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<br /> In the Line of Fire<br /> Accountants’<br /> Liability in the<br /> Madoff Scheme<br /> Plus<br /> • Financial Literacy<br /> • Federal & State Tax Update<br /> • Fair Value in an Inactive Market<br /> <br /> <br /> C ONTENTS<br /> august 2009<br /> 26 Accounting & Auditing<br /> ❙ Standards Setting<br /> Fair Value's `How' Meets `When': The Complicatons<br /> of Applying Mark-to-Market Accounting<br /> in an Inactive Market<br /> By Kang Cheng<br /> ❙ Financial Reporting<br /> A Comparison of CFOs' and CPAs' Perceptions of the<br /> Sarbanes-Oxley Act and the PCAOB<br /> By Nancy T. Hill, John E. McEnroe,<br /> <a title="The CPA Journal - August 2009 page 1" href="http://viewer.zmags.com/publication/b520b938?page=1"> In the Line of Fire Accountants’ Liability i</a> <a title="The CPA Journal - August 2009 page 2" href="http://viewer.zmags.com/publication/b520b938?page=2"> </a> <a title="The CPA Journal - August 2009 page 3" href="http://viewer.zmags.com/publication/b520b938?page=3"> </a> <a title="The CPA Journal - August 2009 page 4" href="http://viewer.zmags.com/publication/b520b938?page=4"> C ONTENTS august 2009 </a> <a title="The CPA Journal - August 2009 page 5" href="http://viewer.zmags.com/publication/b520b938?page=5"> vol. LXXIX/no.8 6PERSPECT</a> <a title="The CPA Journal - August 2009 page 6" href="http://viewer.zmags.com/publication/b520b938?page=6"> Publisher LOUIS GRUMET Associate Pu</a> <a title="The CPA Journal - August 2009 page 7" href="http://viewer.zmags.com/publication/b520b938?page=7"> </a> <a title="The CPA Journal - August 2009 page 8" href="http://viewer.zmags.com/publication/b520b938?page=8"> P ERSPECTIVES viewpoint Paved with Good Int</a> <a title="The CPA Journal - August 2009 page 9" href="http://viewer.zmags.com/publication/b520b938?page=9"> publisher's column </a> <a title="The CPA Journal - August 2009 page 10" href="http://viewer.zmags.com/publication/b520b938?page=10"> (Continued from page 6) For fair value hedges,</a> <a title="The CPA Journal - August 2009 page 11" href="http://viewer.zmags.com/publication/b520b938?page=11"> Hedging the Benchmark Interest Rate In all lik</a> <a title="The CPA Journal - August 2009 page 12" href="http://viewer.zmags.com/publication/b520b938?page=12"> out this shortcut, reporting entities seek- ing h</a> <a title="The CPA Journal - August 2009 page 13" href="http://viewer.zmags.com/publication/b520b938?page=13"> Turning Payroll Pains into Payroll Gains By </a> <a title="The CPA Journal - August 2009 page 14" href="http://viewer.zmags.com/publication/b520b938?page=14"> Mastering Accounting Research for the CPA Exam, S</a> <a title="The CPA Journal - August 2009 page 15" href="http://viewer.zmags.com/publication/b520b938?page=15"> It’s Not An Option. It’s The LAW! NEW YORK STATE</a> <a title="The CPA Journal - August 2009 page 16" href="http://viewer.zmags.com/publication/b520b938?page=16"> 14 </a> <a title="The CPA Journal - August 2009 page 17" href="http://viewer.zmags.com/publication/b520b938?page=17"> Accountants' Liability in the Madoff Scheme: A CP</a> <a title="The CPA Journal - August 2009 page 18" href="http://viewer.zmags.com/publication/b520b938?page=18"> ROBERT E. SOHR The Auditor's Responsibility T</a> <a title="The CPA Journal - August 2009 page 19" href="http://viewer.zmags.com/publication/b520b938?page=19"> DAVID A. LIFSON Tax Implications T </a> <a title="The CPA Journal - August 2009 page 20" href="http://viewer.zmags.com/publication/b520b938?page=20"> ferent technique—the entire integrity of our fina</a> <a title="The CPA Journal - August 2009 page 21" href="http://viewer.zmags.com/publication/b520b938?page=21"> there were actually hedge funds that were created</a> <a title="The CPA Journal - August 2009 page 22" href="http://viewer.zmags.com/publication/b520b938?page=22"> DAN L. GOLDWASSER Damage Control R </a> <a title="The CPA Journal - August 2009 page 23" href="http://viewer.zmags.com/publication/b520b938?page=23"> of the economic decline as well as the Madoff pro</a> <a title="The CPA Journal - August 2009 page 24" href="http://viewer.zmags.com/publication/b520b938?page=24"> RIC ROSARIO Insurance Protection C </a> <a title="The CPA Journal - August 2009 page 25" href="http://viewer.zmags.com/publication/b520b938?page=25"> HOW THE MADOFF FRAUD COULD AFFECT YOUR CPA PRACTI</a> <a title="The CPA Journal - August 2009 page 26" href="http://viewer.zmags.com/publication/b520b938?page=26"> (Continued