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<br /> Perilous Waters:<br /> Will CPAs Become<br /> Madoff's Next Victims?<br /> GASB 53 • Classifying Leases • IFRS and Liability Traps<br /> <br /> <br /> C ONTENTS<br /> April<br /> 22 Accounting & Auditing<br /> ❙ Standards Setting<br /> The Missing Concept: What Happened to the<br /> Importance of Matching?<br /> By Harold Bierman, Jr.<br /> ❙ Internal Controls<br /> Remediation of Material Weaknesses Related to<br /> Employee Compensation<br /> By Dana R. Hermanson, Daniel M. Ivancevich,<br /> and Susan H. Ivancevich<br /> ❙ Auditing<br /> The Impact of PCAOB<br /> Auditing Standard 5 on Audit Fees<br /<a title="The CPA Journal - April 2009 page 1" href="http://viewer.zmags.com/publication/4b68916c?page=1"> Perilous Waters: Will CPAs Become Madoff's Next V</a> <a title="The CPA Journal - April 2009 page 2" href="http://viewer.zmags.com/publication/4b68916c?page=2"> </a> <a title="The CPA Journal - April 2009 page 3" href="http://viewer.zmags.com/publication/4b68916c?page=3"> </a> <a title="The CPA Journal - April 2009 page 4" href="http://viewer.zmags.com/publication/4b68916c?page=4"> C ONTENTS April 22 Accoun</a> <a title="The CPA Journal - April 2009 page 5" href="http://viewer.zmags.com/publication/4b68916c?page=5"> vol. 6PERSPECTIVES 6 Per</a> <a title="The CPA Journal - April 2009 page 6" href="http://viewer.zmags.com/publication/4b68916c?page=6"> Publisher LOUIS GRUMET Associate Pu</a> <a title="The CPA Journal - April 2009 page 7" href="http://viewer.zmags.com/publication/4b68916c?page=7"> </a> <a title="The CPA Journal - April 2009 page 8" href="http://viewer.zmags.com/publication/4b68916c?page=8"> P ERSPECTIVES viewpoint The Power of Storyt</a> <a title="The CPA Journal - April 2009 page 9" href="http://viewer.zmags.com/publication/4b68916c?page=9"> publisher's column New Law Raises the Bar f</a> <a title="The CPA Journal - April 2009 page 10" href="http://viewer.zmags.com/publication/4b68916c?page=10"> (Continued from page 6) Minogue's Protiviti co</a> <a title="The CPA Journal - April 2009 page 11" href="http://viewer.zmags.com/publication/4b68916c?page=11"> Preparing for IFRS: Great Online Information</a> <a title="The CPA Journal - April 2009 page 12" href="http://viewer.zmags.com/publication/4b68916c?page=12"> available. The PricewaterhouseCoopers IFRS homepa</a> <a title="The CPA Journal - April 2009 page 13" href="http://viewer.zmags.com/publication/4b68916c?page=13"> Paperless Tax Workflow Six Best Practice</a> <a title="The CPA Journal - April 2009 page 14" href="http://viewer.zmags.com/publication/4b68916c?page=14"> one of the best scanners for tax profes- sionals,</a> <a title="The CPA Journal - April 2009 page 15" href="http://viewer.zmags.com/publication/4b68916c?page=15"> Valuation for Financial Reporting: Fair Value Mea</a> <a title="The CPA Journal - April 2009 page 16" href="http://viewer.zmags.com/publication/4b68916c?page=16"> Focus In </a> <a title="The CPA Journal - April 2009 page 17" href="http://viewer.zmags.com/publication/4b68916c?page=17"> GASB 53: New Standards for Derivative and Hedging</a> <a title="The CPA Journal - April 2009 page 18" href="http://viewer.zmags.com/publication/4b68916c?page=18"> City School District situations, the cases illust</a> <a title="The CPA Journal - April 2009 page 19" href="http://viewer.zmags.com/publication/4b68916c?page=19"> statements presented using the current finan- cia</a> <a title="The CPA Journal - April 2009 page 20" href="http://viewer.zmags.com/publication/4b68916c?page=20"> must be met before a financial instrument or othe</a> <a title="The CPA Journal - April 2009 page 21" href="http://viewer.zmags.com/publication/4b68916c?page=21"> reasonable efforts to obtain information to suppo</a> <a title="The CPA Journal - April 2009 page 22" href="http://viewer.zmags.com/publication/4b68916c?page=22"> current period or over the instrument's entire li</a> <a title="The CPA Journal - April 2009 page 23" href="http://viewer.zmags.com/publication/4b68916c?page=23"> gated by type (e.g., receive-fixed swaps, pay-fix</a> <a title="The CPA Journal - April 2009 page 24" href="http://viewer.zmags.com/publication/4b68916c?page=24"> A CCOUNTING & AUDITING standards setting </a> <a title="The CPA Journal - April 2009 page 25" href="http://viewer.zmags.com/publication/4b68916c?page=25"> matching concept. Half a dozen of the FASB profes</a> <a title="The CPA Journal - April 2009 page 