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
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Management accounting
Tax Services After Sarbanes-Oxley
EXECUTIVE SUMMARY THE PASSAGE OF SARBANES-OXLEY LEFT MANY TAX practitioners wondering where they fit in under these new rules. The act did not list most tax services as one of the prohibited nonaudit services but said firms could perform such functions for audit clients with audit committee approval. THE ACT
Finds DCA Strategy Lacking
I’m surprised that the article “ Investing After 50 ” included dollar-cost averaging (DCA) among the recommendations for CPAs who advise clients age 50 and over. Academic research over the past 20 years has shown that a DCA strategy does not necessarily result in superior returns even after adjusting for
A Strategy for Finding the Right Accounting Software
EXECUTIVE SUMMARY SHOPPING FOR ACCOUNTING SOFTWARE is difficult. The software must be just the right size, it shouldn’t contain more or fewer features than you need and you should feel secure that its publisher will be able to provide upgrades and fix bugs as needed. IT’S NOT ENOUGH TO EXAMINE
How Sarbanes-Oxley Will Change the Audit Process
EXECUTIVE SUMMARY SARBANES-OXLEY WILL MEAN BIG CHANGES FOR BOTH auditors and the companies they audit. The former now will be required to certify a company’s internal controls and will no longer be able to use certain common audit strategies. Management faces the cost of implementing the new rules. ACCORDING TO
CPAs as Audit Committee Members
EXECUTIVE SUMMARY WITH THE ADVENT OF SARBANES-OXLEY, CPAs ARE LIKELY to receive more invitations to serve on the audit committees of corporate boards of directors. Before accepting these offers, accountants should make sure they are ready for the time commitment and other responsibilities that come along with them. MANY CPAs
On U.S. Health Care
The article, “ Health Care Costs on the Rise ” ( JofA , May03, page 59), made me realize just how far the United States is from providing its citizens the basic human right of affordable health care. This article, like many similar ones I have been reading lately, discussed
Business Aircraft and Depreciation
When I read the article “ Deductibility of Business Aircraft ” ( JofA , Jul.03, page 57), I was surprised the depreciation issue was not discussed. In light of recent tax law changes, taxpayers may be allowed significant depreciation deductions if the aircraft is used for business purposes. Tax savings
Letters To The Editor
The JofA encourages readers to write letters on important professional issues in addition to comments on published articles. Because space is limited, letters submitted for publication should be no longer than 500 words. Please include telephone and fax numbers. JofA e-mail address: JOAED@aicpa.org .
Smart Stops on the Web
Search for Solutions www.knowledgestorm.com Information technology consultants and CPAs can register for free at this Web site and compare hardware and software in categories such as infrastructure and systems management and Web and applications development. The Business Solutions section includes links to accounting and finance, business intelligence and knowledge management
Maintaining Independence
As all CPAs know, the two great pillars of our ethical responsibility are independence and public disclosure. This formula goes back a long time, even before the establishment of the Securities and Exchange Commission. Today, the structure of our economy is greatly different from what it was when the profession
CPAs and Incidental Investment Advice
The article “ Investing After 50 ” ( JofA , Jun.03, page 20) tells CPAs how to advise their clients about investments. As a CPA and chartered financial consultant (ChFC), I have been working exclusively in financial planning and related services for several years. My primary market is working with
Before the Deluge—and After
EXECUTIVE SUMMARY BEING ABLE TO REACH STAFF IS PARAMOUNT during and directly after a disaster. To communicate while power and telephone lines are down, a firm can use public service radio announcements to give out phone numbers where employees can get information. ORGANIZE BUSINESS RECOVERY TEAMS AND DETERMINE the resources
Fine-Tune Your Marketing Know-How
MONTHLY CHECKLIST SERIES Both professionals and firms must forge an identity. As the CPA, you are the brand and you have to put that brand in front of your intended audience. You accomplish this by getting the word out about your firm’s services. Prospective clients need to associate you and
Don’t Volunteer for Trouble
EXECUTIVE SUMMARY MANY CPA VOLUNTEERS AT NPOs ASSUME state and federal laws protect them from legal liability. However, unpaid workers and board members aren’t protected if an NPO violates federal or state civil rights laws or in instances where sexual offenses occur, for example. BOARD MEMBERS SHOULD BE CAREFUL about
KPIs + CPAs = Help
Congratulations on the article, “ Help Clients Take Measure ” ( JofA, Jun.02, page 53). CPAs are in an ideal situation to help clients through the performance measurement process. I believe it is necessary to stress the most critical component of a performance measurement engagement—the resulting financial impact of measuring
Need More Effective Risk Management
“ Beyond Traditional Audit Techniques ” ( JofA, Jul.02, page 28) did an excellent job describing a company’s nontraditional approach to internal audit and risk management. My recommendation is that all CPAs, especially those who are CFOs, CEOs and on boards, read the article several times, file it, read it
Sees Profession as Scapegoat
The failure of companies such as Enron and WorldCom is attributed to the CPAs’ improper auditing of the books. As a result, Congress is attempting to micromanage the accounting profession. Our profession is being blamed because of Congress’s own failure to provide the resources to the SEC to review the
Rotate to Stay Fresh
There has been much debate recently about rotating auditors to give “fresh looks” a chance. As a guide the SEC requires companies to publish three years’ worth of statements of income and expense and cash flows. I suggest three-year audit engagements may be in order to comply with the “fresh
CPE Must Address Reporting
Continuing professional education adds enormous value to the CPA profession—that is uncontested. However, any program must be tailored to meet the needs of the market. Since the landscape of corporate reporting has been shifted to a more pervasive earnings management, the fundamentals of conservative financial reporting seem suspended in some
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