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<br /> www.cpaj.com March 2013<br /> Audit<br /> Committees<br /> and School<br /> Board<br /> Oversight<br /> plus<br />  Bank Accounting Basics<br />  Criminal Liability in Fraud Cases<br />  Clarified Standards and Audit Reports<br /> <br /> FAE 2013 Conferences<br /> foundation for accounting<br /> FAE<br /> Save the Date!<br /> education<br /> Young CPA<br /> Young CPA<br /> Conference<br /> Get connected and take the first step toward your future as a<br /> successful CPA!<br /> June 9–11, 2013<br /> Radisson Hotel-Utica Centre<br /> 200 Genesee Street<br /> Utica, NY 13502<br /> WHO SHOULD ATTEND? New and emerging accounting professionals<br /> looking to grow and develop the essential nontechnical business skills<br /> needed to further their careers in the industry.<br /> WHY YOU SHOULD ATTEND: To learn about the technical and nontechnical<br /> aspects of your career.<br /> Course Code: 25000441 (In-Pers<a title="The CPA Journal - March 2013 page 1" href="http://viewer.zmags.com/publication/739cf269?page=1"> www.cpaj.com March 2013 </a> <a title="The CPA Journal - March 2013 page 2" href="http://viewer.zmags.com/publication/739cf269?page=2"> </a> <a title="The CPA Journal - March 2013 page 3" href="http://viewer.zmags.com/publication/739cf269?page=3"> FAE 2013 Conferences foundation for accountin</a> <a title="The CPA Journal - March 2013 page 4" href="http://viewer.zmags.com/publication/739cf269?page=4"> CONTENTS march 2013 6PERSPECTIVES 18 IN FOCUS</a> <a title="The CPA Journal - March 2013 page 5" href="http://viewer.zmags.com/publication/739cf269?page=5"> vol. LXXXIII/no. 3 24ESSENTIALS 24</a> <a title="The CPA Journal - March 2013 page 6" href="http://viewer.zmags.com/publication/739cf269?page=6"> new york state society of NYSSCPA certifi</a> <a title="The CPA Journal - March 2013 page 7" href="http://viewer.zmags.com/publication/739cf269?page=7"> FAE 2013 CPE foundation for accounting FAE ed</a> <a title="The CPA Journal - March 2013 page 8" href="http://viewer.zmags.com/publication/739cf269?page=8"> PERSPECTIVES viewpoint Global Financial Crisi</a> <a title="The CPA Journal - March 2013 page 9" href="http://viewer.zmags.com/publication/739cf269?page=9"> publisher's column </a> <a title="The CPA Journal - March 2013 page 10" href="http://viewer.zmags.com/publication/739cf269?page=10"> (Continued from page 6) because the company was c</a> <a title="The CPA Journal - March 2013 page 11" href="http://viewer.zmags.com/publication/739cf269?page=11"> pelled to relent; under pressure from Congress, i</a> <a title="The CPA Journal - March 2013 page 12" href="http://viewer.zmags.com/publication/739cf269?page=12"> some disclosure pertaining to the adequa- cy of c</a> <a title="The CPA Journal - March 2013 page 13" href="http://viewer.zmags.com/publication/739cf269?page=13"> book review Guide for Conducting Risk Assess</a> <a title="The CPA Journal - March 2013 page 14" href="http://viewer.zmags.com/publication/739cf269?page=14"> risk management Risk Modeling at the SEC </a> <a title="The CPA Journal - March 2013 page 15" href="http://viewer.zmags.com/publication/739cf269?page=15"> Both issues are important and the concerns descri</a> <a title="The CPA Journal - March 2013 page 16" href="http://viewer.zmags.com/publication/739cf269?page=16"> native tax treatments that minimize taxable incom</a> <a title="The CPA Journal - March 2013 page 17" href="http://viewer.zmags.com/publication/739cf269?page=17"> point the authors fail to adequately drive home i</a> <a title="The CPA Journal - March 2013 page 18" href="http://viewer.zmags.com/publication/739cf269?page=18"> his comments, and we had endeavored to make many </a> <a title="The CPA Journal - March 2013 page 19" href="http://viewer.zmags.com/publication/739cf269?page=19"> ly make that adjustment. On the other hand, if th</a> <a title="The CPA Journal - March 2013 page 20" href="http://viewer.zmags.com/publication/739cf269?page=20"> In Focus </a> <a title="The CPA Journal - March 2013 page 21" href="http://viewer.zmags.com/publication/739cf269?page=21"> School District Boards, Audit Committees, and Bud</a> <a title="The CPA Journal - March 2013 page 22" href="http://viewer.zmags.com/publication/739cf269?page=22"> the school board and various components of the sc</a> <a title="The CPA Journal - March 2013 page 23" href="http://viewer.zmags.com/publication/739cf269?page=23"> overseeing the district's financial activities. (</a> <a title="The CPA Journal - March 2013 page 24" href="http://viewer.zmags.com/publication/739cf269?page=24"> The authors believe that taxpayers, who