IRS practice & procedure

TOPICS / TAX

January 1, 2004

FYI

The Accounting Hall of Fame inducts Phillip W. Bell, Edgar O. Edwards and James J. Leisenring into its ranks. Bell served on many university faculties in the United States and has held visiting professorships throughout the world. He and Edwards, who taught at Princeton and Rice Universities, are coauthors of

January 1, 2004

International

The International Federation of Accountants (IFAC) publishes a proposed set of reforms ( www.ifac.org/Downloads/ReformProposals.doc ) to harmonize international auditing standards, strengthen the processes used to set them and ensure the international accounting profession serves the public interest. The proposal would establish a public interest oversight board to monitor IFAC’s standard-setting

December 1, 2003

AICPA Issues Nonattest Services Independence Rules

It is important to remember that regardless of which nonattest services a member provides to any attest client, he or she must comply with ethics Interpretation 101-3’s broad-based provisions, including the requirements discussed in this article. Of equal significance are the nonattest services provisions contained in the independence rules of

November 1, 2003

Investment Adviser Advertising

EXECUTIVE SUMMARY THE SEC REGULATES THE ADVERTISEMENTS investment advisers create to promote their services under rule 206(4)-1 of the Investment Adviser Act of 1940. The goal is to prevent advertisements that are false and misleading. RULE 206(4)-1(a) INCLUDES FIVE RESTRICTIONS advisers must follow. They can overcome two of these restrictions

September 1, 2003

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

September 1, 2003

Sarbanes-Oxley Software: Ten Questions to Ask

Section 404 of the Sarbanes-Oxley Act of 2002 requires a company to document and periodically test its internal controls and the company’s external auditors to offer an opinion on those controls. While public companies are developing their project plans and evaluating software applications to help them manage this process, the

August 1, 2003

Investment Tax Planning for Retirement

EXECUTIVE SUMMARY FOR CLIENTS DREAMING OF A FINANCIALLY SECURE retirement, CPAs need to offer assistance on which savings vehicles—qualified and nonqualified—will help them reach their goal. This decision involves both tax and nontax considerations. CLIENTS PREPARING FOR RETIREMENT HAVE a wide variety of savings vehicles available to them including 401(k)

August 1, 2003

The New Accounting Environment

EXECUTIVE SUMMARY NEW ACCOUNTING REGULATIONS BROUGHT ABOUT by Sarbanes-Oxley and SAS no. 99 will force many companies to change how they do business. Compliance with these and other rule changes will expand the burden of corporate CPAs. ONE NEW REGULATION THAT WILL AFFECT ALL public companies is the proposed NYSE

July 1, 2003

Mom-and-Pop Shops

EXECUTIVE SUMMARY SMALL BUSINESSES ARE THE CORE of U.S. enterprise—70%—and the backbone of the small and local CPA firm market. Stresses caused by the rapidity and degree of change in the business world and the culture at large are putting pressure on CPAs to provide them with an ever-more-complex range

May 1, 2003

How to Profit by Safeguarding Privacy

EXECUTIVE SUMMARY PROTECTING THE PRIVACY of personal information is no longer optional for organizations that collect, use and distribute it. Federal law now requires entities to take responsibility for safeguarding the data they gather from customers and patients. ORGANIZATIONS THAT ACCEPT AND FULFILL their privacy-related obligations will find it easier

January 1, 2003

Ethics More Than Rules Compliance

The quiz, Test Your Knowledge of Professional Ethics ( JofA, Oct.02, page 110), gave the technically correct answer to question no. 4: Is the engagement partner independent if his mother-in-law is the controller of the client? But it would have been better if the answer reminded readers that professional ethics

January 1, 2003

Auditors Should Work Together

A New Accounting Culture ( JofA, Oct.02, page 27) was an important call to action for CPAs overall. In my more than two decades of experience as an internal auditor, I have witnessed too many times when CPAs took the expedient route over the proper one because of fees, friendships

January 1, 2003

Watch Your Appearance

In Test Your Knowledge of Professional Ethics ( JofA, Oct.02, page 110), the answer to question no. 4 indicated that the CPA firm would be independent because the engagement partners mother-in-law (also the clients controller) is not considered a close relative or immediate family under the new independence rules. The

January 1, 2003

In Favor of Regulation

The reprint of Mr. Melancons speech at Yale University was impressive A New Accounting Culture ( JofA, Oct.02, page 27). However, it failed to address the real reason we are in this situation: Partners at the largest firms need to make the payments on their million-dollar houses and $80,000 Porsches.

January 1, 2003

Letters To The Editor

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.

December 1, 2002

Policy Management Tips

With the crisis in investor confidence many businesses face today, it never has been more important for a company to have clearly documented policies and procedures covering all aspects of its operations. Occasional updates are not enough to prevent accounting errors and to help avoid litigation or operating problems. CPAs

November 1, 2002

The New GAO Independence Standard: What Auditors Need to Know

EXECUTIVE SUMMARY THE GAO AMENDED THE AUDITOR INDEPENDENCE provisions of its generally accepted government auditing standards (GAGAS). Originally, the amendment was to be effective for audits beginning on or after October 1, but the GAO extended the time frame to January 1, 2003. THE GAO ISSUED THE NEW STANDARD

August 1, 2002

When the SEC Knocks….

EXECUTIVE SUMMARY WITH INCREASING NUMBERS OF CPAs OFFERING investment services, more are registering with the SEC as investment advisers and facing field examinations from the SEC Office of Compliance Inspections and Examinations (OCIE). These investigations determine whether the adviser is complying with the Investment Advisers Act of 1940, protect

June 1, 2002

Smart Stops on the Web

EXECUTIVE COMPENSATION SITES Case Studies and Reviews www.compensationresources.com CPAs at firms and companies can find case studies—with required actions and outcomes—for implementing nonqualified deferred compensation arrangements, as well as reviews of customized packages at this site. Visitors also can use a compensation calculator and get an overview of stock-option-program designs.

January 1, 2002

Life Insurance Compliance Rules

nsurance is among the most highly regulated of the financial services industries. When coupled with the professional standards inherent in the practice of public accounting, compliance issues can quickly become complicated for CPA firms that maintain insurance practices. Many CPAs believe they know enough about insurance to advise their clients.

FROM THIS MONTH'S ISSUE

4 ways solo practitioners can stand out

Five years ago, a grieving Angel Zhen started his own CPA firm with no clients and no revenue. Today, he has 300 clients, $600,000 in revenue and 12 weeks of annual vacation. In this JofA article, he shares how he set up his firm and how you could do the same.