For news from the AICPA and state societies, visit www.cpa2biz.com, which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. The findings were based on inspections conducted between 2004 and 2006. The PCAOB released a report on the deficiencies to help
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Forensic services
Privilege Claims Under Fire
Despite some legal setbacks, the IRS has signaled it will continue to press for a strict reading of the work product privilege that protects taxpayer documents from discovery. With Action on Decision 2007-004, the IRS said it will not acquiesce in the Sixth Circuit’s holding in U.S. v. Roxworthy that
Your Check Is in the Mail
Sabrina Walker of Minneapolis must have been one happy camper—at least for a while. It seems that in March the state of Minnesota inadvertently cut a $2.5 million check to her instead of the Hennepin County Medical Center, the intended recipient. Walker’s only other dealing with the state’s accounting system
Financial Services Bear Brunt of Losses
“The risk of fraud is part of doing business. It can even be considered a consequence.” According to a joint survey of 892 senior executives by Kroll, a risk consulting company, and the Economist Intelligence Unit, the statement above by Andres Antonius, president of Kroll’s consulting group, rings especially true
What Is Your Fraud IQ?
Fraud detection class is now in session. It’s time to put your smarts to the test and see how you score on these questions from the Association of Certified Fraud Examiners. 1. According to ACFE’s 2006 Report to the Nation on Occupational Fraud and Abuse , the typical organization
Stolen Without a Gun
by Walter Pavlo Jr. and Neil Weinberg Etika Books, 2007, 312 pp. For nearly four decades, I have been investigating, researching and writing about occupational fraudsters. From the mailroom to the boardroom, what these criminals have in common is the inability to commit fraud once and quit. So it was
Limit Your Loss
With the holiday shopping season around the corner, Americans will not only stack up gifts, but rack up credit card purchases. As spending increases, so does the likelihood of falling victim to identity theft or fraud schemes. Each payment method—including credit or debit cards, cash, checks or electronic payments—carries varying
Prepare for Cross-Border Investigations
Among 103 senior executives responsible for cross-border investigations, 56% cited proper planning and 40% cited the effective use of internal resources as the primary drivers of successful investigations. Richard H. Girgenti, the Forensic National Practice leader for KPMG LLP, suggests the following tips to improve international fraud investigations: Assess investigation
Fashioning a Fraud
EXECUTIVE SUMMARY Businesses must clearly define the roles and responsibilities of employees who sign expense reports and those who process the reports. That should eliminate confusion about whether a manager’s signature means that the individual is authorizing the expenses as reasonable business expenses or signifies that the
Assessing Fraud Risk
Every organization faces some risk of fraud from within. Fraud exposure can be classified into three broad categories: asset misappropriation, corruption and fraudulent financial statements. Answering the following 15 questions is a good starting point for sizing up a company’s vulnerability to fraud and creating an action plan for lessening
It’s Not Brain Surgery
Sharp-eyed auditors for a health insurance provider noticed something that had them scratching their noggins. According to reimbursement records, Stanley Cannella, his wife and their two sons had undergone nine brain surgeries in three years at a cost in excess of $142,000, with Cannella receiving reimbursement three separate times for
Banking
For news from the AICPA and state societies, visit www.cpa2biz.com, which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. The statement describes prudent safety, soundness and consumer protection standards that lending institutions should follow to ensure borrowers obtain loans they can
Compliance
A study by Lord & Benoit, a firm specializing in SOX compliance, identified what it described as the 10 leading material weaknesses among 148 companies with revenue of less than $100 million. Companies with effective internal controls were excluded from the study. Nearly two-thirds of the companies with material weaknesses
Crackdown on Fraudulent Tax Return Preparers
Recent criminal and civil enforcement against fraudulent tax preparers has been highlighted in stepped-up activity by the Treasury and Justice departments. Total investigations initiated by the IRS’s Criminal Investigations division rose in fiscal year 2006 from the previous year, as did the division’s time spent on tax-related
Data Point: 12,748
The number of companies using the five-story Ugland House in George Town, Cayman Islands, as their address. The office building was mentioned in several Senate committee hearings regarding U.S. tax compliance implications and tax havens. Source: Senate Finance Committee, http://finance.senate.gov .
All That Glitters Is Not Gold
According to police, Jadyn Sessing, of Farmington, Minn., had a bad, bad gambling problem. Authorities say that Sessing, an assistant day manager at Cooperative Plating, fed his addiction by stealing small amounts of silver from his employer over the past three years. Although the plant noticed the shortages right away,
Stakes Raised on Oversized Refund Claims
Taxpayers who receive “excessive” refunds can now be tagged with a 20% penalty on the overpayment. The provision is one of several revenue enhancers included in the recently passed Small Business and Work Opportunity Tax Act of 2007. The change to IRC § 6676(a) assesses the penalty on any claim
Wading Into Litigation Support
EXECUTIVE SUMMARY CPAs can provide valuable services as litigation support consultants in lawsuits involving business damages. This analytical role allows CPAs to enter the litigation support business before taking on the greater challenge of being an expert witness. Before accepting an engagement, the CPA should ask
Fraud
The federal Identity Theft Task Force launched a new Web site at www.idtheft.gov that outlines the Task Force’s Strategic Plan for preventing identity theft, assisting victims of identity theft crimes and prosecuting identity thieves. The Strategic Plan was developed with input from 17 federal agencies. The Task Force, which was
Tip Your Hat to Tipsters
The Association of Certified Fraud Examiners found occupational frauds are more likely to be detected by tips (34% of cases) than by internal audits (20%), external audits (12%), internal controls (19%) or police alerts (4%); accidental detection uncovered fraud 25% of the time. In some of the 1,134 cases studied,
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From The Tax Adviser
March 31, 2026
Current developments in taxation of individuals: Part 1
March 31, 2026
Current Developments in Taxation of Individuals: Part 1
March 6, 2026
