Our profession needs to establish “ethical billing standards” that in essence would force accounting professionals to charge a statutory fee for providing assurance services. Barring professionals from underbidding jobs would reward those who conform to the standards of the profession. The current competitive bidding process does not take into account
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Forensic services
Not All CPAs Cover the Same Territory
After reading “Who Are We as a Profession—and What Must We Become?” ( JofA, Feb.00, page 81) I’m very concerned. At this point, to be a CPA is to be multidisciplined. However no one person can be fully knowledgeable in all aspects of the profession. The point of the article
Fraud
U.S. Wants CPAs to Help Fight Money Laundering A federal government report issued in March shed light on how federal agencies battling money laundering think CPAs may, in the future, help prevent criminals from converting their illicit gains into cash or goods that can be used legitimately. The National Money
Early Retirement Benefit Overlooked
“Coping With Retirement” ( JofA, Dec.99, page 67) ignores the most important benefit available to workers who retire before age 59 1/2 with 401(k) plans and IRAs and need additional income to supplement their pensions before Social Security benefits kick in. The article states most arrangements provide a penalty for
On Fraud and CPAs
I enjoyed reading “To Catch a Thief” ( JofA, Mar.00, page 43) because the information is presented in a way that’s particularly accessible to CPAs. Also, the article underscores the gap between the limited work that CPAs can do to find fraud and what people believe they can do. Most
To Catch a Thief
FRAUD Ask the right questions to uncover fraud. TO CATCH A BY JAMES D. HANSEN AND THOMAS A. BUCKHOFF EXECUTIVE SUMMARY EMPLOYEE FRAUD is big business—and getting bigger. As corporate automation grows, fraud opportunities rise apace and their detection and prevention become more problematic. AS A RESULT, BUSINESSES must
Counseling Clients on Credit
EXECUTIVE SUMMARY WITH CONSUMER DEBT AT AN ALL-TIME HIGH, CPAs need to help clients focus more attention on debt management. The Federal Reserve says Americans owed $1.33 trillion, excluding mortgage debt, at the beginning of 1999. MOST LENDERS AND CREDIT COUNSELORS RECOMMEND that families limit debt payments to 36% of
The CPA As E-Consultant
FEBRUARY 2000 VOLUME 189, NUMBER 2 Editorial Staff Publisher/Editor-in-Chief Colleen Katz Executive Editor Barbara J. Shildneck Managing Editor Elizabeth Uva Senior Editors Katharine W. Coveleski Peter D. Fleming John von Brachel Michael Hayes Emily S. Plishner Stanley Zarowin Senior News Editor Robert Tie Associate News Editor Mavis C.
Line Items
Law Fees Not Deductible A corporation paid an annual retainer of $100,000 to a law firm that specializes in corporate takeovers. The corporation thereby obtained the firm’s expertise and precluded the firm from accepting the corporation’s competition as clients. The agreement gave the corporation the right to use the firm
SPECIAL REPORT
Not All Trusts Are Trustworthy There’s something about the word trust that makes people feel secure. In the financial world, however, the use of that word can be deceiving. Each year the IRS investigates fraudulent trust schemes that promise participants they will reduce or eliminate income taxes. In recent years,
By the Numbers
Shedding Light on Fraud Fraud occurred more frequently in smaller companies (companies with less than $100 million in total assets) than in larger ones, according to a COSO study. Other findings of the study, which analyzed cases of fraudulent financial reporting at more than 200 companies, include the following:
Library Spotlights Tax History
The newly created Tax History Foundation and Museum opened a library in Northfield, Illinois, dedicated to tax, accounting and business history. It encompasses more than 350 volumes of tax court cases and memorandum decisions and includes secondary sources on taxation and economic history. H. Elliott Lipschultz, executive director and creator
IRS Publishes Top Errors
The IRS recently listed the most common errors professional tax preparers made on returns. The list reflects 1040 form information received by the IRS through May 19, 1999. Taxpayer identification numbers or names for dependents on returns didn’t match the IRS or Social Security (SS) records. (The IRS didn’t allow
Kick the Habit
At the same time Congress has pressed for antitobacco legislation and settlements against cigarette manufacturers, the IRS has been denying the deductibility of stop-smoking programs. In revenue ruling 79-162 (1979-1 CB 116), the IRS held that a taxpayer who had no specific ailment or disease could not deduct participation in
A Hit Isn’t Justa Hit Anymore
Exhibit 2 of the article, “Get into E-Commerce Without Betting the Store,” ( JofA , May99, page 60) explains the difference between a “hit” and a “visit” to a Web site. The term “hit” was initially used by the information technology (IT) community as a rough measure of Web site
Kudos for the New JofA
Thanks for the new expanded industry and technology content in the May 1999 issue. You have made the JofA a much more useful tool for members in business and industry. Keep up the good work. I look forward to more articles of this nature in the future. Randy A. Webb,
CPAs, CFEs and Fraud
“The CPA As Sleuth: Working the Fraud Beat” ( JofA , Apr.99, page 20) was very interesting and provided some excellent tips on how to investigate fraud. The article, however, assumes that CPAs are knowledgeable enough in matters of fraud to provide an efficient and effective fraud examination. This is
Ads Neglect Women
In the January 1999 JofA, I noticed all but two advertisements pictured only men. The first exception was the advertisement for AICPA insurance (page 70); the second exception (page 87), showed two women involved in a flurry of activity while a calm male handled the situation with a telephone call.
Bottom Line Still Top Management’s Focus
The article “Accounting—The Digital Way” ( JofA, May99, page 99) cited the need for executive commitment as a cultural element essential to putting enhanced financial reporting systems into place. I agree, but the ability to clearly demonstrate to executive management the bottom-line benefit of a new system’s expected efficiency gain
Unhappy Merger—Happy Ending
Many of the problems I experienced in the unsuccessful merger of my practice with a larger firm were not covered in your article, “Solo, But Not Alone” (JofA, Apr.99, page 35). My practice grossed $50,000 its first year, and I was averaging two to three new referrals a week. Suffering
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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.
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