Jury exonerates CPA firm that did not discover that bookkeeper had embezzled $684,000 by putting her husband on the payroll

LCBF recently tried to a successful conclusion a Nassau County case in which a company sued its accounting firm for almost $1 million after its bookkeeper embezzled $684,000 by putting her husband on the payroll. The CPA firm had performed accounting for the defendant for at least 30 years. The CPA firm had been retained to review the plaintiff's financial statements for the period of the fraud. LCBF argued that the CPA firm complied with the applicable AICPA standards and that it was not responsible for uncovering the fraud. The LCBF team was headed by Ron Joseph.