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
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TOPICS / MANAGEMENT ACCOUNTING
Strategy
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
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
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
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
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
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
Hedging Your Megawatts
EXECUTIVE SUMMARY ELECTRIC UTILITY DEREGULATION introduces new price risks for companies that consume large quantities of power. Several electric utilities have been surprised by sudden dramatic electricity price moves. Hedges can reduce that risk. A HEDGING STRATEGY CAN BE as simple as a long-term fixed-rate contract or as complicated as
A Graceful Exit
EXECUTIVE SUMMARY FORMULATING A successful exit strategy requires figuring out what your client really wants and devising a plan to get there. CPAs in public practice and in industry are uniquely positioned as trusted advisers to develop a sound exit strategy. FINDING OUT WHAT YOUR CLIENT WANTS is the first
Best Practices for CPA Firms
EXECUTIVE SUMMARY THE AICPA HAS COMPLETED TWO projects to identify “best practices” for accounting consultations and auditor communications with boards of directors and audit committees. These practices are intended to help CPA firms evaluate and enhance their policies and procedures in these critical areas. IN FIRMS THAT FOLLOW BEST PRACTICES,
Internal controls.
Internal Control Checklist An effective internal control system enables you to manage significant risks and monitor the reliability and integrity of financial and operating information. It also ensures that the audit committee acts as a powerful and proactive agent for corporate self-regulation. The Committee of Sponsoring Organizations of the Treadway
Features
FROM THIS MONTH'S ISSUE
Flip out with the latest Tech Q&A
The September Technology Q&A column shows how to create dynamic to-do lists with Excel's checkboxes and also how to set up multifactor authentication texts that don't rely on phones. Flip through both items and view a video walkthrough in our digital format.
From The Tax Adviser
August 30, 2025
2025 tax software survey
July 31, 2025
