Jim Ulvog

You want to succeed in accounting? Invest in yourself.

2 Comments / Pondering /

That’s the extended point made by Tony Nitti in a New Years’ post at Going Concern – This Year, Resolve to Finally Decide What You Want To Be When You Grow Up in Public Accounting.

Don’t rely on the networking, hand-shaking, going-out-for-drinks-after-work schmoozing, and drumming up new business to get where you want. Although you may have to get really good at those things, the first priority is to invest in your skills and knowledge.

Oh, as expected for any Going Concern post, there is a fair amount of naughty language and word pictures. Just letting you know.

Three superb comments: …

You want to succeed in accounting? Invest in yourself.Read More »

You want to succeed in accounting? Invest in yourself. Read More »

Dating representation letters in a review

Leave a Comment / Compilations & reviews /

Charles Hall has a great post at CPA-Scribo: Dating Review Representation Letters.

A few topics covered:

  • He gives a good idea on how to handle situation when client isn’t availble to sign the letter until after the date the review is complete.
  • Do you need to have the signed rep letter in your hands on the day you say the review is complete?

If you haven’t started using Evernote to keep a personal library of reference tools, this article would give you a great reason to learn.

Would be worth your time to check out the article. Also worthwhile to check out Evernote so you can keep a copy of the article handy.

Dating representation letters in a review Read More »

Frequent issues on Compilations during peer reviews – from the 13/14 Comp and Review Alert

Leave a Comment / Compilations & reviews /

The Compilation and Review Developments – 2013/14 Alert provides some comments on issues that pop up during peer reviews of Compilation engagements.

Previous post mentioned common issues in reviews.

A wise CPA would read through this list and mentally check to see if any of those issues are present in his or her reports.

Here’s a few common issues on comps.

Proper title on financials

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Frequent issues on Compilations during peer reviews – from the 13/14 Comp and Review AlertRead More »

Frequent issues on Compilations during peer reviews – from the 13/14 Comp and Review Alert Read More »

“Audit. Review. Compilation. What’s the difference?” – New book now available.

Leave a Comment / Audits, Books you might enjoy, Compilations & reviews /

Audit. Review. Compilation. What’s the difference? – Illustrations using a football game, buying a used car, and filling a bucket.

audit-cover

What’s the difference between getting an audit, review, or compilation from your CPA firm? This short, 29 page book will help you understand.

Three illustrations help explain the differences:

  • A football game – How does advancing to the 10-yard line compare to an audit? What would a review look like in a football game?
  • Buying a used car – How does taking the car for a test drive compare to a review?
  • Filling a bucket – How filling it up with water to three different levels illustrates the differences between three levels of service.

This is a compilation of articles at my blog, Nonprofit Update.

The book is now available at Amazon.

Now available here in other formats:

  • ePub format for your iDevices
  • PDF or text
  • Mobi for your Kindle device

Soon to be available at Barnes and Noble.

“Audit. Review. Compilation. What’s the difference?” – New book now available. Read More »

Frequent issues on Reviews during peer reviews – from the 13/14 Comp and Review Alert

1 Comment / Compilations & reviews /

The Compilation and Review Developments – 2013/14 Alert provides some good comments on issues in reviews that pop up frequently during peer reviews.

A wise CPA would read through this list and mentally check to see if any of those issues are present in his or her engagements. Even wiser step would be to pull out a couple sets of workpapers to see how you compare. (We call that monitoring – write a quick memo that you checked a few files – your peer reviewer will be happy.)

Here’s a few of the common issues.

Document expectations in analytical procedures

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Frequent issues on Reviews during peer reviews – from the 13/14 Comp and Review AlertRead More »

Frequent issues on Reviews during peer reviews – from the 13/14 Comp and Review Alert Read More »

11 bloggers you really oughta’ be following

Leave a Comment / Accounting, Audits, Social media /

In his New Year column, Jim Peterson gives a list of writers on accounting who you really should add to your RSS feed so you can read all they have to say:  Re:Balance – Welcome to a Happy New Year – Or Is It?

Before giving you the list, I’d like to summarize his first post of the year.

He begins by bemoaning the same-o same-o in accounting stories for the last few months of 2013. Seems like it is the same foolishness and silliness we’ve seen the whole year. Another multi-billion settlement from JPMorgan.  More blithering on accounting convergadoption. Blah, blah.

His knowledge of human nature leaves him optimistic the New Year will be brighter. It won’t take long for accounting & finance bloggers to have fresh examples of folly, mischief, break-downs, malfeasance, manipulators, and miscreants enough to keep everyone’s fingers dancing on the keyboard.

Alas, I agree.

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11 bloggers you really oughta’ be followingRead More »

11 bloggers you really oughta’ be following Read More »

Why I’m scratching my head over the JP Morgan settlement for not reporting the Madoff fraud

2 Comments / Other stuff /

I’m still trying to sort out the $2.7B settlement.