fund a si</a> <a title="The CPA Journal - March 2013 page 25" href="http://viewer.zmags.com/publication/739cf269?page=25"> Approximately 83% of the Long Island school di</a> <a title="The CPA Journal - March 2013 page 26" href="http://viewer.zmags.com/publication/739cf269?page=26"> ACCOUNTING & AUDITING auditing </a> <a title="The CPA Journal - March 2013 page 27" href="http://viewer.zmags.com/publication/739cf269?page=27"> in addition to those it has promulgated, even tho</a> <a title="The CPA Journal - March 2013 page 28" href="http://viewer.zmags.com/publication/739cf269?page=28"> SINGLE-YEAR REPORT, WITH REPORT ON INTERNAL CONTR</a> <a title="The CPA Journal - March 2013 page 29" href="http://viewer.zmags.com/publication/739cf269?page=29"> Auditors for the sample company should also </a> <a title="The CPA Journal - March 2013 page 30" href="http://viewer.zmags.com/publication/739cf269?page=30"> SINGLE-YEAR REPORT, WITH EMPHASIS-OF-MATTER PARAG</a> <a title="The CPA Journal - March 2013 page 31" href="http://viewer.zmags.com/publication/739cf269?page=31"> sidebar, Single-Year Report, with Other- Matters </a> <a title="The CPA Journal - March 2013 page 32" href="http://viewer.zmags.com/publication/739cf269?page=32"> SINGLE-YEAR REPORT, WITH QUALIFIED OPINION INDE</a> <a title="The CPA Journal - March 2013 page 33" href="http://viewer.zmags.com/publication/739cf269?page=33"> of Opinion” paragraph, the auditor has not been a</a> <a title="The CPA Journal - March 2013 page 34" href="http://viewer.zmags.com/publication/739cf269?page=34"> ACCOUNTING & AUDITING accounting The Pr</a> <a title="The CPA Journal - March 2013 page 35" href="http://viewer.zmags.com/publication/739cf269?page=35"> ments. Gains and losses resulting from for- eign </a> <a title="The CPA Journal - March 2013 page 36" href="http://viewer.zmags.com/publication/739cf269?page=36"> three of the OCI items described above. These com</a> <a title="The CPA Journal - March 2013 page 37" href="http://viewer.zmags.com/publication/739cf269?page=37"> accumulated OCI. The proposal included a requirem</a> <a title="The CPA Journal - March 2013 page 38" href="http://viewer.zmags.com/publication/739cf269?page=38"> TAXATION federal taxation </a> <a title="The CPA Journal - March 2013 page 39" href="http://viewer.zmags.com/publication/739cf269?page=39"> state taxes are more likely to be affected by the</a> <a title="The CPA Journal - March 2013 page 40" href="http://viewer.zmags.com/publication/739cf269?page=40"> EXHIBIT 2 Sche</a> <a title="The CPA Journal - March 2013 page 41" href="http://viewer.zmags.com/publication/739cf269?page=41"> will not be subject to the AMT but will be subjec</a> <a title="The CPA Journal - March 2013 page 42" href="http://viewer.zmags.com/publication/739cf269?page=42"> are not deductible. In the case of excessive i</a> <a title="The CPA Journal - March 2013 page 43" href="http://viewer.zmags.com/publication/739cf269?page=43"> New York City resident will notice that the neigh</a> <a title="The CPA Journal - March 2013 page 44" href="http://viewer.zmags.com/publication/739cf269?page=44"> TAXATION federal taxtion Implications of the</a> <a title="The CPA Journal - March 2013 page 45" href="http://viewer.zmags.com/publication/739cf269?page=45"> inflation before ATRA, it affected tax- payers wi</a> <a title="The CPA Journal - March 2013 page 46" href="http://viewer.zmags.com/publication/739cf269?page=46"> In sum, the effects of the fiscal cliff deal are </a> <a title="The CPA Journal - March 2013 page 47" href="http://viewer.zmags.com/publication/739cf269?page=47"> 2013 FAE Conferences foundation for accountin</a> <a title="The CPA Journal - March 2013 page 48" href="http://viewer.zmags.com/publication/739cf269?page=48"> FINANCE banking </a> <a title="The CPA Journal - March 2013 page 49" href="http://viewer.zmags.com/publication/739cf269?page=49"> Equities Deposits </a> <a title="The CPA Journal - March 2013 page 50" href="http://viewer.zmags.com/publication/739cf269?page=50"> Total Assets 1,027 Eq</a> <a title="The CPA Journal - March 2013 page 51" href="http://viewer.zmags.com/publication/739cf269?page=51"> weak when using market value. This indi- cates th</a> <a title="The CPA Journal - March 2013 page 52" href="http://viewer.zmags.com/publication/739cf269?page=52"> buys Treasury bills for cash or if a German bank </a> <a title="The CPA Journal - March 2013 page 53" href="http://viewer.zmags.com/publication/739cf269?page=53"> pany reported a $5.8 billion trading loss due to </a> <a title="The CPA Journal - March 2013 page 54" href="http://viewer.zmags.com/publication/739cf269?page=54"> the loans were not