January 2007 - Journal of Accountancy

  EXECUTIVE SUMMARY TIPS are a relatively new form of bond from the federal government that offer protection against the risk of inflation. They combine a high degree of safety of the principal with a hedge against inflation. Potential investors in TIPS may bid for them at auction in either

EXECUTIVE SUMMARY Many home sellers have seen rapid appreciation of their home’s value in recent years, leaving them vulnerable to capital gains beyond the principal-residence exclusion under IRC section 121of $250,000 for an individual or $500,000 for joint filers. If sellers buy another home, however, they may be able to

The United States has enjoyed a long period of relatively tame inflation and either steady or declining interest rates. This environment has lent itself well to investing in equities and predictable returns in debt securities for conservative or income-oriented investors. Recently, however, disturbing signs that more aggressive inflation may be

       CPAs are very aware of the rise in global securities fraud and are working hard to combat it. Terrorists and insurgents frequently use fraud to finance their operations and launder their funds. When fraud becomes endemic in a nation, it can produce radical political changes that bring

         EXECUTIVE SUMMARY Many CPA firms now provide insurance and investment services to their clients in addition to core services. This can be an attractive avenue to growth that increases client retention and firm revenues, but it carries certain reputational, legal and economic risks. To limit liability

       If you’re like most financial professionals, some of your large spreadsheets contain many worksheets with a wide assortment of data. Locating information or identifying just the right worksheet or cell to input new data is like searching for the proverbial needle in a haystack. If this describes

       A CEO’s words are powerful storytelling tools, fashioning opinions and offering an important point of view. In an era of heightened corporate accountability, when companies and their CEOs are subject to ever increasing scrutiny by audit committees, regulatory authorities and the public, CEOs frequently need to be

U.S. GIANT RESPONDS QUICKLY TO BID-RIGGING CHARGES Michael G. Cherkasky, president and CEO of Marsh & McLennan Cos. Inc. (MMC), has had a distinguished career as a manager, prosecutor, investigator and trial attorney and spent 16 years in the criminal justice system, including serving as chief of the Investigations Division

         EXECUTIVE SUMMARY The Auditing Standards Board issued eight standards with new guidance for auditors assessing risks and controls in financial statement audits. Auditors must consider risk and also determine a materiality level for the financial statements taken as a whole. Auditors are required to obtain a

The American Institute of CPAs (AICPA) and the Association of Certified Fraud Examiners (ACFE) have teamed up to create the Institute for Fraud Prevention (IFP)—the world’s first entity dedicated to fight all forms of corporate fraud in the United States and abroad. Fraud is as certain as death and taxes.

       With their years of schooling behind them, most Americans between the ages of 25 and 34 spend their time thinking of their new careers, their first homes, their children on the way. But while this group of young people is among the richest in history, its overall