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<br /> Enron 10Years Later<br /> Plus<br />  Choosing an Annuity<br />  Post-SOX Audit Firm Changes<br />  Marketing Advice for Small Firms<br /> <br /> <br /> CONTENTS<br /> may<br /> 24 Accounting & Auditing<br /> ❙ Auditing<br /> Audit Firm Changes Post-Sarbanes Oxley:<br /> Impact on the Market for Public Company Audits<br /> By Marion E. McHugh III and Paul W. Polinski<br /> ❙ Accounting<br /> Employee Stock Purchase Plans and the Calculation of<br /> Basic and Diluted Earnings per Share<br /> By Josef Rashty<br /> 38 Taxation<br /> ❙ Federal Taxation<br /> The Charitable Contribution of a Home:<br /> A<a title="The CPA Journal - May 2012 page 1" href="http://viewer.zmags.com/publication/94edbcee?page=1"> Enron 10Years Later Plus  Ch</a> <a title="The CPA Journal - May 2012 page 2" href="http://viewer.zmags.com/publication/94edbcee?page=2"> </a> <a title="The CPA Journal - May 2012 page 3" href="http://viewer.zmags.com/publication/94edbcee?page=3"> </a> <a title="The CPA Journal - May 2012 page 4" href="http://viewer.zmags.com/publication/94edbcee?page=4"> CONTENTS may </a> <a title="The CPA Journal - May 2012 page 5" href="http://viewer.zmags.com/publication/94edbcee?page=5"> vol. LXXXII/no.5 6PERSPECTIVES 16IN FOCUS </a> <a title="The CPA Journal - May 2012 page 6" href="http://viewer.zmags.com/publication/94edbcee?page=6"> Publisher JOANNE S. BARRY Associate Publisher C</a> <a title="The CPA Journal - May 2012 page 7" href="http://viewer.zmags.com/publication/94edbcee?page=7"> </a> <a title="The CPA Journal - May 2012 page 8" href="http://viewer.zmags.com/publication/94edbcee?page=8"> PERSPECTIVES standards setting Auditor In</a> <a title="The CPA Journal - May 2012 page 9" href="http://viewer.zmags.com/publication/94edbcee?page=9"> publisher's column Attorney General P</a> <a title="The CPA Journal - May 2012 page 10" href="http://viewer.zmags.com/publication/94edbcee?page=10"> (Continued from page 6) Equities Fund], submitted</a> <a title="The CPA Journal - May 2012 page 11" href="http://viewer.zmags.com/publication/94edbcee?page=11"> We are also concerned that if not appro- pri</a> <a title="The CPA Journal - May 2012 page 12" href="http://viewer.zmags.com/publication/94edbcee?page=12"> tions, the auditor may have felt a stronger loy- </a> <a title="The CPA Journal - May 2012 page 13" href="http://viewer.zmags.com/publication/94edbcee?page=13"> RFP process—not the replacement of the existing a</a> <a title="The CPA Journal - May 2012 page 14" href="http://viewer.zmags.com/publication/94edbcee?page=14"> Note that the root cause of the objec- tivity </a> <a title="The CPA Journal - May 2012 page 15" href="http://viewer.zmags.com/publication/94edbcee?page=15"> </a> <a title="The CPA Journal - May 2012 page 16" href="http://viewer.zmags.com/publication/94edbcee?page=16"> inbox: letters to the editor Caution:</a> <a title="The CPA Journal - May 2012 page 17" href="http://viewer.zmags.com/publication/94edbcee?page=17"> </a> <a title="The CPA Journal - May 2012 page 18" href="http://viewer.zmags.com/publication/94edbcee?page=18"> In Focus </a> <a title="The CPA Journal - May 2012 page 19" href="http://viewer.zmags.com/publication/94edbcee?page=19"> ENRON Ten Years Later: Lessons to Remember By</a> <a title="The CPA Journal - May 2012 page 20" href="http://viewer.zmags.com/publication/94edbcee?page=20"> ed profits by $2.9 billion after taxes. According</a> <a title="The CPA Journal - May 2012 page 21" href="http://viewer.zmags.com/publication/94edbcee?page=21"> a call option and a put option on physical assets</a> <a title="The CPA Journal - May 2012 page 22" href="http://viewer.zmags.com/publication/94edbcee?page=22"> ital to the entity. Simply satisfying the com- pa</a> <a title="The CPA Journal - May 2012 page 23" href="http://viewer.zmags.com/publication/94edbcee?page=23"> </a> <a title="The CPA Journal - May 2012 page 24" href="http://viewer.zmags.com/publication/94edbcee?page=24"> ures, some of which were spectacular. Its audit f</a> <a title="The CPA Journal - May 2012 page 25" href="http://viewer.zmags.com/publication/94edbcee?page=25"> reactions to Enron and WorldCom led some to claim</a> <a title="The CPA Journal - May 2012 page 26" href="http://viewer.zmags.com/publication/94edbcee?page=26"> ACCOUNTING & AUDITING auditing </a> <a title="The CPA Journal - May 2012 page 