November 2002 - Journal of Accountancy

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  EXECUTIVE SUMMARY THE FRANCHISE OR BUSINESS PRIVILEGE TAXES SOME states impose on nonresident companies that have an economic presence in the state can be difficult for small businesses to handle on their own. However, in the right circumstances, CPAs may be able to help clients and employers achieve overall

  EXECUTIVE SUMMARY THE GAO AMENDED THE AUDITOR INDEPENDENCE provisions of its generally accepted government auditing standards (GAGAS). Originally, the amendment was to be effective for audits beginning on or after October 1, but the GAO extended the time frame to January 1, 2003. THE GAO ISSUED THE NEW STANDARD

   t takes a combination of careful observation and inquiry to conduct an effective audit. Although auditors are adequately trained to be alert at a client site, most learn on the job how to ask questions to elicit specific information.This is a matter of no small importance because CPAs frequently

  EXECUTIVE SUMMARY A CPA/VALUATOR PLAYS A PIVOTAL ROLE in merger and acquisition (M&A) engagements. He or she helps to organize the transaction, mitigate trouble spots, establish an objective marketplace value for a client’s business and structure the deal along with attorneys, appraisers, bankers, financiers and regulators. A BUYER’S VALUATOR

  EXECUTIVE SUMMARY THE NEW YORK STOCK EXCHANGE HAS PROPOSED NEW standards for its listed companies to compel audit committees to change their makeup, broaden their oversight of external auditors and assume greater responsibility for their fiduciary obligations. The audit committee would have the sole authority to retain and terminate

  EXECUTIVE SUMMARY AS THE IRS MOVES TOWARD ITS GOAL OF HAVING 80% of all tax returns filed electronically by 2007, the time has come for CPA firms to take steps to register themselves as electronic return originators (EROs). THERE ARE BENEFITS TO USING ELECTRONIC FILING. They include the perception

  nsurance companies can alter policy terms as often as they wish. Sometimes the changes benefit the carriers; sometimes they benefit the policyholders. Interest, mortality (the probability a given individual will die) and expenses are the most common things that can change in a policy. Typically, they manifest themselves to

  EXECUTIVE SUMMARY CLIENTS BENEFIT FROM USING AN INTERMEDIARY such as a CPA/valuator to handle a merger or acquisition. A valuator should know a client’s industry thoroughly and have procedural training. Even experienced CPA/valuators may need to bring in an outside expert for longtime clients in order to avoid bias.

   EXECUTIVE SUMMARY RECENT FASB RULE CHANGES HAVE MADE IT IMPORTANT for CPAs to understand the concept of “trade dress” and its impact on a company’s financial statements. Trade dress refers to the unique packaging or appearance of a company’s product, such as the red and white Campbell’s soup can