October 2000 - Journal of Accountancy

Exhibit 5: Role of Independent Audit Percentage of companies whose management reports  

Exhibit 4: Role of Audit Committee Percentage of companies that reported  

Exhibit 3: Components of Internal Control Percentage of companies that have  

Exhibit 2: Purpose of Internal Controls Percentage of companies that reported they  

Exhibit 1: Management’s Discussion of Financial Statements Percentage of companies that included these elements in management reports:  

   wo years ago, SEC Chairman Arthur Levitt charged that widely publicized accounting problems at a number of companies were in danger of undermining U.S. capital markets. One of the processes he blasted was earnings management—an effort among the issuers of financial reports (managements and boards of directors, who have

   EXECUTIVE SUMMARY WHILE NONQUALIFIED SUPPLEMENTAL EXECUTIVE retirement plans (SERPs) are a tax-efficient way to restore benefits lost due to the limits in IRC sections 415 and 401(a)(17), they are not the best way to transfer wealth to the next generation. Multiple taxation and lost earnings can erode up to

   he accounting profession has made remarkable progress since its early days, when practitioners struggled to establish credibility. An examination of some of the most important events during the first nine decades of the 20th century offers a glimpse into what has made the profession what it is today. Although

   EXECUTIVE SUMMARY CPAs ARE UNDER ATTACK for not doing enough in the war against fraud, and they are, at the same time, being asked to play an increasingly important role in the detection of fraud. Because CPAs are becoming more educated about the subject, success stories about their helping

   EXECUTIVE SUMMARY FOR FEDERAL TAX PURPOSES, PUBLIC COMPANIES can deduct no more than $1 million of annual compensation for the CEO and each of four other highly paid officers. For a newly public company, disallowed deductions could create a severe cash crunch. Effective planning includes postponing the limit and

   EXECUTIVE SUMMARY RECONFIGURING COMPENSATION PLANS to create incentive for younger partners while buying out retiring partners at fair market value can lead to painful clashes. It’s better to have a compensation strategy that’s adaptable to a firm’s needs from start-up to maturity. A NONPIRATING CLAUSE WILL PROTECT a firm

Exhibit 9 When the connection between the two symbols is made, red dots appear.  

Exhibit 8 When a connector is attached to a source flowchart symbol, four blue dots appear.  

Exhibit 7 AutoShapes contains nine different connectors.  

Exhibit 6 Here’s a flowchart symbol surrounded by eight small boxes, called handles. Click on one of the boxes and drag it to alter the symbol’s size.  

Exhibit 5 Flowchart symbols can be formatted in many ways.  

Exhibit 4 …and one more click, on Flowchart , displays these symbols.  

Exhibit 3 A right click displays these AutoShapes categories…  

Exhibit 2 The Drawing toolbar provides all the utensils for the task.  

Exhibit 17 Change the data in the spreadsheet and the name in the flowchart changes accordingly.  

Exhibit 16 Spreadsheet data in the C column, under Label, is linked to the flowchart below… …so any changes in the spreadsheet appear immediately in the flowchart.  

Exhibit 15 Click on the hyperlink on sheet S-1 and the view advances to cell A1 on sheet S-2.  

Exhibit 14 Adding a hyperlink can connect a symbol in a flowchart either to the Internet or to another worksheet.  

Exhibit 13 When a chart requires more than one printed page, this off-page connector symbol tells the reader where the chart continues.  

Exhibit 12 After the flowchart is complete, the various elements can be grouped so they can be moved as a single object.  

Exhibit 11 Callouts can provide more detailed information on flowcharts.  

Exhibit 10 If the green handle appears, you need to repeat the process.  

Exhibit 1 A typical two-part flowchart describing how to enter a sales order.  

   EXECUTIVE SUMMARY AS CPAs ADVANCE INTO higher managerial positions, taking on more strategic responsibilities, many find that flowcharts enable them to better communicate their complex plans. ALTHOUGH SUPERB COMPUTER flowchart software applications are on the market, it’s possible to use the tools built into Excel to create professional-looking graphics

   EXECUTIVE SUMMARY STAFFING IS EVERY COMPANY’S NUMBER ONE problem, and CPAs are in an excellent position to offer human resources (HR) consulting services to clients in need of financial professionals. HUMAN RESOURCES OUTSOURCING IS GOOD for clients that don’t feel they need a full-blown HR department. It can help

   As professional services become more like commodities, companies that provide them are searching for new ways to stand out from their competitors. A survey of more than 400 companies and firms specializing in accounting, consulting, technology and other areas revealed that 81% use differentiation techniques to enhance their marketing

Exhibit 4: Pros and Cons of a SERP Swap  

Exhibit 3: SERP Swap Results for a Company Assumes a 50-year-old exchanges a $500,000 deferral balance and $50,000 of annual deferrals for five years..  

Exhibit 2: SERP Swap Results for Participants Aftertax Results at Life Expectancy Aftertax Results for Life Expectancy Each Year Assumes a 50-year-old exchanges a $500,000 deferral balance and $50,000 of annual deferrals for five years.  

Exhibit 1: Sample SERP Swap Participant forfeits specified excess benefits. Company pays premiums into a survivorship life insurance contract owned by an irrevocable trust. Participant contributes, via gifts in trust, part of the annual premium equal to the “economic benefit” of the insurance coverage. Participant pays gift tax (and GST