A misunderstanding with a client. An off-the-cuff remark. An unexpected health event. A simple bad business decision.
Crisis scenarios and reputational threats can arise quickly for certified public accountants (CPAs) and CPA firms—and without a response plan, incidents can escalate from bad to worse after emerging. After all, with today’s 24-7 news cycle and hyperconnected environment, information spreads far and fast, and public perception can rapidly shift.
Take KPMG Australia’s recent troubles, for example. In May 2026, the firm accepted resignations from top leadership and imposed stiff penalties on others after an investigation into a whistleblower’s allegations confirmed unethical use of confidential client information. Initially, the firm issued an apology but denied responsibility.
Other major accounting firms have historically been caught in crisis mode, facing scandals related to tax-avoidance laws and criminal investigations stemming from discrepancies in financial information validated for clients, among other issues.
Though, crises aren’t relegated to large firms, and they can develop from more than misconduct. Whether issues arise from legitimate wrongdoing, misunderstandings, or mere happenstance, firms of all sizes can be confronted with reputational threats.
Here, two veteran communications experts offer eight best practices for CPAs and their firms to follow when preparing for and responding to crises.
The first step for managing a crisis is to define what the firm’s leadership considers to be one.
“This is a time to deal in hypotheticals,” says John Vita, managing partner of Wilmette, Ill.-based John Steven Vita Communications, who recommends thinking about any possible situation that could arise and be perceived as negative—and rehearsing how to manage a response. He points to a few examples: “If you’re a fairly large public accounting firm doing public audits, you’re likely going to face a class action suit at some point. You’re also going to have workplace issues, or the loss of a major client.”
Scott Cytron, president of Cytron and Company, a marketing, public relations, and communications firm in Dallas and Santa Fe, N.M., advises crisis teams to practice when and how they would respond to these scenarios, and others, such as if systems were compromised or a client’s information was leaked.
As teams think through action steps, they should craft content and messaging for statements ahead of time so they’re ready when a reporter calls.
“When a story breaks, if you don’t have a comment or statement ready to go, you’ve lost a huge opportunity to get your point of view across in the story,” Vita stresses.
Cytron agrees that saying something is almost always better than saying nothing: “Responding with ‘no comment’ is like a death sentence during a crisis.”
Vita suggests firms quickly release a forthright, transparent statement: “You don’t want to create additional news stories trying to correct or clarify something later. Try to keep it to a one-day story and move on. There’s nothing wrong with admitting a mistake and explaining how you’re going to take corrective and preventative action.”
Preparing messaging in advance of a potential social media crisis or negative online commentary is also important. Vita advises firms to evaluate how much influence an online post could have on their reputation: “If a person who has a large following is commenting about your firm, you have to respond—you can’t just ignore it.” He suggests using social media monitoring tools and responding to negative comments in a nonconfrontational manner.
Getting ahead of negative chatter and press also requires building relationships with the media before an incident arises.
“It’s important to have relationships with key journalists before you need them,” Vita says, noting that firm leaders can be resources for the business and trade press on a regular basis, creating an information pipeline with reporters.
“You want to create a level of trust and have the ability to have off-the-record conversations,” he advises, explaining that background information can be critical in crisis situations. “If the journalist trusts you, there’s a greater chance your information will get into the story and be cited as a source close to the situation.”
Plans for releasing statements and engaging with the press may meet resistance from legal teams, which is why Vita says it’s important for communications and legal teams to work together to develop mutual understanding: “Legal departments are often focused on court cases that might arise down the line, whereas communications people are focused on the reputational damages that hit immediately.”
Getting on the same page ahead of time can help avoid delays in responding to a crisis. Achieving consensus, however, can sometimes require some finesse on the part of the communications team. “If the legal team is only considering the courtroom situation, it can be helpful to discuss what the legal defense may be, and then incorporate that messaging into prepared statements,” Vita says. “You need to show that you’re not in opposition and can work together.”
After all that, if legal still won’t budge, Vita suggests referencing an example that highlights the effects of reputational damage, like the 2002 collapse of CPA firm Arthur Andersen. “It wasn’t the court case that sunk the firm,” he recalls. “It was the negative press and mass client defections.”
Every crisis plan needs a central point person and core team with preassigned roles. Cytron recommends designating one spokesperson, such as head of communications or marketing or the CEO, as those individuals are often already well-connected to the media.
Vita recommends ensuring that the spokesperson can be easily contacted and readily available: “You don’t want to be caught flat-footed if you can’t reach your spokesperson. The first round of stories related to a crisis are often the most important.”
In addition to the spokesperson, Vita suggests having contact information for all the key leaders involved in executing the crisis plan—and setting expectations that they be ready to huddle when a crisis strikes: “When something explodes, you want to be able to get the team together, get sign-off, and be ready to move. The last thing you want is to be chasing the story to alter or correct it because you missed the opportunity on day one.”
Members of the media won’t be the only ones watching a firm’s response to a crisis—crisis planning teams need to think through what they’d say and when they’d say it to employees, clients, board members, investors, and regulators.
“Every audience is going to need a different type of reassurance,” Cytron stresses, noting that firms can prepare messaging around job security, workplace culture, confidentiality, data security, governance, and other issues ahead of time.
Although different audiences will need nuanced messaging, Vita also stresses the importance of delivering a consistent and straightforward message to stakeholders: “Sometimes it’s as simple as: here’s what happened, our position, how we’re addressing it, and how we’re routing information related to it.”
Employees not only need to receive reassurance when a crisis occurs, they also need to be part of the wider crisis response team and informed on the firm’s approach to handling crises.
“You want everyone from the executive office down to junior accountants to know what to do if a reporter calls,” Cytron explains. “Your crisis communications plan should be accessible and available to everybody.”
Cytron also recommends reviewing the plan twice a year (and always after a crisis): “Evaluate whether you were responsive enough and if you met your goals in terms of how messaging was released.”
Despite the wide range of potential risks to businesses today, firms often think they won’t fall victim to a crisis—or they underestimate the impact of reputational damage.
“You need to avoid the ‘it-can’t-happen-to-us’ mentality,” Vita cautions. “It might not happen, but it possibly could.”
Leaders of smaller firms in particular can fall into the trap of thinking their staff doesn’t have the time or expertise to develop crisis communications plans, but Cytron emphasizes the importance of devoting internal or external resources to the task: “Your reputation is everything.”
Vita warns that companies embroiled in crises often face revenue drops, added regulatory pressures, missed client opportunities, and recruitment issues: “Reputational damage spreads and trickles down. Developing and maintaining a solid crisis communications plan can ultimately save your firm. So have a plan in the drawer, so if the time for it comes, you’re ready.”
