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. 77, No. 6, June

2006 Max Block Award Winners Recognized
The winners of the 2006 Max Block Distinguished Article Award were announced and presented at The CPA Journal Editorial Board meeting at the NYSSCPA offices on May 7. The presentations were made by Editor-in-Chief Mary-Jo Kranacher and NYSSCPA President-Elect...
An Ounce of Prevention
If you were to ask John or Jane Q. Public how to deter white-collar crime, I suspect the most common response would be "harsher punishment." Unfortunately, research shows that longer prison sentences are rarely a consideration on the part of a fraudster,...
A Phased Engagement Approach to Forensic Accounting
There are several approaches to a forensic investigation. A phased engagement approach manages the investigation efficiently because it controls the engagement with decision points throughout the process. A phased engagement is a step-by-step methodology...
Attaining Capital Gains Treatment of Property Transactions: Dealer versus Investor
Recent Case Law Provides Guidance for Taxpayers Seeking Investor StatusNotwithstanding the recent downturn in the housing market, real estate values remain close to an all-time high. Because of the current low capital gains rates, many speculative investors...
Balancing Risk and Control Approaches for Sarbanes-Oxley Compliance
Cooling Down the Hot IssuesAfter much criticism and debate over the best approach to regulating business, the Public Company Accounting Oversight Board (PCAOB) in December 2006 proposed a new audit standard for implementing section 404 of the Sarbanes-Oxley...
Critical Accounting Estimates for Share-Based Payment Arrangements
Disclosure Requirements Under SFAS 123(R)The accounting for stock option compensation expenses has changed over the years. In 1972 the Accounting Principles Board (APB) issued APB Opinion 25, Accounting for Stock Issued to Employees, setting out relatively...
Highlights of the New York State 2007/2008 Budget Act
On April 9, 2007, Governor Spitzer signed the New York State 2007/2008 Budget Act. One of the shortest in recent history, the Act contains some major changes to the tax law.Single Sales Factor ApportionmentIn the past several years, several states have...
Implementing the New ASB Risk Assessment Audit Standards
The Auditing Standards Board (ASB) issued its long-anticipated risk assessment audit standards in March 2006: Statements on Auditing Standards (SAS) 104 through 111, which bring sweeping changes and provide definitive guidance for the conduct of audits...
Inbox: Letters to the Editor
'Ethics Cannot Be Taught'I fully agree with the sentiments expressed by John A. Howard (Inbox, April 2007). Besides being a CPA, I am in the finance industry, where fraud is our greatest problem. There are many cases of businessmen who go into business...
International Accounting: A User Perspective
International Accounting: A User Perspective By Sharokh M. Saudagaran Published by South-Western College Publishing, 2004; ISBN: 0-324-18620-7; 304 pages, paperback, $79.95Reviewed by Yigal RechtmanFor accountants and auditors who wish to gain strength...
Introduction to Accounting Blogs
Accounting Observer and Accountants Round UpB logs are an increasingly popular feature on websites. The term "blog" is short for weblog. It is essentially an online journal where the author ("blogger") often starts a conversation that can be continued...
Lessons Learned from Section 404 of the Sarbanes-Oxley Act
A Conversation with Compliance OfficersCorporate accounting scandals in the past decade, such as Enron and WorldCom, led the U.S. Congress to pass the landmark legislation the Public Company Accounting Reform and Investor Protection Act of 2002, commonly...
Proposed Tax Incentive for Payers of Child Support
Promoting Perceptions of FairnessThis article proposes a tax incentive for child support in the interest of promoting fairness with respect to child support obligations while also reducing the after-tax cost of such expenditures for the noncustodial...
Skimming: The Achilles' Heel of the Audit?
When it comes to skimming used in fraud schemes, it's important to remember the "Three R's": revenues, receivables, and refunds. According to data assembled by the Association of Certified Fraud Examiners (ACFE) in its 2006 Report to the Nation on Occupational...
Study Shows Fraud Networks Led by CEOs and Aided by Company Outsiders
A study funded by a grant from the Institute for Fraud Prevention (IFP, www.theifp.org) concludes that the overrides of internal controls leading to financial statement fraud are typically caused by a fraud network led by the CEO and aided by individuals...
Teaching for the Accounting Profession: CPAs and PhDs
Accounting professors have the awesome responsibility of preparing their students to be the best possible accounting professionals, no matter where in the wide world of opportunity these students will find themselves. Academia has long debated whether...
The Importance of Financial Transparency
Swallowing a Bitter (But Necessary) PillIn 2004, the Government Accounting Standards Board (GASB), an independent national body that sets the accounting and reporting standards for government entities, issued a new standard with enormous potential implications...
Unspoken Obstacles Prevent Many Accounting Firm Mergers and Sales
Based on demographics of the accounting profession, it's commonly accepted that a sizable number of CPA firms should be merging or selling. Many of these firms-ones with maturing ownership and others that need to combine with another firm in order to...
Valuation of Lottery Prize Payments for Estate Tax Purposes: An Analysis
The valuation of future lottery prize payments that flow through an estate has resulted in diametrically opposed decisions at the different appellate levels. The most recent opinion of Donovan v. United States (95 AFTR 2d 2005-2131, April 26, 2005) supports...
Whistleblowing and Good Governance
Policies for Universities, Government Entities, and Nonprofit OrganizationsThe Sarbanes-Oxley Act of 2002 (SOX) has forever changed corporate governance for publicly held corporations. Recent data suggest that the costs of compliance with the provisions...

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