June 2003 - Journal of Accountancy

    EXECUTIVE SUMMARY STATEMENT ON AUDITING STANDARDS (SAS) NO. 101, Auditing Fair Value Measurements and Disclosures, gives auditors guidance on understanding how an entity’s management calculates fair value and on determining whether that measurement conforms with GAAP. THE SAS’s PROVISIONS ARE EFFECTIVE FOR AUDITS of financial statements for periods

he tax treatment of split-dollar insurance plans continues to evolve. Previously, companies used split-dollar life insurance to help employees defer taxation on the yearly accumulation of the policy’s cash surrender value as well as to provide a significant death benefit. Then, in revenue notice 2001-10 the IRS said any enrichment

EXECUTIVE SUMMARY WITH FALLING ENROLLMENT IN ACCOUNTING PROGRAMS, practitioners can make an important contribution by helping students understand the challenges and rewards of practicing accounting. Participating in a mentoring program at a college or university is one way to make contact with future graduates and influence their career decisions. JOHN

oney laundering is so widespread CPAs are likely to encounter it at some point in their work. It is an essential element of the “underground economy,” which, worldwide, amounts to trillions of dollars. An independent auditor’s responsibilities in the area of money laundering, because it is a criminal act, are

EXECUTIVE SUMMARY AS THE BEAR MARKET CONTINUES, IT’S NO WONDER some investors, particularly those close to retirement, fear losing their money in the stock market. When advising clients age 50 and over, CPAs need to emphasize fundamental investment strategies more than ever before. DESPITE RECENT MARKET LOSSES, IT’S STILL NOT

illiam Donaldson was sworn in as chairman of the Securities and Exchange Commission in February. He comes to this position at a particularly important and challenging time. Restoring public confidence in our capital markets—essential to the long-term health of the economy—won’t be easy. Various players, including the commission, have an

EXECUTIVE SUMMARY WHEN THE TEXAS STATE AUDITOR’S OFFICE (SAO) decided its management system could better monitor how taxpayer dollars were spent, it adopted a balanced scorecard approach to track its performance. As a public-sector entity, the SAO sought a “profitability” strategy of offering more services to citizens without increasing program