The Practical Accountant back issues from January 2007:
Contents January 2007.
Jan 01, 2007 ... Risk Assessment Standards Revamp Auditing 25 SAS Nos. 104-111 have dramatically changed the rules of the game, as auditors now need to follow a subjective risk-assessment approach. Top Firms' Web Sites 32 Here are some of the best aspects of the top ...
Greater Expectations.(risk assessment standards)
Jan 01, 2007; ... I don't believe that the title of our cover story, "Risk Assessment Standards Revamp Auditing," is an overstatement. The risk assessment standards applicable for non-public company audits will result in a conceptual change in auditing. There will be a required and much greater focus on who ...
Block Pledges Better Info on RALs.(H&R Block Inc.)(refund anticipation loans)(Brief article)
Jan 01, 2007 ... H&R Block says it will provide better and more transparent notification to customers in the coming tax season on costs tied to its refund anticipation loans (RALs). The changes include a new "debt-alert" service that requires Block representatives to alert customers about possible ...
New AICPA Non-CPA Member Category.(American Institute of Certified Public Accountants)(certified public accountants)(Brief article)
Jan 01, 2007 ... The AICPA has created a new associate membership category for college and university accounting faculty who are not certified public accountants. Non-CPA faculty members are entitled to most of the benefits of general membership but are not voting members of the AICPA. They are, ...
Firms Urge Retooling of Business Reporting.(new business reporting model)
Jan 01, 2007 ... BDO Seidman, Deloitte & Touche, Ernst & Young, Grant Thornton, KPMG, and PricewaterhouseCoopers have joined in proposing development of a "new business reporting model" worldwide geared toward providing accuracy and clarity in financial reports to ensure future investor confidence and ...
Overhaul of Regs and Enforcement Urged.
Jan 01, 2007 ... The Committee on Capital Markets Regulation, comprising 22 leaders from the investor community, business, finance, law, accounting, and academia, has recommended changes in capital markets regulation to enhance shareholders' rights and cut regulation and litigation. The Committee outlined ...
Correction.(Correction notice)
Jan 01, 2007; ... The third numbered objective in the Last Word column, "A Move to Strategic Charitable Giving," on page 48 of the December issue should have read as follows: "3. Raise our visibility with key prospects, many of which are associated with our grantees, ...
M&A & Joint Ventures Update.(JANDL, DIERST & HALES)(Nolan A. Newman)(Mock & Daken)
Jan 01, 2007 ... MCGLADREY & PULLEN Bloomington, Minn. Acquired Altschuler, Melvoin and Glasser, Chicago Size 60 partners, 63 directors Niches/Concentrations Distribution and wholesale, educational institutions, manufacturing, foodservice, not-for-profits, real ...
Catering to international clients' needs.(Piascik & Associates)
Jan 01, 2007 ... The Richmond, Va.-area firm Piascik & Associates continues to see remarkable growth in its service helping international companies opening business entities in the U.S. The Piascik Passport program is designed to address business and personal needs of executives and their families when ...
Marketing Magic.(marketing through media)
Jan 01, 2007 ... USING THE MEDIA TO ATTRACT CLIENTS Starting a media campaign can be daunting and befuddling, but pinpointing your ideal client and pacing your marketing for such clients are the keys to success, according to Derrick Kinney, author of Master the Media to Attract Your Ideal ...
Inflation Adjustments for 2007.(Rev. Proc. 2006-53)(Brief article)
Jan 01, 2007 ... The IRS has released a number of inflation adjustments for 2007 (Rev. Proc. 2006-53). Among them, the personal and dependency exemption will be $3,400. The standard deduction will be $10,700 for married couples filing a joint return, $5,350 for singles and married individuals filing ...
Standard Mileage Rate is 48.5 Cents.(Brief article)
Jan 01, 2007 ... The IRS has issued the 2007 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes (IR-2006-168 and Rev. Proc. 2006-49). Beginning January 1, 2007, the standard mileage rates for the use of a ...