repaid did not affect the bank</a> <a title="The CPA Journal - March 2013 page 55" href="http://viewer.zmags.com/publication/739cf269?page=55"> FINANCE corporate finance The Cost of Cap</a> <a title="The CPA Journal - March 2013 page 56" href="http://viewer.zmags.com/publication/739cf269?page=56"> panies completely or, more typically, they assume</a> <a title="The CPA Journal - March 2013 page 57" href="http://viewer.zmags.com/publication/739cf269?page=57"> EBITDA. As shown in Exhibit 5, bank loans are the</a> <a title="The CPA Journal - March 2013 page 58" href="http://viewer.zmags.com/publication/739cf269?page=58"> invested in companies with valuations that, at th</a> <a title="The CPA Journal - March 2013 page 59" href="http://viewer.zmags.com/publication/739cf269?page=59"> MANAGEMENT accountant's liability Criminal L</a> <a title="The CPA Journal - March 2013 page 60" href="http://viewer.zmags.com/publication/739cf269?page=60"> Basic Principles of Legal Liability One way o</a> <a title="The CPA Journal - March 2013 page 61" href="http://viewer.zmags.com/publication/739cf269?page=61"> (2d Cir. 1964); U.S. v. Natelli, 527 F.2d 311 (2d</a> <a title="The CPA Journal - March 2013 page 62" href="http://viewer.zmags.com/publication/739cf269?page=62"> ecutor's judgment as to whether the case is one o</a> <a title="The CPA Journal - March 2013 page 63" href="http://viewer.zmags.com/publication/739cf269?page=63"> of each of the various tax fraud offenses crimina</a> <a title="The CPA Journal - March 2013 page 64" href="http://viewer.zmags.com/publication/739cf269?page=64"> Finally, consider the case of Legel, an accoun</a> <a title="The CPA Journal - March 2013 page 65" href="http://viewer.zmags.com/publication/739cf269?page=65"> ed as sales rather than financings, so that the a</a> <a title="The CPA Journal - March 2013 page 66" href="http://viewer.zmags.com/publication/739cf269?page=66"> RESPONSIBILITIES & LEADERSHIP ethics </a> <a title="The CPA Journal - March 2013 page 67" href="http://viewer.zmags.com/publication/739cf269?page=67"> est by outlining a situation in which an auditor </a> <a title="The CPA Journal - March 2013 page 68" href="http://viewer.zmags.com/publication/739cf269?page=68"> to two important areas in the auditing stan- dard</a> <a title="The CPA Journal - March 2013 page 69" href="http://viewer.zmags.com/publication/739cf269?page=69"> isnt-telling/). The apparently limited report- in</a> <a title="The CPA Journal - March 2013 page 70" href="http://viewer.zmags.com/publication/739cf269?page=70"> RESPONSIBILITIES & LEADERSHIP ethics Gu</a> <a title="The CPA Journal - March 2013 page 71" href="http://viewer.zmags.com/publication/739cf269?page=71"> The unadjusted trial balance shown in Exhibit </a> <a title="The CPA Journal - March 2013 page 72" href="http://viewer.zmags.com/publication/739cf269?page=72"> Thus, it is important that CPAs can recognize s</a> <a title="The CPA Journal - March 2013 page 73" href="http://viewer.zmags.com/publication/739cf269?page=73"> has on their independence. Although per- forming </a> <a title="The CPA Journal - March 2013 page 74" href="http://viewer.zmags.com/publication/739cf269?page=74"> TECHNOLOGY what to bookmark Web</a> <a title="The CPA Journal - March 2013 page 75" href="http://viewer.zmags.com/publication/739cf269?page=75"> FAE 2013 On Demand Self-Study foundation for </a> <a title="The CPA Journal - March 2013 page 76" href="http://viewer.zmags.com/publication/739cf269?page=76"> CLASSIFIEDMARKETPLACE PROFESSIONAL OPPORTUNITY l </a> <a title="The CPA Journal - March 2013 page 77" href="http://viewer.zmags.com/publication/739cf269?page=77"> Peer Review If you need help, the</a> <a title="The CPA Journal - March 2013 page 78" href="http://viewer.zmags.com/publication/739cf269?page=78"> EMPLOYEE BENEFIT PLAN AUDITS Do you need as</a> <a title="The CPA Journal - March 2013 page 79" href="http://viewer.zmags.com/publication/739cf269?page=79"> PROFESSIONAL CONDUCT EXPERT PROFESSIONAL CONDUCT</a> <a title="The CPA Journal - March 2013 page 80" href="http://viewer.zmags.com/publication/739cf269?page=80"> </a> <a title="The CPA Journal - March 2013 page 81" href="http://viewer.zmags.com/publication/739cf269?page=81"> ECONOMIC & MARKET DATA monthly update</a> <a title="The CPA Journal - March 2013 page 82" href="http://viewer.zmags.com/publication/739cf269?page=82"> EDITORIAL a message from the editor-in-ch</a> <a title="The CPA Journal - March 2013 page 83" href="http://viewer.zmags.com/publication/739cf269?page=83"> </a> <a title="The CPA Journal - March 2013 page 84" href="http://viewer.zmags.com/publication/739cf269?page=84"> </a>