Journal of Accountancy articles from May 2003

Journal of Accountancy archives from May 2003

SEC strengthens audit committees.
May 1, 2003... In April the SEC adopted as final rules that prohibit the nation's stock exchanges from listing the securities of any public company not in compliance with the audit committee requirements of section 301 of the Sarbanes-Oxley Act of 2002. ...

SEC wants certifications prominently displayed .(corporate officers' certifications )
May 1, 2003... To simplify access to corporate officers' certifications of their companies' financial reports, the SEC issued an exposure draft in March that called for the filing of such statements in an accompanying exhibit rather than in the report's text....

Balance sheet becomes breeding ground for fraud.
May 1, 2003... The balance sheet used to be the backwater of financial statement fraud. Now, though, balance sheet frauds have become more complex and the potential rewards much greater as the balance sheet has grown in importance and as the fraudsters have...

Reach out--to get that job.
May 1, 2003... Maintaining an active network of professional contacts and references can enhance your employment prospects if you suddenly find yourself in the market for a job. The best way to land a new position is by reaching out to your friends, family,...

A shopper's guide to Web-based tax research: how to select the cyberservices that best fit your needs.
May 1, 2003... EXECUTIVE SUMMARY * TAX RESEARCH HAS ENTERED THE 21st CENTURY as Web-based services duplicate all the traditional paper-based products. Cybervendors provide fast searches for pertinent information and give practitioners an easy way to...

Taxation of pending claims: how to handle liabilities when selling or restructuring a business.
May 1, 2003... EXECUTIVE SUMMARY * A CORPORATION THAT IS SOLD OR RESTRUCTURED faces significant uncertainty about how the government will tax contingent liabilities such as environmental, tort and similar obligations. This is particularly true for...

Get the most out of training day: be systematic about finding trainers who understand your business.
May 1, 2003... EXECUTIVE SUMMARY * A CPA FIRM THAT'S EXPANDING, with more staff at various professional levels and perhaps scattered among different offices, may find it increasingly difficult to manage its training through its human resources...

How to profit by safeguarding privacy: CPAs can help businesses boost customer relations and, at the same time, meet regulatory requirements.
May 1, 2003... EXECUTIVE SUMMARY * PROTECTING THE PRIVACY of personal information is no longer optional for organizations that collect, use and distribute it. Federal law now requires entities to take responsibility for safeguarding the data they gather...

The world's dumbest fraudsters: more proof that truth is stranger than fiction.
May 1, 2003... In Wichita, Kansas, police arrested a 22-year-old male who tried to pass two counterfeit $16 bills at an airport hotel. And in St. Louis, a bus carrying five passengers was involved in an accident. However, when the police arrived, 14 more...

Health care costs on the rise: how companies are coping.
May 1, 2003... EXECUTIVE SUMMARY * THE COST OF PROVIDING EMPLOYEES WITH HEALTH insurance coverage is increasing at a double-digit rate. Businesses are seeking to solve the problem by decreasing their premium contributions, changing the products they...

Invalid partnership.
May 1, 2003... Since the Treasury Department adopted what are known as the check-the-box regulations, CPAs have been confident that unincorporated entities with two or more owners would be treated as partnerships unless they elected corporate treatment. The...

MACRS reclassification not change in accounting method.(modified accelerated cost recovery system )
May 1, 2003... IRC section 446(e) requires that a taxpayer secure IRS consent to change its method of accounting. Treasury regulations section 1.446-1(e)(2)(i) specifies that a taxpayer do this before computing its income under the new method. The rule also...

ESAs vs. QTPs: easing the costs of education.(Education Savings Accounts vs. qualified tuition plans)
May 1, 2003... While taxpayers have focused lately on the benefits of IRC section 529 qualified tuition plans (QTPs), Coverdell Education Savings Accounts (ESAs) offer an attractive alternative. A taxpayer can establish an IRC section 530 ESA (formerly known...

A White-Collar Profession: African American Certified Public Accountants Since 1921.(Book Review)
May 1, 2003... By Theresa A. Hammond 146 pages; hardcover; $39.95 The University of North Carolina Press, Chapel Hill, North Carolina, 2002 Theresa A. Hammond, PhD, the author of this history, is an associate professor of accounting and Ernst & Young...

The Art of the Steal: How to Protect Yourself and Your Business from Fraud, America's #1 Crime.(Book Review)
May 1, 2003... By Frank W. Abagnale 225 pages; paperback; $14 Broadway Books, New York, 2001 In this book, Frank W. Abagnale (recently portrayed by Leonardo DiCaprio in the movie based on his first book, Catch Me If You Can) reports on an astonishing...