oday’s technology buyers face a unique challenge. Just a few years ago buyer beware was the universal watchword for CPAs buying computer equipment. Hardware reliability was so questionable that many cost- and quality-conscious accountants required computer retailers to bench-test hardware to be sure it was sound before they shipped it.
May 2004 - Journal of Accountancy
FRAUD
The Case of the Pilfering Purchase Manager
hris, we have a problem,” said the voice on the other end of the line. “Our purchasing manager, Bruce, is on vacation and we think we have discovered some irregularities.” Chris Rosetti, CPA, swung into action. Rosetti—a partner with BST Advisors LLC in Albany, New York—had done limited work for
DISASTER PREPAREDNESS
The Best-Laid Plans
EXECUTIVE SUMMARY DISASTER ARE UNPREDICTABLE , and one disruption may cause others, so a firm should test its preparedness plan to make sure it will do what it’s supposed to: locate the firm’s people, obtain equipment and support, access job-file and system backups and put staff to work in an
FINANCIAL REPORTING
Tap Into XBRL’s Power the Easy Way
BRL—a specialized form of XML (extensible markup language)—is becoming more familiar to creators and users of electronic financial statements, but few people have actual hands-on experience with it. So, to bring XBRL to a wider business audience, Microsoft Corp. has released the Microsoft Office Tool for XBRL—a free, but important,
GLIMPSE OF THE PAST
Taking Account of History
n 1904 an international Congress of Accountants took place in St. Louis. This first “world congress” drew representatives not only from across the United States but also from England, Scotland, Holland and Canada. This congress “was a major event in the formative years of the U.S. accounting profession,” according to
TAX
Independent Contractor or Not?
EXECUTIVE SUMMARY MANY INDEPENDENT CONTRACTOR RELATIONSHIPS BEGIN at the request of the service provider, but this is no guarantee the IRS will not challenge the classification. The IRS has final authority for deciding whether a worker is an independent contractor or an employee. THERE ARE A NUMBER OF BENEFITS TO
SARBANES-OXLEY
Evaluate the Control Environment
EXECUTIVE SUMMARY MANAGEMENT IS RESPONSIBLE FOR EVALUATING and reporting on a company’s controls. The external auditors are responsible for auditing management’s assertion and independently coming to their own conclusions about the company’s internal control effectiveness. They must evaluate management’s assessment and also perform their own, independent tests in many areas,