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Technology<br />
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Recruiting Gen Y<br />
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PLUS<br />
Viewpoints on Madoff<br />
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C ONTENTS<br />
may<br />
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30 Accounting & Auditing<br />
❙ Auditing<br />
Auditing in Turbulent Economic Times:<br />
Plan Ahead and Apply Skepticism and Judgment<br />
By Vi<a title="The CPA Journal - May 2009 page 1" href="http://viewer.zmags.com/publication/9dd3d6ae?page=1"> AnnualTechnology Issue Tax </a> AnnualTechnology Issue Tax <a title="The CPA Journal - May 2009 page 2" href="http://viewer.zmags.com/publication/9dd3d6ae?page=2"></a> <a title="The CPA Journal - May 2009 page 3" href="http://viewer.zmags.com/publication/9dd3d6ae?page=3"></a> <a title="The CPA Journal - May 2009 page 4" href="http://viewer.zmags.com/publication/9dd3d6ae?page=4">C ONTENTSmay 30 Acc</a> C ONTENTSmay 30 Acc<a title="The CPA Journal - May 2009 page 5" href="http://viewer.zmags.com/publication/9dd3d6ae?page=5">vol.6PERSPECTIVES </a> vol.6PERSPECTIVES <a title="The CPA Journal - May 2009 page 6" href="http://viewer.zmags.com/publication/9dd3d6ae?page=6"> PublisherLOUIS GRUMET Associate Pu</a> PublisherLOUIS GRUMET Associate Pu<a title="The CPA Journal - May 2009 page 7" href="http://viewer.zmags.com/publication/9dd3d6ae?page=7"></a> <a title="The CPA Journal - May 2009 page 8" href="http://viewer.zmags.com/publication/9dd3d6ae?page=8">P ERSPECTIVESemerging issuesTax Issues R</a> P ERSPECTIVESemerging issuesTax Issues R<a title="The CPA Journal - May 2009 page 9" href="http://viewer.zmags.com/publication/9dd3d6ae?page=9">publisher's columnLosing Our Moral and </a> publisher's columnLosing Our Moral and <a title="The CPA Journal - May 2009 page 10" href="http://viewer.zmags.com/publication/9dd3d6ae?page=10">inbox: letter to the editorAICPA Respond</a> inbox: letter to the editorAICPA Respond<a title="The CPA Journal - May 2009 page 11" href="http://viewer.zmags.com/publication/9dd3d6ae?page=11">Notice/No-Fee mobility for out-of-stateCPAs to p</a> Notice/No-Fee mobility for out-of-stateCPAs to p<a title="The CPA Journal - May 2009 page 12" href="http://viewer.zmags.com/publication/9dd3d6ae?page=12">in the Roslyn School District in 2004,frauds in </a> in the Roslyn School District in 2004,frauds in <a title="The CPA Journal - May 2009 page 13" href="http://viewer.zmags.com/publication/9dd3d6ae?page=13">(Continued from page 6)PCAOB released for commen</a> (Continued from page 6)PCAOB released for commen<a title="The CPA Journal - May 2009 page 14" href="http://viewer.zmags.com/publication/9dd3d6ae?page=14">Questions & AnswersQUESTIONS FROM SENATOR MAX B</a> Questions & AnswersQUESTIONS FROM SENATOR MAX B<a title="The CPA Journal - May 2009 page 15" href="http://viewer.zmags.com/publication/9dd3d6ae?page=15">Prudent Management of Institutional FundsAct (em</a> Prudent Management of Institutional FundsAct (em<a title="The CPA Journal - May 2009 page 16" href="http://viewer.zmags.com/publication/9dd3d6ae?page=16">(Continued from page 12)QUESTION FROM SENATOR</a> (Continued from page 12)QUESTION FROM SENATOR<a title="The CPA Journal - May 2009 page 17" href="http://viewer.zmags.com/publication/9dd3d6ae?page=17"></a> <a title="The CPA Journal - May 2009 page 18" href="http://viewer.zmags.com/publication/9dd3d6ae?page=18"> The SystemicDismantling of the </a> The SystemicDismantling of the <a title="The CPA Journal - May 2009 page 19" href="http://viewer.zmags.com/publication/9dd3d6ae?page=19">key agencies. Inspector General reportson the Of</a> key agencies. Inspector General reportson the Of<a title="The CPA Journal - May 2009 page 20" href="http://viewer.zmags.com/publication/9dd3d6ae?page=20">strategic networking business toNetnoworking,</a> strategic networking business toNetnoworking,<a title="The CPA Journal - May 2009 page 21" href="http://viewer.zmags.com/publication/9dd3d6ae?page=21"> Keep Politics Out ofAccounting StandardsAdvice</a> Keep Politics Out ofAccounting StandardsAdvice<a title="The CPA Journal - May 2009 page 22" href="http://viewer.zmags.com/publication/9dd3d6ae?page=22">FocusIn</a> FocusIn<a title="The CPA Journal - May 2009 page 23" href="http://viewer.zmags.com/publication/9dd3d6ae?page=23">A Clear Look at Tax Software2009 Annual S</a> A Clear Look at Tax Software2009 Annual S<a title="The CPA Journal - May 2009 page 24" href="http://viewer.zmags.com/publication/9dd3d6ae?page=24"> EXHIBIT 1Profile of Survey Respo</a> EXHIBIT 1Profile of Survey Respo<a title="The CPA Journal - May 2009 page 25" href="http://viewer.zmags.com/publication/9dd3d6ae?page=25"></a> <a title="The CPA Journal - May 2009 page 26" href="http://viewer.zmags.com/publication/9dd3d6ae?page=26"> EXHIBIT 3Tax Preparation Softw</a> EXHIBIT 3Tax Preparation Softw<a title="The CPA Journal - May 2009 page 27" href="http://viewer.zmags.com/publication/9dd3d6ae?page=27">payer information under IRC section 7216and chan</a> payer information under IRC section 7216and chan<a title="The CPA Journal - May 2009 page 28" href="http://viewer.zmags.com/publication/9dd3d6ae?page=28">lowest rated feature of the tax preparationsoftw</a> lowest rated feature of the tax preparationsoftw<a title="The CPA Journal - May 2009 page 29" href="http://viewer.zmags.com/publication/9dd3d6ae?page=29">er priced providers. Of the six vendors withmore</a> er priced providers. Of the six vendors withmore<a title="The CPA Journal - May 2009 page 30" href="http://viewer.zmags.com/publication/9dd3d6ae?page=30">products, CCH and PPC, showed bothincreases and </a> products, CCH and PPC, showed bothincreases and <a title="The CPA Journal - May 2009 page 31" href="http://viewer.zmags.com/publication/9dd3d6ae?page=31">preparation software and number three and two, re</a> preparation software and number three and two, re<a title="The CPA Journal - May 2009 page 32" href="http://viewer.zmags.com/publication/9dd3d6ae?page=32">A CCOUNTING & AUDITINGauditing</a> A CCOUNTING & AUDITINGauditing<a title="The CPA Journal - May 2009 page 33" href="http://viewer.zmags.com/publication/9dd3d6ae?page=33">tion will not correct itself immediately andwill</a> tion will not correct itself immediately andwill<a title="The CPA Journal - May 2009 page 34" href="http://viewer.zmags.com/publication/9dd3d6ae?page=34">impairment, and liquidity restriction, aswell as</a> impairment, and liquidity restriction, aswell as<a title="The CPA Journal - May 2009 page 35" href="http://viewer.zmags.com/publication/9dd3d6ae?page=35">■ representations about asset recover-ability</a> ■ representations about asset recover-ability<a title="The CPA Journal - May 2009 page 36" href="http://viewer.zmags.com/publication/9dd3d6ae?page=36">■ Have all related-party transactions beendisc</a> ■ Have all related-party transactions beendisc<a title="The CPA Journal - May 2009 page 37" href="http://viewer.zmags.com/publication/9dd3d6ae?page=37"></a> <a title="The CPA Journal - May 2009 page 38" href="http://viewer.zmags.com/publication/9dd3d6ae?page=38">A CCOUNTING & AUDITINGaccounting</a> A CCOUNTING & AUDITINGaccounting<a title="The CPA Journal - May 2009 page 39" href="http://viewer.zmags.com/publication/9dd3d6ae?page=39"> In most instances, the expected term esti-ma</a> In most instances, the expected term esti-ma<a title="The CPA Journal - May 2009 page 40" href="http://viewer.zmags.com/publication/9dd3d6ae?page=40">expected life for related awards. For exam-ple, </a> expected life for related awards. For exam-ple, <a title="The CPA Journal - May 2009 page 41" href="http://viewer.zmags.com/publication/9dd3d6ae?page=41">constant, the longer the contractual term, thehi</a> constant, the longer the contractual term, thehi<a title="The CPA Journal - May 2009 page 42" href="http://viewer.zmags.com/publication/9dd3d6ae?page=42"> Using