When hired to perform a task, the accountant enters into a contract called an engagement letter with the client that makes explicit and implicit promises, which, if not fulfilled, subject the accountant to liability.

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An engagement letter is a contract between an accountant and a client that outlines the scope of the accountant's tasks, responsibilities, and the terms of the engagement. If the accountant fails to fulfill these promises, whether explicit (clearly stated) or implicit (inferred or understood without being directly stated), they can be held liable for breach of contract or negligence, among other potential legal issues.

When Hired to Perform a Task, the Accountant Enters into a Contract