California CPA articles from May 2006

California CPA archives from May 2006

May 10: CPA day at the Capitol.(CalCPA News)
May 1, 2006... It's been a few years since CalCPA members arrived in force at the Capitol and it's critical that the profession make itself known. This is an extraordinary opportunity to speak with legislators and their staff and help them understand the...

Questions for the IRS, FTB? Get them in before May 19.(CalCPA News)
May 1, 2006... CalCPA's Committee on Taxation is accepting questions through May 19 for its fall 2006 tax liaison meetings. In addition to the IRS and FTB, you can pose questions to the Employment Development Department and Board of Equalization. To...

CalCPA helps ease practice privilege regs.(providingrelief)(California Certified Public Accountant )(Brief article)
May 1, 2006... In recognition of the unintended consequences of its practice privilege implementation, the California Board of Accountancy took several recent actions to provide relief to out-of-state CPAs who have experienced difficulty complying with...

Women on the rise.(News & Trends)(Certified public accountants)(Statistical table)(Brief article)
May 1, 2006... [ILLUSTRATION OMITTED] WOMEN on the RISE While the pace is arguably slow, women have made management gains across the board, especially at smaller firms, according to a 10-year study by the AICPA. 1993...

CalCPA affects change in capital gains reporting requirements.(providingrelief)
May 1, 2006... The IRS, based on a comment letter from CalCPA's Committee on Taxation, has clarified its instructions for reporting capital gains and other investments on Form 1040, Schedule D. The clarification can be found at...

Online Learning Pass: one price, unlimited access.(EDUCATION FOUNDATION FOCUS)
May 1, 2006... The California CPA Education Foundation introduces the Online Learning Pass, an annual subscription that gives users unlimited access to Education Foundation online courses for only $350. As an Online Learning Pass subscriber, you simply...

Eight new Risk Assessment Auditing Standards.(AICPA News)(American Institute of Certified Public Accountants)(Brief article)
May 1, 2006... The AICPA Auditing Standards Board has issued eight new Statements on Auditing Standards, SAS No. 104-111, collectively dubbed the Risk Assessment Standards. [ILLUSTRATION OMITTED] The statements tighten the link between audit...

AICPA task force recommends peer review changes.(AICPA News)
May 1, 2006... An AICPA task force has recommended increasing the transparency of the peer review program, including: * Communicating the objectives, procedures and oversight results to the public through annual--and in certain cases biannual--reports...

Proposed SAS: The Auditor's Communication.(AuditingStandards)(Statement on Auditing Standards )(Brief article)
May 1, 2006... The AICPA has issued an exposure draft of a proposed Statement on Auditing Standards, The Auditor's Communication With Those Charged With Governance, establishing standards and providing guidance to an auditor on matters to be communicated with...

Guidance on hiring plan auditors.( American Institute of Certified Public Accountants's Employee Benefit Plan Audit Quality Center issues tool)(Brief article)
May 1, 2006... The AICPA Employee Benefit Plan Audit Quality Center has issued a tool to assist plan sponsors and others in hiring auditors for their employee benefit plans. Obtaining Quality Employee Benefit Plan Audit Services: The Request for Proposal...

California registered domestic partners must file separately.(IRS Update)(Brief article)
May 1, 2006... Registered domestic partners in California must file separate federal income tax returns, as single taxpayers, according to the IRS. This is the first IRS clarification of domestic partner tax treatment since the Jan. 1, 2005, enactment of...

LLC fees unconstitutional? File a protective claim.(limited liability companies )(Brief article)
May 1, 2006... The Superior Court of California has issued a proposed ruling stating that California's levy on limited liability companies (in Rev. and Tax Code Sec. 17942) is unconstitutional. CalCPA anticipates that the issue will be appealed to the...

Final standard on certain hybrid financial instruments.(Financial Accounting Standards Board)(Brief article)
May 1, 2006... FASB has issued a final Statement of Financial Accounting Standard No. 155, Accounting for Certain Hybrid Instruments, an amendment to FASB Statements Nos. 133 and 140. Among other things, the standard allows financial instruments that...

Separately recognized servicing assets and liabilities.(FASB News)(Brief article)
May 1, 2006... FASB has issued Statement of Financial Accounting Standards No. 156, Accounting for Servicing of Financial Assets, and amendment to FAS 140. The new standard addresses the recognition and measurement of separately recognized servicing...

Reminder: monitor your spam inbox.(California Society of Certified Public Accountants move to electronic versions)(Brief article)
May 1, 2006... As CalCPA moves from hardcopy bulletins to electronic versions, remember to monitor your company's spam inbox. Often, mass e-mails are flagged and cordoned off by "spam" monitoring software for e-mail programs, such as Outlook. While these...

Staff position: cash settlements on contingent events.(FASB News)(Brief article)
May 1, 2006... FASB has issued new guidance addressing the classification of options and similar instruments issued as employee compensation that allow for cash settlement upon the occurrence of a contingent event, amending paragraphs 32 and A229 of FASB...