the ANETF of 23.6% calculatedabove, as </a> Using the ANETF of 23.6% calculatedabove, as <a title="The CPA Journal - May 2009 page 43" href="http://viewer.zmags.com/publication/9dd3d6ae?page=43">upper bound, and the neutral scenario in col-umn</a> upper bound, and the neutral scenario in col-umn<a title="The CPA Journal - May 2009 page 44" href="http://viewer.zmags.com/publication/9dd3d6ae?page=44">A CCOUNTING & AUDITINGaccounting Ch</a> A CCOUNTING & AUDITINGaccounting Ch<a title="The CPA Journal - May 2009 page 45" href="http://viewer.zmags.com/publication/9dd3d6ae?page=45">no longer exists, its interest of $4,000($50,000</a> no longer exists, its interest of $4,000($50,000<a title="The CPA Journal - May 2009 page 46" href="http://viewer.zmags.com/publication/9dd3d6ae?page=46">ed in basic EPS under the two-classmethod. Under</a> ed in basic EPS under the two-classmethod. Under<a title="The CPA Journal - May 2009 page 47" href="http://viewer.zmags.com/publication/9dd3d6ae?page=47"> EXHIBIT 3The Two-Class M</a> EXHIBIT 3The Two-Class M<a title="The CPA Journal - May 2009 page 48" href="http://viewer.zmags.com/publication/9dd3d6ae?page=48">T AXATIONfederal taxation</a> T AXATIONfederal taxation<a title="The CPA Journal - May 2009 page 49" href="http://viewer.zmags.com/publication/9dd3d6ae?page=49"> Tax preparers must understand their newrespo</a> Tax preparers must understand their newrespo<a title="The CPA Journal - May 2009 page 50" href="http://viewer.zmags.com/publication/9dd3d6ae?page=50">example, an accountant who prepares a returnfor </a> example, an accountant who prepares a returnfor <a title="The CPA Journal - May 2009 page 51" href="http://viewer.zmags.com/publication/9dd3d6ae?page=51"></a> <a title="The CPA Journal - May 2009 page 52" href="http://viewer.zmags.com/publication/9dd3d6ae?page=52">but this is limited to information the tax-payer</a> but this is limited to information the tax-payer<a title="The CPA Journal - May 2009 page 53" href="http://viewer.zmags.com/publication/9dd3d6ae?page=53">ration, the preparer may not solicit anoth-er co</a> ration, the preparer may not solicit anoth-er co<a title="The CPA Journal - May 2009 page 54" href="http://viewer.zmags.com/publication/9dd3d6ae?page=54">F INANCEfinancial managementBankruptcy </a> F INANCEfinancial managementBankruptcy <a title="The CPA Journal - May 2009 page 55" href="http://viewer.zmags.com/publication/9dd3d6ae?page=55">ble. Chapter 13 is a wage-earner's reorga-nizati</a> ble. Chapter 13 is a wage-earner's reorga-nizati<a title="The CPA Journal - May 2009 page 56" href="http://viewer.zmags.com/publication/9dd3d6ae?page=56"> Most unsecured debts are dischargedunder Chap</a> Most unsecured debts are dischargedunder Chap<a title="The CPA Journal - May 2009 page 57" href="http://viewer.zmags.com/publication/9dd3d6ae?page=57"></a> <a title="The CPA Journal - May 2009 page 58" href="http://viewer.zmags.com/publication/9dd3d6ae?page=58">M ANAGEMENTaccountant's liabilityWhy Wa</a> M ANAGEMENTaccountant's liabilityWhy Wa<a title="The CPA Journal - May 2009 page 59" href="http://viewer.zmags.com/publication/9dd3d6ae?page=59">accounting professionals will be requiredto unde</a> accounting professionals will be requiredto unde<a title="The CPA Journal - May 2009 page 60" href="http://viewer.zmags.com/publication/9dd3d6ae?page=60">R ESPONSIBILITIES & LEADERSHIPeducation</a> R ESPONSIBILITIES & LEADERSHIPeducation<a title="The CPA Journal - May 2009 page 61" href="http://viewer.zmags.com/publication/9dd3d6ae?page=61">BEC. The most important changes involvethe conte</a> BEC. The most important changes involvethe conte<a title="The CPA Journal - May 2009 page 62" href="http://viewer.zmags.com/publication/9dd3d6ae?page=62">plans and trusts. One of the most signifi-cant u</a> plans and trusts. One of the most signifi-cant u<a title="The CPA Journal - May 2009 page 63" href="http://viewer.zmags.com/publication/9dd3d6ae?page=63">2008 CSSs move ethics and indepen-dence