Journal of Accountancy

A monthly publication of the American Institute of Certified Public Accountants focusing on the latest news and developments related to the field of accounting, and written for CPAs and other accounting professionals.

Articles from Vol. 170, No. 3, September

An Attention-Getting Marketing Strategy
The marketing and promotion of CPA firms present strategists with a unique challenge. Theoretically, the task should not be that difficult since CPAs have a well-defined "product" and a large and ready market for their services. Many strategies,...
A Quality Review Checklist; Five Simple Steps to a More Successful Review
In 1985, our small firm in Boulder, Colorado, had its first peer review. The lessons we learned in the review improved our procedures and changed how we practiced. That experience led me to become a peer reviwer. In this work, I have found most...
Auditors and Bank Examiners: A New Era of Cooperation; Cooperation Can Lead to More Effective Bank Audits and Examinations
Financial institution regulators have a problem on their hands. Troubled banks and thrifts are everywhere. In 1988, the Office of the Comptroller of the Currency (OCC) and state bank supervisors closed over 200 banks. Again in 1989, they declared...
Directions in Optical Storage
Many benefits will accrue from the advances being made in mass storage technology, particularly in the optical arena. The high capacity and low cost per unit of data stored make optical media an effective storage solution. Accountants need to be...
Financial Adviser Regulation Alert; Federal and State Efforts Could Make It Harder for Many CPAs to Conduct Business
CPAs who offer any kind of financial advice increasing face the possibility of greater regulatory burdens. Although most CPAs neither sell investments nor offer lifetime personal financial plans, some traditional CPA services have been confused with...
GATT Is Dead; the World Economy as We Know It Is Coming to an End, Taking the General Agreements on Tariffs and Trade with It
Since 1945 the world has been moving slowly but persistently toward an ever more open, integrated world economy. The very success of this trend, however, has undermined its continuation and led to an important shift in power: A single polar world...
How to Value Covenants Not to Compete; the Appraiser Must Put a Dollar Figure on a Series of Qualitative Assessments
Valuation consultants often are called on by corporate buyers and sellers to appraise various intangible assets as part of an acquisition. Although an intangible asset appraisal may be necessary for a number of reasons, one of the most common reasons...
Improving Production with Process Value Analysis; the Foundation for Activity Based Costing
Many cost accounting systems accumulate product costs incorrectly and therefore lead to inappropriate decisions. Let's look at the following two products. Product 1, manufactured from material purchased in a nearby city, requires two hours of direct...
Information for Profit
Good information is the basis for good business advice. Sometimes CPAs don't realize that business advice often is the key service clients need from them. although the skills needed to perform many management advisory services take years to acquire,...
Rental of Residences
Traditionally, taxpayers who own rental property have been able to take advantage of several tax breaks. While having to recognize rental income, they also have been able to take certain business deductions (such as depreciation and insurance); as...
SAS No. 55 - Help Has Arrived
Since the issuance of Statement on Auditing Standards no. 55, Consideration of the Internal Control Structure in a Financial Statement Audit, the phones of several of the American Institute of CPAs technical divisions haven't stopped ringing. Everyone...
Western Accounting Arrives in Eastern Europe; Even in the Soviet Union, Managers Are Being Taught to Measure Profit and Loss
Eastern Europe is hot. The iron curtain is down, markets are opening up and Western companies are rushing in to set up shop. The six largest international accounting firms and a handful of smaller ones are moving in, too, sometimes on the heels of...
Where Small and Midsized Companies Can Find Export Help; a Number of Government Agencies Have Programs to Assist in All Phases of Exporting
If the myth that the export market was largely the province of giant multinational corporations and high-tech companies was ever true, it has long since been disproven. Most U.S. companies, whatever their size, can export profitably. According to...