California Assembly Bill No. 5 — Worker Status: Employees and Independent Contractors

On September 18, 2019, California Governor Gavin Newsom signed into law Assembly Bill 5 ("AB 5"), which establishes a three-pronged test that a business must satisfy to maintain that a worker is an independent contractor for employment purposes in the state. This bill becomes effective January 1, 2020 and codifies a 2018 Supreme Court of California decision in Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 Cal.5th 903 (Dynamex), which redefined the standard for determining whether a worker is an independent contractor or an employee.

SSAE 19 Changes the Landscape for Agreed-Upon Procedures Engagements

By Duncan B. Will

All services performed by accountants have some level of risk associated with them. Auditors have traditionally experienced the highest-severity claims, but these claims are among the least common. Claims involving tax preparation services have been the most common, but among the least severe. From CAMICO's experience, agreed-upon procedures (AUP) engagements have historically been the safest services whether measured by frequency or severity. That's about to change.

Top 11 Loss Prevention and Claims Trends

CAMICO's Loss Prevention and Claims departments work with CPA policyholder firms every day on difficult risk management issues. The following Q&A covers 11 of the questions and trends that our specialists hear about most frequently from you, our policyholders.

Top Loss Prevention Trends

Q: More and more of our clients are requesting some form of comfort and/or verification type letters from our firm. Are we putting the firm at risk by complying with such requests?

Pages

Latest Articles