The Senate brings the SEC to full strength by confirming the nominations of four commissioners: Paul S. Atkins and Cynthia A. Glassman of Virginia, Harvey Jerome Goldschmid of New York and Roel C. Campos of Texas ( www.senate.gov/legislative/legis_act_nominations_confirmed_civilian.html ). Atkins, Goldschmid and Campos will serve out the remainder of terms
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International
The International Accounting Standards Board publishes an exposure draft of a group of proposals, First-time Application of International Financial Reporting Standards ( www.iasb.org.uk/docs/ed1/ed1.pdf ), intended to ensure that entities adopting these standards provide in their financial statements information comparable to that reported under previous standards. The board wants to make
Government
The Federal Accounting Standards Advisory Board issues Technical Bulletin 2002-1, Assigning to Component Entities Costs and Liabilities that Result From Legal Claims Against the Federal Government ( www.fasab.gov/pdf/presreltb.pdf ). According to the guidance, all such costs and liabilities must be attributed either to the component entities responsible for the programs
Fraud
The Treasury Department issues the 2002 National Money Laundering Strategy ( www.treas.gov/offices/enforcement/ml.html ), a report that describes a governmentwide effort to fight financial crime and to shut down terrorist organizations’ funding sources.
Billing Schemes, Part 4: Personal Purchases
This is the final installment in a four-part series on identifying false invoices and their issuers. The July and August columns focused on billing schemes involving shell companies criminals set up to facilitate fraud. Articles in this issue and September explain how to detect and prevent two scams that
A Perspective on Audit Malpractice Claims
EXECUTIVE SUMMARY CPAs CAN USE DATA ON AUDIT MALPRACTICE claims filed with CNA, which underwrites 22,000 CPA firms in the AICPA professional liability insurance program, to help them avoid high-cost claims when they audit nonpublic entities such as private companies, governments or NPOs. MOST NONPUBLIC AUDIT CLAIMS ARISE
Billing Schemes, Part 3: Pay-and-Return Invoicing
This is the third article in a four-part series on identifying false invoices and their issuers. It explains the pay-and-return billing scheme, in which an employee creates an overpayment to a vendor and pockets the subsequent refund. The other stories focus on shell companies (See JofA, Jul.02, page 76
Accounting
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. AcSEC exposes a draft statement of position, Accounting for Derivative Instruments and Hedging Activities by Not-for-Profit Health Care Organizations, and Clarification
Billing Schemes, Part 2: Pass-Throughs
This is the second article in a four-part series on identifying false invoices and their issuers. July’s and August’s columns focus on billing schemes involving shell companies criminals set up to facilitate fraud. Articles in the September and October issues will explain how to detect and prevent two scams
Fraud
A GAO report ( www.gao.gov/new.items/d02676t.pdf ) on the use of purchase cards at the Education, Navy, Agriculture, Interior and Transportation departments reveals internal control weaknesses permitted thousands of unauthorized or questionable transactions between 1998 and 2001, involving potentially millions of dollars in waste and abuse. The watchdog agency discovered failures
Education
The AICPA and NASBA sign an agreement with Prometric, a designer of technology-based testing services, under which CPA candidates will be able to take a computerized uniform examination at more than 300 locations in early 2004 ( www.aicpa.org/news/2002/p052802.htm ). The electronic test will differ from its paper predecessor not only
Corporate Governance
The Business Roundtable, a trade group representing 150 of the nation’s largest companies, issues Principles of Corporate Governance ( www.brtable.org/pdf/704.pdf ). The publication provides a set of best practices for senior management, the board of directors and others in the corporate hierarchy to ensure companies comply with applicable regulations and
Government Accounting
GASB issues Statement no. 39, Determining Whether Certain Organizations Are Component Units ( www.gasb.org/news/nr052802.html ). Under it state and local governments with certain fundraising organizations, such as not-for-profit foundations that have a relationship with public universities and/or school districts, must include in their financial statements separate presentations of those subordinate
Professional Issues
The AICPA professional ethics executive committee issues an exposure draft ( www.aicpa.org/members/div/ethics/ed020617.htm ) with revisions of five independence interpretations and/ or rulings. The proposed changes relate to trustee or executor relationships with clients, former practitioners and firm independence, relationships with entities included in government financial statements, auditors of insurance companies
Employee Benefits
The Department of Labor made final a rule ( www.dol.gov/pwba/regs/fedreg/final/2002008499.htm ) giving employee benefit plan administrators the option of using e-mail, the Internet and other computer-based systems for making, to participants and beneficiaries, disclosures required by the Employee Retirement Income Security Act of 1974 (ERISA). Under the provision, which takes
Financial Reporting
The SEC proposes rules requiring CEOs and CFOs of publicly traded companies to certify their organizations’ quarterly and annual reports are accurate, timely and contain all the information a “reasonable” investor would consider “significant” ( www.sec.gov/news/press/2002-88.htm ). The rules also would cut to two business days—from the current five to
Auditing
The auditing standards board issues SAS no. 97, Amendment to Statement on Auditing Standards (SAS) no. 50, Reports on the Application of Accounting Principles. The new statement (see Official Releases, page 90), which is effective for written reports issued or oral advice provided on or after June 30, amends SAS
FYI
The Financial Accounting Standards Advisory Board issues Implementation Guide to the Statement of Financing in Statement of Federal Financial Accounting Standards No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting ( www.fasab.gov/pdf/ig7sof.pdf ). It illustrates concepts underlying the statement of financing, in
International
The European Union adopts a provision requiring EU-listed companies, including banks and insurers, to prepare their financial statements, beginning in January 2005, in accordance with international accounting standards ( www.fee.be/european/eunews.htm ). European regulators believe the directive will increase the reliability, transparency and comparability of member states’ consolidated accounts, thus promoting
Don’t Lose Sight of Enduring Values
“The Crisis in Accounting Education” encourages CPAs to become involved in helping to improve accounting education because they are in the best position to provide expert insight. The business environment has changed rapidly, and the accounting profession’s response to these changes may indeed be visionary in some respects. However, some
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How to find the right CAS clients
The key to success with CAS is selecting the best clients. Tools like ideal client profiles (ICPs), buyer personas, and even artificial intelligence can help identify the businesses that best fit each CAS practice.
From The Tax Adviser
March 31, 2026
Current developments in taxation of individuals: Part 1
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Current Developments in Taxation of Individuals: Part 1
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