Journal of Accountancy articles from March 2004

Journal of Accountancy archives from March 2004

Tips on preparing employees for the new CPA exam; both employers and staff candidates can benefit from getting ready.
March 1, 2004... This article explores the new, computerized Uniform CPA Examination, which in April 2004 will replace the paper-and-pencil version. The computer-based CPA exam is a joint effort by the AICPA, the National Association of State Boards of...

NASBA meeting participants home in on state and federal regulations.(National Ass'n of State Boards of Accountancy)
March 1, 2004... The National Association of State Boards of Accountancy held its annual meeting in October 2003 on Maui, Hawaii. Meanwhile, the public company accounting standards and federal regulations implementing the provisions of the Sarbanes-Oxley Act of...

4 easy steps to successful selling.(CPA videocourse)
March 1, 2004... It's easy to become confused about the difference between marketing and selling. Marketing is the series of activities that generates interest in your products and services. Selling is the act of persuading people to buy your products or...

Help clients create a positive cash flow.
March 1, 2004... A cash-flow gap can make it difficult for a business to meet its financial obligations or make the most of emerging opportunities. To achieve a positive cash flow, a company must have a sound strategy in place. Here are some tips you can offer...

Legal and ethical considerations regarding outsourcing: members must comply with the Code of Professional Conduct and other pronouncements.
March 1, 2004... The Institute has received a number of inquiries regarding the responsibilities of members who use third-party service providers in client engagements. Commonly known as "outsourcing," this practice has been employed by members for decades to...

An AICPA small firm champion: a former practitioner aims to give small firms a front-row seat at every table at the Institute.
March 1, 2004... "After finding out how small firm members define success, I want to learn how the AICPA can help them achieve it," James C. Metzler, CPA, said in August 2003 when he became the AICPA's first vice-president of small firm interests. In the months...

Make Excel an instant know-it-all: PivotTables reorganize data to produce many custom answers.
March 1, 2004... You're sitting at your computer working on a spreadsheet that displays revenue generated by individual salespersons. Your CEO, hovering anxiously at your elbow, asks you for one employee's third-quarter sales total. You sort the Salesperson...

Charts tell the real story: add pizzazz - and clarity - to a financial report.
March 1, 2004... One of the most critical tasks of accountants is translating those dry columns of financial numbers into information that management can quickly comprehend. One effective tool is the chart, which graphically demonstrates what the numbers mean....

Build an antifraud practice: there's great satisfaction in crime busting.
March 1, 2004... "Establishing a solid antifraud practice is not the same as building a typical CPA firm," says Karen J. Tierney, CPA, of Glastonbury, Connecticut, "but for CPAs with the right background, training and expertise, I believe the antifraud...

Small business insurance checkup: preventive maintenance is essential to an organization's financial health.
March 1, 2004... For most people a preventive visit to the doctor for an annual checkup has become routine. Similarly, each year drivers have their cars inspected to ensure sale and reliable transportation. But too often, small business owners--including...

A changing corporate culture: how companies are adjusting to Sarbanes-Oxley.
March 1, 2004... Recent corporate failures and frauds have called into question the value of the financial statement audit. The auditor's association with failing or distressed companies has created a firestorm of controversy. Two of the principal outcomes of...

QTIP created under state law not federally binding.(qualified terminable interest property)
March 1, 2004... Under IRC section 2056(a), an estate may claim a marital deduction for property passing to the surviving spouse. As a general rule, the law denies a deduction for "terminal interests" (those that will terminate or rail "on the lapse of time, on...

Corporate acquisition expenses.
March 1, 2004... The deductibility of an expenditure can greatly affect the benefit a tax payer receives from it. When evaluating the acquisition of another business, the issue becomes not only whether the expenditure is deductible rather than capitalizable but...

Gross income includes returned fees; advance litigation costs are loans.
March 1, 2004... IRC section 61 defines gross income as all income from all sources--unless specifically excluded by law. In general a taxpayer must include in gross income any increase in wealth he or she realizes in the period "realization" occurs. The claim...

Audit initiative targets executive compensation: the IRS will examine public companies and their key employees.(from The Tax Adviser)
March 1, 2004... According to an IRS webcast, the service has begun an initiative to assess compliance and target abuses related to executive compensation and benefits. CPAs who represent public companies should become familiar with this initiative. AREAS...