Independent Contractors Accountants Law and Legal Definition

In the wake of recent corporate scandals, there is heightened regulation and scrutiny of accounting firms' practices. Accountants often form professional corporations and are usually hired on an independent contractor basis. Accountants are subject to ethical obligations and must meet certain accepted standards of practice in accounting. Failure to meet the applicable regulations and standards can subject accountants to actions by clients and regulatory agencies, such as the Securities and Exchange Commission.