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<br /> www.cpaj.com June 2013<br /> Understanding<br /> the JOBS Act<br /> Special Focus on Fraud<br /> • Forensic Accountants in Litigation • Top Tax Scams for 2013<br /> • Defending against Fraud<br /> <br /> <br /> CONTENTS<br /> june 2013<br /> 6 PERSPECTIVES 18 IN FOCUS<br /> 6 Perspectives<br /> Strengthening Defenses in the Fight against<br /> Fraud: Balancing Trust and Skepticism<br /> Publisher’s Column: The Missing Link in STEM<br /> Analyzing Local and Global Fraud:<br /> An Exploration of Findings<br /> and Recommendations<br /> Fraud Prevention Tips<br /> for Business Owners and Employees<br /> Book Review: Detecting Fraud in Organizations:<br /> Techniques, Tools, and Resources<br /> 18 In Focus<br /> <a title="The CPA Journal - June 2013 page 1" href="http://viewer.zmags.com/publication/66dab0ed?page=1"> www.cpaj.com June 2013 Understandin</a> <a title="The CPA Journal - June 2013 page 2" href="http://viewer.zmags.com/publication/66dab0ed?page=2"> </a> <a title="The CPA Journal - June 2013 page 3" href="http://viewer.zmags.com/publication/66dab0ed?page=3"> </a> <a title="The CPA Journal - June 2013 page 4" href="http://viewer.zmags.com/publication/66dab0ed?page=4"> CONTENTS june 2013 6 PERSPECTIVES 18 IN FOC</a> <a title="The CPA Journal - June 2013 page 5" href="http://viewer.zmags.com/publication/66dab0ed?page=5"> vol. LXXXIII/no. 6 28 ESSENTIALS </a> <a title="The CPA Journal - June 2013 page 6" href="http://viewer.zmags.com/publication/66dab0ed?page=6"> new york state society of NYSSCPA certified </a> <a title="The CPA Journal - June 2013 page 7" href="http://viewer.zmags.com/publication/66dab0ed?page=7"> FAE 2013 Web Events FAE's Upcoming Live Web Ev</a> <a title="The CPA Journal - June 2013 page 8" href="http://viewer.zmags.com/publication/66dab0ed?page=8"> PERSPECTIVES fraud Strengthening Defenses in t</a> <a title="The CPA Journal - June 2013 page 9" href="http://viewer.zmags.com/publication/66dab0ed?page=9"> publisher’s column The Missing Link in STEM </a> <a title="The CPA Journal - June 2013 page 10" href="http://viewer.zmags.com/publication/66dab0ed?page=10"> (Continued from page 6) can have a major effect o</a> <a title="The CPA Journal - June 2013 page 11" href="http://viewer.zmags.com/publication/66dab0ed?page=11"> fraud Analyzing Local and Global Fraud An</a> <a title="The CPA Journal - June 2013 page 12" href="http://viewer.zmags.com/publication/66dab0ed?page=12"> and real estate industries, as well as in the pub</a> <a title="The CPA Journal - June 2013 page 13" href="http://viewer.zmags.com/publication/66dab0ed?page=13"> able activity. Formal codes of conduct and antifr</a> <a title="The CPA Journal - June 2013 page 14" href="http://viewer.zmags.com/publication/66dab0ed?page=14"> viewpoint Fraud Prevention Tips for Business </a> <a title="The CPA Journal - June 2013 page 15" href="http://viewer.zmags.com/publication/66dab0ed?page=15"> due diligence procedures will likely deter an emp</a> <a title="The CPA Journal - June 2013 page 16" href="http://viewer.zmags.com/publication/66dab0ed?page=16"> book review Detecting Fraud in Organizations</a> <a title="The CPA Journal - June 2013 page 17" href="http://viewer.zmags.com/publication/66dab0ed?page=17"> </a> <a title="The CPA Journal - June 2013 page 18" href="http://viewer.zmags.com/publication/66dab0ed?page=18"> FAE 2013 CPE foundation for accounting FAE