At NewGate Law, we are serious about the legal, regulatory, practice and business developments affecting the accounting industry. Not only do we study emerging trends in the profession, we use our extensive experience to understand and interpret the likely impact of developments on our clients. We enable our clients to prepare for changes, not simply react to them. Check here frequently for articles on the latest legal developments affecting the accounting profession. Also visit our NewGate Blog for less formal reflections on the accounting industry.
The Importance of Being Earnest.
Oscar Wilde was certainly not thinking about accounting firm mergers and acquisitions when he penned his farcical comedy, The Importance of Being Earnest. But, the message in the title is abundantly clear for any CPA firm considering such a transaction. Many accounting firm deals often suffer from a lack of urgency and readiness to meet the related demands. Read More.
Getting Engaged With Your Letters
Well managed accounting firms universally use engagement letters to document the understanding with its clients. For some services, written engagement letters are essentially mandated by professional standards. Next to basic quality standards, well drafted engagement letters are the single most important risk management tool available to CPA firms.
Getting Social. How Do Restrictive Covenants Fare?
It is axiomatic that the only true assets of any accounting firm are its clients and its people. These relationships are typically protected through restrictive covenants (a.k.a. “non-competes”). The ever expanding popularity of social media contributes to the uncertainty surrounding the effectiveness of post-employment restrictions. Read More.
Restrictive Covenants in the Badger State
In sharp contrast to its southern neighbor (Illinois), the Wisconsin Supreme Court recently declared in Runzheimer International v. Friedlen (April, 2015 ) that continued employment alone is sufficient consideration to support enforcement of post-employment restrictive covenants against at-will employees. Read More.
Illinois Supreme Court Rules on Privilege.
In late March (2015), the Illinois Supreme Court rendered its long awaited decision on the accountant’s privilege under the Illinois Public Accounting Act. Prior to the decision in Brunton v. Kruger, et al., it was unclear whether the privilege belongs to the accountant or the client. Read More.
Restrictive Covenants Make Hay In Kentucky
Late in June 2014, the Kentucky Supreme Court overruled a decision by its lower court cousin, and found that continued employment alone was not sufficient consideration (i.e. something of value) to support a covenant not to compete. Creech v. Brown offers valuable and significant lessons in the world of restrictive covenants. Read More.
Case of the Missing Shareholder Agreement
Savvy business people should know better. But, sometimes they just don’t. And, so it was in Ritchie v. Rupe; a case decided by the Texas Supreme Court in late June 2014 involving the contentious redemption of a deceased shareholder’s interest in a closely held business that neglected to draft a shareholder agreement. Read More.