Accounting & Consulting Services

Our accounting defense team regularly defends accounting firms and individual auditors, tax accountants, and consultants in civil litigation and regulatory investigations and proceedings. These matters focus on the full range of issues including:
 

• Generally Accepted Accounting Principles and International Financial Reporting Standards accounting matters
• US Securities and Exchange Commission (SEC) independence and other regulatory matters
• Public Company Accounting Oversight Board (PCAOB) standards, registration, and reporting matters
• US and non-US independence and other regulatory-related matters
• American Institute of Certified Public Accountants and other US and non-US auditing standard matters
• US and non-US tax reporting rules and regulations

 
Our team advises and defends national and international accounting firms and individual accountants in investigations, enforcement actions, and proceedings initiated by the US Department of Justice (DOJ), SEC, PCAOB Division of Enforcement and Investigations, and international regulators regarding compliance with laws, rules and regulations. We have a strong record of persuading regulators and law enforcement authorities to close investigations without instituting proceedings and in prevailing when proceedings are brought.

We routinely defend our accounting and consulting firm clients against professional malpractice claims in courts and arbitrations across the United States and around the world. Our team has extensive experience and success representing accounting and consulting firms in courts and arbitrations involving key legal issues such as compliance with professional standards, third-party reliance, in pari delicto, alleged one-firm liability, and jurisdictional matters. Our team also defends claims brought in US federal and state courts under the US federal securities laws, including Section 10(b) of the Securities Exchange Act of 1934 and Section 11 of the Securities Act of 1933, as well as corollary state securities laws.

Our accounting defense team also advises firms on risk management and regulatory matters. We help clients navigate complex compliance requirements and avoid potential investigations and disputes in areas such as:

• Regulatory inspections, registrations, and reporting
• State licensure and ownership requirements
• Independence-related matters
• Illegal act investigations
• Compliance with regulatory settlement undertakings
• Engagement letter provisions
• Alternative fee arrangements

Clients get the practical, business-focused solutions they need from our accounting and consulting services lawyers, which includes members of our top-ranked mergers and acquisitions team. We advance strategic goals for buyers, sellers, investors, and joint venture partners, using our experience to help industry players define their short- and long-term priorities; identify potential targets; and negotiate, document, and close complex transactions.

Our team excels at guiding accounting firms through complex acquisitions, structuring investments, and establishing innovative practice models. Our clients receive tailored, strategic advice to succeed in their transactions through our comprehensive approach that includes:

• Leveraging our deep understanding of alternative practice structures, independence rules, and the intricacies of private equity investments in accounting and consulting firms
• Representing strategic buyers and sellers in acquisitions of accounting and consulting firms
• Establishing international joint ventures, including a leading accounting firm’s first international joint venture with its independent member firm in India
• Advising accounting firms on the strategic design and implementation of employee stock ownership plan (ESOP) transactions
• Providing ongoing legal counsel on ESOP-related regulatory and governance matters

McDermott is a force in high-stakes employment litigation and strategic counseling, safeguarding the people and reputations of leading accounting and consulting firms around the world. With decades of experience providing comprehensive employment solutions tailored to the unique challenges of this industry, our lawyers:

• Handle unfair competition litigation involving large-scale raiding, inevitable disclosure of trade secrets, breach of fiduciary duty, and noncompete agreements
• Advise and defend against whistleblower claims
• Manage and resolve discrimination matters
• Customize proactive reviews and trainings on policies and protocols

Federal government agencies, as well as state and local governments, rely on accounting and consulting firms to execute and support a wide array of public programs and ensure accountability and transparency for those programs after the fact. McDermott’s Government Contracts Practice Group has extensive experience with the principal contracting vehicles used by these customers, as well as the complex web of statutory, regulatory, contractual, and common law requirements that govern the federal, state, and local government markets. 

Our experience includes:

• Acquisitions of accounting, auditing, and consulting services through the GSA Multiple Awards Schedule program (aka the Federal Supply Schedule) under Federal Acquisition Regulation (FAR) Subpart 8.4, commercial item acquisitions under FAR Part 12, and negotiated procurements under FAR Part 15
• Establishing the commercial nature of services and solutions to leverage the exemption of commercial products and services from many compliance obligations that otherwise apply to government contractors and subcontractors
• Advising on compliance with statutory, regulatory, and subregulatory terms and conditions, including standard FAR/FAR Supplement “flow down” clauses, the Price Reductions and Transactional Data Reporting requirements of the GSA Multiple Award Schedule program, and the Service Contract Labor Standards (aka the Service Contract Act)
• Working with our Privacy & Cybersecurity Practice Group to advise on cybersecurity requirements tied to government contracts, including Defense Federal Acquisition Regulatory Supplement, Cybersecurity Maturity Model Certification, and the Federal Risk and Authorization Management Program
• Conducting internal investigations into reports of potential noncompliance and advising on appropriate disclosures to government officials and remedial measures to ensure compliance
• Prosecuting and defending bid protests challenging contract awards and the conduct of procurements
• Litigating disputes between (a) prime contractors and government agencies and (b) prime contractors and subcontractors

Our team provides end-to-end privacy and cybersecurity counsel tailored to the unique risk of accounting and consulting firms. McDermott delivers strategic, industry-specific counsel to protect sensitive information, meet cross-border compliance obligations, and manage cyber threats. Our lawyers:

• Guide compliance with US and global privacy laws, including the General Data Protection Regulation, Health Insurance Portability and Accountability Act, Gramm-Leach-Bliley Act, Fair Credit Reporting Act, and evolving state privacy laws
• Conduct privacy-by-design reviews for new service offerings and internal systems
• Manage responses to cyber incidents, including regulator coordination and legal risk mitigation
• Oversee enterprise-wide cybersecurity assessments using International Organization for Standardization, National Institute of Standards and Technology, and other recognized frameworks
• Develop and refine privacy and cybersecurity policies, engagement terms, and vendor contracting standards
• Provide strategic advice on data governance, international data transfers, and artificial intelligence (AI) deployment

McDermott helps accounting and consulting firms navigate the complex legal landscape surrounding AI adoption. We deliver strategic, industry-specific guidance to support responsible innovation, mitigate risk, and ensure compliance with rapidly evolving regulatory frameworks. Our lawyers:

• Counsel clients on the full scope of novel legal issues that arise from the development, training, deployment, and use of AI platforms
• Advise boards and firm leadership on establishing AI committees and governance structures, including policies for the responsible use of AI, AI-enabled chatbots, and other AI tools
• Assist clients in evaluating and adopting AI technologies to enhance operational efficiencies while managing legal risk and ethical concerns
• Help firms negotiate contracts for the purchase of AI tools and systems
• Provide templates and resources for cataloging AI tools, vetting third-party vendors, and documenting use cases to promote transparency and informed decision-making across the organization
• Offer on-demand access to McDermott’s AI Toolkit, a comprehensive suite of customizable resources, governance templates, and legal guidance designed to help clients responsibly adopt AI technologies, mitigate legal exposure, and stay ahead of regulatory changes

Our accounting defense and transactions lawyers work closely with McDermott’s other core global practices, including antitrust, environmental, intellectual property, private client, restructuring, and tax, to deliver targeted, coordinated guidance that avoids cookie-cutter solutions and responds to the unique forces that drive the accounting and consulting industry.