26" href="http://viewer.zmags.com/publication/4b68916c?page=26"> and revenue, and of income as a differ- en</a> <a title="The CPA Journal - April 2009 page 27" href="http://viewer.zmags.com/publication/4b68916c?page=27"> A. Successful R&D is easy. An asset is cr</a> <a title="The CPA Journal - April 2009 page 28" href="http://viewer.zmags.com/publication/4b68916c?page=28"> example, the basic rationale—that the singl</a> <a title="The CPA Journal - April 2009 page 29" href="http://viewer.zmags.com/publication/4b68916c?page=29"> expense or an asset? A coin flip is nearly compar</a> <a title="The CPA Journal - April 2009 page 30" href="http://viewer.zmags.com/publication/4b68916c?page=30"> A CCOUNTING & AUDITING internal controls </a> <a title="The CPA Journal - April 2009 page 31" href="http://viewer.zmags.com/publication/4b68916c?page=31"> </a> <a title="The CPA Journal - April 2009 page 32" href="http://viewer.zmags.com/publication/4b68916c?page=32"> As shown in Exhibit 1, the companies with comp</a> <a title="The CPA Journal - April 2009 page 33" href="http://viewer.zmags.com/publication/4b68916c?page=33"> to subject their compensation-related entries to </a> <a title="The CPA Journal - April 2009 page 34" href="http://viewer.zmags.com/publication/4b68916c?page=34"> EXHIBIT 3 Reme</a> <a title="The CPA Journal - April 2009 page 35" href="http://viewer.zmags.com/publication/4b68916c?page=35"> stand the compensation issues the organi- zation </a> <a title="The CPA Journal - April 2009 page 36" href="http://viewer.zmags.com/publication/4b68916c?page=36"> A CCOUNTING & AUDITING auditing Th</a> <a title="The CPA Journal - April 2009 page 37" href="http://viewer.zmags.com/publication/4b68916c?page=37"> After two years of closely monitoring AS2 imp</a> <a title="The CPA Journal - April 2009 page 38" href="http://viewer.zmags.com/publication/4b68916c?page=38"> this issue by allowing auditors to tailor the aud</a> <a title="The CPA Journal - April 2009 page 39" href="http://viewer.zmags.com/publication/4b68916c?page=39"> over the three-year period. The accelerat- ed fil</a> <a title="The CPA Journal - April 2009 page 40" href="http://viewer.zmags.com/publication/4b68916c?page=40"> age audit fees and audit-related fees report- ed </a> <a title="The CPA Journal - April 2009 page 41" href="http://viewer.zmags.com/publication/4b68916c?page=41"> </a> <a title="The CPA Journal - April 2009 page 42" href="http://viewer.zmags.com/publication/4b68916c?page=42"> T AXATION federal taxation </a> <a title="The CPA Journal - April 2009 page 43" href="http://viewer.zmags.com/publication/4b68916c?page=43"> ments made are allocated between inter- est expen</a> <a title="The CPA Journal - April 2009 page 44" href="http://viewer.zmags.com/publication/4b68916c?page=44"> Bowen). This tax criterion parallels the fourth a</a> <a title="The CPA Journal - April 2009 page 45" href="http://viewer.zmags.com/publication/4b68916c?page=45"> May 12–13, 2009 Long Island Marriott Hotel & Conf</a> <a title="The CPA Journal - April 2009 page 46" href="http://viewer.zmags.com/publication/4b68916c?page=46"> T AXATION corporate taxation The Deductibi</a> <a title="The CPA Journal - April 2009 page 47" href="http://viewer.zmags.com/publication/4b68916c?page=47"> 2. This schedule indicates that Mrs. Harrison's s</a> <a title="The CPA Journal - April 2009 page 48" href="http://viewer.zmags.com/publication/4b68916c?page=48"> greater management responsibility on the corporat</a> <a title="The CPA Journal - April 2009 page 49" href="http://viewer.zmags.com/publication/4b68916c?page=49"> and were attributable to his employment rela- tio</a> <a title="The CPA Journal - April 2009 page 50" href="http://viewer.zmags.com/publication/4b68916c?page=50"> amounts paid to Elliott were reasonable was his</a> <a title="The CPA Journal - April 2009 page 51" href="http://viewer.zmags.com/publication/4b68916c?page=51"> sent Rapco a deficiency notice for taking excess </a> <a title="The CPA Journal - April 2009 page 52" href="http://viewer.zmags.com/publication/4b68916c?page=52"> T AXATION state & local taxation New Jers</a> <a title="The CPA Journal - April 2009 page 53" href="http://viewer.zmags.com/publication/4b68916c?page=53"> related to services provided by New Jersey. Wi</a> <a title="The CPA Journal - April 2009 page 54" href="http://viewer.zmags.com/publication/4b68916c?page=54"> F INANCE personal financial planning Lif</a> <a title="The CPA Journal - April 2009 page 55" href="http://viewer.zmags.com/publication/4b68916c?page=55"> this