked for advice and was not given proper advice or expected it as it was covered in the letter of engagement.
It would be a lengthy and costly process. The incident happened in 2007 and he is within his time limit to lodge a claim.
The accountant would most probably have professional indemnity insurance to cover claims for negligence.
If you need more information please let me know before you rate my service.
I hope this is helpful and answers your question. If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.
I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page.