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<br /> www.cpaj.com December 2012<br /> Annual Tax Update<br /> Surveying an<br /> Uncertain Tax<br /> Landscape<br />  Tax Reform<br />  Estate & Gift Planning<br />  Independent Contractor vs. Employee<br /> An Interview with<br /> IIA President<br /> Richard F.<br /> Chambers<br /> <br /> <br /> CONTENTS<br /> december 2012<br /> 24 Accounting & Auditing<br /> ❙ Standards Setting<br /> The New Environment for Climate Change Disclosures<br /> By Abraham N. Fried, Mark P. Holtzman, and Li Duan<br /> ❙ Auditing<br /> Material Weaknesses in Internal Control<br /> Related to the Statement of Cash Flows<br /> By Daniel M. Ivancevich, Susan H. Ivancevich,<br /> and Dana R. Hermanson<br /> 34 Taxation<<a title="The CPA Journal - December 2012 page 1" href="http://viewer.zmags.com/publication/847aaf6e?page=1"> www.cpaj.com December 2012 Annual</a> <a title="The CPA Journal - December 2012 page 2" href="http://viewer.zmags.com/publication/847aaf6e?page=2"> </a> <a title="The CPA Journal - December 2012 page 3" href="http://viewer.zmags.com/publication/847aaf6e?page=3"> </a> <a title="The CPA Journal - December 2012 page 4" href="http://viewer.zmags.com/publication/847aaf6e?page=4"> CONTENTS december 2012 </a> <a title="The CPA Journal - December 2012 page 5" href="http://viewer.zmags.com/publication/847aaf6e?page=5"> vol. LXXXII/no.12 6PERSPECTIVES 18IN FOCUS </a> <a title="The CPA Journal - December 2012 page 6" href="http://viewer.zmags.com/publication/847aaf6e?page=6"> new york state society of NYSSCPA certif</a> <a title="The CPA Journal - December 2012 page 7" href="http://viewer.zmags.com/publication/847aaf6e?page=7"> </a> <a title="The CPA Journal - December 2012 page 8" href="http://viewer.zmags.com/publication/847aaf6e?page=8"> PERSPECTIVES viewpoint Tax Simplification t</a> <a title="The CPA Journal - December 2012 page 9" href="http://viewer.zmags.com/publication/847aaf6e?page=9"> publisher's column CPA Outlook Serves as E</a> <a title="The CPA Journal - December 2012 page 10" href="http://viewer.zmags.com/publication/847aaf6e?page=10"> (Continued from page 6) Rogers to Ronald Reagan. </a> <a title="The CPA Journal - December 2012 page 11" href="http://viewer.zmags.com/publication/847aaf6e?page=11"> quent change, excessive detail, ambiguity, burden</a> <a title="The CPA Journal - December 2012 page 12" href="http://viewer.zmags.com/publication/847aaf6e?page=12"> degree in order to comprehend the Treasury Regula</a> <a title="The CPA Journal - December 2012 page 13" href="http://viewer.zmags.com/publication/847aaf6e?page=13"> compliance & enforcement Rewarding Whist</a> <a title="The CPA Journal - December 2012 page 14" href="http://viewer.zmags.com/publication/847aaf6e?page=14"> recognition Recognition T he editors would like t</a> <a title="The CPA Journal - December 2012 page 15" href="http://viewer.zmags.com/publication/847aaf6e?page=15"> Top Five Year-End Tax Planning Tips for U.S</a> <a title="The CPA Journal - December 2012 page 16" href="http://viewer.zmags.com/publication/847aaf6e?page=16"> Potential Changes to the Auditor's Report</a> <a title="The CPA Journal - December 2012 page 17" href="http://viewer.zmags.com/publication/847aaf6e?page=17"> Under the current auditing literature, auditors</a> <a title="The CPA Journal - December 2012 page 18" href="http://viewer.zmags.com/publication/847aaf6e?page=18"> ■ Management's responsibilities regard- ing the</a> <a title="The CPA Journal - December 2012 page 19" href="http://viewer.zmags.com/publication/847aaf6e?page=19"> practice management Five Steps to Grow B</a> <a title="The CPA Journal - December 2012 page 20" href="http://viewer.zmags.com/publication/847aaf6e?page=20"> In Focus </a> <a title="The CPA Journal - December 2012 page 21" href="http://viewer.zmags.com/publication/847aaf6e?page=21"> Promoting the Value of Internal Auditing An Inter</a> <a title="The CPA Journal - December 2012 page 22" href="http://viewer.zmags.com/publication/847aaf6e?page=22"> A Global Certifying Body The CPA Journal: Can </a> <a title="The CPA Journal - December 2012 page 23" href="http://viewer.zmags.com/publication/847aaf6e?page=23"> </a> <a title="The CPA Journal - December 2012 page 24" href="http://viewer.zmags.com/publication/847aaf6e?page=24"> Professional Benefit CPAJ: How might these v</a> <a title="The CPA Journal - December 2012 page 25" href="http://viewer.zmags.com/publication/847aaf6e?page=25"> think it's due to the value we deliver. For examp</a> <a title="The CPA Journal - December 2012 page 26" href="http://viewer.zmags.com/publication/847aaf6e?page=26"> ACCOUNTING & AUDITING standards setting</a> <a title="The CPA Journal - December 2012 page 27" href="http://viewer.zmags.com/publication/847aaf6e?page=27"> environment. Companies should disclose material e</a> <a title="The CPA Journal - December 2012 page 28" href="http://viewer.zmags.com/publication/847aaf6e?page=28"> whether the new law or regulation “is reasonably </a> <a title="The CPA Journal - December 2012 page 29" href="http://viewer.zmags.com/publication/847aaf6e?page=29"> of operations in the future.” Consolidation Servi</a> <a title="The CPA Journal - December 2012 page 30" href="http://viewer.zmags.com/publication/847aaf6e?page=30"> public concern about environmental issues, includ</a> <a title="The CPA Journal - December 2012 page 31" href="http://viewer.zmags.com/publication/847aaf6e?page=31"> ACCOUNTING & AUDITING auditing Mat</a> <a title="The CPA Journal - December 2012 page 32" href="http://viewer.zmags.com/publication/847aaf6e?page=32"> weaknesses in some companies, and the fact that s</a> <a title="The CPA Journal - December 2012 page 33" href="http://viewer.zmags.com/publication/847aaf6e?page=33"> can occur due to the misclassification of items w</a> <a title="The CPA Journal - December 2012 page 34" href="http://viewer.zmags.com/publication/847aaf6e?page=34"> would not receive SOX section 404 audi- tor repor</a> <a title="The CPA Journal - December 2012 page 35" href="http://viewer.zmags.com/publication/847aaf6e?page=35"> restatement causes by Marlene Plumlee and Terri L</a> <a title="The CPA Journal - December 2012 page 36" href="http://viewer.zmags.com/publication/847aaf6e?page=36"> TAXATION tax policy </a> <a title="The CPA Journal - December 2012 page 37" href="http://viewer.zmags.com/publication/847aaf6e?page=37"> leading to improved fiscal health and alle- viati</a> <a title="The CPA Journal - December 2012 page 38" href="http://viewer.zmags.com/publication/847aaf6e?page=38"> accompany the possible repeals of accel- erated d</a> <a title="The CPA Journal - December 2012 page 39" href="http://viewer.zmags.com/publication/847aaf6e?page=39"> mation to the IRS regarding financial accounts he</a> <a title="The CPA Journal - December 2012 page 40" href="http://viewer.zmags.com/publication/847aaf6e?page=40"> $100, and the calendar-year maximum increased fro</a> <a title="The CPA Journal - December 2012 page 41" href="http://viewer.zmags.com/publication/847aaf6e?page=41"> fied and the consequences of such classi- ficatio</a> <a title="The CPA Journal - December 2012 page 42" href="http://viewer.zmags.com/publication/847aaf6e?page=42"> laws) the DOL's employment tax refer- rals with s</a> <a title="The CPA Journal - December 2012 page 43" href="http://viewer.zmags.com/publication/847aaf6e?page=43"> FAE 2013 CPE foundation for accounting FAE ed</a> <a title="The CPA Journal - December 2012 page 44" href="http://viewer.zmags.com/publication/847aaf6e?page=44"> TAXATION tax policy </a> <a title="The CPA Journal - December 2012 page 45" href="http://viewer.zmags.com/publication/847aaf6e?page=45"> there are two glaring differences: the cor- porat</a> <a title="The CPA Journal - December 2012 page 46" href="http://viewer.zmags.com/publication/847aaf6e?page=46"> income tax rate from 46% to 34%. Economic conditi</a> <a title="The CPA Journal - December 2012 page 47" href="http://viewer.zmags.com/publication/847aaf6e?page=47"> members of the RATE Coalition have a WW ETR of 32</a> <a title="The CPA Journal - December 2012 page 48" href="http://viewer.zmags.com/publication/847aaf6e?page=48"> taxed only on earnings within its home country, a</a> <a title="The CPA Journal - December 2012 page 49" href="http://viewer.zmags.com/publication/847aaf6e?page=49"> better control their worldwide cash tax pay- ment</a> <a title="The CPA Journal - December 2012 page 50" href="http://viewer.zmags.com/publication/847aaf6e?page=50"> TAXATION federal taxation Classifying </a> <a title="The CPA Journal - December 2012 page 51" href="http://viewer.zmags.com/publication/847aaf6e?page=51"> poses, including income and employment taxes unde</a> <a title="The CPA Journal - December 2012 page 52" href="http://viewer.zmags.com/publication/847aaf6e?page=52"> ■ The degree of control exercised by the princi</a> <a title="The CPA Journal - December 2012 page 53" href="http://viewer.zmags.com/publication/847aaf6e?page=53"> provided Robinson with space to teach but not wit</a> <a title="The CPA Journal - December 2012 page 54" href="http://viewer.zmags.com/publication/847aaf6e?page=54"> Penalty Relief Section 530 of the Revenue Act o</a> <a title="The CPA Journal - December 2012 