27" href="http://viewer.zmags.com/publication/94edbcee?page=27"> provisions can contribute to the ongoing discussi</a> <a title="The CPA Journal - May 2012 page 28" href="http://viewer.zmags.com/publication/94edbcee?page=28"> to change. To facilitate comparison, the authors </a> <a title="The CPA Journal - May 2012 page 29" href="http://viewer.zmags.com/publication/94edbcee?page=29"> interpretation, however, is that the drop in audi</a> <a title="The CPA Journal - May 2012 page 30" href="http://viewer.zmags.com/publication/94edbcee?page=30"> the SEC filing date from Audit Analytics and the </a> <a title="The CPA Journal - May 2012 page 31" href="http://viewer.zmags.com/publication/94edbcee?page=31"> that were inspected triennially over the time per</a> <a title="The CPA Journal - May 2012 page 32" href="http://viewer.zmags.com/publication/94edbcee?page=32"> Resignation rates for triennial firms are much</a> <a title="The CPA Journal - May 2012 page 33" href="http://viewer.zmags.com/publication/94edbcee?page=33"> EXHIBIT 5 Audit Firm</a> <a title="The CPA Journal - May 2012 page 34" href="http://viewer.zmags.com/publication/94edbcee?page=34"> ACCOUNTING & AUDITING accounting E</a> <a title="The CPA Journal - May 2012 page 35" href="http://viewer.zmags.com/publication/94edbcee?page=35"> impact of ESPPs on the number of shares outstandi</a> <a title="The CPA Journal - May 2012 page 36" href="http://viewer.zmags.com/publication/94edbcee?page=36"> ees participating in the ESPP program upon vestin</a> <a title="The CPA Journal - May 2012 page 37" href="http://viewer.zmags.com/publication/94edbcee?page=37"> must remain employed through the end of the offer</a> <a title="The CPA Journal - May 2012 page 38" href="http://viewer.zmags.com/publication/94edbcee?page=38"> year, and the stock closed at $105 at the end of </a> <a title="The CPA Journal - May 2012 page 39" href="http://viewer.zmags.com/publication/94edbcee?page=39"> FAE 2012 On-Site Learning FAE On-Site Learn</a> <a title="The CPA Journal - May 2012 page 40" href="http://viewer.zmags.com/publication/94edbcee?page=40"> TAXATION federal taxation </a> <a title="The CPA Journal - May 2012 page 41" href="http://viewer.zmags.com/publication/94edbcee?page=41"> department) could potentially satisfy the charita</a> <a title="The CPA Journal - May 2012 page 42" href="http://viewer.zmags.com/publication/94edbcee?page=42"> ed the use of the building (rather than the build</a> <a title="The CPA Journal - May 2012 page 43" href="http://viewer.zmags.com/publication/94edbcee?page=43"> The Tax Court's conclusion on this point is </a> <a title="The CPA Journal - May 2012 page 44" href="http://viewer.zmags.com/publication/94edbcee?page=44"> tial interest argument if it is not clear that th</a> <a title="The CPA Journal - May 2012 page 45" href="http://viewer.zmags.com/publication/94edbcee?page=45"> FAE 2012 Web Events Check </a> <a title="The CPA Journal - May 2012 page 46" href="http://viewer.zmags.com/publication/94edbcee?page=46"> FINANCE personal financial planning </a> <a title="The CPA Journal - May 2012 page 47" href="http://viewer.zmags.com/publication/94edbcee?page=47"> If Income Is Needed Now: Immediate Annuities </a> <a title="The CPA Journal - May 2012 page 48" href="http://viewer.zmags.com/publication/94edbcee?page=48"> in the owner's taxable estate. If a spouse will r</a> <a title="The CPA Journal - May 2012 page 49" href="http://viewer.zmags.com/publication/94edbcee?page=49"> When an individual finally elects to receive in</a> <a title="The CPA Journal - May 2012 page 50" href="http://viewer.zmags.com/publication/94edbcee?page=50"> come to them with questions about fixed annuities</a> <a title="The CPA Journal - May 2012 page 51" href="http://viewer.zmags.com/publication/94edbcee?page=51"> render charge expiration dates may be advis- able</a> <a title="The CPA Journal - May 2012 page 52" href="http://viewer.zmags.com/publication/94edbcee?page=52"> balance, and the amount will be solely dependent </a> <a title="The CPA Journal - May 2012 page 53" href="http://viewer.zmags.com/publication/94edbcee?page=53"> importantly, it will not be subject to a step- up</a> <a title="The CPA Journal - May 2012 page 54" href="http://viewer.zmags.com/publication/94edbcee?page=54"> MANAGEMENT practice management </a> <a title="The CPA Journal - May 2012 page 55" href="http://viewer.zmags.com/publication/94edbcee?page=55"> ments and