from page 22) were there after the fac</a> <a title="The CPA Journal - August 2009 page 27" href="http://viewer.zmags.com/publication/b520b938?page=27"> had blown the whistle, they wouldn't have been in</a> <a title="The CPA Journal - August 2009 page 28" href="http://viewer.zmags.com/publication/b520b938?page=28"> A CCOUNTING & AUDITING standards setting </a> <a title="The CPA Journal - August 2009 page 29" href="http://viewer.zmags.com/publication/b520b938?page=29"> Volume and Level of Activity for the Asset or Lia</a> <a title="The CPA Journal - August 2009 page 30" href="http://viewer.zmags.com/publication/b520b938?page=30"> tions, which may lead to the same dis- tressed va</a> <a title="The CPA Journal - August 2009 page 31" href="http://viewer.zmags.com/publication/b520b938?page=31"> assumptions to estimate what value would result f</a> <a title="The CPA Journal - August 2009 page 32" href="http://viewer.zmags.com/publication/b520b938?page=32"> A CCOUNTING & AUDITING financial reporting </a> <a title="The CPA Journal - August 2009 page 33" href="http://viewer.zmags.com/publication/b520b938?page=33"> firm also conducts the audit. In general, neither</a> <a title="The CPA Journal - August 2009 page 34" href="http://viewer.zmags.com/publication/b520b938?page=34"> EXHIBIT 2 Restrictio</a> <a title="The CPA Journal - August 2009 page 35" href="http://viewer.zmags.com/publication/b520b938?page=35"> Section 404 Exhibit 4 presents CFO and CPA re</a> <a title="The CPA Journal - August 2009 page 36" href="http://viewer.zmags.com/publication/b520b938?page=36"> A CCOUNTING & AUDITING sec practice S</a> <a title="The CPA Journal - August 2009 page 37" href="http://viewer.zmags.com/publication/b520b938?page=37"> about “the extent to which the material weakness </a> <a title="The CPA Journal - August 2009 page 38" href="http://viewer.zmags.com/publication/b520b938?page=38"> EXH</a> <a title="The CPA Journal - August 2009 page 39" href="http://viewer.zmags.com/publication/b520b938?page=39"> EXH</a> <a title="The CPA Journal - August 2009 page 40" href="http://viewer.zmags.com/publication/b520b938?page=40"> T AXATION federal taxation </a> <a title="The CPA Journal - August 2009 page 41" href="http://viewer.zmags.com/publication/b520b938?page=41"> Congressional Plan for Economic Recovery: Overvie</a> <a title="The CPA Journal - August 2009 page 42" href="http://viewer.zmags.com/publication/b520b938?page=42"> individual's share of FICA payroll taxes for the </a> <a title="The CPA Journal - August 2009 page 43" href="http://viewer.zmags.com/publication/b520b938?page=43"> FSA withdrawals are permitted for any purpose, no</a> <a title="The CPA Journal - August 2009 page 44" href="http://viewer.zmags.com/publication/b520b938?page=44"> Expanded qualified expenses. For 2009 and 201</a> <a title="The CPA Journal - August 2009 page 45" href="http://viewer.zmags.com/publication/b520b938?page=45"> ing individual donors to claim a charita- ble ded</a> <a title="The CPA Journal - August 2009 page 46" href="http://viewer.zmags.com/publication/b520b938?page=46"> </a> <a title="The CPA Journal - August 2009 page 47" href="http://viewer.zmags.com/publication/b520b938?page=47"> as a single individual entitled to a maxi- mum $2</a> <a title="The CPA Journal - August 2009 page 48" href="http://viewer.zmags.com/publication/b520b938?page=48"> and begin work in 2009 or 2010 are includ- ed amo</a> <a title="The CPA Journal - August 2009 page 49" href="http://viewer.zmags.com/publication/b520b938?page=49"> The credit rate for non-hydrogen refuel- ing prop</a> <a title="The CPA Journal - August 2009 page 50" href="http://viewer.zmags.com/publication/b520b938?page=50"> T AXATION state & local taxation </a> <a title="The CPA Journal - August 2009 page 51" href="http://viewer.zmags.com/publication/b520b938?page=51"> two years before the date of the sale or exchange</a> <a title="The CPA Journal - August 2009 page 52" href="http://viewer.zmags.com/publication/b520b938?page=52"> Pass-through entities such as partner- ships, </a> <a title="The CPA Journal - August 2009 page 53" href="http://viewer.zmags.com/publication/b520b938?page=53"> York entity would not have been a resident at the</a> <a title="The CPA Journal - August 2009 page 54" href="http://viewer.zmags.com/publication/b520b938?page=54"> T AXATION federal taxation Cancellation of</a> <a title="The CPA Journal - August 2009 page 55" href="http://viewer.zmags.com/publication/b520b938?page=55"> ■ net operating