to AUD a</a> 2008 CSSs move ethics and indepen-dence to AUD a<a title="The CPA Journal - May 2009 page 64" href="http://viewer.zmags.com/publication/9dd3d6ae?page=64">Implications for Educators, Candidates,and Pract</a> Implications for Educators, Candidates,and Pract<a title="The CPA Journal - May 2009 page 65" href="http://viewer.zmags.com/publication/9dd3d6ae?page=65"></a> <a title="The CPA Journal - May 2009 page 66" href="http://viewer.zmags.com/publication/9dd3d6ae?page=66">T ECHNOLOGYfuture of the professionUs</a> T ECHNOLOGYfuture of the professionUs<a title="The CPA Journal - May 2009 page 67" href="http://viewer.zmags.com/publication/9dd3d6ae?page=67">multitask. However, as Yeaton discussed,they are</a> multitask. However, as Yeaton discussed,they are<a title="The CPA Journal - May 2009 page 68" href="http://viewer.zmags.com/publication/9dd3d6ae?page=68">Hawk” is in charge of security, and the“Social B</a> Hawk” is in charge of security, and the“Social B<a title="The CPA Journal - May 2009 page 69" href="http://viewer.zmags.com/publication/9dd3d6ae?page=69">from interactive screenshots is its ability toin</a> from interactive screenshots is its ability toin<a title="The CPA Journal - May 2009 page 70" href="http://viewer.zmags.com/publication/9dd3d6ae?page=70">payment was made late and must enter thisdata in</a> payment was made late and must enter thisdata in<a title="The CPA Journal - May 2009 page 71" href="http://viewer.zmags.com/publication/9dd3d6ae?page=71">Time Is Running Out!May 12–13, 2009Long </a> Time Is Running Out!May 12–13, 2009Long <a title="The CPA Journal - May 2009 page 72" href="http://viewer.zmags.com/publication/9dd3d6ae?page=72">T ECHNOLOGYelectronic reportingHow CPAs</a> T ECHNOLOGYelectronic reportingHow CPAs<a title="The CPA Journal - May 2009 page 73" href="http://viewer.zmags.com/publication/9dd3d6ae?page=73">cient in storing and searching individualdata el</a> cient in storing and searching individualdata el<a title="The CPA Journal - May 2009 page 74" href="http://viewer.zmags.com/publication/9dd3d6ae?page=74">T ECHNOLOGYwhat to bookmark Website of th</a> T ECHNOLOGYwhat to bookmark Website of th<a title="The CPA Journal - May 2009 page 75" href="http://viewer.zmags.com/publication/9dd3d6ae?page=75">the federal bonus pay flat tax rate, unem-ployme</a> the federal bonus pay flat tax rate, unem-ployme<a title="The CPA Journal - May 2009 page 76" href="http://viewer.zmags.com/publication/9dd3d6ae?page=76">Classified PROFESSIONAL OPPORTUNITY l BUSINESS l</a> Classified PROFESSIONAL OPPORTUNITY l BUSINESS l<a title="The CPA Journal - May 2009 page 77" href="http://viewer.zmags.com/publication/9dd3d6ae?page=77">SPACE FOR RENTAAA PROFESSIONAL OFFICES FOR REN</a> SPACE FOR RENTAAA PROFESSIONAL OFFICES FOR REN<a title="The CPA Journal - May 2009 page 78" href="http://viewer.zmags.com/publication/9dd3d6ae?page=78">SALES TAX CONSULTANTSStewart Buxbaum, CPA, MBA</a> SALES TAX CONSULTANTSStewart Buxbaum, CPA, MBA<a title="The CPA Journal - May 2009 page 79" href="http://viewer.zmags.com/publication/9dd3d6ae?page=79">PEER REVIEW PE</a> PEER REVIEW PE<a title="The CPA Journal - May 2009 page 80" href="http://viewer.zmags.com/publication/9dd3d6ae?page=80"> </a> <a title="The CPA Journal - May 2009 page 81" href="http://viewer.zmags.com/publication/9dd3d6ae?page=81">E CONOMIC & MARKET D ATAmonthly update</a> E CONOMIC & MARKET D ATAmonthly update<a title="The CPA Journal - May 2009 page 82" href="http://viewer.zmags.com/publication/9dd3d6ae?page=82">E DITORIALa message from the editor-in-chie</a> E DITORIALa message from the editor-in-chie<a title="The CPA Journal - May 2009 page 83" href="http://viewer.zmags.com/publication/9dd3d6ae?page=83"></a> <a title="The CPA Journal - May 2009 page 84" href="http://viewer.zmags.com/publication/9dd3d6ae?page=84"></a> <a title="The CPA Journal - May 2009 page 85" href="http://viewer.zmags.com/publication/9dd3d6ae?page=85">INSIGHT + ANALYSIS</a> INSIGHT + ANALYSIS