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. 78, No. 6, June

2007 Max Block Awards Presented
The winners of the 2007 Max Block Distinguished Article Awards were honored during The CPA Journal Editorial Board meeting at the NYSSCPA offices on April 28. The presentations were made by EditDr-in-Chief Mary-Jo Kranacher and CPA Journal Publisher...
A Closer Look at Captive Insurance
Captive structures have long been marketed by insurance brokers as a way to control and stabilize the cost of insurance, but these brokers often fail to maximize the benefits of a captive. Captive insurance companies are often overlooked and misunderstood...
A Decade of Change, the Journey So Far
This month marks my 10-year anniversary as executive director of the New York State Society of CPAs. The journey has been interesting.In that time, the NYSSCPA has found a voice on the national stage, commenting on issues like diversity, mobility, and...
'Aloha, Hawaii!'
How to Unravel a Fraudulent Travel Reimbursement SchemeEditor's Note: This case was condensed and adapted with permission from Fraud casebook: Lessons from the Bad Side of Business, edited by Joseph T. Wells, copyright 2007, John Wiley & Sons, Inc.,...
Audit Committee Responsibilities Disclosed since Sarbanes-Oxley
The Sarbanes-Oxley Act of 2002 (SOX) significantly increased the authority of audit committees in overseeing their companies' financial reporting processes. With audit committees assuming such a key role, it is important to determine the extent to which...
Basis Overstatement Does Not Trigger Six-Year Statute of Limitations
In Bakersfield Energy Partners v. Comm'r [129 TC No. 17 (2007)], the Tax Court ruled that an overstatement of basis is not an omission of gross income under IRC section 6501(e)(1)(A). The statute of limitations for assessing the partners in such a case,...
Charting the Future of the Accounting Profession
Recruiting and Retaining the Next GenerationOver the past decade, the demand for qualified accounting professionals has increased, while the supply has decreased. The current situation is partially the result of a decline in college accounting enrollments...
Economic Stimulus Act of 2008: Analysis of Major Provisions
Although the Economic Stimulus Act of 2008 provides only a few incentives for businesses to purchase additional equipment, it provides the much-publicized rebate checks for individuals. The business incentives are basically limited to enhanced write-off...
Forensic Implications of Metadata in Electronic Files
In this digital age, most business activities are transacted and recorded using networked information systems. Business and accounting records are prepared, reviewed, audited, and preserved in electronic form, commonly called electronically stored information...
GlaxoSmithKline and the IRS Finally Find Relief with Zantac
Longstanding Dispute over Transfer Pricing SettledWhen it comes to transfer pricing, even the most seasoned tax professionals can find themselves with a stomachache. Transfer pricing is at the heart of a long-running dispute between the IRS and a corporate...
Political Interventions
Actions Tax-Exempt Organizations Should AvoidBecause 2008 is a national election year, tax-exempt IRC section 501(c)(3) organisions need to be especially aware of which political activities they are allowed to engage in, which actions are considered...
Property and Casualty Insurance Solutions for Entity Owners
Plugging the Holes in Asset Protection PlansAn increasing number of Americans are transferring personal ownership of residential property to trusts, limited liability corporations (LLC), limited liability partnerships (LLP), and other entities designed...
Reducing the Expectation Gap
Forensic Audit ProceduresAuditing is increasingly difficult and challenging, with new rules and regulations encouraging, if not requiring, auditors to enhance their efforts to detect fraud during an audit. Unfortunately, these rules and regulations contain...
SSVS 1: Applying New Standards for CPAs Providing Valuation Services
Over the last two decades, the demand for CPAs who provide business valuation services has increased dramatically. The AICPA estimates that more than 25,000 CPAs are involved in business valuation engagements. In 2001 the AICPA's Consulting Services...
The 150-Hour Requirement's Effect on the CPA Exam
Candidate Performance in Florida, New York, and TexasIn 1989, the AICPA membership voted to recommend that states require candidates to complete 150 hours credit hours to sit for the CPA exam. Florida was the first state to adopt the 150-hour requirement,...
The Audit Opinion
Choosing Our Words CarefullyOver the past few years, auditors have been criticized for a variety of meltdowns in the financial sector. They have been blamed for failing to detect fraud, allowing inadequate disclosure in the financial statements, and...
The Case of Interest Rate Swaps and Questions for the Pozen Committee
Why Ironclad Rules?Companies commonly use interest rate swaps to hedge against changes in interest rates. In 2006, the notional contract value of interest rate swaps and options topped $286 trillion, a 34% increase over the previous year (Scott Patterson,...
The Real Secret to Fraud Deterrence
If you were to ask a group of typical accountants what deters fraud, they would respond in unison: "Internal control!" Using this logic, companies with adequate controls would not have fraud. But they do, time and again.This article explores the control...
Today's Finance Workforce: No Longer Just the 'Numbers Guys'
Any CFO will acknowledge that the days when the corporate finance organization was home to the "numbers guys" are long passed. Today, senior management depends on its finance team for guidance on key corporate initiatives such as capital investments,...
Website of the Month: Forensic Accounting Resources
In keeping with this issue's focus on fraud and forensic accounting, this month's column covers the approaches taken to address these issues on the web by five of the largest accounting firms: Deloitte & Touche, Ernst & Young, Grant Thomton,...