educ</a> <a title="The CPA Journal - June 2013 page 19" href="http://viewer.zmags.com/publication/66dab0ed?page=19"> financial statement fraud and the fraudsters’ mot</a> <a title="The CPA Journal - June 2013 page 20" href="http://viewer.zmags.com/publication/66dab0ed?page=20"> INFOCUS A Critical Look at THE JUMPSTART OUR BUS</a> <a title="The CPA Journal - June 2013 page 21" href="http://viewer.zmags.com/publication/66dab0ed?page=21"> JUNE 2013 / THE CPA JOURNAL </a> <a title="The CPA Journal - June 2013 page 22" href="http://viewer.zmags.com/publication/66dab0ed?page=22"> with onerous regulations that hinder their abilit</a> <a title="The CPA Journal - June 2013 page 23" href="http://viewer.zmags.com/publication/66dab0ed?page=23"> Historically, significant changes to these regula</a> <a title="The CPA Journal - June 2013 page 24" href="http://viewer.zmags.com/publication/66dab0ed?page=24"> EXHIBIT (CONTINUED) Summary o</a> <a title="The CPA Journal - June 2013 page 25" href="http://viewer.zmags.com/publication/66dab0ed?page=25"> cretion allowed in Title I. EGCs could also suffe</a> <a title="The CPA Journal - June 2013 page 26" href="http://viewer.zmags.com/publication/66dab0ed?page=26"> than $100,000 (JOBS Act Title III section incom</a> <a title="The CPA Journal - June 2013 page 27" href="http://viewer.zmags.com/publication/66dab0ed?page=27"> (A) offer investment advice or recom- mendatio</a> <a title="The CPA Journal - June 2013 page 28" href="http://viewer.zmags.com/publication/66dab0ed?page=28"> allows companies to gauge the demand for their se</a> <a title="The CPA Journal - June 2013 page 29" href="http://viewer.zmags.com/publication/66dab0ed?page=29"> is widely held, but also because a crowd- funded </a> <a title="The CPA Journal - June 2013 page 30" href="http://viewer.zmags.com/publication/66dab0ed?page=30"> ACCOUNTING & AUDITING accounting </a> <a title="The CPA Journal - June 2013 page 31" href="http://viewer.zmags.com/publication/66dab0ed?page=31"> to develop a comprehensive exposure draft, Propos</a> <a title="The CPA Journal - June 2013 page 32" href="http://viewer.zmags.com/publication/66dab0ed?page=32"> compute the lease payments’ present value. To eas</a> <a title="The CPA Journal - June 2013 page 33" href="http://viewer.zmags.com/publication/66dab0ed?page=33"> issued after the new standard’s imple- mentation </a> <a title="The CPA Journal - June 2013 page 34" href="http://viewer.zmags.com/publication/66dab0ed?page=34"> allocated the lump sum evenly to future years, ba</a> <a title="The CPA Journal - June 2013 page 35" href="http://viewer.zmags.com/publication/66dab0ed?page=35"> CPAs can begin to estimate the effects of the </a> <a title="The CPA Journal - June 2013 page 36" href="http://viewer.zmags.com/publication/66dab0ed?page=36"> ACCOUNTING & AUDITING auditing Quality Co</a> <a title="The CPA Journal - June 2013 page 37" href="http://viewer.zmags.com/publication/66dab0ed?page=37"> to address quality control criticisms satis- fact</a> <a title="The CPA Journal - June 2013 page 38" href="http://viewer.zmags.com/publication/66dab0ed?page=38"> n significant accounting policies and practices, </a> <a title="The CPA Journal - June 2013 page 39" href="http://viewer.zmags.com/publication/66dab0ed?page=39"> dence representations made by audit firm personne</a> <a title="The CPA Journal - June 2013 page 40" href="http://viewer.zmags.com/publication/66dab0ed?page=40"> tors. Both