Formula for Businesses's Telephone Tax Refunds.(Brief article)
Jan 01, 2007 ... In IR-2006-179, IRS released a formula that will allow businesses and tax-exempt organizations to claim their federal telephone excise tax refunds without having to examine 41 months of telephone records. In general, businesses and tax-exempt organizations that were operating at any time ...
Reporting and Withholding Under Section 409A.(Brief article)
Jan 01, 2007 ... Notice 2006-100 provides guidance to employers and payers on their reporting and wage withholding requirements for calendar years 2005 and 2006 with respect to deferrals of compensation and amounts includible in gross income under Section 409A and relief from reporting deferrals that are ...
Tax Briefs.(taxation on energy conservation)
Jan 01, 2007 ... FAILURE TO SUBSTANTIATE EXPENSES Rev. Rul. 2006-56 provides that where an expense allowance arrangement has no mechanism or process which to track allowances paid and routinely pays per diem allowances in excess of the federal per diem rates without requiring actual ...
Charitable Contributions Via a Payroll Deduction.(Brief article)
Jan 01, 2007 ... A charitable deduction for a contribution made by payroll deduction in taxable years beginning after August 17, 2006, will not be allowed unless the recordkeeping requirements of Section 170(f)(17) are met. Notice 2006-110 provides that in the case of a contribution made by payroll ...
REITS' Excess Inclusion Income Guidance.(real estate investment trusts)(Rul. 2006-58)(Brief article)
Jan 01, 2007 ... Rev. Rul. 2006-58 provides that if a charitable remainder annuity trust or a charitable remainder unitrust is a partner in a partnership or a shareholder in a real estate investment trust (REIT), and if the partnership or the REIT has excess inclusion income from holding a residual ...
2007 Limits on Estate& Gift Taxes.(Proc. 2006-53)(Brief article)
Jan 01, 2007 ... Rev. Proc. 2006-53 points out in Section 3.31 that for an estate of a decedent dying in 2007, if the executor elects to use the special use valuation method under Section 2032A for qualified real property, the aggregate decrease in the value of such property tax can't exceed $940,000. As ...
FPA Endorses Restriction on Financial Titles.(Financial Planning Association)(Brief article)
Jan 01, 2007 ... The Financial Planning Association has endorsed a proposed rule by the Massachusetts Securities Division to prohibit financial services professionals from using misleading professional designations. Massachusetts is the first state to propose placing limitations on those professional ...
Enhanced Online SEC Search.(Securities and Exchange Commission's website)(Brief article)
Jan 01, 2007 ... The Securities & Exchange Commission says that investors are now able to search the contents of disclosure documents filed electronically with the SEC using a new full-text search tool on the Commission's Web site. The newly searchable information includes registration ...
Consolidating Overlapping Regulators.(National Association of Securities Dealers and New York Stock Exchange Inc.)(Brief article)
Jan 01, 2007 ... NASD and NYSE Group have signed a letter of intent to consolidate their member regulation operations into a new self-regulatory organization that will be the private sector regulator for all securities brokers/dealers doing business with the public in the U.S. The plan, it is said, ...
Too Little, Too Late.(Principal Financial Group survey of adult workers)(Brief article)
Jan 01, 2007 ... Nearly half of American adult workers and a third of retirees say their biggest financial planning regret was starting to save much too late, according to a survey from the Principal Financial Group. In fact, one-quarter of respondents feel sorry for saving too little in their early ...
Global Wealth Seeing Strong Gains.(The Boston Consulting Group's report)(Brief article)
Jan 01, 2007 ... Wealth managers have benefited from growth but must develop a deeper understanding of clients in order to sustain this success, according to a report by The Boston Consulting Group. The report says that global wealth grew at a faster pace in 2005 than in 2004, to reach $88.3 trillion in ...
