June 2002 - Journal of Accountancy

EXECUTIVE SUMMARY PROVISIONS IN THE ECONOMIC GROWTH AND TAX RELIEF Reconciliation Act of 2001 raised ESOP contribution limits and liberalized companies’ combined use of ESOPs and 401(k) plans. The new law raises the contribution limits that can be added annually to an individual employee’s account—from both employer contributions to ESOPs

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ob Adams punched the buttons on his cell phone. “Hi, Mary, it’s Bob Adams, your CPA firm’s insurance partner. My calendar says we had a three o’clock with your client to discuss $10 million in life insurance.” “Ah…right, Bob. I canceled that meeting. I showed your analysis to another insurance

EXECUTIVE SUMMARY CPAs ACKNOWLEDGE THE IMPORTANCE of being proactive on IT security issues but often find it difficult getting corporate boards and audit committees to realize IT security protection requires ongoing, consistent investment in talent and technology. THOSE WHO PERFORM IT AUDITING must report their risk management concerns to boards

EXECUTIVE SUMMARY FIRMS THAT PUT PRODUCTIVITY CRITERIA in writing help principals stay focused on growing the firm as well as the bottom line. MEASURABLE PARTNER ACCOMPLISHMENTS include the number of new engagements, realization and niche development. Personnel development, image building and public relations are important partner accountabilities, too. ONE FIRM

EXECUTIVE SUMMARY CERTAIN DEVELOPMENTS IN A COMPANY’S LIFE CYCLE can trigger the need for a subsidiary, such as the launch of a new venture with different risk characteristics than the company’s existing line of business or the opening of operations in a new state or foreign country. Other times, companies

EXECUTIVE SUMMARY OUTPLACEMENT IS A PROCESS in which businesses engage experts—typically outplacement organizations or individual consultants—to offer support, personal assessments and training to employees losing jobs to clarify their career preferences and identify their strengths. Depending on circumstances, the service may counsel either groups or individuals. EXPERTS WHO GET EMPLOYEES

wish this was a story of crime and punishment, but things didn’t work out quite that way. It began with an embezzler diverting substantial funds from his employer to himself. It ended with several investigators trying to catch him but making big mistakes along the way. I’m one of those

EXECUTIVE SUMMARY THE ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION Act made significant changes to pension and retirement planning. Maximum contributions to 401(k) plans jumped to $11,000 for 2002 and will increase $1,000 per year until 2006. Similar increases apply to 403(b) and 457 plans as well as SAR-SEPs. IRA contributions—both