Fraud
As illustrated in this case study, dishonest employees who steal cash and attempt to cover it up by lapping accounts receivable rarely realize up front how difficult this scheme is to pull off. And, once again, weak or missing internal controls made it all possible.
Financial Reporting
When companies intentionally alter graphs in their annual reports to mask trends and real events they may be practicing earnings management. Auditors engaged to examine and report on financial statements need to be able to detect material inconsistencies in charts and illustrations. A few tips can help them.
Tax
A ruling by the Ninth Circuit Court of Appeals calls into question the authority of the IRS to assess a restaurant for the employer’s share of FICA taxes on unreported tip income.
Worth Repeating
At the AICPA’s annual meeting, new Chairman James G. Castellano focused on leveraging the profession’s strength to increase the value of assurance services, preserve self-regulation, recruit students and enhance the profession’s image.
Consulting / Tax
CPAs advising divorcing taxpayers must carefully review IRC section 1041 and recent court decisions to make sure their clients can avoid unpleasant tax consequences when transferring IRA and qualified plan benefits.
Consulting / Practice Management
Focus group research can help a firm understand what clients want and expect before it expends time, money and effort on service improvement or development. The best sources for this information often are clients and other local business leaders.
Consulting / Practice Management
Some CPA clients soon may need help with a bankruptcy. The time is right for CPA firms to concentrate on adding bankruptcy-related skills to the menu of services they offer. Here’s a look at what it takes to expand into this business area.
Technology Workshop
If you link a PowerPoint slide to an Excel spreadsheet, you can make a presentation using the most current information. As you alter the numbers in the spreadsheet, the dynamic changes will appear instantly in the slide.