Financial Planning Briefs.(Morningstar Inc. introduced Retirement Income Strategist)(SourceMedia introduced AdvisorMax)(Putnam Investments survey of workers)(Brief article)
Jan 01, 2007 ... THE FINANCIAL ADVISOR'S ADVISOR SourceMedia, which also publishes this magazine, has launched AdvisorMax, a one-stop destination for all the resources top financial advisors need today, such as live coaching, expert discussion forums, news on products, compliance, and research ....
Intuit Debuts Auto-Entry Feature.(Source Doc Auto-Entry)(Brief article)
Jan 01, 2007 ... Intuit has rolled out Source Doc Auto-Entry, which allows accountants to scan and import client data from common tax documents, and import that data directly into the company's Lacerte and ProSeries software. The solution is designed to work with most Twain-compliant scanners (a category ...
CCH Offers Online Tax Zone ID, Small-Firm Services Group.(National Tax Credit Group)(acquired ATX Inc. and Universal Tax Systems Inc.)(Brief article)
Jan 01, 2007 ... CCH and the consulting firm National Tax Credit Group are combining to offer the Tax Zone Locator, which provides online delivery of federal and state location-based incentive information on the CCH Tax Research NetWork. There are federal, state, county, and city incentive zones, offering ...
Microsoft Offers 'Office Accounting Express' for Free.(Microsoft Corp.)(Brief article)
Jan 01, 2007 ... Targeting small businesses that are late adopters and rely on pencil and paper or Excel for their bookkeeping, Microsoft has unveiled Office Accounting Express 2007, which integrates with other Microsoft Office software, and will be included in the Small Business, Professional and Office ...
Firms Slow to Embrace Cutting-Edge Web Technology.(Survey)(Brief article)
Jan 01, 2007 ... Accounting firms lag behind many other businesses in embracing Web technologies and so may be missing key opportunities for client and prospect engagements, according to a recent study by Muzeview, a research and consulting firm focused on foresight and innovation in the professional ...
Tech Bulletin Briefs.(Thomson Corp. Thomson Tax and Accounting acquired ePropertyTax)(PayCycle's payroll service for accounting professionals)(Cabinet NG's new document management software)
Jan 01, 2007 ... AICPA ADDS BLACKBERRY TO MEMBER ELITE VALUES PROGRAM The AICPA has said that Research In Motion (RIM) has been added to its portfolio of AICPA Member Elite Values Programs, which facilitates members getting optimal pricing and support services for BlackBerry handsets, software, ...
First Research Offers Benchmarking.(Brief article)
Jan 01, 2007 ... First Research, a provider of industry intelligence often useful to accounting firms in scouting the businesses of prospects and clients, has added to its industry profiles financial benchmarking ratios. The information is from Fintel, a financial data provider that uses a ...
Tax Services Prohibition Delayed.(Brief article)
Jan 01, 2007 ... The PCAOB is delaying implementation of the the Rule 3523 prohibition on PCAOB-registered public accounting firms providing tax services to persons in a financial reporting oversight role at audit clients "during the audit and professional engagement period." The prohibition ...
Cox and Paulson Jab at Sarbanes-Oxley.(Christopher Cox)(Henry Paulson)(Brief article)
Jan 01, 2007 ... SEC chairman Christopher Cox told a gathering of global securities regulators that the U.S. is about to unveil "significant changes" to the implementation of Section 404 of the Sarbanes-Oxley Act that are "designed to make it more useful for investors." The SEC was slated to ...
Modified Auditing, Attest Standards.(Brief article)
Jan 01, 2007 ... The AICPA's Auditing Standards Board has finalized changes in many of its auditing standards, and issued changes to its standards for attestation engagements that address the hierarchy of attest guidance for auditors. Statement on Auditing Standards No. 113, Omnibus-2006 aims to ...
Accounting & Auditing Briefs.
