In Brief For many companies, an audit is a necessary part of business operations. For others, however, it is not, and such businesses are increasingly…
It’s Amazing What CPAs Can Do
A Career Spent Wearing Many Hats
Hollywood has long stereotyped accountants as boring number crunchers. In my view, that is not the case. For the past 25 years, the accounting profession…
European Audit Reform
How It Could Affect U.S. Companies
In April 2014, European Union (EU) legislation was adopted to reform the European statutory audit market. In this context, a statutory audit is a legally…
What Auditors Need to Know about SOX Section 404(a) Reports
Hidden Risks and Responsibilities
Since the PCAOB's Auditing Standard (AS) 5, now reorganized as AS 2201, replaced AS 2 in 2007, auditors for publicly held companies (i.e., issuers) no…
Improving Audit Quality through Auditor Communication
Charting Recent Progress and Looking Ahead
The state of audit quality is strong—and getting stronger. Annual tallies of financial restatements have dropped dramatically from post—Sarbanes-Oxley Act of 2002 peaks and have…
There are several points in a business's life cycle that represent increased risk. One prime example is the buying or selling of all or part…
Audit Quality and the Expectations Gap
It’s Time for a Model that Fits the Data
Leaders of the profession have conflicting views on the state of audit quality today. According to current SEC Chair Mary Jo White, “investor confidence in…
Tax & Accounting Update
FASB/SEC News
Tax & Accounting Update is provided by Thomson Reuters and based on material published on Checkpoint, its online news and research platform. The Update is…
The Continuing Evolution of Accounting Alternatives for Private Companies
Recognition of Identifiable Intangible Assets in a Business Combination
In Brief In 2014, FASB issued Accounting Standards Update 2014-18, Business Combinations (Topic 805): Accounting for Identifiable Intangible Assets in a Business Combination, a consensus…
The Tangle of Intangible Assets and Business Combinations
Related Standards: Past, Present, and Future
In Brief Since January 2014, FASB has issued several significant pronouncements on business combinations and intangible assets; however, the interaction between the two remains complex,…
One CPA’s 30-Year Journey
A Path into and out of Public Accounting
In my 30 years of being a CPA, I’ve gone from a family small business accounting practice to being a head of tax at a…
Ten years ago, if you were to ask American CPAs about corporate sustainability practices, your questions would most likely be met with blank stares, if…
In a May 2015 decision, the U.S. Supreme Court held that a fiduciary under the Employee Retirement Income Security Act of 1974 (ERISA) who is…
This tax year is shaping up to be another memorable one, given last-minute changes to the tax law, as well as the IRS’s efforts to…
The ‘Reasonable Cause and Good Faith’ Defense to Penalties
Lessons from Hobby Loss Cases
The gold standard for a “reasonable cause and good faith” defense to a tax penalty is reliance on advice from a professional tax advisor who…
The New Revenue Recognition Standard
An Illustration of the Implications for ‘Ordinary’ Companies
In Brief After a long period of deliberation and revision, FASB’s new guidance on revenue recognition will soon be a reality for businesses and their…
Equity Crowdfunding
The Good, the Bad, and the Potentially Ugly
On October 30, 2015, the SEC issued final rules to implement Title III of the Jumpstart Our Business Startup (JOBS) Act, which amended the Securities…
A Refresher on Accounting for Leases
A Detailed Example under the Proposed Guidance
In Brief FASB’s long-debated exposure draft of a new standard on accounting for leases has raised the possibility that almost all leases will need to…
The Terminology of Going Concern Standards
How Subtle Differences in Wording Can Have a Big Impact
In Brief Can slight differences in the wording of going concern standards affect the extent of audit tests performed and the decisions that auditors make?…
This month’s issue focuses on the coming year in accounting and taxation, as CPAs take stock of recent changes and prepare for their actual implementation.…
“The only function of economic forecasting is to make astrology look respectable.” —John Kenneth Galbraith “Economists are about as useful as astrologers in predicting the…
Helping Individuals Determine Their Investment Goals
Drafting an Investment Policy Statement
Many individuals are vague or unrealistic about their goals and how to achieve them. CPAs can use their “database” of knowledge of their clients and…
The 2015 Annual Survey of New York State Practitioners, published in the November 2015 issue, revealed that free tax research tools have become increasingly popular…
ICYMI—The Reporting Impact of ASU 2016-14
Painting the Picture from a Nonprofit’s Financial Perspective
In Brief The nonprofit landscape has changed significantly over the past 26 years, expanding in size and scope while facing new challenges and keeping up…