The CPA Journal

The CPA Journal is a monthly refereed accounting journal. It has been published by the New York State Society of CPAs since 1930.Subjects for The CPA Journal inlcude accountants and accounting. Carolyn Morrisroe is the managing editor and Anthony H. Sarmiento is a contributing editor.

Articles from Vol. 73, No. 3, March

Attorneys Talk about Representing Accountants in the Era of Enron and Other Corporate Scandals
CPAs historically have ranked among the most trusted professionals. In a matter of just months, however, as a result of Enron and other corporate scandals, accountants joined the ranks of attorneys, politicians, and used-car salespersons at the bottom...
Audit Committees' Responsibilities and Liability
A strategic position In Brief The Audit Committee's New Job Description In the wake of Enron's collapse, audit committee members are subject to enhanced responsibilities and liabilities, and the SEC and other regulators are conducting more investigations...
A White-Collar Profession: African-American Certified Public Accountants since 1921
A WHITE-COLLAR PROFESSION: AFRICAN-AMERICAN CERTIFIED PUBLIC ACCOUNTANTS SINCE 1921 The University of North Carolina Press; 232 pp.; hardcover, $339.95, ISBN. 080 782 7088; softcover, $1695, ISBN:080 7853 771 Reviewed by Raymond P. Jones, CFE, CPA, Watson...
Convergence of IFRS and U.S. GAAP
INTERNATIONAL ACCOUNTING IN OCTOBER 2002, THE IASB AND FASB JOINTLY ISSUED A MEMORANDUM OF UNDERSTANDING, formalizing their commitment to the convergence of U.S. and international accounting standards. Things are moving so quickly in the evolving world...
Data Confidentiality in an Electronic Environment
In Brief Data Theft Can Trigger Legal Liability Portable computers have become an essential business tool for many professionals. But a sinister threat has grown alongside the use of laptops: computer theft. The true cost of theft of a laptop includes...
Demystifying the Federal Historic Preservation Tax Incentive Program
Saving taxes and architectural history In Brief An Underutlized Deduction for Property Owners Facade conservation easements, under the Federal Historic Preservation Tax Incentive Program, are one of the most underutilized tax deductions available to...
Dr. Smith Goes to Washington
Author's Note: Last year, in the midst of corporate scandals and a shaky stock market, Congress passed legislation that established the Public Company Accounting Oversight Board to oversee auditors of publicly traded companies and increase prison sentences...
Ethical Accounting Practices and the Pressures on CPAs
Most of the recent sordid stories of corporate scandals involve senior management and CFOs that have manipulated the books to make their companies appear more profitable. The independence of outside CPAs becomes compromised when management places pressure...
Explaining Salary Differences among Accountants
CPAs THAT HAVE MORE EXPERIENCE IN THE ACCOUNTING PROFESSION AND A HIGHER LEVEL OF EDUCATION-- regardless of gender-tend to earn higher salaries. What variables explain the salary differences among accountants? In an attempt to answer this question, the...
Financial Officers' Code of Ethics: Help or Hindrance?
THE MOST FUNDAMENTAL CHALLENGE TO ENSURING THAT codes of ethics are followed is human behavior. The Sarbanes-Oxley Act of 2002 mandates new and improved governance infrastructure and controls to improve the accuracy and reliability of corporate financial...
Highlights of New Jersey Business Tax Changes
The New Jersey Legislature passed substantial retroactive changes in its tax laws on July 2, 2002, in P.L. 2002, Chapter 40. The changes were necessitated by a constitutional mandate to balance the state's budget. Most of the passages were targeted at...
Implementing and Exiting Rabbi Trusts
In Brief Minimizing estate and income taxes In a typical rabi trust, a types of nonqualified unfunded deferrred compensation plan, an employer implements a trust in order to pay future compensation to employees or independent contractors. The trust is...
Letters to the Editor
IS FEDERAL REGULATION THE REMEDY? C. William Thomas' essay ["Enron and Beyond: What's the `WorldComing To?," News & Views, January 2002] was interesting and informative. In an understandable way he set forth the problems facing the accounting industry....
Organizational Culture and Fraudulent Financial Reporting
Preventing rotten apples Cause and Effect Fraudulent financial reporting can have significant consequences for organizations and for public confidence in capital markets. High-profile cases of fraudulent financial reporting raise concerns about the credibility...
Postmortem Income Planning
The increased Federal Unified Estate and Gift Tax Credit means fewer estates are required to file federal estate tax returns. Some interrelated income and estate tax considerations remain, however. Interpreting the facts, making necessary elections,...
Professional Certification Opportunities for Accountants
CERTIFICATION MAY PERMIT ACCOUNTANTS TO CHARGE HIGHER CONSULTING FEES or to introduce new revenue sources. In recent years, there has been a proliferation of professional certifications available for practicing accountants. But what is the impetus for...
Pro Forma Earnings: Adding Value or Distorting Perception?
THE LACK OF CONSISTENCY IN THE WAY COMPANIES present pro forma earnings challenges the validity of the claim that pro forma earnings provide more useful information for investors. Pro forma earnings statements are unaudited, unregulated what-if reports...
Retirement Hints for Partners in CPA Firms
In 2001, PricewaterhouseCoopers' Partner Affairs department surveyed more than 300 recently retired partners in order to better understand the retirement transition challenges these partners experience and determine how the firm could help. The following...
Reviving the Profession: The Glass Is Half Full
GUEST EDITORIAL A message from the Editor-in-Chief In the August 2002 CPA Journal, Bob Colson stated that "we need to do many things if we're intent on reviving our profession." One of the first, in my opinion, is to emphasize personal integrity, a firm...
Self-Financing Alternative: Borrowing against a 401(k)
Conventional wisdom holds that investors should never tap into their retirement funds until they actually retire. Nevertheless, a confluence of recent events-stubbornly low interest rates, volatile equity markets, and mortgage interest rates that haven't...
Tax Changes to Executive Life Insurance Benefits
Legislative and regulatory changes that occurred in 2002 left split-dollar life insurance in a state of transition and uncertainty. First, in January, Treasury Notice 2002-8 significantly changed split-dollar taxation. Then, on July 9, the IRS issued...
The Gentle Art of Agreement Making
THERE ARE NO SIMPLE TRICKS TO GETTING WHAT WE WANT from others through negotiation. Despite increased public interest in conflict resolution and alternative dispute resolution (ADR), the meaning of these terms is often unclear. Although most people think...
Time for a Reality Check
It doesn't take a rocket scientist to see the cause-and-effect connections between our shaky stock markets, wobbly economy, increased unemployment, and fiscal crunches for both the state and federal governments. By virtue of being the center of the financial...
Website of the Month: Federation of Tax Administrators
The Federation of Tax Administrators (FTA) hosts a helpful website at www.taxadmin.org that provides easy access to state tax information and other resources. Although the FTA site is fundamentally designed to serve state tax administrators, much of...
Worker Classification and S Corporations
Tapayers and the IRS have long battled over whether a worker is an employee or an independent contractor. Typically, the IRS asserts that the worker is an employee, whereas the employer asserts that the worker is an independent contractor. The tax stakes...