Jan 01, 2007 ... IASB ON OPERATING SEGMENT FINANCIAL REPORTING The International Accounting Standards Board (IASB) has issued International Financial Reporting Standard (IFRS) 8 Operating Segments, which arises from the IASB's comparison of International Accounting Standard (IAS) 14 Segment ...
D&T, PCAOB spar Over Inspection.(Deloitte & Touche L.L.P.)(Public Company Accounting Oversight Board)(Brief article)
Jan 01, 2007 ... Deloitte & Touche has been cited by the PCAOB for failing to obtain sufficient evidence to back up decisions in a number of audits of public companies. The report, posted on the Web site of the PCAOB, prompted D&T to disagree with the Board's conclusions in nearly two-thirds of ...
FIN 48 Revision and Guidance.(Brief article)
Jan 01, 2007 ... For years beginning after December 15, 2006, all GAAP-based financial statements must account for taxes in accordance with FIN 48, Accounting for Uncertain Tax Positions, including a required analysis of all tax positions held at the beginning of the period or, regarding calendar-year-end ...
GASB on Pollution Remediation Costs.(Governmental Accounting Standards Board)(Brief article)
Jan 01, 2007 ... GASB has issued a standard that will require state and local governments to provide the public with better information about the financial impact of environmental cleanups. GASB Statement No. 49, Pollution Remediation Obligations, identifies the circumstances under which a ...
EITF Consensus on Several Issues.(Emerging Issues Task Force)(Brief article)
Jan 01, 2007 ... FASB's Emerging Issues Task Force has issued its final and tentative consensus on several matters. Issued as final consensus: Issue No. 06-6, Debtor's Accounting for a Modification or Exchange of Convertible Debt Instruments; 06-7, Accounting for a Previously Bifurcated ...
Risk Assessment Standards Revamp Auditing: SAS Nos. 104-111 have dramatically changed the rules of the game, as auditors now need to follow a subjective risk-assessment approach.
Jan 01, 2007; ... "The new standards affect the basic principles of what an audit is, and how it is performed," says Wayne Kerr, vice president of AuditWatch." Chris Rouse, principal with Windham Brannon, in Atlanta, explains that the standards, effective for audits of financial statements for periods ...
Explaining Greater Costs.(Audit Risk Standards)(Brief article)
Jan 01, 2007 ... Douglas Carmichael, the Wollman Distinguished Professor of Accountancy at Baruch College, City University of New York, and lead author of PPC's Guide to Risk Assessment: Implementing the Audit Risk Standards, predicts that auditors' fees will increase as a result of the new standards ....
Re-Engineering a Firm's Audit Operations.(Brief article)
Jan 01, 2007 ... As firms start to apply the new standards to audits, Wayne Kerr, vice president of AuditWatch, sees a number of important questions that must be answered, including: 1. When are firms going to schedule the time to obtain the understanding of the client - especially its internal ...
The Standards.(auditing standards)(Brief article)
Jan 01, 2007 ... The AICPA Auditing Standards Board issued the risk assessment standards in March of 2006, effective for audits of financial statements for periods beginning on or after December 15, 2006. Early adoption was permitted. The new standards are comprised of eight Statements on ...
Top Firms' Web Sites: Here are some of the best aspects of the top firms' sites.
Jan 01, 2007; ... Use a site map. No wait, a site map is a sign of bad site design. Use anonymous testimonials. No wait, name your clients. Put in funny pictures. No wait, that's undignified. Tips abound for building a good site for a firm, and how much they contradict each other can depend a lot ...
Differentiating Your Firm.(Survey)(Brief article)
Jan 01, 2007 ... "A site must reinforce a firm's brand, a promise of value based on a unique identity," says Joe Walsh, principal with the consultancy Greenfield/Belser Ltd. in Portland, Me.. Yet only about half the accounting firm sites he's help survey display a slogan or tagline that summarizes a brand ...
