EXECUTIVE SUMMARY SAS no. 103 establishes standards and provides guidance for auditors to follow when documenting their work during audits of private companies. It is effective for audits of financial statements of such companies for periods ending on or after December 15, 2006. The terms must, should and may as
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TOPICS / AUDIT & ASSURANCE
Audit
The New World of Auditing Standards
A conversation with the ASB. ver the past several years the Sarbanes-Oxley Act and other events have dramatically affected the setting of auditing standards and the focus of the audit process. While the act requires auditors of public companies—the issuers—to follow the Public Company Accounting Oversight Board’s (PCAOB) auditing standards,
Taxing LTC Premium Refunds
“ LTC Insurance for Owners and Executives ” ( JofA , Mar.05, page 53) speaks about the advantages of using a C-corporation as a funding vehicle for long-term-care insurance. The article is quite useful. However, one issue needs to be clarified. The article talks about the “return or refund of
Crowding on Millionaires Row
SURVEY SAVVY T he number of U.S. households with more than $1 million in net worth (excluding the primary residence) has increased for the third consecutive year. Surprisingly the rise was fueled neither by real estate investments nor stock market growth but, instead, by the householders’ long-term accumulation of wealth.
Key Issues in Global Reporting
ON THE RECORD Patricia McConnell, CPA, senior managing director, Bear Stearns & Co., New York, speaking at the AICPA Business & Industry Financial Executive Forum, October 27, 2005. “ Section 404 of Sarbanes-Oxley really has no teeth itself. The bite, if a company is noncompliant, is the market reaction caused
Improve Computer Training
Many prepackaged computer training programs fail to discriminate between what trainees already know and what they need to learn. Following are guidelines for making such technology training useful: Ask trainees whether they would rather attend group classes, have one-on-one sessions or do self-training with audio tapes or manuals. Most people
Golf Courses
Top Ten Golf Digest picks the country’s best links. 1. Pine Valley Pine Valley, N.J. 2. Augusta National Augusta, Ga. 3. Shinnecock Hills Southampton, N.Y. 4. Cypress Point Club Pebble Beach, Calif. 5. Oakmont Country Club Oakmont, Pa. 6. Pebble Beach Golf Links Pebble Beach, Calif. 7. Merion Ardmore, Pa.
Bill Gates Quote
As Quoted “ Your most unhappy customers are your greatest source of learning. ” —Bill Gates, in his book Business @ The Speed of Thought
SOX and Nonissuing Organizations
“ Stay Out of Trouble ” ( JofA, Aug.05, page 67) highlighted an important issue regarding the confusion over auditing standards for nonissuing organizations. Certainly, some of this confusion stems from the underlying intentions of Sarbanes-Oxley. The act, hastily issued in response to the lack of accountability and transparency in
Convergence: In Search of the Best
EXECUTIVE SUMMARY THE CONVERGENCE AGREEMENT BETWEEN FASB and the IASB is significantly affecting U.S. and international financial reporting. THERE IS NO SINGLE PATH TO CONVERGENCE , but an open-minded pursuit of the highest quality guidance should result in standards that foster superior financial reporting. CONVERGENCE WILL REQUIRE CHANGES
Don’t Let Them Walk
GOLDEN BUSINESS IDEAS After a company has invested in training them, many employees leave for better-paying jobs. In some respects, employers create the problem when they place more emphasis on hiring candidates based on their skills rather than on their history of loyalty. A history of frequent job-switching is likely
Letters to the Editor
Letters to the Editor The JofA encourages readers to write letters on important professional issues in addition to comments on published articles. Because space is limited, letters submitted for publication should be no longer than 500 words. Please include telephone and fax numbers. JofA e-mail address: JOAED@aicpa.org .
A Social Security Solution
“ Promises to Keep ” ( JofA , Jul.05, page 41) did an excellent job of comparing the seven social security reform bills to current law. I’m glad it reminded CPAs “it’s time to get involved” to “help the public understand the plans before us and perhaps help shape even
Bookmarks
The Ultimate Accountants’ Reference: Including GAAP, IRS & SEC Regulations, Leases, and More By Steven M. Bragg 774 pages; hardcover John Wiley; Hoboken, N.J. 2004 I n this one-volume desk reference, CPAs can find concise answers to important issues that arise during a typical business day.
What Workers Want
SURVEY SAVVY Source: Survey of 1,400 CFOs of companies with 20 or more employees, Accountemps, Menlo Park, Calif., www.accountemps.com , 2004.
Leaders on Tap
TOP TEN The most important factors in growing and retaining leaders over the next 10 years will be 1. A formal leadership development strategy. 2. The support of top management. 3. A formal succession planning process. 4. Recognizing that leaders must develop other leaders. 5. A big enough budget. 6.
To the Rescue
SIGN OF THE TIMES A s family members from New Orleans settled safely into his Houston home, CPA Richard Forrest was approached by a friend who wasn’t so lucky; he had lost touch with his 80-year-old parents as Hurricane Katrina battered the city. So like any good neighbor, Forrest fueled
Stop Identity Theft in Three Steps
NUMEROLOGY Your credit card bill arrives in the mail and you spot what might be a fraudulent charge—an item purchased in a place you’ve never been or something you know you didn’t buy. How do you correct the error? STEP 1. Call the credit card company immediately to inform them
Given Their Druthers
NUMEROLOGY When asked what they would do if money was no object and they had young children, 53% of executives said they would continue to work, but at a reduced load. 39% said they would devote themselves full-time to the family, opting to become stay-at-home parents. 9% said they’d continue
Different Standards for Nonpublic Companies?
Many members of the AICPA believe FASB-promulgated GAAP should not be applicable to nonpublic business entities (NBEs). The AICPA’s council now is asking FASB “to identify and implement a process that would evaluate, where appropriate, potential changes to recognition, measurement and disclosure differences from current GAAP as applied to public
Features
FROM THIS MONTH'S ISSUE
Tax season quick guide
Get ready for tax season with the JofA’s annual filing season quick guide, an easy-to-use compilation of dollar thresholds, tax tables, standard amounts, credits, and deductions. Download and print for quick reference this tax season.
From The Tax Adviser
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Practical tax advice for businesses as a result of the OBBBA
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Digital asset transactions: Broker reporting, amount realized, and basis
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