FASB's Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, removes the requirement that not-for-profit (NFP) entities that choose to prepare the…
Much has been written over the past several years, and especially in the last few months, about the evolving role of the CFO in the…
Cybercrime is as ubiquitous as the Internet itself, and CPA firms and their clients are as vulnerable as anyone else to being hacked, scammed, or…
AICPA Proposal Raises the Ethical Bar
Incorporating International Standards into the Code of Professional Conduct
In February 2017, the AICPA's Professional Ethics Executive Committee (PEEC) agreed to propose modifications to the Code of Professional Conduct that would require certain actions…
Forensic Accountants and Calculation of Value Reports
Recent Court Observations
Litigation matters often require that the value of specific assets or business be determined. The standards by which such valuations are arrived at can be…
Three years ago, the server at the author's firm was hacked by a Russian scammer who got into the system by sending a phishing email…
It’s Amazing What CPAs Can Do
From a Farm in Taiwan to a Firm in New York
Editor's Note: This month we introduce what we hope will become a regular print and multimedia series of personal viewpoints by CPAs from all corners…
In Brief The audit world is changing. Technology has transformed business processes and created a wealth of data that can be leveraged by accountants and…
The following is taken from remarks made at the end of a speech Larry Smith made on September 21, 2016, at the AICPA's 2016 National…
Plan fiduciaries must take specific steps in the selection and retention of service providers to properly carry out their fiduciary duties. Retirement plan committees and…
At the first panel of the 15th Annual Financial Reporting Conference, the panelists discussed the SEC's recent activities and plans for the future. Topics included…
TPP | Filing Amended and Current Returns in Cases of Past Noncompliance: How Not to Make Matters Worse
2016 Max Block Award Honorable Mention in the Area of Departments/Columns
When a CPA discovers a taxpayer's past noncompliance, there are both ethical and practical questions to answer. The last thing a CPA should want to…
FASB’s Proposal to Change the Definition of Materiality: The Unexpected Uproar
2016 Max Block Award Winner: Outstanding Article in the Area of Departments/Columns
In September 2015, FASB issued two proposed documents that, if adopted, could change the way the concept of materiality is assessed and applied regarding information…
Unsolved Problems in Auditing: A Half-Century Retrospective and Update
2016 Max Block Award Winner: Outstanding Article in the Area of In Focus/Feature
Auditing has been an ever-changing discipline since its birth over 100 years ago, but how much have the challenges auditors face really evolved over the…
With its issuance of Accounting Standards Update (ASU) 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as…
The Going Concern Gap in U.S. GAAP
Filling a Hole in Existing Standards
Recent events, such as the fiscal crisis of 2007–2008 and the economic recession that followed, have prompted concerns about whether investors have received sufficient notice…
Changes to Going Concern Disclosures
Accounting Guidance Shifts Responsibilities to Management
Historically, auditors of financial statements have been charged with the assessment of an entity's ability to continue as a going concern (see AU 341, “The…
Instead of looking at Social Security as a government entitlement that one should start receiving as soon as eligible, one should consider it an investment…
In Brief As part of its oversight mission, the PCAOB has sought to improve the quality of U.S. public company audits. A major part of…
Unsolved Problems in Auditing
A Half-Century Retrospective and Update
In Brief Auditing has been an ever-changing discipline since its birth over 100 years ago, but how much have the challenges auditors face really evolved…
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…
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…
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…
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…
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?…
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…