to the business. Both this investor and</a> <a title="The CPA Journal - May 2012 page 56" href="http://viewer.zmags.com/publication/94edbcee?page=56"> Even though websites and the Internet allow CP</a> <a title="The CPA Journal - May 2012 page 57" href="http://viewer.zmags.com/publication/94edbcee?page=57"> ing care of their parents' financial affairs; oth</a> <a title="The CPA Journal - May 2012 page 58" href="http://viewer.zmags.com/publication/94edbcee?page=58"> Networking is the best form of promo- tion for</a> <a title="The CPA Journal - May 2012 page 59" href="http://viewer.zmags.com/publication/94edbcee?page=59"> method of distributing the brochures to the targe</a> <a title="The CPA Journal - May 2012 page 60" href="http://viewer.zmags.com/publication/94edbcee?page=60"> ments that they serve. For example, indi- viduals</a> <a title="The CPA Journal - May 2012 page 61" href="http://viewer.zmags.com/publication/94edbcee?page=61"> Designing a blueprint can help— ■ schedule acti</a> <a title="The CPA Journal - May 2012 page 62" href="http://viewer.zmags.com/publication/94edbcee?page=62"> MANAGEMENT practice management Manag</a> <a title="The CPA Journal - May 2012 page 63" href="http://viewer.zmags.com/publication/94edbcee?page=63"> were less prominent, with 23% and 24% of the prof</a> <a title="The CPA Journal - May 2012 page 64" href="http://viewer.zmags.com/publication/94edbcee?page=64"> to be particularly sensitive to their place in th</a> <a title="The CPA Journal - May 2012 page 65" href="http://viewer.zmags.com/publication/94edbcee?page=65"> Survey respondents also indicated that they</a> <a title="The CPA Journal - May 2012 page 66" href="http://viewer.zmags.com/publication/94edbcee?page=66"> MANAGEMENT not-for-profit organizations P</a> <a title="The CPA Journal - May 2012 page 67" href="http://viewer.zmags.com/publication/94edbcee?page=67"> ■ Are there continual decreases in unre- strict</a> <a title="The CPA Journal - May 2012 page 68" href="http://viewer.zmags.com/publication/94edbcee?page=68"> any government agency that supports the tifie</a> <a title="The CPA Journal - May 2012 page 69" href="http://viewer.zmags.com/publication/94edbcee?page=69"> contracts. The following matters should be consid</a> <a title="The CPA Journal - May 2012 page 70" href="http://viewer.zmags.com/publication/94edbcee?page=70"> RESPONSIBILITIES & LEADERSHIP future of</a> <a title="The CPA Journal - May 2012 page 71" href="http://viewer.zmags.com/publication/94edbcee?page=71"> Demand for Public Accounting Recruits, AICPA,www.</a> <a title="The CPA Journal - May 2012 page 72" href="http://viewer.zmags.com/publication/94edbcee?page=72"> and it demonstrates a sincere interest in employe</a> <a title="The CPA Journal - May 2012 page 73" href="http://viewer.zmags.com/publication/94edbcee?page=73"> destructive behavior, such as alcohol or drug abu</a> <a title="The CPA Journal - May 2012 page 74" href="http://viewer.zmags.com/publication/94edbcee?page=74"> TECHNOLOGY what to bookmark Website of t</a> <a title="The CPA Journal - May 2012 page 75" href="http://viewer.zmags.com/publication/94edbcee?page=75"> ment, balance sheet, cash flows, and com- mon fin</a> <a title="The CPA Journal - May 2012 page 76" href="http://viewer.zmags.com/publication/94edbcee?page=76"> CLASSIFIEDMARKETPLACE PROFESSIONAL OPPORTUNITY l </a> <a title="The CPA Journal - May 2012 page 77" href="http://viewer.zmags.com/publication/94edbcee?page=77"> Peer Review If you need help, th</a> <a title="The CPA Journal - May 2012 page 78" href="http://viewer.zmags.com/publication/94edbcee?page=78"> BUSINESS SERVICES NEED TO INCORPORAT</a> <a title="The CPA Journal - May 2012 page 79" href="http://viewer.zmags.com/publication/94edbcee?page=79"> Peer Review Services HIGH QUA</a> <a title="The CPA Journal - May 2012 page 80" href="http://viewer.zmags.com/publication/94edbcee?page=80"> </a> <a title="The CPA Journal - May 2012 page 81" href="http://viewer.zmags.com/publication/94edbcee?page=81"> ECONOMIC & MARKET DATA monthly upd</a> <a title="The CPA Journal - May 2012 page 82" href="http://viewer.zmags.com/publication/94edbcee?page=82"> EDITORIAL a message from the editor-in-c</a> <a title="The CPA Journal - May 2012 page 83" href="http://viewer.zmags.com/publication/94edbcee?page=83"> </a> <a title="The CPA Journal - May 2012 page 84" href="http://viewer.zmags.com/publication/94edbcee?page=84"> </a>