June 2004 - Journal of Accountancy

EXECUTIVE SUMMARY THE SARBANES-OXLEY ACT HAS HAD a far-reaching impact on CPA firms, whether large, midsize or small. Firms that audit public companies have been working out strategies for coping successfully in their internal operations as well as in their relations with clients and prospects. THE STEPPED UP INTERNAL AUDIT

EXECUTIVE SUMMARY THE SARBANES-OXLEY ACT HAS CREATED new requirements for public companies, spurring greater demand for professional services and for a range of engagements that offer opportunities to well-positioned smaller firms. ONE RESULT IS A CHAIN REACTION in which the big firms are going to focus on certain services and

Key to Instructions To help readers follow the instructions in this article, we used two different typefaces: Boldface type for the names of program functions, screen tags, icons and URLs. Sans serif type for the names of files or commands and instructions that need to be typed into the computer.

EXECUTIVE SUMMARY CARELESS ADVERTISING ASSERTIONS can lead to lawsuits. When a plaintiff’s lawyer evaluates a potential accounting malpractice claim, he or she typically will examine all of the advertising materials the CPA provided to the client. ADVERTISING THAT CREATES FALSE or unjustified expectations of favorable results is prohibited by law.

EXECUTIVE SUMMARY ENTERPRISE RISK MANAGEMENT (ERM) IS A STRATEGY organizations can use to manage the variety of strategic, market, credit, operational and financial risks they confront. ERM calls for high-level oversight of risks on a portfolio basis, rather than discrete management by different risk overseers. ERM HAS GIVEN RISE TO

EXECUTIVE SUMMARY CLIENTS WHO ARE DISSATISFIED with their internal IT functions do not always understand the remedial options available to them. So CPAs can provide a reasoned analysis to help them decide between internal system improvements and getting help from an outside source. A COMPANY MAY CONSIDER OUTSOURCING its IT