Auditing / Business & Industry / Corporate Governance
Outside auditors have a role to play in preventing financial statement fraud and can work cooperatively with a company’s audit committee to promote frank communication, sound accounting principles and dedication to high-quality financial reporting.
Technology
Practitioners who specialize in technology reveal how they avoid the pitfalls and capitalize on the opportunities that accompany new hardware, software and automated processes.
Professional Issues
Auditing / Business & Industry / Corporate Governance
A blue-ribbon committee wrote guidance on the independence and financial expertise audit committee members need to have. A recent survey showed how having those characteristics, or not, affected audit committee performance.
For the Practicing Auditor
Professional Issues
Since the concept of an international credential called both XYZ and Cognitor was introduced almost a year ago, CPAs have had time to evaluate its impact on their futures. In this article a wide range of practitioners voice their opinions on how it could enhance their professional lives—as well as their reservations on bringing it to fruition.
Business & Industry / Investments / Personal Financial Planning
Companies burdened by the responsibilities of operating a 401(k) plan may decide to outsource some or all of the plan’s investment, administration and recordkeeping activities. CPAs can play an important role in selecting an outside plan provider, giving employers a chance to eliminate operational headaches, and providing employees with new investment and administrative options.
Auditing / Fraud
When companies get desperate to show earnings or reduce losses, sometimes they resort to manipulating accounting periods to show phony profits. Case Study: Vacuuming Up Fraud.
By the Numbers
Auditing
Tax
Advance agreements can help businesses avoid costly audits.
Business & Industry / Tax
Revenue procedure 2000-22 provides small businesses with much needed guidelines to help them choose or change their accounting methods for tax purposes. The IRS guidance should ease compliance and recordkeeping for sole proprietors, partnerships and S and C corporations.
Practice Management / Tax
CPAs need to be aware that although the IRS holds asset distributions of clients and customers to shareholders to be subject to taxation, the Tax Court has said such distributions are not taxable if there’s no employment agreement or noncompete covenant. A firm or corporation may want to consider not having employment agreements in effect when it liquidates. Case Study: In Real Life, Sometimes the Good Guys Win.
For the Practicing Auditor