EXECUTIVE SUMMARY AN INCREASE IN AUDITOR CHANGES HAS LED t o an increase in reaudits, raising unique practice considerations for the CPAs that perform them. Reauditors can use the guidance in SAS no. 84, Communications Between Predecessor and Successor Auditors and Practice Alert 02-3, Reauditing Financial Statements to help with
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Information management and technology assurance
Privacy
A new Federal Trade Commission publication, Financial Institutions and Customer Data: Complying with the Safeguard Rule ( www.ftc.gov/bcp/conline/pubs/buspubs/safeguards.htm ), explains important aspects of the regulation ( www.ftc.gov/privacy/glbact ), which applies to businesses “significantly engaged” in providing financial products or services to consumers. The report includes a section called “How to
It Works for Them
ersonal financial planners help clients identify financial goals, organize ways to achieve them and set timetables for implementation. Together, a planner and client look at the clients total financial picture, including income, savings, investments and debts as well as his or her personal situation. Then, they analyze where the money
Maintain Excellence, Cut Risk
EXECUTIVE SUMMARY THERE ARE TWO BASIC RISKS IN the CPA profession: catastrophic service failure, such as that from providing inaccurate audit-related services, and business failure caused by losing top-quality clients. A FIRM THAT CONCENTRATES ON IMPROVING leadership, staff and the client base can enhance partner, staff and firm performance and
Retirement
The IRS releases 2003 cost-of-living adjustments related to benefit and contribution limits for qualified retirement plans ( www.irs.gov/pub/irs-news/ir02-111.pdf ). Many such savings caps are not changing this year because the increase in the cost-of-living index fell below the statutory thresholds that otherwise would trigger their adjustment. However, several will increase
Auditing
The ASB issues Statement on Auditing Standards no. 100, Interim Financial Information, replacing SAS no. 71, with the same title. The new standard provides additional guidance on performing reviews of interim financial information and incorporates the SEC’s requirement for timely filing of interim data. It also includes recommendations from the
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
A Napster for Financial Data?
EXECUTIVE SUMMARY IN THE NOT-TOO-DISTANT FUTURE, you may be able, with just a few mouse clicks, to access any public company’s financial reports in extraordinary detail and for any period. In addition, you may be able to perform an array of instant analyses of those data. THE UNDERLYING TECHNOLOGY is
FYI
Four practitioners replace departing members of the ASB. The appointees are Kenneth Macias, William F. Messier Jr., Steven L. Schenbeck and Michael T. Umscheid.
International
The International Accounting Standards Board (IASB) issues an exposure draft, Share-based Payment ( www.iasb.org.uk ), which proposes companies, on their financial statements, report as expenses any shares or options they grant to employees as compensation. The IASB concluded that such transactions are not different from those in which an entity
Practitioner Tells Bush of “Trickle-Down” Effect
Carmen J. Aguiar, CPA,of Bellevue, Washington, was a panelist at the economic forum President George W. Bush, right, convened at Baylor University in August. Drawing from her experience in running a small firm, Aguiar expressed concern over the extensive financial reporting requirements her small business clients face.
Don’t Run the Risk
EXECUTIVE SUMMARY DISCLOSURES OF FAULTY PRACTICES at public companies have led to restrictions on services a CPA may provide to audit clients. IN 2001 AUDITOR INDEPENDENCE RULES gave CPAs more freedom to buy and sell securities, increasing the risk that firms may violate laws against insider trading. THE SEC
Practice Management Article the Best in 2001
AICPA Chairman and CEO Barry C. Melancon presents the Journal of Accountancy’s 2001 Lawler Award for best article of the year to Edward Mendlowitz, CPA, for “ Nine Ways to Make Your Firm More Exciting ” (Mar.01, page 63). In his article Mendlowitz, a partner of Mendlowitz Weitsen LLP in
Home Is Where the Office Is
EXECUTIVE SUMMARY CPA FIRMS THAT USE WORK-FROM-HOME arrangements with eligible staff say there are clear operational benefits: They save money because there’s less absenteeism, they increase production, and they are able to keep high-quality employees longer. SITUATIONS THAT OTHERWISE MIGHT take a CPA out of the workforce—such as a
It’s Time to E-File.
EXECUTIVE SUMMARY AS THE IRS MOVES TOWARD ITS GOAL OF HAVING 80% of all tax returns filed electronically by 2007, the time has come for CPA firms to take steps to register themselves as electronic return originators (EROs). THERE ARE BENEFITS TO USING ELECTRONIC FILING. They include the perception
Signed, Sealed, Delivered
EXECUTIVE SUMMARY A CPA/VALUATOR PLAYS A PIVOTAL ROLE in merger and acquisition (M&A) engagements. He or she helps to organize the transaction, mitigate trouble spots, establish an objective marketplace value for a client’s business and structure the deal along with attorneys, appraisers, bankers, financiers and regulators. A BUYER’S VALUATOR
Follow the Leader
EXECUTIVE SUMMARY THE FIVE KEY MARKETING ROLES for a managing partner are ambassador, relationship manager, business-development manager, head of research and development (R&D) and communications director. MANAGING PARTNERS SHOULD BE ACTIVE in industry task forces and boards to stay on top of the latest trends and technologies. The ambassador
Evaluating Tax Software
ax-preparation-software products generally received higher marks from practitioners this year than last year. That’s the conclusion of a survey conducted by the National Association of Tax Professionals (NATP) and shared with the JofA . A total of 977 NATP members responded to the survey, reporting their experience with the
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How to find the right CAS clients
The key to success with CAS is selecting the best clients. Tools like ideal client profiles (ICPs), buyer personas, and even artificial intelligence can help identify the businesses that best fit each CAS practice.
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