EXECUTIVE SUMMARY WHETHER WORKING IN THE FINANCE DEPARTMENT of a public company or advising that company as an outside consultant, CPAs are in a unique position to guide compensation committees in their role as corporate overseers and to help them better align compensation practices with shareholder interests. CPAs
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TOPICS / AUDIT & ASSURANCE
Audit
The Surprising Benefits of Nexus
EXECUTIVE SUMMARY THE FRANCHISE OR BUSINESS PRIVILEGE TAXES SOME states impose on nonresident companies that have an economic presence in the state can be difficult for small businesses to handle on their own. However, in the right circumstances, CPAs may be able to help clients and employers achieve overall
A New Accounting Culture
The following is adapted from a speech made by AICPA President and CEO Barry C. Melancon at the invitation of the Yale School of Management. Mr. Melancon spoke before a group of business professionals and representatives of the media at the Yale Club in New York City on September
Help Clients Take Measure
EXECUTIVE SUMMARY PERFORMANCE MEASUREMENT (PM) IDENTIFIES, monitors and improves those business activities that affect a company’s profitability. The method uses both leading (future) and lagging (past) indicators to assess how well a business is meeting its targets in the present. THE SEVEN ESSENTIAL STEPS FOR A PM system are: Prepare
The New Audit Documentation Requirements
EXECUTIVE SUMMARY STATEMENT ON AUDITING STANDARDS (SAS) no. 96, Audit Documentation, marks the first big change in the requirements auditors must observe when documenting their audit work. It provides general guidance on the nature and extent of documentation necessary to support the auditor’s report, and it reaffirms documentation’s role as
A New Scorecard for Intellectual Property
EXECUTIVE SUMMARY CPAs NEED TO ADVISE COMPANIES ON appropriate disclosure to financial statement users of intangible assets, acquired either separately or as part of a business combination. AUDITORS AND CORPORATE FINANCE EXECUTIVES must be aware of an important distinction in accounting for business combinations—certain intangibles such as intellectual property (IP)
The Standards Challenge
EXECUTIVE SUMMARY CPAs WHO IMPLEMENT ACCOUNTING STANDARDS at corporations are responsible for promoting the company’s accounting health and ensuring that management understands the impact of new regulations. THE FIRST CHALLENGE FOR ANY ACCOUNTING policy director is managing the sheer volume of output the regulators produce. The body of literature is
The XYZ Credential
SPECIAL TO THE JOURNAL OF ACCOUNTANCY Editorial written by Jim Emerson, president, The Emerson Company, which has been the leading analyst for the larger professional service firms for nearly 20 years. Emerson’s Opinions on Professional Services is a publication issued periodically by The Emerson Company and serves as a forum
Say Good-Bye to Pooling and Goodwill Amortization
EXECUTIVE SUMMARY NEW FASB STANDARDS prohibit the pooling-of-interests method of accounting for business combinations and require a purchase accounting method that does not allow goodwill amortization. The standards are a radical change, and management accountants, auditors and financial executives must understand and work with a very different accounting process.
A New Look at the Attestation Standards
EXECUTIVE SUMMARY CHANGES IN THE BUSINESS WORLD are creating more opportunities for CPAs to provide assurance on nonfinancial information. Practitioners are expanding their services by trading on the skills they’ve traditionally used to provide assurance on historical financial statements. TO BROADEN THE APPLICABILITY of the attestation standards, the Auditing
Outsourcing a 401(k) Plan
EMPLOYEE BENEFITS How to make the right choices. Outsourcing a 401(k) Plan BY MAUREEN NEVIN DUFFY EXECUTIVE SUMMARY WITH 401(k) BALANCES GROWING, SMALL AND MEDIUM- sized companies are finding themselves burdened with myriad responsibilities of operating a retirement plan for employees. Many companies are choosing to outsource the plan to
Want to Add to Your Professional Portfolio? The Proposed Global Credential—An Option for CPAs
Businesses today expect professional service providers to offer a broad business perspective and deliver value-added solutions to an expanding array of opportunities. There is a clear market need for professionals who can manage a rapidly changing business environment and provide solutions that integrate broad strategic business issues. Many CPAs have
CFOs in Europe Favor International Accounting Standards
Judging by a November survey of financial executives in Europe, there is considerable business community support for the European Commission’s (EC) June 2000 proposal to implement the IASC’s international accounting standards (IASs). The EC’s tentative plan to foster “comparable, transparent” reporting would, if approved by the European Union (EU), require
Auditing
The ASB issued Statement on Auditing Standards no. 93 in November (see Official Releases, page 116). Titled Omnibus Statement on Auditing Standards—2000, it discusses the following changes to three existing SASs: Withdrawal of SAS no. 75, Engagements to Apply Agreed-Upon Procedures to Specified Elements, Accounts, or Items of
Using Money Managers
EXECUTIVE SUMMARY ONE WAY CPAs CAN UPGRADE THEIR INVESTMENT advisory services is to offer their clients the services of individual money managers. Managed portfolios permit the CPA to gain more control over the investment process vs. mutual funds and to develop customized investment and tax strategies to meet clients’ special
Another Tax Saving Vehicle
I appreciated the article highlighting the tax impact of investment returns (“A Taxing Problem,” JofA, May00, page 51). My clients have also benefited from the tax efficiency of unit investment trusts (UITs). Typically targeted toward specific themes, such as worldwide wireless or Glass-Steagall companies, they have a buy-and-hold strategy to
News or Views?
The special report “ABA Gives Thumbs Down to Lawyers’ Fee-Sharing,” ( JofA, Sept.00, page 22) purports to be a news item, but in my opinion the editorial intent of the article cannot be mistaken. The House of Delegates of the American Bar Association, which may be referred to as the
More About Standards
I agree with the assessment of the letter writer regarding the FASB (“Agrees with Need for Change,” JofA, Sept.00, page 14). Some of the pronouncements are prime material for the repertoire of the Theatre of the Absurd. However, I do not believe the AICPA should be allowed to participate in
ISB Issues Employment Standard
In July the Independence Standards Board reaffirmed its earlier (June 1) approval of ISB Standard no. 3, Employment with Audit Clients. The guidance addresses independence concerns and updates rules for situations in which a professional or partner of an audit firm decides to join an audit client. According to the
JofA Not Just for Accountants Anymore
I recently spent a couple of hours in an after-hours medical clinic, waiting to see a doctor. There, I found a copy of the JofA. Even though I’m not in the accounting field, I really enjoyed the magazine. In particular, I recall reading a useful article describing how to generate
Features
FROM THIS MONTH'S ISSUE
AI risks CPAs should know
Are you ready for the AI revolution in accounting? This JofA Technology Q&A article explores the top risks CPAs face—from hallucinations to deepfakes—and ways to mitigate them.
From The Tax Adviser
January 31, 2026
Trust distributions in kind and the Sec. 643(e)(3) election
January 31, 2026
Effects of the OBBBA on higher education
December 31, 2025