Draft: postretirement benefit plans, including pensions.(Financial Accounting Standards Board)(Brief article)
May 1, 2006... FASB has issued a proposal that would require employers to recognize the over- or under-funded positions of defined benefit postretirement plans, including pension plans, in their balance sheets. [ILLUSTRATION OMITTED] The proposal...

SEC approves PCAOB Auditing Standard No. 4.(Securities and Exchange Commission)(Public Company Accounting Oversight Board)(Brief article)
May 1, 2006... The SEC has approved PCAOB Auditing Standard No. 4, which addresses reporting on the elimination of a material weakness. The standard establishes a stand-alone engagement that is voluntary, performed only at the company's request, after the...

Petersen, CHI named to CBA.(News & Trends)
May 1, 2006... CalCPA members Angela Chi, CPA, and Robert Petersen, CPA have been appointed to the California Board of Accountancy. Chi has served as a principal at Fresno-based Watts, Campbell, Chi & Baker since 1997 and was an accountant for Watts,...

PCAOB details qc fix efforts.(Public Company Accounting Oversight Board)(Brief article)
May 1, 2006... The PCAOB has issued two releases that detail the SOX provision that gives accounting firms incentives to address quality control criticisms within 12 months after a board-issued report. The first release details the process by which the...

BOE free seminars on tax laws for nonprofits.(BOE News)
May 1, 2006... The Board of Equalization will host a number of free seminars in 2006 on tax laws, exemptions and reporting requirements for non-profit and exempt organizations. The seminars scheduled for May include stops in Lakewood, Visalia/Tulare,...

2006 California Employer's Guide.(California Employment Development Department )(Brief article)
May 1, 2006... The California Employment Development Department has released its 2006 California Employer's Guide, providing guidance on state payroll taxes, what constitutes wages, California personal income tax withholding, types of employment and other...

In memoriam.(News & Trends)
May 1, 2006... Former San Diego Chapter President Billy M. Shockey died March 20. He was 79. Shockey began his CPA career with Price Waterhouse in 1954, eventually managing its San Diego office. He started Miller Shockey & Co. in 1971, which evolved into...

The Audit of Group Financial Statements.(International Auditing and Assurance Standards Board)(Brief article)
May 1, 2006... The International Auditing and Assurance Standards Board has opened for comment International Standard on Auditing No. 600, The Audit of Group Financial Statements. The draft deals with special considerations in the audit of group financial...

CFO top concerns: insurance, healthcare, cash management.(Survey Says)
May 1, 2006... Employee health care expenses top the list of worries for financial executives, according to a new survey by Robert Half Management Resources. [ILLUSTRATION OMITTED] Of the 1,400 CFOs polled, nearly half cited the rising cost of...

Announcements.(membermilestones)
May 1, 2006... Irvine-based John Saleman has been promoted to audit manager at Kushner, Smith, Joanou and Gregson LLP... Los Angeles-based Nikka Yochim has been promoted to tax manager and Los Angeles-base Don Han has been hired as a tax manager at...

Accomplishments.(membermilestones)(Brief article)
May 1, 2006... Clovis-based Robert F. Price has been certified as an Accredited Estate Planner by the National Association of Estate Planners and Councils... San Francisco-based Raymond Jee of Hemming Morse has been selected to serve on the Bay Area Rapid...

Firm news.( Stonefield Josephson launches Valuation, Litigation and Forensic Group)( Farber & Hass LLP merge with Hurley & Co.)(Kelfer & Associates opens)(Brief article)
May 1, 2006... Los Angeles-based Stonefield Josephson has launched a Valuation, Litigation and Forensic Group, led by Irvine-based Mark Stepka and Los Angeles-based Jeffrey Sumpter... Camarillo-based Farber & Hass LLP has merged with Granada Hills-based...

Awards.(California Independent Banker of the Year for 2005 )(2006 Santa Clara University Accounting Alumnus of the Year)(Brief article)
May 1, 2006... Irvine-based Thomas R. Timmons was named California Independent Banker of the Year for 2005 by the California Independent Bankers... Mountain View-based Dennis Young has been named the 2006 Santa Clara University Accounting Alumnus of the...

Members in the news.(membermilestones)
May 1, 2006... Mitch Freedman was quoted in a Jan. 16 article on Monster.com... Carmichael-based Stuart Robken was quoted in a Jan. 16 Sacramento Business Journal article... Escondido-based Jim Vander Speck writes a regular column for the North County Times...

Rules of disengagement: navigating the turbulent waters of divorce taxation.
May 1, 2006... The tax consequences of divorce can be critical. Since it is the unusual divorce attorney who understands the intricacies of federal and California income tax laws, CPAs are well-suited to help clients structure their divorce settlements to be...

E-audit: tools evolving to help you find your way along the paperless audit trail.
May 1, 2006... Accounting firms have improved audit efficiencies by using electronic audit tools for more than two decades, starting with trial balance software in the early 1980s. The software has evolved to include electronic audit programs and engagement...