the role of the PCAOB and the role of </a> <a title="The CPA Journal - June 2013 page 41" href="http://viewer.zmags.com/publication/66dab0ed?page=41"> useful to audit firms in trying to remedi- ate id</a> <a title="The CPA Journal - June 2013 page 42" href="http://viewer.zmags.com/publication/66dab0ed?page=42"> TAXATION federal taxation </a> <a title="The CPA Journal - June 2013 page 43" href="http://viewer.zmags.com/publication/66dab0ed?page=43"> shareholder in liquidation; however, the Tax Refo</a> <a title="The CPA Journal - June 2013 page 44" href="http://viewer.zmags.com/publication/66dab0ed?page=44"> The IRS sought to tax SIC on the $1.2 million t</a> <a title="The CPA Journal - June 2013 page 45" href="http://viewer.zmags.com/publication/66dab0ed?page=45"> In 1998, the parties executed an asset purchas</a> <a title="The CPA Journal - June 2013 page 46" href="http://viewer.zmags.com/publication/66dab0ed?page=46"> sale of personal goodwill on Howard’s 2002 income</a> <a title="The CPA Journal - June 2013 page 47" href="http://viewer.zmags.com/publication/66dab0ed?page=47"> able compensation equal to the greater of $50,000</a> <a title="The CPA Journal - June 2013 page 48" href="http://viewer.zmags.com/publication/66dab0ed?page=48"> and Norwalk. In that advice, the national office </a> <a title="The CPA Journal - June 2013 page 49" href="http://viewer.zmags.com/publication/66dab0ed?page=49"> sonally. The court agreed, stating that it was “r</a> <a title="The CPA Journal - June 2013 page 50" href="http://viewer.zmags.com/publication/66dab0ed?page=50"> TAXATION compliance & enforcement The IRS's </a> <a title="The CPA Journal - June 2013 page 51" href="http://viewer.zmags.com/publication/66dab0ed?page=51"> panies; they should insist on checking the backgr</a> <a title="The CPA Journal - June 2013 page 52" href="http://viewer.zmags.com/publication/66dab0ed?page=52"> of income and expenses. Two major approaches exis</a> <a title="The CPA Journal - June 2013 page 53" href="http://viewer.zmags.com/publication/66dab0ed?page=53"> FAE 2013 CPE foundation for accounting FAE educ</a> <a title="The CPA Journal - June 2013 page 54" href="http://viewer.zmags.com/publication/66dab0ed?page=54"> FINANCE personal financial planning </a> <a title="The CPA Journal - June 2013 page 55" href="http://viewer.zmags.com/publication/66dab0ed?page=55"> butions that avoid a common pitfall in retirement</a> <a title="The CPA Journal - June 2013 page 56" href="http://viewer.zmags.com/publication/66dab0ed?page=56"> account value on any day between the prior year’s</a> <a title="The CPA Journal - June 2013 page 57" href="http://viewer.zmags.com/publication/66dab0ed?page=57"> (Revenue Ruling 2002-62 section 2.01[b]). As indi</a> <a title="The CPA Journal - June 2013 page 58" href="http://viewer.zmags.com/publication/66dab0ed?page=58"> present value of an annuity of $1 per year, begin</a> <a title="The CPA Journal - June 2013 page 59" href="http://viewer.zmags.com/publication/66dab0ed?page=59"> amortize the entire account balance. If the taxpa</a> <a title="The CPA Journal - June 2013 page 60" href="http://viewer.zmags.com/publication/66dab0ed?page=60"> MANAGEMENT forensic accounting </a> <a title="The CPA Journal - June 2013 page 61" href="http://viewer.zmags.com/publication/66dab0ed?page=61"> role, and several tools that such individuals use</a> <a title="The CPA Journal - June 2013 page 