Journal of Accountancy articles from July 2006

Journal of Accountancy archives from July 2006

One sax-y CPA.(Barry Bender)(Interview)
July 1, 2006... It's a well-known fact that children who are talented in music also tend to be great in math. So Barry Bender surely is not the only CPA who has two masters degrees, one in music and one in accounting. This March he got the opportunity to work...

A Guide to Forensic Accounting Investigation.(Brief article)(Book review)
July 1, 2006... A Guide to Forensic Accounting Investigation By Thomas W. Golden, Steven L. Skalak and Mona M. Clayton 576 pages; hardcover John Wiley & Sons, 2006 In A Guide to Forensic Accounting Investigation, forensic accountants and auditors Thomas...

Are your qualified retirement plans up to date?
July 1, 2006... Various changes in tax law have had a positive impact on how much Americans can save in qualified retirement plans. By reviewing the different types of plan designs before the end of 2006, CPAs and their clients may be better able to capitalize...

Social Security: what's the magic age? When to start collecting your benefits.
July 1, 2006... EXECUTIVE SUMMARY * In determining the age at which a worker should apply for Social Security benefits, consideration should be given to current and expected future sources of income, age of beneficiary and spouse, health issues that could...

Going forward with reverse mortgages: the benefits and pitfalls of borrowing against your home.
July 1, 2006... EXECUTIVE SUMMARY * Increased life expectancy has caused the elderly to need more funds after retiring, especially if they elect early retirement. The home is often the most valuable asset an individual owns. * Reverse mortgages allow...

Assessing and responding to risks in a financial statement audit: auditors must leave a clear record in private company audits.
July 1, 2006... EXECUTIVE SUMMARY * The new audit risk standards require the auditor to understand and respond to risks of material misstatement, whether due to errors or fraud. In reaching that understanding, auditors should identify risks to the...

A strategic player: hiring and inspiring a chief audit executive.
July 1, 2006... EXECUTIVE SUMMARY * Many companies are raising the expectations for their chief audit executives (CAEs) to include operating at more strategic levels of risk management and corporate governance. Successful CAEs must partner effectively...

Enhancing public confidence: the GAO's peer review experience: even auditors need to be audited.(Government Accountability Office)
July 1, 2006... In 2004 we at the Government Accountability Office (GAO) arranged to have a multinational team of experienced performance auditors conduct the first-ever peer review of our performance audits of federal government programs (www.gao....

The small firm advantage: does your firm have it?
July 1, 2006... EXECUTIVE SUMMARY * Despite their modest size, local practices have many real advantages that give them a competitive edge in recruiting, retention, client service and other vital business areas. PCPS is undertaking many new efforts to...

Get the word out: years of information can be conveniently stored at Web sites.
July 1, 2006... EXECUTIVE SUMMARY * CPAs can use Web sites to store many years of data, permitting clients quick and easy access 24/7. The sites, also called reporting portals, can handle data that are formatted in many different ways. * Data that are...

Refining the definition of a capital asset.
July 1, 2006... Section 1221 of the tax code broadly defines a capital asset. Over time the courts have attempted to narrow that definition and eliminate confusion. Recently a Third Circuit Court of Appeals ruling brought further clarification. In June...

Co-op real estate taxes not deductible for AMT.(alternative minimum tax)
July 1, 2006... Taxpayers generally can deduct expenditures they incur directly, but not expenditures paid by others on their behalf. IRC section 216, however, allows tenant-stockholders to deduct a proportionate share of real estate taxes paid by a...

When is a liability a liability?(tax deductions)
July 1, 2006... To deduct an accrued expense, an accrual-basis taxpayer must satisfy an all-events test. The test has two prongs: Does the liability exist and, if so, can it be measured with reasonable accuracy? Legally a liability exists when it is final,...

Lobbying and political activities of public charities: pay special attention in an election year.(from The Tax Adviser)
July 1, 2006... Under normal circumstances, charities must be careful how they deal with political issues, to ensure they do not engage in prohibited political activity. During an election year, they must be especially careful. Failure to monitor a charity's...

What's your fraud IQ? Think you know enough about corruption to spot it in any of its myriad forms? Then rev up your fraud detection radar and take this (deceptively) simple test.
July 1, 2006... QUESTIONS 1. Which of the following is not a legal element of fraud? a. A material false statement. b. Intent. c. Reliance by the victim. d. All of the above are legal elements of fraud. 2. If a company adds fake...

Master Your Money Type: Using Your Financial Personality to Create a Life of Wealth and Freedom.(Book review)
July 1, 2006... Master Your Money Type: Using Your Financial Personality to Create a Life of Wealth and Freedom by Jordan E. Goodman 345 pages; hardcover; $24.95 Warner Business Books New York, N.Y., 2006 Most people can characterize...

Directory of AICPA selected services.(Directory)
July 1, 2006... Address and employment information can be changed online through www.aicpa.org/about/dues.htm. Or, members can e-mail, mail or fax the information to the Member Service Center in New Jersey (see Member Se rvice Center for additional services...