Potential pitfalls: financial planning challenges for registered domestic partners.
May 1, 2006... California's Domestic Partner Rights and Responsibilities Act (AB 205) went into effect Jan. 1, 2005. Though a number of clean-up provisions went into effect Jan. 1, 2006 that provide clarity and additional protection for domestic...

Grow the ranks: fewer candidates are becoming certified--help turn the tide.(PROFESSIONALISSUES)
May 1, 2006... While the number of students earning bachelor's degrees in accounting is rising, it's taking longer for them to become certified. [ILLUSTRATION OMITTED] In fact, nationally, the number of candidates sitting for the CPA Exam has...

Follow the leaders: a guide for CalCPA's--and the profession's--future leaders.
May 1, 2006... editor's note: One of CalCPA Chair Chris Yahng's initiatives is the CalCPA Leadership Institute, a high-level, five-day program that teaches members the skills necessary to become CalCPA's and the profession's future leaders. The class of...

Notice of meeting: The Annual Members Business Meeting of the California Society of certified public accountants will take place at 11 a.m. Friday, June 23 at the Omni Hotel in San Diego.(NOMINATIONS)
May 1, 2006... The Annual Members Business Meeting will include a membership vote on: 1) the minutes from the 2005 Annual Members Business Meeting; and 2) election of officers and directors should there be a contested seat. If there is a contested seat, a...

Chapter representatives.(California Society of Certified Public Accountants elections)
May 1, 2006... The following CalCPA members have been elected by their chapter as representatives, from that chapter, to CalCPA Council. Chapter representatives on CalCPA Council may serve either a one- or a two-year term. Terms are effective from, and end...

2006-07 CalCPA officer candidates.(CANDIDATES)
May 1, 2006... CHAIR Marc G. Parkinson, CPA Managing Partner, Petrinovich Pugh & Co. San Jose Current: CalCPA Board of Directors, first vice chair; CalCPA Council; AICPA Council; CalCPA Leadership Development Committee. Past: CalCPA...

School savings plans: prepayment option can avoid gift tax--but beware.
May 1, 2006... College costs are outpacing inflation, growing 9.8 percent at public four-year colleges and 5.7 percent at private four-year colleges in the 2004-05 school year, according to The College Board. At this rate, new parents can expect average...

New faces on CBA: Petersen, Chi appointed to CBA; practice privilege modifications.(California Board of Accountancy)(Charles Drott)(Angela Chi)(Robert Petersen)
May 1, 2006... Gov. Arnold Schwarzenegger appointed CalCPA members Robert Petersen, CPA, and Angela Chi, CPA, to the California Board of Accountancy March 15. The appointees replace CalCPA member Charles Drott, who resigned from the board, and CalCPA member...

FTB Q&A highlights: plus: FTB audit emphasis and selected EDD issues.(Franchise Tax Board)
May 1, 2006... One of many CalCPA benefits is rapid access to the information tax authorities share at their annual liaison meetings with CalCPA's Committee on Taxation. These Q&A sessions, with their resulting transcripts, are a great, but often...

State your case: effective marketing: out-thinking the competition, not out-spending.
May 1, 2006... The sphere of influence CPAs have regarding their clients goes beyond tax planning. Clients look to CPAs for advice on everything from insurance options to human resources management to business growth issues. And while small-business...

A helping hand: using software to improve analytical procedures in audits & reviews.
May 1, 2006... One of the larger fallouts from the accounting scandals of the past several years is that the investing public has begun to believe that accounting and auditing can be an exact discipline. They can't be. Because accounting and auditing...

Perfect fit.
May 1, 2006... Even on a budget, companies can make IT improvements that meet their needs--and please employees You're running a CPA firm, or a small to midsize business, and know you need to invest in information technology, but you're concerned that...

A clearer picture: enhanced business reporting: better info means better decisions.(BUSINESSREPORTING)
May 1, 2006... Adept organizations use historical information and real-time indicators that are predictive in nature to manage their day-to-day operations and make strategic decisions. And technology has provided access to more timely, accurate and relevant...

SOX meets tech: as control requirements change, technology must meet small-business challenges.(Sarbanes-Oxley Act of 2002)(Committee of Sponsoring Organizations)
May 1, 2006... The Committee of Sponsoring Organizations of the Treadway Commission's long-awaited draft, Guidance for Smaller Public Companies Reporting on Internal Control over Financial Reporting, was released in October 2005 to address internal controls...

Data destruction: taking laptop security beyond passwords, encryption.
May 1, 2006... For some time, you've been reading about the risks of data exposure. And while we believe that businesses have gained the upper hand in dealing with hackers, a new threat is emerging--lost or stolen PCs, specifically laptop computers. ...

The ROI of SOX: SOX compliance investments can boost your bottom line.(SOXCONTROLS)
May 1, 2006... While Sarbanes-Oxley compliance costs can vary depending on a company's revenue, operational reach and ownership structure, many businesses have experienced a multifold return on investment, ranging from the introduction of new initiatives to...