FYI


IIA sponsors report on audit committee best practices ( www.theiia.org/ecm/bookstore.cfm?doc_id=1257 ).

GAO appoints new members to auditing advisory council (Not yet posted on GAO Web site).

New members appointed to FASB ( www.rutgers.edu/Accounting/raw/fasb/news/nr_schipper.html ; www.rutgers.edu/Accounting/raw/fasb/news/nr_wulff.html ).

Bush names SEC Commissioner Unger as acting chairman ( www.sec.gov/news/press/2001-20.txt ).

Labor department sets up a toll-free information line for filers of benefit plan form 5500 reports ( www.dol.gov/dol/pwba/public/media/press/pr022601.htm ).

Correction

The article “The Engagement Team Approach to Independence” ( JofA, Feb.01, page 57) misstated the existing AICPA independence rule concerning employment of a member’s spouse. The current AICPA rule provides an exception whereby a client may employ a manager’s spouse as long as the manager does not participate in the engagement. In the example given on page 59, under the subhead Safeguarding Independence Under the New Approach, it reads, “For example, a tax manager’s spouse is hired as the controller of one of the firm’s audit clients.” It should read, “For example, a tax manager’s spouse owns a small amount of stock in one of the firm’s audit clients.” The paragraph goes on to say that under existing AICPA independence rules three options exist to cure the impairment. One option listed was as follows: “The spouse must resign from the client.” In light of this correction, it should read, “The spouse must immediately sell the investment in the client.” We regret the error.

FEATURE

Maximizing the higher education tax credits

A counterintuitive strategy can save taxes by including otherwise excludable scholarships in gross income.

SPONSORED REPORT

Solving the lease accounting challenge

The challenges of the new lease accounting standard have been pervasive to say the least. In this free, independently-written report, you'll learn effective adoption strategies as well as resources for easing the transition to the new standard.