CPA firm practice management news and resources

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June 1, 2004

Help Companies Assess Their Internal Audit Needs

Now that the SEC has approved the November 2003 New York Stock Exchange rule that listed companies must have an internal audit function, clients and employers are asking their CPAs how it might affect their businesses and exactly what it requires. Here’s a list of frequently asked questions and responses

June 1, 2004

Marketing Materials and Malpractice Exposure

EXECUTIVE SUMMARY CARELESS ADVERTISING ASSERTIONS can lead to lawsuits. When a plaintiff’s lawyer evaluates a potential accounting malpractice claim, he or she typically will examine all of the advertising materials the CPA provided to the client. ADVERTISING THAT CREATES FALSE or unjustified expectations of favorable results is prohibited by law.

June 1, 2004

Small Firms: Think Big!

EXECUTIVE SUMMARY THE SARBANES-OXLEY ACT HAS CREATED new requirements for public companies, spurring greater demand for professional services and for a range of engagements that offer opportunities to well-positioned smaller firms. ONE RESULT IS A CHAIN REACTION in which the big firms are going to focus on certain services and

May 1, 2004

The Best-Laid Plans

EXECUTIVE SUMMARY DISASTER ARE UNPREDICTABLE , and one disruption may cause others, so a firm should test its preparedness plan to make sure it will do what it’s supposed to: locate the firm’s people, obtain equipment and support, access job-file and system backups and put staff to work in an

April 1, 2004

The Rich Truly Are Different

EXECUTIVE SUMMARY CPAs WILL FIND THAT ULTRAWEALTHY CLIENTS DEMAND a broader range of services and skills than the merely wealthy. To serve this group, CPAs will need to tailor their offerings and sharpen their estate planning and investment management skills. Most financial planners define the truly rich as families with

February 1, 2004

To Compete or Noncompete

EXECUTIVE SUMMARY ONE RISK EVERY CPA FIRM SHOULD CONSIDER is the possibility departing employees may attempt to take clients of the firm with them. Firms can use a noncompete agreement to prevent an employee from engaging in such actions. TO ENSURE AN ENFORCEABLE NONCOMPETE AGREEMENT, a firm should make sure

January 1, 2004

Make Money With Basic Accounting Software

EXECUTIVE SUMMARY SMALL BUSINESS ACCOUNTING SOFTWARE is providing new client-service opportunities for CPA firms because clients need just as much help as ever, with basic installation and weekly bookkeeping to higher-value accounting, financial reporting and management consulting. THE MARKET FOE ENTRY-LEVEL ACCOUNTING software is large because there are so many

January 1, 2004

Tool Facilitates Course Design

In November the AICPA launched its Educational Competency Assessment Web site ( www.aicpa-eca.org ), a resource accounting educators will find useful for designing courses that help students develop the skills-based competencies entry-level accountants need.

January 1, 2004

MAP Survey Highlights Staffing Worries

The AICPA management of an accounting practice (MAP) committee released in October the results of its nationwide poll of CPA firms of all sizes ( www.aicpa.org/download/news/map_top_five_2003_release.pdf ). More than 1,000 practitioners participated. For the sixth consecutive year, finding and retaining qualified staff was respondents’ top concern. Other issues they identified

January 1, 2004

Calling Aspiring Committee Members

The Institute is accepting applications for the October 2004–2005 committee year. Members interested in contributing to the profession and networking with peers have until May 1 to file an application at http://volunteers.aicpa.org/apply . Additional information is available from David Ray by phone at 212-596-6030 or e-mail at committee@aicpa.org .

January 1, 2004

CPA2Biz Financial Results Improve

At the fall council meeting, CPA2Biz reported that for the year ended July 31, 2003, its operating loss narrowed 90.5% to $3.2 million from $33.8 million ( www.cpa2biz.com/Corp/Press+Releases/ ). In addition, based on revenues of more than $14 million, CPA2Biz projects a break-even cash flow for the year ending July

January 1, 2004

Three Enter Business & Industry Hall of Fame

The AICPA and Ajilon Finance, which provides accounting and financial staffing services, inducted three CPAs into the Institute’s Business & Industry Hall of Fame in October. John Morrow, AICPA vice-president for new finance; award winners Glen M. Elias and Hubert C. Maddy III; and Neil Lebovits, Ajilon president and chief

January 1, 2004

TTA Now on CD

For the first time, the AICPA tax section’s annual Tax Practice Guides & Checklists CD will contain a full year’s worth of The Tax Adviser (TTA) . The CD, which is sent automatically to tax section members each year, will include the January–December 2003 issues of TTA in Adobe Acrobat

January 1, 2004

Institute Honors Kessler

Stuart Kessler, CPA, a partner of Goldstein Golub Kessler LLP and former AICPA chairman, receives the 2003 Gold Medal for Distinguished Service—the Institute’s highest award—from AICPA President and CEO Barry C. Melancon (right) and past chairman William F. Ezzell during the fall council meeting. Kessler also performed many other activities

January 1, 2004

Government Agency Needs CPAs

January 1, 2004

Military Call-Up Prompts Focus on USERRA

EXECUTIVE SUMMARY THE UNIFORMED SERVICES EMPLOYMENT AND Reemployment Rights Act of 1994 (USERRA) gives employees who take a leave of absence for active military service certain statutory rights—not only to reemployment but to specific coverage for retirement and wellness benefits. THE LAW APPLIES TO ALL EMPLOYERS in the United States,

January 1, 2004

Working With a Solicitor to Get New Business

EXECUTIVE SUMMARY THE SARBANES-OXLEY ACT HAS HAD a far-reaching impact on CPA firms, whether large, midsize or small. Firms that audit public companies have been working out strategies for coping successfully in their internal operations as well as in their relations with clients and prospects. THE STEPPED UP INTERNAL AUDIT

January 1, 2004

Purcell Fills No. 2 Spot on Tax Committee

Thomas J. Purcell III, CPA, became the first educator selected as the tax executive committee’s vice-chairman. He is an associate professor of accounting and a professor of law at Creighton University, where he has been a faculty member since 1979. Those holding this post generally become chairman the following October.

January 1, 2004

Education Award Nominees Sought

The Institute invites state CPA societies and individuals to nominate accounting educators for the 2004 AICPA Distinguished Achievement in Accounting Education Award, which recognizes full-time college accounting educators who excel in teaching and are nationally prominent in the profession. Nominations are due February 1. More information on eligibility requirements and

December 1, 2003

Tax-Planning Services for Clients or Employers

EXECUTIVE SUMMARY THE AICPA ISSUED INTERPRETATION NO. 1-1, “Tax Planning,” of Statement on Standards for Tax Services no. 1, Tax Return Positions , partly in response to congressional inquiries about how the AICPA Code of Professional Conduct disciplines members who are involved with abusive tax shelters. It is effective December