The firm administrator's changing role: A Q&A with Connie Harmsen, president of the Association for Accounting Administration.(Interview)
Jan 01, 2007 ... Connie Harmsen, president of the Association for Accounting Administration (AAA) and director of administration with Henry & Horne, LLP in Tempe, Ariz. explains how the responsibilities and concerns of firm administrators have changed, how an administrator's functions differ based on the ...
VoIP: Using an Internet Telephone System: Internet telephony offers firms unlimited local and long distance, and a chance to network phone systems and client-service apps as never before. Here are some of the pros and cons.
Jan 01, 2007; ... The four new letters that make the funny little new word are starting to have a big impact on how firms communicate. VoIP, or Voiceover Internet Protocol, allows phone calls to be made over an IP network. "A call can be made over the Internet, instead of a public switched telephone network ...
The Best Sources.(Website list)
Jan 01, 2007 ... Jeff Bohman, VP of Wilson Price Information Technology in Montgomery, Ala., recommends these sites for more information on VoIP: * The Federal Communications Commission's VoIP page, at fcc.gov/voip/ * VoipReview.org and ...
Alphabet Soup.(technical jargon)(Brief article)
Jan 01, 2007 ... Just as "VoIP" is a new combination of letters, it comes with a host of abbreviated terms that savvy users should know. Among them: DNIS: Dialed number identification service, a function that sends the dialed number to the answering service. DTMF: Dual-tone ...
Thriving and Family-Friendly.(Wall, Einhorn & Chernitzer, P.C.)(Company overview)
Jan 01, 2007; ... It's happened again. An accounting firm has been selected as one of the best places to work. Who and where? Wall, Einhorn & Chernitzer, P.C., in Norfolk, Va. The firm has been picked once again by Inside Business as one of the Top 25 Best Places to Work in Hampton Roads. "We ...
Advertiser's Index.
Jan 01, 2007 ... This Advertisers Index is published as a courtesy to our readers. The publisher is not responsible for errors or omissions. Advertiser Ad appears on page ADP Small Business Services 7 CCH, a Wolters Kluwer business C4 Drake Software 3 ...
Protecting Your Client Relationships.
Jan 01, 2007; ... Poor man wanna be rich, Rich man wanna be king, And a king ain't satisfied till he rules everything ...Badlands by Bruce Springsteen As CPAs we frequently hear from other service providers who want us to introduce them to our clients. After all, we are our ...
A Winning Hand.(Brief article)
Jan 01, 2007; ... My father once told me that anyone who worked for one dollar an hour owed it to himself to put in two dollars' worth of work. Actually, I recently read that hall of fame basketball icon Bill Russell's father said the same thing to him but used three and four dollars, respectively. I guess ...
Building Wealth: FPA Endorses Rule on Financial Titles: Too many floating around.(Financial Planning Association)(Massachusetts Securities Division proposed rules on professional designations)(Brief article)
Jan 01, 2007 ... The Financial Planning Association has endorsed a proposed rule by the Massachusetts Securities Division that will prohibit financial services professionals from using misleading professional designations. Massachusetts is the first state to propose placing limitations on the professional ...
Building Wealth: Who's at the Top?: Financial services has highest pricing power.(Kanbay Research Institute survey of consumers)(Brief article)
Jan 01, 2007 ... While many consider financial services to be a commodity, consumers clearly state the opposite, says a study by Washington, D.C.-based Kanbay Research Institute. The group studied six major industries on an annual basis: Communications, Financial Services, Media Content, Restaurants and ...
Building Wealth: Online Search Capabilities.(Securities and Exchange Commission's website services)(Brief article)
Jan 01, 2007 ... The Securities and Exchange Commission says that investors are now able to search the contents of disclosure documents filed electronically with the SEC using a new full-text search tool on the Commission's Web site. The newly searchable information includes registration ...
Building Wealth: What Most Investors Overlook...: ...and what most advisors don't explain.(tips by Charles Massimo)(Brief article)
Jan 01, 2007 ... Charles Massimo, president and founder of CJM Fiscal Management (Garden City, N.Y.), sees five common mistakes made by all investors at all levels of wealth and investment experience: 1. Not knowing the difference between effective and ineffective diversification and what that ...
