January 2002 - Journal of Accountancy

EXECUTIVE SUMMARY THE CRISIS IN ACCOUNTING EDUCATION IS GROWING. According to a 2000 study by Professors Albrecht and Sack, Accounting Education: Charting the Course through a Perilous Future, practicing accountants perceive the education most accounting graduates get today to be outdated. As stakeholders, CPAs must recognize their input is needed.

EXECUTIVE SUMMARY FOR A MODEST INVESTMENT within reach of any small to midsize firm, a 48-member, seven-partner office of J.H. Cohn drew on football as a model for a team incentive program (TIP). THE FIRM’S GOALS WERE to bring in new business and develop a team approach, encourage nonpartners to

ust how objective are auditors that perform both external and internal audits for clients? From the SEC to commercial loan officers, this question is on the minds of many who worry about the impact of such an arrangement on auditor independence and financial statement reliability. Financial analysts—for example—consider auditor objectivity

uditors’ judgments about a client’s integrity have a domino effect on their audit decisions—first on risk evaluation, then on the extent of audit evidence collection and ultimately on audit fees. Auditors are leery of clients with whom they have no track record. Our study revealed that when auditors thought a

EXECUTIVE SUMMARY SINCE MOST KEY BUSINESS PERFORMANCE MEASURES don’t work for not-for-profit organizations, these groups need to develop specialized measures to help them achieve their goal-driven strategic plans. One approach NPOs use is to measure the amount of resources they spend on providing program services vs. management and general expenses.

EXECUTIVE SUMMARY IN LITIGATION INVOLVING FUTURE ECONOMIC damages, experts’ calculations must discount the amounts to present value. The courts have offered little guidance on appropriate discount rates. BUSINESS DAMAGES MAY BE FOR THE TERM of a contract, the technological life of a product or until the plaintiff could reasonably be

nsurance is among the most highly regulated of the financial services industries. When coupled with the professional standards inherent in the practice of public accounting, compliance issues can quickly become complicated for CPA firms that maintain insurance practices. Many CPAs believe they know enough about insurance to advise their clients.

EXECUTIVE SUMMARY AS CPAs ADD FINANCIAL PLANNING services TO their professional offerings, it’s important not to limit planning to just discussing investments. Effective planners must develop an in-depth strategy by examining all aspects of a client’s financial affairs including assets, liabilities, insurance, investments and employee benefits. BY TAKING A MACROECONOMIC

EXECUTIVE SUMMARY AUTOMATED CONTRACT MANAGEMENT SYSTEMS are network-based software platforms that make contract terms accessible to every person within an organization who is affected by them. Customers and suppliers can also be brought into the loop. THE ACTUAL LEVEL OF DIFFICULTY for implementing an automated contract system depends on the

SPECIAL REPORT Creating and implementing an electronic version of the Uniform CPA Examination topped the agenda at the annual meeting of the National Association of State Boards of Accountancy in October. Speakers reported on contract negotiations among NASBA, the AICPA and Prometric, a provider of electronic testing services that will

EXECUTIVE SUMMARY SINCE THE AMERICAN STOCK EXCHANGE INTRODUCED them in 1993, the market for exchange-traded funds continues to grow despite the current disappointing investment climate. As an alternative to index mutual funds, ETFs offer investors a low-cost, tax-efficient way to invest in their favorite market segments. The expense ratio for

oger had worked hard to earn his CPA. He had big dreams—he had planned to use his newfound financial expertise after college to build a fortune. But 10 years later, here he was, stuck as the controller for a midsize soft drink bottler and distributor in the South, going nowhere