President George W. Bush last month signed the Working Families Tax Relief Act of 2004. The legislation extends a number of tax provisions affecting individuals and businesses, such as marriage penalty relief and the research and development credit that expired June 30, 2004. Additional information is available at http://waysandmeans.house.gov/Links.asp?section=343 .
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TOPICS / TECHNOLOGY
Information security & privacy
Pro Bono
The AICPA launched an online database ( http://volunteers.aicpa.org/financialliteracy ) where CPAs now can register as volunteers in 360 Degrees of Financial Literacy, the Institute’s program to improve Americans’ ability to manage their personal finances (see JofA , Aug.04, page 14, and www.aicpa.org/pubs/jofa/aug2004/special.htm ). Both member and nonmember CPAs are eligible
Professional Issues
The AICPA Peer Review Board issued revised standards for performing and reporting on peer reviews, as well as revised and new interpretations that will help CPAs understand how to apply the standards. Both are effective for reviews beginning after December 31, 2004; early implementation is not permitted ( www.aicpa.org/members/ ).
Enforcement
The Public Company Accounting Oversight Board (PCAOB) introduced communications links that make it easier to contact the board when a registered public accounting firm—or anyone associated with it—may have violated provisions of the Sarbanes Oxley Act of 2002, PCAOB rules or other applicable laws ( www.pcaobus.org/tips ). Concerned parties now
Auditing
The AICPA launched an improved version of its Audit Committee Matching System (ACMS). The upgrade responds to suggestions from members, who now can add their resumes to the system so that companies can search among them for potential candidates. The ACMS and related resources are available at the Institute’s Audit
Technology
The Accounting Hall of Fame announced three inductees for 2004. The honorees are Dennis R. Beresford, E&Y Executive Professor at the University of Georgia, former chairman (1987–1997) of the Financial Accounting Standards Board and writer of professional articles; Gerald A. Feltham, a professor of accounting at the University of British
International
The International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC) issued a staff-prepared series of questions and answers relating to international financial reporting standards (IFRSs), First Time Adoption of IFRSs—Guidance for Auditors on Reporting Issues. The document is available online ( www.ifac.org/store ) at no
E-Mail and the Law
EXECUTIVE SUMMARY SPAM IS A BUSINESS PROBLEM companies now must address because of domestic and international laws. Companies need to adopt Internet marketing privacy policies to comply with various privacy and spam regulations. CPAs can use the AICPA/CICA Privacy Framework to help organizations accomplish these goals. THE AICPA/CICA PRIVACY FRAMEWORK
It’s a Matter of Privacy.
MONTHLY CHECKLIST SERIES Consumers have grown increasingly concerned about the misuse of their personal information, and regulatory bodies have been cracking down on offenders. You can see the many complaints filed against corporations on the FTC Web site at www.ftc.gov/privacy/privacyinitiatives/promises_enf.html . CPAs should advise clients or employers to familiarize themselves
Disclosure
TThe SEC changed—and proposed further modifications to—its mutual fund rules and forms ( www.sec.gov/news/press/2004-16.htm ). In one action, to improve funds’ disclosure of costs, investments and performance, the commission amended provisions pertaining to shareholder reports and quarterly portfolio disclosures. These new requirements will apply to reporting periods ending on or
Privacy
The AICPA assurance services executive committee and the Canadian Institute of Chartered Accountants’ assurance services development board jointly issue a privacy framework ( www.aicpa.org/innovation/baas/ ). CPAs and chartered accountants—in both industry and public practice—can use it to help the organizations they serve implement privacy programs. The framework incorporates concepts from
Estate Planning
The Federal Deposit Insurance Corp. (FDIC) in January changed its insurance rules for deposits held in connection with a living trust ( www.fdic.gov/deposit/deposits/deposit/index.html ). Under the new provisions, if a bank fails, the FDIC will insure up to $100,000 of deposits for each beneficiary entitled to a living trust’s assets
Government Accounting
The Federal Accounting Standards Advisory Board (FASAB) issues Statement of Federal Financial Accounting and Auditing Technical Release 3 (revised), Auditing Estimates for Direct Loan and Loan Guarantee Subsidies under the Federal Credit Reform Act and Technical Release 6, Preparing Estimates for Direct Loan and Loan Guarantee Subsidies under the Federal
Compliance
A January 2004 Financial Executives International (FEI) survey of more than 300 of its members who work in public companies of all sizes revealed those entities expected to spend more time and money to comply with the section 404 internal-control requirements of the Sarbanes-Oxley Act of 2002 than anticipated in
Professional Issues
The AICPA releases the results of its annual survey to assess the supply of new accounting graduates and public firms’ demand for their services ( www.aicpa.org/members/div/career/edu/sagdpar.htm ). Conducted in 2003 the poll found the number of bachelor’s degrees awarded had dropped while the level of master’s degrees had increased, matching
Banking
For news from the AICPA and state societies, visit www.cpa2biz.com , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. In February the Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corp.
Ethics
The AICPA professional ethics executive committee (PEEC) defers until December 31, 2004, the effective date of its recently established requirement—originally effective September 30, 2003—that a member document in writing his or her understanding with a client regarding all nonattest services to satisfy general requirement no. 3 of Interpretation 101-3, “Nonattest
Financial Planning
The AICPA and five other organizations joined forces to sponsor the Project for Financial Independence, which offers free financial planning advice to individuals in need ( www.consultaplanner.org ). Also participating are the Certified Financial Planner Board of Standards, the Financial Planning Association, the National Association of Personal Financial Advisors, the
Financial Reporting
The Institute, in cooperation with industry experts, has updated and revised illustrative financial statements for banks, savings institutions, credit unions and mortgage companies (in separate versions), which members can find online at www.aicpa.org/members/div/acctstd/illustrative_fs.asp . These illustrative statements also are available in the AICPA publication, Checklists and Illustrative Financial Statements for
FYI
The board of trustees of the Financial Accounting Foundation (FAF) appoints Robert H. Attmore chairman of the Governmental Accounting Standards Board (GASB). He succeeds Tom L. Allen, who served as GASB chairman since 1995. Attmore is president of Attmore & Associates, Albany, New York, a consulting firm serving government agencies
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