Journal of Accountancy articles from February 2004

Journal of Accountancy archives from February 2004

Pilot test reveals dramatic changes: CPA candidates who volunteered to take the test give their views on how it compares with the paper-based version.(computerized test)
February 1, 2004... In a study conducted between November 18 and December 9 of last year, more than 80 CPA candidates got a firsthand look at the new, computerized Uniform CPA Examination. Volunteers selected from a pool of candidates who had taken the paper-based...

Support for CPAs in post-disaster work: whether helping a single client or a whole community return to normal, CPAs will find a new guide to be a vital tool.
February 1, 2004... Before 9/11/01 CPAs and other financial planners had a tough time convincing the public of the importance of disaster--recovery planning, except perhaps in locations with a history of earthquakes, floods or tornadoes. That's all changed as...

Tax clients need more than just tax work.(excerpt from 'Introducing Tax Clients to Additional Services')(Excerpt)
February 1, 2004... The average tax return client thinks of accountants as being mainly involved in taxes. Also, a CPA firm's largest volume of clients is usually for tax return services. Therefore, a good part of the public image of your firm must come from the...

Set prices that mirror your worth.(accounting services)
February 1, 2004... Are you charging clients amounts that recover the time and effort you put into working for them? Do you also factor into your prices things such as the value you create for your client, your abilities, your specialized skills and the demand for...

Choose the right tools for internal control reporting: pick internal control software for changing business conditions.
February 1, 2004... Time is running out for many businesses to begin the complex process of complying with section 404 of the Sarbanes-Oxley Act of 2002, which tightened internal control and financial reporting requirements. (See "Impact of Section 404," page 36.)...

Sarbanes-Oxley: what it means to the marketplace; from support to apprehension, accounting professionals express their thoughts.
February 1, 2004... EXECUTIVE SUMMARY THE ACCOUNTING PROFESSIONALS INTERVIEWED for this article were positive about some Sarbanes-Oxley requirements, saying management's reporting on and the external auditor's attestation to the internal controls are good...

Unclaimed property: how to comply with the undisclosed liability and reporting requirements.
February 1, 2004... EXECUTIVE SUMMARY * WITH MORE STATES CONDUCTING AUDITS, CPAs need to encourage companies to pay greater attention to their unclaimed property liability. This includes both reporting unclaimed assets to the right state and making sure the...

To compete or noncompete: a noncompete agreement is an important tool to safeguard a firm or company's interests.
February 1, 2004... Managing business risk is a concept familiar to CPAs, who routinely encourage clients to protect themselves against many operational vulnerabilities. One risk every firm should manage is the possibility an employee who moves to a new job or...

Ferret out spreadsheet errors: use Excel's tools to uncover and correct formula problems.
February 1, 2004... Most spreadsheets are complicated files--not only because they contain a multitude of formulas and data, but because all the formulas are intricately linked to data distributed in various parts of the worksheet. As a result, even one small...

New approaches to fraud deterrence: it's time to take a new look at the auditing process.
February 1, 2004... Call me a skeptic. Maybe it's because I've investigated a couple of thousand fraud cases over a career now entering its fourth decade. Perhaps it's because questioning is one of a CPA's most valuable talents. While I believe that as a...

The final split-dollar regulations: the IRS offers up a complex array of rules.
February 1, 2004... The flurry of IRS and Treasury Department activity focusing on split-dollar insurance arrangements came to a close when the Treasury issued final regulations for all such arrangements entered into or "materially modified" after September 17,...

Economic performance.(business expenditure deductibility under IRC section 162)
February 1, 2004... A business expenditure is deductible if it is ordinary and necessary as defined in IRC section 162. The "all-events test" generally determines the timing of the deduction. The Tax Court recently addressed the timing issue for services performed...

Departing partner's debt service payment income to partnership.
February 1, 2004... IRC section 721 (a) says a partnership or any of its partners will not have to recognize gain or loss for contributing property to the entity in exchange for a partnership interest. Such a capital contribution increases a partner's basis. IRC...

The costs of household employees: complying with legal requirements when employing domestic help.(from The Tax Adviser)
February 1, 2004... While most CPAs are aware of the need to file payroll reports for household employees, clients may not fully understand the risks of not reporting wages paid to household workers. OVERVIEW Despite the publicity about the "nanny tax"...