losses; ■ general business cr</a> <a title="The CPA Journal - August 2009 page 56" href="http://viewer.zmags.com/publication/b520b938?page=56"> of 2008 extended the exclusion to December 31, 20</a> <a title="The CPA Journal - August 2009 page 57" href="http://viewer.zmags.com/publication/b520b938?page=57"> residence for $200,000, paid 10% down, and financ</a> <a title="The CPA Journal - August 2009 page 58" href="http://viewer.zmags.com/publication/b520b938?page=58"> F INANCE retirement planning What If Cong</a> <a title="The CPA Journal - August 2009 page 59" href="http://viewer.zmags.com/publication/b520b938?page=59"> she chooses. These contribution limits are higher</a> <a title="The CPA Journal - August 2009 page 60" href="http://viewer.zmags.com/publication/b520b938?page=60"> means that the possibility of reneging is more im</a> <a title="The CPA Journal - August 2009 page 61" href="http://viewer.zmags.com/publication/b520b938?page=61"> of contribution. If Congress were to renege on Ro</a> <a title="The CPA Journal - August 2009 page 62" href="http://viewer.zmags.com/publication/b520b938?page=62"> M ANAGEMENT cpa consultant </a> <a title="The CPA Journal - August 2009 page 63" href="http://viewer.zmags.com/publication/b520b938?page=63"> identify risk areas and improve and com- municate</a> <a title="The CPA Journal - August 2009 page 64" href="http://viewer.zmags.com/publication/b520b938?page=64"> Given their limited budgets,laboratory managers m</a> <a title="The CPA Journal - August 2009 page 65" href="http://viewer.zmags.com/publication/b520b938?page=65"> TIME IS RUNNING OUT Catch Up on CPE in Octobe</a> <a title="The CPA Journal - August 2009 page 66" href="http://viewer.zmags.com/publication/b520b938?page=66"> This analysis allows for improved communication a</a> <a title="The CPA Journal - August 2009 page 67" href="http://viewer.zmags.com/publication/b520b938?page=67"> costs. The difference between the static budget a</a> <a title="The CPA Journal - August 2009 page 68" href="http://viewer.zmags.com/publication/b520b938?page=68"> R ESPONSIBILITIES & LEADERSHIP corporate go</a> <a title="The CPA Journal - August 2009 page 69" href="http://viewer.zmags.com/publication/b520b938?page=69"> pendence, prohibiting an audit committee member f</a> <a title="The CPA Journal - August 2009 page 70" href="http://viewer.zmags.com/publication/b520b938?page=70"> </a> <a title="The CPA Journal - August 2009 page 71" href="http://viewer.zmags.com/publication/b520b938?page=71"> ■ All board members should be finan- cially lit</a> <a title="The CPA Journal - August 2009 page 72" href="http://viewer.zmags.com/publication/b520b938?page=72"> EXHIBIT 4 Topical Content Topic Weil and Schi</a> <a title="The CPA Journal - August 2009 page 73" href="http://viewer.zmags.com/publication/b520b938?page=73"> or even all, of these questions correctly rep- re</a> <a title="The CPA Journal - August 2009 page 74" href="http://viewer.zmags.com/publication/b520b938?page=74"> T ECHNOLOGY what to bookmark Website of </a> <a title="The CPA Journal - August 2009 page 75" href="http://viewer.zmags.com/publication/b520b938?page=75"> cles of interest, users must drill down through l</a> <a title="The CPA Journal - August 2009 page 76" href="http://viewer.zmags.com/publication/b520b938?page=76"> Classified PROFESSIONAL OPPORTUNITY l BUSINESS l</a> <a title="The CPA Journal - August 2009 page 77" href="http://viewer.zmags.com/publication/b520b938?page=77"> A well-established full-service CPA firm seeks me</a> <a title="The CPA Journal - August 2009 page 78" href="http://viewer.zmags.com/publication/b520b938?page=78"> SALES TAX, ISAAC STERNHEIM & CO. Sales tax consul</a> <a title="The CPA Journal - August 2009 page 79" href="http://viewer.zmags.com/publication/b520b938?page=79"> Collegiate School Controller Collegiate School, a</a> <a title="The CPA Journal - August 2009 page 80" href="http://viewer.zmags.com/publication/b520b938?page=80"> </a> <a title="The CPA Journal - August 2009 page 81" href="http://viewer.zmags.com/publication/b520b938?page=81"> E CONOMIC & MARKET D ATA monthly update</a> <a title="The CPA Journal - August 2009 page 82" href="http://viewer.zmags.com/publication/b520b938?page=82"> E DITORIAL a message from the editor-in-chie</a> <a title="The CPA Journal - August 2009 page 83" href="http://viewer.zmags.com/publication/b520b938?page=83"> </a> <a title="The CPA Journal - August 2009 page 84" href="http://viewer.zmags.com/publication/b520b938?page=84"> </a>