November 2001 - Journal of Accountancy

EXECUTIVE SUMMARY WHILE AUDITORS MAY HAVE CONCERNS about turning over workpapers to regulators, in most cases there is little choice but to cooperate. FEDERAL REGULATORS INSIST they have no interest in auditing auditors but merely want to do their jobs more efficiently. The primary purpose of a workpaper review is

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EXECUTIVE SUMMARY CPAs WHO IMPLEMENT ACCOUNTING STANDARDS at corporations are responsible for promoting the company’s accounting health and ensuring that management understands the impact of new regulations. THE FIRST CHALLENGE FOR ANY ACCOUNTING policy director is managing the sheer volume of output the regulators produce. The body of literature is

ince the AICPA relaxed the contingent fee rules, CPA firms have flocked to insurance as both an urgently needed client service and a new source of revenue. However, even the largest and wealthiest accounting firms don’t have all the technical and managerial expertise necessary to serve a diverse client base

EXECUTIVE SUMMARY COACHING IS A HYBRID PROFESSIONAL and personal service that has potential as a popular CPA service niche. CPA coaches do everything from assisting practitioners and other entrepreneurs to improve staff productivity to helping businesses target, acquire and integrate technology or other niche acquisitions. A COACH HELPS THE CLIENT

lients may be asking about the new “catch-up” pension and IRA contributions allowed under the latest tax act. CPAs should be aware of these new provisions to educate themselves and instruct clients properly. OVERVIEW Many employers offer plans in which workers set aside some of their salary for retirement. A

       SPECIAL REPORT New AICPA Independence Rules Address Ethics Issues T o help CPAs respond effectively to new ethical challenges they face in serving their clients, the Institute’s professional ethics executive committee adopted new and revised interpretations of the Code of Professional Conduct’s independence rule (see Official Releases

EXECUTIVE SUMMARY CONTINUED IRS ENFORCEMENT AND NEW Treasury regulations are focusing increased attention on a relatively new tax on executives of charitable organizations. Sometimes called an intermediate sanction, the tax can be a serious matter for these NPO executives as well as their family members and any family-controlled entities. CONGRESS

here does new wealth come from? Like a four-year-old asking how babies are born, it’s a deceptively direct question that often disarms our conventional capacity to answer. To be sure, we’re ready with pat responses peppered with references to ROI, RONA and EVA, but these measures tell us more about

EXECUTIVE SUMMARY GOVERNMENTS PREPARING TO IMPLEMENT GASB Statement no. 34 should study its requirements and those of related statements issued before and after it, especially Statement no. 33, Accounting and Financial Reporting for Nonexchange Transactions, and Statement no. 37, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments:

EXECUTIVE SUMMARY THERE’S WIDER RECOGNITION OF OUTSOURCING as a tool for day-to-day management. Outsource services CPA firms provide most often are accounting and finance functions—payroll, accounts receivable/payable, financial statement preparation and analysis, budgeting, cash management, internal audit and tax—but the possibilities include CFO functions, too. REDUCING THE COST IS THE

EXECUTIVE SUMMARY TOUGH ECONOMIC TIMES BRING BUSINESS LOSSES. Taxpayers can carry these losses back and get a tax refund or carry them forward and reduce their future tax liability. Proper use of net operating losses requires careful attention to the rules in the tax code and regulations. THE IRC ALLOWS

ehaviorists tell us that lying is innate to the human species and comes about for two genetically programmed reasons: to receive rewards and/or to avoid punishment. Whether we lie depends on our calculation of the reward/punishment equation. This is called “situational honesty.” Because most of us are conditioned to believe