Accountants Round Up

"Accounting 501: Be Nimble"

By Bill Kennedy: The only time my father's employer changed was when his firm merged with another, whereas I have had several employers, including myself. I didn't plan it that way. In fact, I had every intention of staying with my first employer until I retired. But my generation was the one that coined the phrase negative growth, and so many things have happened in my career that I never expected:

• International accounting firms laying off staff

Read complete post Accounting 501: Be Nimble
Source: Energized Accounting, 18 July 2008.

"Accounting Gets Image Makeover"

By John R. Nelson: The accounting profession isn't typically viewed as an exciting one. A program in New Paltz for young people is doing everything it can to break that common misconception.

Seven juniors from Roy C. Ketcham High School and New Paltz Senior High School were among students who participated in the Career Opportunities in the Accounting Profession program this month, which encourages diversity in the accounting profession.

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Source: Poughkeepsiejournal.com, 15 July 2008. Copyright © 2008 PoughkeepsieJournal.com. All rights reserved.

"Fraud and the Auditor"

By Steve Collings: Fraud has become a major issue within the accountancy profession over recent years and the accounting and audit profession has suffered a significant amount of embarrassment because of the failings whereby audit firms have either overlooked or ‘turned a blind eye’ to fraud.

This article considers the technical aspects of ISA 240 ‘The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements’. The article is written from the perspective of a smaller audit client and aims to outline what smaller audit firms need to consider when looking at fraud issues and what they have to do if they discover a fraud.

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Source: AccountingWEB-UK, 7 July 2008. Copyright © 2008 Sift Media. All rights reserved.

"Accountant's Business Changes, But Remains Strong"

By Lynn Ducey: There's a saying that the only sure things in this world are death and taxes.

And while he may not be that morbid, Joseph Hecht chose to become an accountant while attending Arizona State University because he knew it was a solid profession that could weather economic ups and downs.

Read complete article Accountant's Business Changes, But Remains Strong
Source: Phoenix Business Journal, 4 July 2008. © 2008 American City Business Journals, Inc. and its licensors. All rights reserved.

"Lender Contracted Auditors - A Hypothesis"

By Alex Vuchnich: Francine McKenna posted a recent entry on her blog that pointed out some of the flaws in the current audit model. Flaws included the usefulness and relevance of the information provided to financial statement users. It also seems to hint at the flaws around auditor independence which have been debated ad nauseum since the inception of the profession. Where as that post was largely focused on the top tier accounting firms (primarily the Big 4) it seems that there are many takeaways here for smaller firms as well. From an independence stand point I have often wondered whether in the small business attest environment if it makes sense for the banks requiring audited financial statements as part of the loan agreement to independently contract with accounting firms to perform the audit for the organization receiving the loan.

Read complete post Lender Contracted Auditors - A Hypothesis
Source: AccountingWEB, 2 July 2008. Copyright © 2008 AccountingWEB, Inc. All rights reserved.

"How Fair is Fair-Value Accounting?"

By Liz Moyer: In the wake of the Enron crisis, regulators pushed to make it easier for investors to understand the value of a company's assets and lift the fog on the complexity of structured finance.

This "fair value accounting" was aimed at consistent reporting among comparable firms. Assets would be labeled in one of three categories depending on their relative liquidity, with the hardest-to-value assets put in "Level 3."

Read complete article How Fair is Fair-Value Accounting?
Source: Forbes.com, 25 June 2008. © 2008 Forbes.com LLC.™ All Rights Reserved. 

"New Penalties – How You Can Help Your Client"

By Rebecca Benneyworth: Having reviewed the structure of the new penalty legislation in some detail, I now consider what the advisor can do to support his client in the new system.

First, why should an advisor be concerned about the impact of the new penalty regime on his client? Well the answer is simple, if you see your role as helping your client to comply with his tax obligations – which most of us acting for smaller businesses do.

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Source: AccountingWEB-UK, 19 June 2008. Copyright © 2008 Sift Media. All rights reserved.

"10 Seeeeeriously Cool Workplaces"

By Alexander Kjerulf: Physical space matters. It’s easier to be productive, creative and happy at work in a colourful, organic, playful environment than in a grey, linear, boring one.

And I’m not talking about the outside of the building. Many companies have buildings that are sleek, modern, architectural glass-steel-and-cement sculptures on the outside - and cubicle wastelands on the inside.

Read complete post 10 Seeeeeriously Cool Workplaces
Source: Chief Happiness Officer, 5 October 2006.

"AICPA Proposes Changes to CPA Exam, Seeks Comment"

By AccountingWEB: The American Institute of Certified Public Accountants released a draft proposal for public comment outlining proposed content updates for the CPA exam. The proposal increases emphasis on ethics and provides more in-depth descriptions of the skills necessary for entry-level CPAs. It proposes including International Financial Reporting Standards (IFRS) on the exam for the first time.

"The CPA Examination tests the knowledge and skills that are relevant for entry-level CPAs. In doing so, the public is protected," said Craig Mills, executive director of examinations for the AICPA.

Read complete article AICPA Proposes Changes to CPA Exam, Seeks Comment
Source: AccountingWEB, 7 May 2008. Copyright © 2008 AccountingWEB, Inc. All rights reserved.

"Patently Dangerous"

By Roger Russell: Just because the idea of violating a patented tax strategy sounds ridiculous on its face doesn’t mean you won’t get sued for using it.

Currently, some 65 tax patents have been issued, and 109 more are pending, according to Eileen Sherr, technical manager at the American Institute of CPAs’ Tax Division.   

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Source: WebCPA, 5 May 2008. © 2007 WebCPA and SourceMedia, Inc. All rights reserved.