Recently added articles from The CPA Journal:
Mortgage Fraud: A Scourge of the 21st Century?
Feb 01, 2009; ... Erica Crum was a loan officer at a mortgage company in Cincinnati, Ohio. In 2005, she was sentenced to 37 months in prison after pleading guilty to mortgage fraud and money laundering. At her sentencing, Cliff Rydell, one of Crum's victims, gave the following statement: [M]y company's ...
Corporate Governance Post-Sarbanes-Oxley: Regulations, Requirements, and Integrated Processes
Feb 01, 2009; ... Corporate Governance Post-Sarbanes-Oxley: Regulations, Requirements, and Integrated Processes By Zabihollah Rezaee Published by John Wiley & Sons, Inc.; 2007; ISBN: 978-0-471-72318-9; 560 pages (hardcover); $85 Reviewed by H. Stephen Grace, Jr. It is useful in reading a book ...
A Guide to Using the Accounting Standards Codification
Feb 01, 2009; ... The GAAP hierarchy was created by Statement on Auditing Standards (SAS) 69, The Meaning of "Present Fairly in Conformity with Generally Accepted Accounting Principles," in the Independent Auditor's Report, which became effective in March 1992. The idea behind SAS 69 was simple: The ...
SEC Rulemaking Affecting Smaller Public Companies: The Rule 144 Amendments
Feb 01, 2009; ... In December 2007, the SEC adopted a variety of rules that affect smaller public companies. These rules provide for greater flexibility for capital raising and are intended to diminish the reliance of issuers on more onerous capital-raising structures. Another set of rules adopted in December ...
PCAOB Inspection Report Card
Feb 01, 2009; ... An Improved Grade on Timeliness The Sarbanes-Oxley Act (SOX) requires the Public Company Accounting Oversight Board (PCAOB) to conduct inspections of each registered public accounting firm. Audit deficiencies that exceed a certain significance threshold are summarized in the public ...
Assessing Elements of Corporate Governance: A Suggested Approach
Feb 01, 2009; ... Assessing corporate governance is elusive at best. The tone at the top, codes of conduct, quality and effectiveness of ethics programs, and fraud prevention efforts are all critical pieces of corporate governance that are challenging to assess. In today's highly regulated environment, such ...
Website of the Month: Multistate Tax Commission
Feb 01, 2009; ... The Multistate Tax Commission (www.mtc.gov) is an intergovernmental state tax agency tìiat was created by the Multistate Tax Compact in 1967. The commission plays a role in determining apportionment of tax bases, promoting comparability, and facilitating taxpayer convenience and compliance ....
Exposing Fraud
Feb 01, 2009; ... The Hidden Reality Fraud is not a new phenomenon in our society, but despite recent legislation and regulation, large frauds continue. Everyone seems to be searching for answers as to how frauds are perpetrated, why people are motivated to commit them, where we can find the red flags to ...
Who Was Luca Pacioli?
Feb 01, 2009; ... Almost everyone who has taken a basic accounting course has heard the name Luca Pacioli linked with the beginnings of double-entry bookkeeping, but very few people know anything more about this fascinating and very significant man. This article seeks to remedy that situation and illuminate the ...
Are FASB Statements Becoming More Understandable?
Feb 01, 2009; ... Since the beginning of this decade, the move toward principles-based accounting standards has been touted as a means to reduce the complexity of financial reporting. While many blame the complexity of financial reporting for accounting scandals such as those at Enron and WorldCom, there can be ...
Do Taxpayers Want Less Aggressive Returns?
Feb 01, 2009; ... In order to maintain a good relationship with their clients, tax preparers must understand their clients' objectives. A recent study indicates that taxpayers often perceive and expect their tax preparers to be less aggressive than they actually are. When individuals are asked why they hire a ...
Applying SAB 108
Feb 01, 2009; ... Practical and Conceptual Clarifications One of the most critical phases of an audit is the evaluation of audit findings and the related actions taken by management and the auditor in response to those findings. SEC Staff Accounting Bulletin (SAB) 108, Considering the Effects of Prior ...
Gain on Sale of Primary Residence: New Tax Implications
Feb 01, 2009; ... On July 30, 2008, President George W. Bush signed the Housing Assistance Tax Act of 2008 (H.R. 3221). The act includes $15.1 billion in tax incentives in an effort to help rejuvenate the slumping U.S. economy. In addition to the incentives, the act contains a number of provisions designed to ...
It's Been a Long Time Coming
Feb 01, 2009; ... Many CPAs who historically were unaffected by the accountancy law in New York State will now find themselves in a new environment. New York is one step closer to accountancy reform now that the state legislature has delivered to Governor David A. Paterson's desk a bill that will make ...
Accounting for Emission Allowances: An Issue in Need of Standards
Feb 01, 2009; ... On June 6, 2008, the U.S. Senate failed to support a motion to end the debate on the LiebermanWarner Climate Security Act of 2008, effectively killing the bill. The legislation would have directed the Environmental Protection Agency (EPA) to establish a program to reduce greenhouse gas (GHG) ...
New York State Electronic Filing Mandates
Feb 01, 2009; ... In Chapter 61 of the Laws of 2005, the New York State legislature authorized the Department of Taxation and Finance (DTF) to require certain tax return preparers to electronically file all tax returns required under Tax Law Article 22. While Article 22 includes personal income tax returns, ...
Using the New 'Qualified Joint Venture'
Feb 01, 2009; ... Opportunities for Husband-and-Wife Partnerships Many tax preparers have longed for the day that the filing of a federal partnership informational return would no longer be required for all husband-andwife-owned businesses, not just those owned entirely as community property. With the ...
How Safe Are Bank Deposits?
Feb 01, 2009; ... Recent Changes to FDIC Coverage Limits One charge of the Federal Deposit Insurance Corporation (FDIC) is to provide limited protection for funds on deposit at financial institutions. There are myriad rules concerning FDIC deposit insurance, including a recent temporary increase in ...
Evidence from the PCAOB's Second Inspections of Small Firms
Feb 01, 2009; ... Driving Improvements in Auditing and Quality Control The Sarbanes-Oxley Act of 2002 (SOX) section 104, "Inspections of Registered Public Accounting Firms," and the PCAOB's "Rules of the Board" [section 4, Rule 4003(b)] require that smaller auditing firms (those that audit fewer than 100 ...
Core Components in Estimating Economic Damages for Individuals
Feb 01, 2009; ... Estimating economic damages is a type of litigation service provided by CPAs that utilizes a blend of accounting, economics, and finance, focusing largely on time-value-of-money concepts and analytical skills. The discussion below focuses on the estimation of damages arising from personal ...