Building Wealth: Tax-Free IRA Gifts: Special fund allows distributions for recovery.(individual retirement accounts)(Vanguard Charitable Endowment Program introduced Sustainable Disaster-Recovery Fund)(Brief article)
Jan 01, 2007 ... The Vanguard Charitable Endowment Program has launched the Sustainable Disaster-Recovery Fund, a vehicle designed to provide valuable project and program funding to experienced organizations seeking to create sustainable solutions for areas impacted by major disaster. Unlike the Program's ...
Building Wealth: Adding Funds.(John Hancock Retirement Plan Services)(Brief article)
Jan 01, 2007 ... John Hancock Retirement Plan Services says that it has nine new asset allocation funds in its investment lineup. These are the John Hancock Lifecycle Portfolios, which has eight target date funds, and the ...
Building Wealth: Strategic or Compliance?(financial services firms)(Brief article)
Jan 01, 2007 ... 73% Of board members of U.S. financial services firms spend less time on strategic business issues than on compliance-related matters. 51% Say time devoted to compliance is beginning to ...
Building Wealth: Avoid Retirement Regrets: Easy Tools and Tips.(Principal Financial Group survey of American workers)(Brief article)
Jan 01, 2007 ... The Principal Financial Group says that American workers admit that they save too little, too late. In fact, according to a survey published in the Principal Financial Well Being Index, saving too late appears to be the biggest financial planning regret. According to Monica Kirgen, vice ...
Building Wealth: Need More Information?: Three organizations that can help.(Fox College Funding)(Heartland Institute of Financial Education)(Jefferson National Life Insurance Co.)(Brief article)
Jan 01, 2007 ... * Fox College Funding (www.foxcollegefunding.com) provides late stage college funding planning for families with a college-bound high school student. The company specializes in helping upper-middle to high-income, as well as higher net worth families, reduce their college expenses. For the ...
Building Wealth: On the Book Shelves.(Guide to Tax and Financial Planning 2007)(Master the Media to Attract Your Ideal Clients: A Personal Marketing System for Financial Professionals)(Kiplinger's Retire and Thrive: How More Than 50 People Redefined Their Retirement Lifestyles)(60-Minute Estate Planner, 3rd ed.)(The Millionaire Maker's Guide to Wealth Cycle Investing)(Book review)
Jan 01, 2007 ... PROTECTING YOUR FAMILY How to simplify estate planning Updated to reflect the latest estate and tax laws, 60-Minute Estate Planner, Third Edition, by Sandy Kraemer is now out from AMACOM. The book is filled with simple, easy-to-understand instructions, as well as ...
Building Wealth: Vanguard Broadens Index Fund: Offering two types of shares.(Vanguard High Dividend Yield Index Fund)(High Dividend Yield Index Fund)(Brief article)
Jan 01, 2007 ... Shares of Vanguard High Dividend Yield Index Fund are now available for purchase by individual investors, institutions, and financial advisors. The new fund offers both traditional investor shares and ETF shares. According to Vanguard, the High Dividend Index Fund seeks to track the ...
Building Wealth: Straight Story on Financial Planning: FPA Publishes Encyclopedia.(The Encyclopedia of Financial Planning: What You Need to Know About Money )(Financial Planning Association)(Brief article)
Jan 01, 2007 ... The Financial Planning Association has just published The Encyclopedia of Financial Planning-What You Need to Know About Money from the Nation's Leading Financial Planners. Divided into 12 sections ranging from "What is Financial Planning" to "The Basics of Investing" and "Life's Little ...
Building Wealth: Impacting Business in 2007.(financial services)(Brief article)
Jan 01, 2007 ... Retiring Boomers 45% Market Performance 44% Oil Prices 33% Inflation 31% War in the Middle ...