62" href="http://viewer.zmags.com/publication/66dab0ed?page=62"> that no material misstatements exist. Audit proce</a> <a title="The CPA Journal - June 2013 page 63" href="http://viewer.zmags.com/publication/66dab0ed?page=63"> a wide array of forensic accounting tools and tec</a> <a title="The CPA Journal - June 2013 page 64" href="http://viewer.zmags.com/publication/66dab0ed?page=64"> RESPONSIBILITIES & LEADERSHIP pr</a> <a title="The CPA Journal - June 2013 page 65" href="http://viewer.zmags.com/publication/66dab0ed?page=65"> Such organizations include the AICPA, the Inst</a> <a title="The CPA Journal - June 2013 page 66" href="http://viewer.zmags.com/publication/66dab0ed?page=66"> dedication. (http://www.cgma.org/ AboutUs/Pages</a> <a title="The CPA Journal - June 2013 page 67" href="http://viewer.zmags.com/publication/66dab0ed?page=67"> certification process to address the regula- tion</a> <a title="The CPA Journal - June 2013 page 68" href="http://viewer.zmags.com/publication/66dab0ed?page=68"> EXHIBIT U.S.-Based Accounting Organizations with </a> <a title="The CPA Journal - June 2013 page 69" href="http://viewer.zmags.com/publication/66dab0ed?page=69"> Certified in Risk and Information Systems Control</a> <a title="The CPA Journal - June 2013 page 70" href="http://viewer.zmags.com/publication/66dab0ed?page=70"> The CFE Exam, which costs $300, includes the topi</a> <a title="The CPA Journal - June 2013 page 71" href="http://viewer.zmags.com/publication/66dab0ed?page=71"> tional cost of increased legal liability and rela</a> <a title="The CPA Journal - June 2013 page 72" href="http://viewer.zmags.com/publication/66dab0ed?page=72"> TECHNOLOGY electronic reporting Embracing and</a> <a title="The CPA Journal - June 2013 page 73" href="http://viewer.zmags.com/publication/66dab0ed?page=73"> Benefits to Users and Preparers The initial go</a> <a title="The CPA Journal - June 2013 page 74" href="http://viewer.zmags.com/publication/66dab0ed?page=74"> Implementation Strategies: The Deeply Embedded Ap</a> <a title="The CPA Journal - June 2013 page 75" href="http://viewer.zmags.com/publication/66dab0ed?page=75"> TECHNOLOGY what to bookmark Website o</a> <a title="The CPA Journal - June 2013 page 76" href="http://viewer.zmags.com/publication/66dab0ed?page=76"> CLASSIFIEDMARKETPLACE PROFESSIONAL OPPORTUNITY l</a> <a title="The CPA Journal - June 2013 page 77" href="http://viewer.zmags.com/publication/66dab0ed?page=77"> CLASSIFIED Peer Review If you nee</a> <a title="The CPA Journal - June 2013 page 78" href="http://viewer.zmags.com/publication/66dab0ed?page=78"> CLASSIFIED www.finra.org • Are you a CPA firm lo</a> <a title="The CPA Journal - June 2013 page 79" href="http://viewer.zmags.com/publication/66dab0ed?page=79"> CLASSIFIED Peer Review Servic</a> <a title="The CPA Journal - June 2013 page 80" href="http://viewer.zmags.com/publication/66dab0ed?page=80"> CLASSIFIED SALES TAX PROBLEMS? More th</a> <a title="The CPA Journal - June 2013 page 81" href="http://viewer.zmags.com/publication/66dab0ed?page=81"> ECONOMIC & MARKET DATA monthly u</a> <a title="The CPA Journal - June 2013 page 82" href="http://viewer.zmags.com/publication/66dab0ed?page=82"> EDITORIAL a message from the editor-in-chief </a> <a title="The CPA Journal - June 2013 page 83" href="http://viewer.zmags.com/publication/66dab0ed?page=83"> </a> <a title="The CPA Journal - June 2013 page 84" href="http://viewer.zmags.com/publication/66dab0ed?page=84"> </a>