page 55" href="http://viewer.zmags.com/publication/847aaf6e?page=55"> State Considerations Most states, including Ne</a> <a title="The CPA Journal - December 2012 page 56" href="http://viewer.zmags.com/publication/847aaf6e?page=56"> TAXATION federal taxation Does Basis Over</a> <a title="The CPA Journal - December 2012 page 57" href="http://viewer.zmags.com/publication/847aaf6e?page=57"> In the second Intermountain decision, the Tax</a> <a title="The CPA Journal - December 2012 page 58" href="http://viewer.zmags.com/publication/847aaf6e?page=58"> FINANCE estates & trusts Lifetime Credit</a> <a title="The CPA Journal - December 2012 page 59" href="http://viewer.zmags.com/publication/847aaf6e?page=59"> that a trust beneficiary who was also named as th</a> <a title="The CPA Journal - December 2012 page 60" href="http://viewer.zmags.com/publication/847aaf6e?page=60"> ■ Different or additional beneficiaries ■ Inc</a> <a title="The CPA Journal - December 2012 page 61" href="http://viewer.zmags.com/publication/847aaf6e?page=61"> FINANCE personal financial planning 2012 </a> <a title="The CPA Journal - December 2012 page 62" href="http://viewer.zmags.com/publication/847aaf6e?page=62"> successful in challenging poorly planned FLPs. Pa</a> <a title="The CPA Journal - December 2012 page 63" href="http://viewer.zmags.com/publication/847aaf6e?page=63"> tribution rights limited to “health, educa- tion,</a> <a title="The CPA Journal - December 2012 page 64" href="http://viewer.zmags.com/publication/847aaf6e?page=64"> MANAGEMENT practice management Cost </a> <a title="The CPA Journal - December 2012 page 65" href="http://viewer.zmags.com/publication/847aaf6e?page=65"> payer is still responsible for determining and re</a> <a title="The CPA Journal - December 2012 page 66" href="http://viewer.zmags.com/publication/847aaf6e?page=66"> packages are fee-based (per transaction), whereas</a> <a title="The CPA Journal - December 2012 page 67" href="http://viewer.zmags.com/publication/847aaf6e?page=67"> RESPONSIBILITIES & LEADERSHIP ethics </a> <a title="The CPA Journal - December 2012 page 68" href="http://viewer.zmags.com/publication/847aaf6e?page=68"> Following this dinner conversation, Groves beca</a> <a title="The CPA Journal - December 2012 page 69" href="http://viewer.zmags.com/publication/847aaf6e?page=69"> tion of their character (Lee D. Ross, Teresa M. A</a> <a title="The CPA Journal - December 2012 page 70" href="http://viewer.zmags.com/publication/847aaf6e?page=70"> Identity,” Administrative Science Quarterly, vol.</a> <a title="The CPA Journal - December 2012 page 71" href="http://viewer.zmags.com/publication/847aaf6e?page=71"> ness or economic decision. When stu- dents were t</a> <a title="The CPA Journal - December 2012 page 72" href="http://viewer.zmags.com/publication/847aaf6e?page=72"> TECHNOLOGY online resources 20 Qu</a> <a title="The CPA Journal - December 2012 page 73" href="http://viewer.zmags.com/publication/847aaf6e?page=73"> Treasury Regulations can be searched for on the U</a> <a title="The CPA Journal - December 2012 page 74" href="http://viewer.zmags.com/publication/847aaf6e?page=74"> charities (http://www.bbb.org/us/charity/), while</a> <a title="The CPA Journal - December 2012 page 75" href="http://viewer.zmags.com/publication/847aaf6e?page=75"> TECHNOLOGY what to bookmark </a> <a title="The CPA Journal - December 2012 page 76" href="http://viewer.zmags.com/publication/847aaf6e?page=76"> CLASSIFIEDMARKETPLACE PROFESSIONAL OPPORTUNITY l </a> <a title="The CPA Journal - December 2012 page 77" href="http://viewer.zmags.com/publication/847aaf6e?page=77"> Peer Review If you need help, the</a> <a title="The CPA Journal - December 2012 page 78" href="http://viewer.zmags.com/publication/847aaf6e?page=78"> PEER REVIEW SERVICES PEER REVIEW SPECIALIZING </a> <a title="The CPA Journal - December 2012 page 79" href="http://viewer.zmags.com/publication/847aaf6e?page=79"> TAX CONSULTANCY INNOVATIVE STRATEGIES for sales </a> <a title="The CPA Journal - December 2012 page 80" href="http://viewer.zmags.com/publication/847aaf6e?page=80"> </a> <a title="The CPA Journal - December 2012 page 81" href="http://viewer.zmags.com/publication/847aaf6e?page=81"> ECONOMIC & MARKET DATA monthly upd</a> <a title="The CPA Journal - December 2012 page 82" href="http://viewer.zmags.com/publication/847aaf6e?page=82"> EDITORIAL a message from the editor-in-c</a> <a title="The CPA Journal - December 2012 page 83" href="http://viewer.zmags.com/publication/847aaf6e?page=83"> </a> <a title="The CPA Journal - December 2012 page 84" href="http://viewer.zmags.com/publication/847aaf6e?page=84"> </a>