Inside AICPA
Bad press, lost business and even litigation can await companies that violate any of the diverse regulations protecting the confidentiality of customers’ personal information. So the AICPA is developing a set of best practices to help practitioners keep their clients and employers in compliance and out of trouble.
Investment Planning
Sooner or later, SEC-registered investment advisers can expect a visit from a representative of the commission’s Office of Compliance Inspections and Examinations. Here are the procedures the SEC uses to examine investment advisers. Forewarned is forearmed.
Fraud
When the cost of a business’s raw materials skyrockets, auditors and management should find out why and determine whether employees and vendors are involved.
Investment Planning
With more sophisticated analysis tools and mutual funds that have adapted over time to meet investor needs, CPA/financial planners are likely to find an increased role for these funds in their clients’ portfolios. Here are some strategies to take maximum advantage of this nearly century-old investment.
Technology Workshop
A single mistyped value entered into a spreadsheet cell can upset an entire workbook. An effective way to block errors is to use Excel’s validation function. While it doesn’t prevent the original mistake, it does sound an alarm so a user can correct it before it ruins the spreadsheet.
In My Opinion
The growth of outsourcing places a heavy burden on accountants—they will have to determine the true value of a business beyond mere numbers.
Business & Industry / Financial Reporting
Earnings releases containing non-GAAP, pro forma numbers that are incomplete or misleading can create inconsistencies with companies’ financial statements and confusion for investors. Corporate CPAs who prepare numbers for earnings releases and external auditors, when asked to review them for their clients, can ensure that reporting remains consistent with or reconcilable to GAAP-based information by following interim SEC and FEI/NIRI guidelines.
Legal Issues / Practice Management
A liability insurer shares lessons from its archives to refresh CPAs’ awareness of the everyday ethical issues that are part of performing client services. Here are nine scenarios along with the standards citations that pertain to them. How will you measure up?