IFAC Issues Bank Audit ED and Cost Accounting Study The International Federation of Accountants is seeking responses to a proposed international auditing statement that will provide practical assistance to auditors in applying international standards when they audit commercial banks. Special considerations arise in bank audits because of the nature
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Management accounting
Head of Audit Efficiency Panel Speaks Out
Head of Audit Effectiveness Panel Speaks Out F ormer Price Waterhouse LLP Chairman Shaun F. O’Malley found himself with little free time after he became chairman of the Panel on Audit Effectiveness two years ago. But despite the fact that the panel completed its massive report on the
ERISA Liability for CPAs
EXECUTIVE SUMMARY CPAs WHO PROVIDE PROFESSIONAL SERVICES TO employee benefit plans face potential liability exposure under ERISA. A June U.S. Supreme Court case made it clear that CPAs and other service providers are at risk even though in many instances their actions may seem innocuous. ERISA IMPOSES CERTAIN DUTIES
Merger Integration: Include a Tax Strategy to Make a Good Deal Better
Putting together the best possible merger depends not only on finding the right target company, but also on successfully integrating the target and acquirer’s businesses after the deal closes. For a deal to succeed—so the new entity is worth more than the sum of its parts—participants must capture value at
Some Small Biz Markets Underserved by CPAs
When small business owners need payroll services to whom do they turn? More often than not it’s their CPA—the profession has helped fill that gap for years. But a recent survey of nearly 700 small businesses in the manufacturing, professional services, government, nonprofit and other sectors revealed they generally
Is a Contingent Attorney’s Fee Includible in Plaintiff’s Income?
gnes, a 64-year-old resident of California, successfully sued her ex-employer in 2000 for wrongful termination; a jury awarded her $2 million. Agnes paid her attorney $800,000, 40% of the award, in accordance with their contingent fee agreement; thus, her net proceeds from the suit were $1.2 million. In March
Money Talks or Partners Walk
EXECUTIVE SUMMARY RECONFIGURING COMPENSATION PLANS to create incentive for younger partners while buying out retiring partners at fair market value can lead to painful clashes. It’s better to have a compensation strategy that’s adaptable to a firm’s needs from start-up to maturity. A NONPIRATING CLAUSE WILL PROTECT a firm
CPAs Add HR to the Mix
EXECUTIVE SUMMARY STAFFING IS EVERY COMPANY’S NUMBER ONE problem, and CPAs are in an excellent position to offer human resources (HR) consulting services to clients in need of financial professionals. HUMAN RESOURCES OUTSOURCING IS GOOD for clients that don’t feel they need a full-blown HR department. It can help
The Ins and Outs of SERP Swaps
EXECUTIVE SUMMARY WHILE NONQUALIFIED SUPPLEMENTAL EXECUTIVE retirement plans (SERPs) are a tax-efficient way to restore benefits lost due to the limits in IRC sections 415 and 401(a)(17), they are not the best way to transfer wealth to the next generation. Multiple taxation and lost earnings can erode up to
Taking Account: Key Dates for the Profession
he accounting profession has made remarkable progress since its early days, when practitioners struggled to establish credibility. An examination of some of the most important events during the first nine decades of the 20th century offers a glimpse into what has made the profession what it is today. Although
Valuing Closely Held Stock for Estate and Gift Tax Purposes
PAs who work with estates know that, if a decedent owned stock of a closely held business at his or her death, the value of the stock generally must be determined if an estate tax return will be filed. The value for such purposes is the date-of-death fair market value
New Rules, New Responsibilities
EXECUTIVE SUMMARY THE AUDIT COMMITTEES OF CORPORATE BOARDS of directors have assumed more responsibility—and potential liability—as a result of new rules the SEC, the New York Stock Exchange, the American Stock Exchange, the National Association of Securities Dealers and FASB enacted that took effect this year. THE RULES ARE
Smart Stops on the Web
RISK MANAGEMENT SITES From the Risk Experts www.irmi.com One of the most useful features of the International Risk Management Institute (IRMI) site is its Expert Commentary section, which posts articles written by industry specialists in insurance, law, legal trends and other aspects of risk management. IRMI also has a resource
A Taxing Problem
INVESTMENTS When a fund’s manager factors taxes into investment decisions, investors should do better. A Taxing Problem BY PETER D. FLEMING EXECUTIVE SUMMARY INCOME TAXES CAN EAT UP A SUBSTANTIAL PORTION of the investment return on an equity mutual fund. For tax conscious investors, tax-managed mutual funds offer a
Auditing
Audit Committee Rules to Improve Disclosure To address earnings management concerns raised by SEC Chairman Arthur Levitt, Jr., the National Association of Securities Dealers (NASD), the New York Stock Exchange (NYSE), the American Stock Exchange (Amex), the auditing standards board (ASB) and the SEC itself individually adopted rules and standards
Auditing
New SASs Address Communications and Adjustments SAS no. 90, Audit Committee Communications (December 1999). The ASB issued SAS no. 90 (see Official Releases, page 103) to address concerns about audit committees’ oversight of corporate financial reporting. A “blue ribbon” panel, established by the National Association of Securities Dealers (NASD) and
You Can Work and Have a Life Too
For many American employees, working and having a life are the impossible dream. According to author Gloria Dunn, time is the culprit that keeps frustrated workers from improving their current job conditions. Dunn tells workers how to find the time they need to “reinvent” their work lives—create a better work/life
The Station Never Sleeps
EXECUTIVE SUMMARY A TREASURY WORKSTATION INCLUDES both hardware and treasury management applications. Systems that go by that name generally allow companies to automate most of their core treasury operations seamlessly with a database and communicate directly with banks, other financial institutions and sometimes even customers and suppliers. They can typically
Index Funds: Who Are They Good For?
INVESTMENTS Is it a search for the Holy Grail? The Quest to Outperform BY LARRY SWEDROE EXECUTIVE SUMMARY THE DEBATE OVER THE EFFICIENCY of financial markets leaves investors—and those who advise them—to answer this question: Can active portfolio managers exploit market inefficiencies enough to overcome the costs of their
The Quest to Outperform
EXECUTIVE SUMMARY THE DEBATE OVER THE EFFICIENCY of financial markets leaves investors—and those who advise them—to answer this question: Can active portfolio managers exploit market inefficiencies enough to overcome the costs of their efforts? For those who answer no, the best option is to own passively managed funds. MUTUAL FUNDS
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FROM THIS MONTH'S ISSUE
Right-sizing risk management
Sole practitioner or small firm? Risk management doesn’t have to be “one size fits all.” Learn how to help protect your practice without adding unnecessary admin time.
From The Tax Adviser
July 31, 2026
Current developments in S corporations
July 31, 2026
