Peer review

Make Strategic Relationships a Success

EXECUTIVE SUMMARY FOR ALL BUSINESSES, THE NUMBER of strategic relationships has been growing 25% per year since 1985. A FIRM'S FIRST STEP TOWARD a strategic alliance is to decide what capabilities it wants to add. Then it should decide what it wants to achieve: Does the firm wish to increase

Day Trading Debate Continues

After noting the inconsistencies between two articles in the JofA, Oct.00, “Paying the Piper: Some Tax Rules for Day Traders” (page 115) and “Being a Trader in Securities” (page 118), I read with interest the clarification “Day Trading and Self-Employment Taxes” ( JofA , Jan.01, page 80). While researching the

Auditing Employment Benefit Plans—Another Factor.

“ERISA Liability for CPAs” ( JofA , Dec.00, page 39) pointed out the delicate issues surrounding employee benefit plans. However, the article did not mention one potential problem area our firm has encountered in auditing such plans—companies’ use of third-party administrators (TPAs). TPAs handle the day-to-day transactions and final plan-year

The Value of Tax Practice Peer Reviews

I believe fellow tax practitioners need to take a close look at their own practices and that all CPAs should take to heart “Tax Practice Reviews” ( JofA , Dec.00, page 88 ). The article pointed out some important benefits of the tax practice review but did not highlight the

You Read About It First in the JofA

The recently issued SAS no. 93, Omnibus Statement on Auditing Standards—2000 ( JofA , Jan.01, pages 14 and 116), specifies the auditor’s report should indicate which country’s accounting principles and auditing standards were used to prepare the financial statements and audit them. This reference to the country of origin will

More on Day Trading

I believe I can offer a very clear and concise method the courts could take in the day trading arena ( “Day Trading and Self-Employment Taxes” [ JofA , Jan.01, page 80] ). Since the primary question is what constitutes a trade or business, that determination could be made based

An End to the Plain-Paper Debate?

EXECUTIVE SUMMARY THE AICPA ACCOUNTING AND REVIEW SERVICES committee concluded more than 20 years of debate by issuing Statement on Standards for Accounting and Review Services no. 8, Amendment to Statement on Standards for Accounting and Review Services No. 1, Compilation and Review of Financial Statements in October 2000. EFFECTIVE

Peer Review For Small Firms

EXECUTIVE SUMMARY THE AICPA REVISED ITS STANDARDS FOR PERFORMING and reporting on peer reviews for firms that do not audit SEC registrants. The new rules, which become effective January 1, 2001, are designed to improve the quality of financial reporting and to protect members of the public that use and

Independence Standards Course Offered on CD-ROM

The AICPA is introducing Independence, a CD-ROM CPE course that reviews the Institute’s authoritative literature on independence standards, including newly issued SECPS requirements; SEC independence regulations; and Independence Standards Board standards. The six-hour interactive course features testing and review modules, an extensive reference section, a glossary of key terms, links

New AICPA Credential Focuses on IT-Savvy CPAs

The AICPA is introducing the certified information technology professional (CITP) designation, which recognizes CPAs who can provide skilled advice on using IT to implement business strategy. The Institute will begin accepting applications for CITP certification July 1, 2000. At its fall meeting, the AICPA governing council approved the designation, which

SECPS to Strengthen Peer Review Process

The SEC practice section peer review process task force has issued a report containing recommendations to strengthen the peer review process to help it keep pace with changes in the accounting profession. Mike Conway, chairman of the SECPS executive committee, which approved the task force’s proposals after they were made

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

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

A Refresher Course in Peer Review

EXECUTIVE SUMMARY THE MORE THAT FIRMS know about peer review, the easier the process will be. COMMON MYTHS ABOUT THE PROCESS include that checklists are required, that firms must create elaborate quality control documents and that a firm has no say in the selection of the reviewer. And more than

NEWS

IRS sets start date for tax season

The IRS announced that tax season will start in late January and that it will issue refunds to taxpayers despite the partial shutdown of the federal government.

PODCAST

Why CPAs can’t wait on automation tools

What do accounting firms waiting on others to develop AI, automation, and data analytics tools have in common with a baseball fan sitting in a stadium filling with water at an exponential rate? The answer could determine your firm’s fate.