The CPA’s Legal Duty to Protect Vulnerable Clients

Marty Green, Esq. Senior VP and Legislative Counsel, Illinois CPA Society
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Among the many bills that have made their way through the Illinois General Assembly during this year’s spring legislative session is Senate Bill 1551, which amends the Adult Protective Services Act (APSA). Specifically, the bill extends mandated reporting responsibilities to broker-dealers and investment advisors, requiring these groups to report instances of abuse, neglect, or financial exploitation of vulnerable adults (i.e., any Illinois resident age 18 to 59 living with a disability and any adult age 60 or older who live in a domestic setting).

Although this reporting requirement has already been part of a certified public accountant’s (CPA) legal responsibilities, it recently occurred to me that it’s rarely discussed or highlighted within our profession despite regular occurrences of these actions. In fact, the Illinois Department on Aging (IDOA) responded to 22,178 reports of abuse, neglect, or financial exploitation of vulnerable adults in 2024 alone.

While the APSA doesn’t specifically define abuse, neglect, or financial exploitation, IDOA addresses and clarifies these actions. The guide, “What Professionals Need to Know – Reporting Adult Abuse,” defines these actions as the following:

• Abuse: Physical, sexual, or emotional maltreatment or willful confinement of an individual.
• Neglect: The failure of a caregiver to provide an adult with the necessities of life, including, but not limited to, food, clothing, shelter, or medical care. The neglect may be either passive (non-malicious) or willful.
• Financial exploitation: The misuse or withholding of an adult’s resources by another to the disadvantage of the adult or the profit of another.

TIPS FOR REPORTING ABUSE

It’s important for CPAs to remember that if they suspect any of the above actions are happening to their clients, they have a legal duty to report them to IDOA’s 24/7, toll-free hotline at 866-800-1409. When calling, CPAs should be prepared to provide IDOA staff with the following so investigators can conduct a thorough inquiry into the report:

• Specific details that give rise to abuse suspicion.
• Information about the victim and abuser, including contact information for both.
• The general condition of the victim, including whether they’re in immediate danger and if they’re in a position to self-report their abuse.

Additionally, CPAs should keep a record of the date, time, name of the IDOA intake representative, and any reference number provided on the call. The report will remain confidential, but there’s always potential for CPAs and other reporters to provide testimony in a judicial or administrative hearing.

THE CPA’S ROLE

The APSA includes provisions to protect individuals who, in good faith, report suspected abuse, neglect, or financial exploitation from civil and criminal liability and professional disciplinary action. This is meant to encourage individuals to report without fear of repercussions. Therefore, mandated reporters, including CPAs, who fail to fulfill their legal duty would be considered a Class A misdemeanor. Violation of the act could also result in discipline by the Illinois Department of Financial and Professional Regulation, as Section 20.01 of the Illinois Public Accounting Act provides, inter alia, grounds for discipline.

With the act designating some 34 categories of mandated reporters and including criminal penalties for failure to report abuse cases, it’s clear where the legislature stands in protecting vulnerable adults. The Illinois General Assembly recognizes mandated reporters hold special positions of trust in society, resulting in the attachment of a legal duty to report suspected abuse, neglect, or financial exploitation. CPAs are recognized as mandated reporters due to their trust by society, professional training, broad array of financial services provided, and close relationships with clients, which put CPAs in a unique position to identify suspected abuse, neglect, or financial exploitation.

Therefore, I encourage you to download IDOA’s guide and make it part of your and your firm’s professional library. In fact, consider making this guide a discussion point for your next staff meeting to review reporting duties and the signs of abuse, neglect, and financial exploitation.

A CPA’s legal duty as a mandated reporter shouldn’t be overlooked or taken for granted. Engagement with your clients and members of your community places you in a position of special trust, and the public interest dictates fulfillment of this legal duty to protect vulnerable adults.

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