Hypothetical question
We're hiring a new CPA firm for audit work. Their engagement letter has a liability cap limiting their liability to "the fees paid for the engagement." We're paying them $45,000 for the audit.
If they screw up our financials and we have SEC issues or investor lawsuits, their max exposure is $45K? That seems absurdly low. Our company could face millions in damages from a negligent audit.
Is this standard? Is it even enforceable? Should I push back?