Accountants Round Up

"Helping Your Clients Survive the Dreaded Audit: Tips from the IRS"

By AccountingWEB: In March, a panel of IRS officials and Enrolled Agents answered common questions that tax practitioners have about helping their clients through the audit process. At the end is a link to TaxTalkToday where you can read the full transcript (registration required).

What if the type of audit the IRS has scheduled is not conducive to solving the problem?

Read complete article Helping Your Clients Survive the Dreaded Audit: Tips from the IRS
Source: AccountingWEB, 23 April 2009. Copyright © 2009 AccountingWEB, Inc. All rights reserved.

"Big 4 Firings After Busy Season"

By CA revealed: You're Fired!

No, not me. I still have a job =), but today's topic is about big 4 layoffs. This should come as no surprise to anyone in the current economy.

I've been hearing left and right about who exactly is fired. My firm was affected, as were all big 4 firms. Some of my unfortunate friends were also laid off. I'll talk a little bit about the process.

Read complete post Big 4 Firings After Busy Season
Source: CA revealed, 24 April 2009.

"Auditors Plead For Help Amid Fear of Lawsuits"

By Alex Spence: Leading accountants will meet the Government this week to plead for protection as they prepare for a surge in litigation from investors trying to recover their losses from big company failures.

The Big Four — Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers (PwC) — are braced for an increase in legal action from investors and liquidators as the economic crisis continues.

Read complete article Auditors Plead For Help Amid Fear of Lawsuits
Source: Times Online, 27 April 2009. Copyright 2009 Times Newspapers Ltd.

"Survey Says Accountants' Jobs Are Changing"

By Jeff Stimpson: Three-quarters of accountants say the financial crisis has changed their on-the-job responsibilities.

The survey, by Ajilon Finance, polled over 500 finance and accounting professionals as part of the Institute of Management Accountants’ Inside Talk Webinar Series. Accountants are spending more time on cost-cutting initiatives and on risk-assessment initiatives, the survey found, as well as providing general financial advice to their companies.

Read complete article Survey Says Accountants' Jobs Are Changing
Source: WebCPA, 17 April 2009. © 2009 WebCPA and SourceMedia, Inc. All rights reserved.

"Tools of Engagement"

By Virginia Backaitis: When Scott accepted a position with a big-four accounting firm five years ago, the path to success was laid out for him. Work hard, bill lots of hours, do an exceptional job, and you'll be eligible for promotion every few years until you become a partner.

"I'm having no trouble keeping up with my end of the deal," says Scott... But in an attempt to manage expectations, Scott's boss has told him there probably won't be any promotions this year or next, and that if the economy rebounds after that, colleagues with more seniority will be first in line.

Read complete article Tools of Engagement
Source: New York Post, 20 April 2009. Copyright 2009 NYP Holdings, Inc. All rights reserved.

"Auditors: Nearly 25% of Companies May Not Be Going Concerns"

By Sarah Johnson: The auditors of nearly one-quarter of publicly traded companies feel that the companies may not live out the year.

Auditors have become increasingly doubtful about their clients' ability to continue as going concerns, according to the most recent report on the subject by Audit Analytics, which has tracked the number of such going-concern opinions this decade in a recently released report. With calendar year-end 2008 filings still coming in to the Securities and Exchange Commission, the research firm estimates there will be 3,589 going-concern opinions eventually filed for 2008 annual reports, an increase of 9% compared to last year's total of 3,293 going-concern opinions.

Read complete article Auditors: Nearly 25% of Companies May Not Be Going Concerns
Source: CFO, 22 April 2009. © CFO Publishing Corporation 2009. All rights reserved.

"Growth, Jobs and Stability: The Role of the Accounting Profession"

By Jeremy Newman: Last week in a panel debate broadcast on ABC, Arianna Huffington called the decision by the Financial Accounting Standards Board (FASB) to suspend mark-to-market "absolutely tragic." The issue Arianna identifies resonates with the implications of the actions agreed at the recent G-20 meetings in Washington and London. One of the immediate actions of the G-20 Washington Summit was "strengthening transparency and accountability" particularly with regard to financial reporting.

This reflects two concerns: first, why was there no warning about the banking/liquidity crisis? Secondly, has the way bank results were reported created or exacerbated the crisis? This latter point is a criticism of fair value accounting -- or "mark-to-market."

Read complete article Growth, Jobs and Stability: The Role of the Accounting Profession
Source: The Huffington Post, 16 April 2009. Copyright © 2009 HuffingtonPost.com, Inc.

"Insurers Prepare for SOX-like Audit Rules in 2010"

By Chris Rauber: A new model audit rule for non-publicly traded insurance companies — basically their version of Sarbanes Oxley — takes effect in January for companies with $500 million or more in premium volume. But some big players, including Kaiser Foundation Health Plan, the State Compensation Insurance Fund, Delta Dental of California and affiliates, Fireman’s Fund and the California State Automobile Association, are getting ready early for the new requirements.

The main changes require senior executives to explicitly confirm that their accounting practices are up to snuff and their financial reports accurately reflect reality.

Read complete article Insurers Prepare for SOX-like Audit Rules in 2010
Source: San Francisco Business Times, 10 April 2009. © 2009 American City Business Journals, Inc. and its licensors. All rights reserved.

"Post Tax Season Health Tips for CPAs"

By Michael Cohn: Recovering from a stressful tax season can provide a much needed breather for accountants, but one medical expert has some advice they can use year-round.

Dr. Marilyn Howarth, medical director of the Penn Center for Executive Health, part of the University of Pennsylvania health system, told WebCPA that tax preparers should start on a good exercise program soon after they finish meeting their clients' filing deadline, and make sure to catch up on their sleep.

Read complete article Post Tax Season Health Tips for CPAs
Source: WebCPA, 21 April 2009. © 2009 WebCPA and SourceMedia, Inc. All rights reserved.

"SEC Chairman Mum on Accounting Issues"

By Tim Reason: With just two weeks left for the public to comment on the Securities and Exchange Commission's proposed roadmap for adopting International Financial Reporting Standards, SEC chairman Mary Schapiro's own views on the topic, as well as some other prominent accounting issues, remain largely a matter of guesswork and speculation.

Read complete article SEC Chairman Mum on Accounting Issues
Source: CFO, 7 April 2009. © CFO Publishing Corporation 2009. All rights reserved.