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March 8, 2012

Finance executives’ outlook on U.S. economy improving, survey shows

CPA financial executives displayed a more positive but still wary view of the U.S. economy in the most recent quarterly Business and Industry Economic Outlook Survey, released Thursday by the AICPA. Those indicating optimism for the U.S. economy increased from 19% in the previous quarter to 43%. Optimists outnumbered pessimists

March 8, 2012

Accounting and finance hiring expected to be flat in Q2

Hiring in accounting and finance is likely to be flat in the second quarter of 2012 in the United States even though CFOs are confident in their business prospects for that period, a Robert Half survey shows. Ninety-one percent of CFOs said they don’t expect to change their accounting and

March 2, 2012

COSO explores common judgment traps, lays out five-step decision-making process

Many faulty business decisions can be traced to “confirmation bias” that leads people to unwittingly seek information that bolsters what they want to believe, says Brigham Young University accounting professor Doug Prawitt. “We don’t realize it when we do that, but it’s a very, very powerful human bias,” he said

March 1, 2012

Internal control, revisited

For about 20 years, the popular internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) has been like a favorite tool in a craftsman’s shop. Its guidance has held up over time with original components that have been so sound that a large majority of

March 1, 2012

A strategic approach to IT budgeting

Organizations of all types struggle with information technology (IT) budgeting. This often happens because the IT team doesn’t understand the budgeting process and the finance team doesn’t understand IT. CPAs, whether in public practice, business and industry, the not-for-profit sector or government, can remedy this disconnect by changing their organization’s

March 1, 2012

Helping CEOs connect the dots

The business world is experiencing an extraordinarily challenging period. The multiple pressures exerted on executives in terms of global competition, increasing regulation, climate change and growing expectations from consumers has resulted in a call for a new business paradigm. At the end of last year, the AICPA joined forces with

March 1, 2012

Risk with donor pledges

In the white paper Measurement of Fair Value for Certain Transactions of Not-For-Profit Entities, the AICPA’s Financial Reporting Executive Committee (FinREC) provides guidance to not-for-profits on considering risk when determining the fair value of a donor’s unconditional promise to give. Considerations may include: To account for risk, not-for-profits can use

February 28, 2012

SEC proposes identity theft “red flags” rules to protect investors

Broker-dealers, mutual funds and other SEC-regulated entities would be required to create programs to detect and respond appropriately to identity theft red flags under an SEC rules proposal announced Tuesday and issued for public comment. The proposed rules are designed to protect investors from identity theft and are similar to

February 2, 2012

January job cuts, led by retail, rise from year-ago low

Job cuts announced by U.S. employers increased in January, a month that traditionally sees significant post-holiday retail layoffs, according to a report released Thursday. The 53,486 job cuts announced last month was the highest monthly total since 115,730 layoffs were announced in September, global outplacement firm Challenger, Gray & Christmas

February 1, 2012

What’s your fraud IQ?

Fraud in the form of corruption compromises the integrity of the world economy, stunting economic growth and causing political and social upheaval. To help combat corruption, Congress passed, and President Jimmy Carter signed, the Foreign Corrupt Practices Act (FCPA) in 1977. Recent, more rigorous enforcement of the FCPA, combined with

February 1, 2012

Three common currency-adjustment pitfalls

Although the rules on accounting for foreign-currency translations have not changed in many years, mistakes in this area persist. Such mistakes can result in misstatements in financial reporting, hurting the bottom line, creating false understandings of business results, and exposing companies to possible regulatory scrutiny. A key factor raising the

January 31, 2012

CEOs seeking value in human dimension of business

The human dimensions of business – areas such as talent development, intellectual property and relationships with suppliers and customers – will be the primary focus of top executives during the next 18 to 24 months. And one of their first challenges will be determining the value of these factors to unlock

January 31, 2012

CGMA launch focuses on nonfinancial value, long-term business strategies

A panel of executives meeting in the finance capitals of New York City and London discussed new research Tuesday on the importance of the human dimension and nonfinancial value in long-term business strategies. The event, hosted by the AICPA and the Chartered Institute of Management Accountants (CIMA), was part of

January 30, 2012

Forum connecting major financial capitals will highlight CGMA launch

An interactive forum featuring business leaders in London and New York connected via satellite will highlight Tuesday’s launch of the new Chartered Global Management Accountant (CGMA) designation. The AICPA and the Chartered Institute of Management Accountants (CIMA) are hosting the panel of business and finance leaders, who will examine the

January 23, 2012

COSO Chair says updated framework is a ‘refresh’

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) issued an exposure draft seeking comments on an updated internal control framework designed to help organizations perform with efficiency and confidence. COSO Chairman David Landsittel and the JofA discussed the updated framework, which keeps the same definitions, objectives and five

January 21, 2012

Management of “risk appetite” a necessity, paper says

In order to balance risks and opportunities, organizations must develop, communicate, monitor and update their “risk appetites,” according to a white paper released Friday by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Authored by University of Wisconsin-Madison accounting professor Larry Rittenberg and Frank Martens, a director in the

January 20, 2012

Technical Practice Aids issued on SOC reports

The AICPA issued Technical Practice Aids (TPAs) 9520.12–.26 to provide nonauthoritative guidance regarding Statement on Standards for Attestation Engagements (SSAE) no. 16, Reporting on Controls at a Service Organization (AICPA, Professional Standards, AT sec. 801). The TPAs provide guidance for service auditors reporting on controls at a service organization relevant

January 19, 2012

IT budgets stagnant in 2012, according to survey

Worldwide IT budgets are expected to be flat in 2012, when IT budgets in North America and Europe are expected to decline, according to a global survey of chief information officers (CIOs) by Gartner Inc.’s Executive Programs. Conducted in the fourth quarter of 2011, the survey of 2,335 CIOs, covering

January 1, 2012

Board of education: Client advisory board implementation action plan

Editor’s note: Also read “Board of education: CPA firms, businesses can profit from clients’ advice,” in the Jan. 2012 issue of the JofA. Here is a step-by-step client advisory board implementation plan developed by the AICPA’s Private Companies Practice Section. More client advisory board tools are available to PCPS members

January 1, 2012

A new system for recognizing revenue

FASB and the International Accounting Standards Board (IASB) in November released a revised proposal that would create a single revenue recognition standard for both U.S. GAAP and IFRS. The standard is designed to streamline accounting for revenue across industries and correct inconsistencies in existing standards and practices. The new standard