My initial hesitation when reading several pages of the deferred prosecution agreement and other news yesterday moved to full head scratching last night when I read the Wall Street Journal’s editorial, Another Madoff Swindle – The same government that ignored the fraud gets a cut of the recovery.  I’ve since read most of the DPA.

The editorial takes exception to the feds getting a $350M cut of the settlement, as if a reward is deserved. Put another way, that is a 17% commission { $350M / ( $1,700M + $350M ) } on the recovery.

Why does the editorial board use the words “extract”, “swindle” (twice!), and “money-grab”? Here’s a few reasons: …

Why I’m scratching my head over the JP Morgan settlement for not reporting the Madoff fraudRead More »

Why I’m scratching my head over the JP Morgan settlement for not reporting the Madoff fraud Read More »

Q: What’s $2.6B? A: Morgan’s current tab for settling up on failure to file suspicious activity reports on Madoff scheme

1 Comment / Other stuff /

Currently looks like J.P. Morgan will be wiring out $2.6B in the next few days to settle charges of having an insufficient anti-money laundering program and not filing suspicious activity reports on the Madoff fraud.

The Wall Street Journal’s tabulation as J.P. Morgan Settles Its Madoff Tab: …

Q: What’s $2.6B? A: Morgan’s current tab for settling up on failure to file suspicious activity reports on Madoff schemeRead More »

Q: What’s $2.6B? A: Morgan’s current tab for settling up on failure to file suspicious activity reports on Madoff scheme Read More »

Another multibillion settlement for JP Morgan – this time for not filing suspicious activity reports on Madoff accounts

1 Comment / Other stuff /

JP Morgan signed a deferred prosecution agreement with the Department of Justice for not reporting suspicions raised by Morgan’s own staff that the trading in Madoff’s accounts was suspicious.

The Wall Street Journal reports: J.P. Morgan to Pay $1.7 Billion to Victims of Madoff Fraud.

The DPA, which you can read here, says …

Another multibillion settlement for JP Morgan – this time for not filing suspicious activity reports on Madoff accountsRead More »

Another multibillion settlement for JP Morgan – this time for not filing suspicious activity reports on Madoff accounts Read More »

Q: Should costs of developing a web site and other software costs be capitalized in a small NPO? Four answers.

Leave a Comment / Accounting /

This post is cross-posted from my other blog, Nonprofit Update. It might be helpful to give your clients an introduction to the issue of whether to capitalize software costs. Anything more than a survey will need your input. You can apply the rules to your client’s specific situation.

One word answer: Yes

Sure-you-want-to-bother answer: Think carefully in terms of materiality. If you have no external reporting obligation, think really seriously whether it makes any difference for your internal reporting. If you issue compiled, reviewed, or audited financial statements to outsiders, evaluate carefully whether the amounts involved are actually material.

What passes for a brief answer from a CPA:  …

Q: Should costs of developing a web site and other software costs be capitalized in a small NPO? Four answers.Read More »

Q: Should costs of developing a web site and other software costs be capitalized in a small NPO? Four answers. Read More »

Proposed revision to compilation rules, including new reports

Leave a Comment / Compilations & reviews /

In October 2013, the ARSC issued an exposure draft to revise the compilation standards. Two of the major changes are a requirement for the engagement letter to be signed by management and a completely new comp report.

The ED is Proposed Statements on Standards for Accounting and Review Services: Preparation of Financial Statements, Compilation  Engagements, and Association With Financial Statements

One key change is a signed, written engagement will be required for a compilation report.  That is discussed in a previous post,

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Proposed revision to compilation rules, including new reportsRead More »

Proposed revision to compilation rules, including new reports Read More »

Proposal for “preparation” of financial statements will require signed, written engagement letters. Same requirement will apply to compilations.

1 Comment / Compilations & reviews /

The two exposure drafts (ED) to revise the compilation process and to create a new level of service for CPAs, now called preparing, will both require a written understanding with the client that is signed by the accountant and management.

Shall we just call that a signed engagement letter? I’m not quite sure what other characterization would apply.

There is a list of specific items that have to be addressed in the engagement letter.

Presumptively mandatory requirement

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Proposal for “preparation” of financial statements will require signed, written engagement letters. Same requirement will apply to compilations.Read More »

Proposal for “preparation” of financial statements will require signed, written engagement letters. Same requirement will apply to compilations. Read More »

New level of service from CPAs – “Preparing” financial statements

1 Comment / Compilations & reviews /

In October 2013, one of the accounting rule setters issued a proposal which creates a new level of service for CPAs. This will be called preparation of financial statements.

Such service will not be subject to the same rules that govern compilations, reviews, or audits.

When the client organization and CPA agree to this approach, the accountant can issue a set of financial statements without any cover report from the accountant. 

The accountant will not be obtaining any assurance on the financial statements and users should not infer any assurance.

I think this will be a big deal.

Technical description

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New level of service from CPAs – “Preparing” financial statementsRead More »

New level of service from CPAs – “Preparing” financial statements Read More »