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 .
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TOPICS
Management accounting
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
NYSE Sets Audit Committees on New Road
EXECUTIVE SUMMARY THE NEW YORK STOCK EXCHANGE HAS PROPOSED NEW standards for its listed companies to compel audit committees to change their makeup, broaden their oversight of external auditors and assume greater responsibility for their fiduciary obligations. The audit committee would have the sole authority to retain and terminate
The Home Sale Gain Exclusion
EXECUTIVE SUMMARY TO EXCLUDE GAIN ON THE DISPOSITION OF A HOME from income under IRC section 121, a taxpayer must own and occupy the property as a principal residence for two of the five years immediately before the sale. However, the ownership and occupancy need not be concurrent. The
Regulations Under the Sarbanes-Oxley Act
EXECUTIVE SUMMARY THE SARBANES-OXLEY ACT OF 2002 is a major reform package mandating the most far-reaching changes Congress has imposed on the business world since FDR’s New Deal. THE ACT ESTABLISHES THE PUBLIC COMPANY Accounting Oversight Board (PCAOB) to regulate accounting professionals that audit the financial statements of public
A New Accounting Culture
The following is adapted from a speech made by AICPA President and CEO Barry C. Melancon at the invitation of the Yale School of Management. Mr. Melancon spoke before a group of business professionals and representatives of the media at the Yale Club in New York City on September
Make Strategic Relationships a Success
EXECUTIVE SUMMARY FOR ALL BUSINESSES, THE NUMBER of strategic relationships has been growing 25% per year since 1985. A FIRM’S FIRST STEP TOWARD a strategic alliance is to decide what capabilities it wants to add. Then it should decide what it wants to achieve: Does the firm wish to
Offer Family-Business Solutions
EXECUTIVE SUMMARY MILLIONS OF BABY BOOMERS who own businesses will approach retirement during the next decade. They will need help with the 10 key issues that affect management and succession. THE MYRIAD FAMILY-BUSINESS CONSULTING opportunities include improving organization design, creating greater operational efficiency, developing effective leadership, organizing fair compensation plans,
Beyond Traditional Audit Techniques
EXECUTIVE SUMMARY CAL FED’S INTERNAL AUDITORS MONITOR THE COMPANY’S risk profile and play a key role in identifying areas for risk management. Understanding the business operations can make the auditors a catalyst for change—with a prominent position as key risk advisers. THE COSO DEFINITION EXPANDS internal audit’s traditional testing of
Five Tips to Steer Clear of the Courthouse
EXECUTIVE SUMMARY AS PART OF THEIR RISK MANAGEMENT strategy, companies are increasingly hiring an array of experts, including CPAs, to review their policies and controls and scrutinize internal procedures to help keep them out of the courthouse. CPAs ACCUSTOMED TO ASSESSING controls can recommend these “best practices” to their clients:
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