“Coping With Retirement” ( JofA, Dec.99, page 67) ignores the most important benefit available to workers who retire before age 59 1/2 with 401(k) plans and IRAs and need additional income to supplement their pensions before Social Security benefits kick in. The article states most arrangements provide a penalty for
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TOPICS
Audit & assurance
On Fraud and CPAs
I enjoyed reading “To Catch a Thief” ( JofA, Mar.00, page 43) because the information is presented in a way that’s particularly accessible to CPAs. Also, the article underscores the gap between the limited work that CPAs can do to find fraud and what people believe they can do. Most
Best Practices for E-Commerce Self-Defense
Attacks on e-commerce Web sites have online merchants in a cold sweat over downtime-induced revenue losses. But Web-savvy CPAs can help clients by offering these e-sabotage prevention tips. Conduct a risk assessment of the enterprise. If possible, do it before implementing technical controls so that weaknesses can be eliminated before
International
IFAC, Firms to Apply International Standards Consistently The International Federation of Accountants and seven major transnational accounting firms together are planning a global initiative to strengthen international accounting and auditing practices. IFAC hopes firms in the alliance, by uniformly applying standards developed by the International Accounting Standards Committee (IASC), and
Financial Reporting
AICPA Recognizes FASAB as GAAP Standard Setter The AICPA governing council last fall formally named the Federal Accounting Standards Advisory Board the accounting standard setter for the federal government. Amid controversy over its action, the council elevated FASAB to the level of FASB and GASB, which set standards for nongovernment
Tips for the Valuator
EXECUTIVE SUMMARY FOLLOWING BASIC TENETS will provide business appraisers in both industry and public practice enhanced understanding and skills to comply with business valuation standards. FIRST, FULLY UNDERSTAND THE NATURE of each BV assignment. CPAs WHO OFFER BV MUST CONFORM with several standards on professional competence, due professional care, planning
Council Report
Members attending the fall meeting of council worked through a packed agenda, which began with announcements by AICPA President Barry Melancon about a groundbreaking delivery system for CPE and his vision for an Institute site on the Internet—that would offer members unprecedented access to professional resources needed—and which ended with
International Associations
There are more than 130 associations of accounting firms, 30 of which are international. However, fewer than 1,000 U.S. firms belong to some kind of accounting association. David Albrecht, professor of accounting, Bowling Green State University, Bowling Green, Ohio. he world is our horizon! How can we—a midsize accounting firm
How Midsize Companies Are Buying ERP
EXECUTIVE SUMMARY THE CHOICE OF ENTERPRISE RESOURCE PLANNING software can be a make-or-break decision for a company. ERP comes in modules named after the functions each performs such as general ledger, accounts payable, accounts receivable, payroll, purchase orders, inventory, job costing, point of sale, manufacturing and bill of materials. A
Legal Scene
Statute of Limitations: A Primer Accountants frequently use statute of limitations defenses in professional liability litigation. Therefore, understanding the theory behind these statutes gives CPAs a powerful weapon in fending off such litigation. Limitations, triggers and discovery dates Depending on the circumstances of the case, the statute of limitations dates
Translating the Standards
EXECUTIVE SUMMARY WHEN APPLYING NEW ACCOUNTING STANDARDS to their companies, CPAs recommend a five-step approach: 1. Assign specific groups or professionals to monitor and translate new pronouncements. 2. Use liaisons and questionnaires to analyze how and where the company could be affected. 3. Summarize the technical detail for nonfinancial colleagues.
Federal Financial Statements: The Revolution Is Here!
EXECUTIVE SUMMARY IN THE FISCAL YEAR ENDED September 30, 1998, federal executive branch agencies for the first time prepared financial statements in accordance with a comprehensive set of federal accounting principles. THERE WAS LITTLE AGREEMENT in the past within the federal government about appropriate federal financial accounting standards. As a
What Constitutes Control?
EXECUTIVE SUMMARY FASB ISSUED A REVISED ED SEEKING TO DEFINE what constitutes control of an entity. Under current rules, the condition for a controlling financial interest is ownership of a majority voting interest–unless control is temporary or does not rest with the owner of the majority voting interest. FASB’s goal
Professional Issues
The Accounting Hall of Fame has named Arthur R. Wyatt its 61st member. Wyatt spent the early part of his career teaching at the University of Illinois, where he received his PhD in 1953. He became a full professor and wrote books and articles, including a study of accounting for
Coping With NPO Standards Its Not Difficult
EXECUTIVE SUMMARY NOT-FOR-PROFIT ORGANIZATIONS have had to cope with a number of accounting pronouncements in recent years. The experiences of the Museum of Undersea Exploration, a hypothetical NPO, should help CPAs understand the impact these new rules have had on NPOs. FASB STATEMENT NOS. 116 and 117 require MUSE and
A Common Peer Review Problem
EXECUTIVE SUMMARY AICPA STANDARDS CLEARLY STATE procedures for confirmation of accounts receivable. Nevertheless, and despite an auditing procedure study, peer reviews continue to find that CPA firms have problems understanding the various processes. RECEIVABLE CONFIRMATIONS ARE NOT ALWAYS required if accounts receivable are immaterial, the use of confirmations would be
World meeting of accountants is success.
IASC Board Says No to Adopting FASB Financial Instruments Rules; Core Standards Will Be Delayed The International Accounting Standards Committee board of directors rejected a proposal by the IASC executive committee and its secretary-general, Sir Bryan Carsberg, to adopt the Financial Accounting Standards Board’s rules on financial instruments reporting, including
Do We Understand Each Other?
EXECUTIVE SUMMARY THE AUDITING STANDARDS BOARD issued SAS no. 83 and SSAE no. 7 to provide CPAs with guidance on establishing an understanding with the client. THE TWO NEW STATEMENTS ARE IN LINE with SQCS no. 2, which requires firms to have policies and procedures in place for obtaining an
AmEx wins
Florida First Amendment Case Settles Little On the surface, its a simple court decision: The 11th Circuit Court of Appeals ruled that CPAs, even when working for an unlicensed entity, may advertise their designation. American Express and one of its CPA employees, Stephen M. Miller, had sued the Florida Board
Poor results
SEC Grades Year 2000 Compliance Efforts T he Securities and Exchange Commission issued a report on the readiness of the securities industry, including the SEC, for year 2000 information technology challenges. Most computer hardware, such as mainframes and personal computers, use a two-digit internal clock that will not roll over
Features
FROM THIS MONTH'S ISSUE
Right-sizing risk management
Sole practitioner or small firm? Risk management doesn’t have to be “one size fits all.” Learn how to help protect your practice without adding unnecessary admin time.
From The Tax Adviser
July 31, 2026
Current developments in S corporations
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