Professional Issues


The AICPA Peer Review Board issued revised standards for performing and reporting on peer reviews, as well as revised and new interpretations that will help CPAs understand how to apply the standards. Both are effective for reviews beginning after December 31, 2004; early implementation is not permitted ( www.aicpa.org/members/ ). The changes cover the provisions on transparency of reporting, enhanced risk-based approach for system reviews, and type and timing of engagement selection. The board also issued a white paper on the background and basis for its conclusions.

The National Association of State Boards of Accountancy (NASBA) issued model rules for state boards that, if adopted, will require public accounting firms to submit to their state licensing boards adverse quality control reviews of their operations ( www.nasba.org/nasbafiles.nsf/lookup/july2004revisedrules/ ). The rules also would require individual CPAs to notify the boards of civil charges against them for fraud, violation of practice standards or misappropriation of funds. The model rules represent best practices NASBA recommends to all state boards, based on measures some already have adopted, as well as issues addressed in the Sarbanes-Oxley Act of 2002.

SPONSORED REPORT

Keeping client information safe in an age of scams and security threats

A look at the Dirty Dozen tax scams and ways to protect taxpayer information.

TAX PRACTICE CORNER

More R&D tax help

"Can I use the R&D credit?" PATH Act enhancements make the credit more attractive to a wider range of taxpayers.

QUIZ

Learn to choose between ‘who’ and ‘whom’

Writers can stumble over who and whom (or whoever and whomever). If you write for business, this quiz can help make your copy above reproach.