Several weeks ago I listened to a continuing education class presented by Sam Antar, current felon and formerly CFO of Crazy Eddie.
In the session, he made two comments that caught my ear. First, the fines we read about as a result of various financial scandals are just a tax on illegal behavior. Second, those fiascos are, he said, a cancer destroying capitalism.
After the session, I had opportunity to interview him by phone and follow-up on both of those ideas.
Fines are a tax on illegal behavior
He indicated that essentially no one has been implicated in any of the disasters we’ve read about, which I have discussed extensively on my blog.
He said corporations don’t commit crimes. People commit crimes.
And the people who committed crimes aren’t going to jail.
SSARS #21 is an overhaul of the entire body of SSARS. It will be released today. I’ll have lots of discussion of the document over the next few weeks.
The AICPA is presenting a 2 hour CPE webcast today at 2 Eastern Time. Cost is $99 for one attendee, with discounts for multiple people.
Great course to listen to if you aren’t going to be at the always superb CalCPA A&A conference.
If you prepare tax turns you already know you must have a PTIN and must renew it every year. The IRS days you can file your renewal now.
Fee is $63.00 for a renewal.
Check out PTIN Renewal Season Open.
Federal Reserve officials gave too-big-to-fail bank leaders a warning at a private lunch that they need to improve the risk management and ethical behavior inside the banks. The alternative put on the table is a suggestion that if they are too large to manage then they may need to be broken up into smaller banks that can be managed.
The rewrite of SSARS into clarified format will be issued this week, Thursday, October 23.
Here is a one sentence summary: The new document will completely rewrite the SSARS literature, will add a new service called “preparation”, and will add new requirements for comps & reviews.
For a bit more information, check out AICPA Modernizes Non-Audit Standards for Accountants in Public Practice.
One discussion inside the accounting rule maker deals with a massive restructure of the accounting for nonprofit organizations. The FASB staff have started drafting the changes.
Exposure draft might be released in early 2015. Adjust the estimate by a few months to allow for the complexity of a rewrite that affects such a wide variety of organizations and I’ll guess we may see an exposure draft in spring or summer 2015.
Thomson Reuters Tax & Accounting News reports Not-for-Profit Proposal Targeted for 2015 Release.
If you are involved in the finance or accounting areas of the NPO world, it might be worth keeping your eye out for this issue.
Starting template to develop a Quality Control document for CPA firm. It’s even legit to copy & paste.
The AICPA has provided a number of new documents to help firms improve the quality control systems and to start looking at the enhancing audit quality initiative. I’ll list a few of them. It’s easy to copy & paste and at a great price.
Tools to develop a quality-control document
Every CPA firm performing assurance services is required to have a quality-control document. That applies even if you only do comps and reviews. Even if you aren’t going through a system review.
The AICPA has free practice tools to explain the QC standards along with a sample document based on the size of the firm.
You can find the documents on this page.
You can also find a document that is geared to the size of a firm: Read the rest of this entry »