August 2001 - Journal of Accountancy

EXECUTIVE SUMMARY CPA/FINANCIAL PLANNERS NEED TO BE WEB SAVVY. The Internet makes it possible for CPA/financial planners and individual investors to be notified on-screen when news breaks about a particular stock. INVESTORS FOLLOW A STOCK BY WATCHING its price and trading volume and factors such as the P/E ratio and

BY THE NUMBERS In a recent survey, moderately affluent individuals—worried they weren’t doing enough to protect their assets from taxes—said they’re exploring financial planning strategies once considered the exclusive province of the very wealthy.   How well they said their assets were tax-sheltered In addition to tax-deferred savings plans, respondents

EXECUTIVE SUMMARY MANY CPAs HAVE RESPONDED TO INCREASED client interest in financial products by formally offering investment advisory services. This generally requires them to register as investment advisers with either a state agency or with the SEC, based primarily on the amount of assets under management. CPAs CAN PROVIDE LIMITED

EXECUTIVE SUMMARY PAST PROBLEMS WITH CERTAIN SECTION 1031 exchanges had led to the development of the reverse or “parking” exchange in which a third-party “warehouses” the new property until the taxpayer sells the existing property. Although the IRS didn’t attack parking exchanges, questions about their validity remained unanswered until revenue

reduction in early warnings of bankruptcy could be costly to the profession because of increased public and legislative scrutiny, especially since the Private Securities Litigation Reform Act of 1995 elevated going-concern reporting to the status of law. On the other hand, false alarms of impending bankruptcy also could harm auditors’

ore than ever before, today’s investors turn to accountants for timely financial information. As a result, auditors are under increasing pressure to complete and issue a company’s financial statements. Prior research showed that the value of financial statement information to investors declined the longer audit reports were delayed. Our research

EXECUTIVE SUMMARY THE FIRST STEP IN A FORENSIC INVESTIGATION is to gather as many details as possible about the facts of an alleged misappropriation. But CPAs need to be systematic to guard against “information overload,” which can lead to important factors being overlooked. CPAs, INVESTIGATORS AND ATTORNEYS need to develop

EXECUTIVE SUMMARY THE ADVANTAGES OF A LOCAL AREA NETWORK (LAN) are obvious: Users can share software applications and data—in short, they can stay in touch. Equally obvious are its disadvantages: Each computer—even an otherwise portable laptop—must be tethered by cable to a port in the wall. Unplug and you’re offline

n June 7, 2001, President Bush signed into law the Economic Growth and Tax Relief Reconciliation Act of 2001, a package of sweeping tax reforms affecting income, estate and gift taxes. Some of the new provisions ease the costs of higher education by providing new and expanded deductions and exclusions.

   LITIGATION/CONSULTING How using instructional visuals can help CPAs in litigation support. An Expert Witness Can Make or Break a Case BY GEORGE L. JOHNSON and CYNTHIA WALLER VALLARIO EXECUTIVE SUMMARY THE CPA EXPERT WITNESS MUST CHOOSE an approach in the pretrial planning phase that will develop and integrate facts

   LITIGATION/CONSULTING How using instructional visuals can help CPAs in litigation support. An Expert Witness Can Make or Break a Case BY GEORGE L. JOHNSON and CYNTHIA WALLER VALLARIO EXECUTIVE SUMMARY THE CPA EXPERT WITNESS MUST CHOOSE an approach in the pretrial planning phase that will develop and integrate facts

   INVESTMENTS Investors who ignore history are doomed to repeat it. Lessons of a Bear Market BY MAUREEN NEVIN DUFFY EXECUTIVE SUMMARY THE RECENT BEAR MARKET CAN TEACH SOME VALUABLE lessons to CPA/financial planners and their clients. The first sustained market decline in recent memory was a test of CPAs’

EXECUTIVE SUMMARY THE RECENT BEAR MARKET CAN TEACH SOME VALUABLE lessons to CPA/financial planners and their clients. The first sustained market decline in recent memory was a test of CPAs’ investment and client management skills. BAD MARKETS OFFER A CHANCE TO RETHINK AN EXISTING investment strategy. CPAs can use it

inancial statements tell a story,” says accounting professor W. Steve Albrecht, “and the story should make sense.” If not, it’s possible the story is a fake. By standing far enough back from the numbers to get a good picture of the client’s business, auditors frequently can detect signs of financial

ecause of their often complex nature, insurance transactions provide fertile ground for mistakes. When reviewing these transactions, CPAs have a golden opportunity to protect clients from making potentially costly errors. With care, patience and knowledge of what to watch for, you can be a hero to both your clients and

EXECUTIVE SUMMARY THE CPA EXPERT WITNESS MUST CHOOSE an approach in the pretrial planning phase that will develop and integrate facts and legal theories presented later in trial testimony. CPAs may find using a visual framework works best both in the preparation stage and as a tool on the witness