approach, financial planning consists of tra</a> <a title="The CPA Journal - April 2009 page 56" href="http://viewer.zmags.com/publication/4b68916c?page=56"> M ANAGEMENT accountant's liability </a> <a title="The CPA Journal - April 2009 page 57" href="http://viewer.zmags.com/publication/4b68916c?page=57"> The change to IFRS may not only cause a chang</a> <a title="The CPA Journal - April 2009 page 58" href="http://viewer.zmags.com/publication/4b68916c?page=58"> includes a much greater degree of qual- itative a</a> <a title="The CPA Journal - April 2009 page 59" href="http://viewer.zmags.com/publication/4b68916c?page=59"> as a reasonably prudent and competent accountant </a> <a title="The CPA Journal - April 2009 page 60" href="http://viewer.zmags.com/publication/4b68916c?page=60"> ment or employee thefts will still have lit- igat</a> <a title="The CPA Journal - April 2009 page 61" href="http://viewer.zmags.com/publication/4b68916c?page=61"> importance of using reasoned judgment and intelle</a> <a title="The CPA Journal - April 2009 page 62" href="http://viewer.zmags.com/publication/4b68916c?page=62"> M ANAGEMENT practice management Rules vs.</a> <a title="The CPA Journal - April 2009 page 63" href="http://viewer.zmags.com/publication/4b68916c?page=63"> students in the future as it gravitates away from</a> <a title="The CPA Journal - April 2009 page 64" href="http://viewer.zmags.com/publication/4b68916c?page=64"> M ANAGEMENT cpa consultant Applying Sarba</a> <a title="The CPA Journal - April 2009 page 65" href="http://viewer.zmags.com/publication/4b68916c?page=65"> ulation and oversight as a means to an end, bette</a> <a title="The CPA Journal - April 2009 page 66" href="http://viewer.zmags.com/publication/4b68916c?page=66"> designed to determine current and planned governa</a> <a title="The CPA Journal - April 2009 page 67" href="http://viewer.zmags.com/publication/4b68916c?page=67"> In 2006, the University of Louisville establis</a> <a title="The CPA Journal - April 2009 page 68" href="http://viewer.zmags.com/publication/4b68916c?page=68"> ■ refinement and development of a business code</a> <a title="The CPA Journal - April 2009 page 69" href="http://viewer.zmags.com/publication/4b68916c?page=69"> cation of sections 406 and 407 is an area where m</a> <a title="The CPA Journal - April 2009 page 70" href="http://viewer.zmags.com/publication/4b68916c?page=70"> R ESPONSIBILITIES & LEADERSHIP accountant's </a> <a title="The CPA Journal - April 2009 page 71" href="http://viewer.zmags.com/publication/4b68916c?page=71"> as lawsuits have been brought against Ernst & You</a> <a title="The CPA Journal - April 2009 page 72" href="http://viewer.zmags.com/publication/4b68916c?page=72"> tionship may exist when there is a significant di</a> <a title="The CPA Journal - April 2009 page 73" href="http://viewer.zmags.com/publication/4b68916c?page=73"> cy and will have to be covered by the insurer up </a> <a title="The CPA Journal - April 2009 page 74" href="http://viewer.zmags.com/publication/4b68916c?page=74"> T ECHNOLOGY what to bookmark </a> <a title="The CPA Journal - April 2009 page 75" href="http://viewer.zmags.com/publication/4b68916c?page=75"> “Saving and spending” resources are grouped un</a> <a title="The CPA Journal - April 2009 page 76" href="http://viewer.zmags.com/publication/4b68916c?page=76"> Classified PROFESSIONAL OPPORTUNITY l BUSINESS l</a> <a title="The CPA Journal - April 2009 page 77" href="http://viewer.zmags.com/publication/4b68916c?page=77"> CPA PRACTICES Sales  Mergers  Va</a> <a title="The CPA Journal - April 2009 page 78" href="http://viewer.zmags.com/publication/4b68916c?page=78"> NYC-based CPA with diversified high net worth ta</a> <a title="The CPA Journal - April 2009 page 79" href="http://viewer.zmags.com/publication/4b68916c?page=79"> Classified Rates Rates & W</a> <a title="The CPA Journal - April 2009 page 80" href="http://viewer.zmags.com/publication/4b68916c?page=80"> </a> <a title="The CPA Journal - April 2009 page 81" href="http://viewer.zmags.com/publication/4b68916c?page=81"> E CONOMIC & MARKET D ATA monthly update</a> <a title="The CPA Journal - April 2009 page 82" href="http://viewer.zmags.com/publication/4b68916c?page=82"> E DITORIAL a message from the editor-in-chie</a> <a title="The CPA Journal - April 2009 page 83" href="http://viewer.zmags.com/publication/4b68916c?page=83"> </a> <a title="The CPA Journal - April 2009 page 84" href="http://viewer.zmags.com/publication/4b68916c?page=84"> </a>