There are so many good accounting articles that I would like to discuss in a full post. Alas, time does not permit.
Thus I will start putting up a list of good stuff that I’d like talk about but only have time to recommend with a sentence. Focus will be on articles I think would help other CPAs.
Here’s my first list:
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More good stuff for auditors – 6-10-13 Read More »
The Wall Street Journal reports in Criminal Cases Loom in Rate Rigging that criminal charges may be brought against individuals who worked at Barclay. Charges could be filed this summer (2013) but the investigation is going slow so the timeline could slip.
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Possible criminal charges this summer against individuals in LIBOR rate fixing scandalRead More »
Possible criminal charges this summer against individuals in LIBOR rate fixing scandal Read More »
Here is an illustration of internal control, a specific mention of “checks and balance”, and the goal of internal control from the 5th century:
From the Fourth Ecumenical Council in 449 A.D.: “As we have learned, in some churches, the bishops administer the material goods of the church without a treasurer; it has seemed right and proper that every church with a bishop should also have a treasurer taken from the clergy who will administer the church’s goods with advice of his own bishop. In this way the administration of the church will not be without checks and balances, the goods of the church will not be dissipated, and the priesthood will be free from all suspicion.”
The quote was listed at LinkedIn by a former colleague, Jennifer Perez, CPA.
That’s too good of an explanation of internal control to let pass without quoting it and making some comments.
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Internal control, 5th century version Read More »
If you are an auditor working in the NPO community, especially if your clients receive large volumes of donated goods, you might want to check out some posts at my other blog, Nonprofit Update.
There is a different perspective and lively discussion at the following post (well, at least it’s lively based on what’s going on at my blogs):
Two other guest posts open up the conversation to more voices:
Guest posts and discussion on valuing GIK Read More »
FASB and IASB have released a new draft of the changes to lease accounting.
I haven’t worked through the ED yet. I’m guessing at this point you are just wanting the news flash.
So in extremely condensed terms, here’s the deal:
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Revised lease accounting exposure draft is out (5-13)Read More »
Revised lease accounting exposure draft is out (5-13) Read More »
Yesterday FASB voted to release the revised draft of lease accounting rules. The draft is expected in May with comments due by September.
Summary from the JofA article mentioned at the end of this post: …
New lease accounting update – 4-11-13 Read More »
(All photos by James Ulvog are from the Wells Fargo museum in Old Town park in San Diego.)
There are a few basics of internal control you will always hear from your CPA. The concepts have been around a looooong time.
Things like split access to the safe. Also, use storage containers that would reveal any unauthorized access.
Those concepts were used on the stagecoaches in the 1860s as shown at the Wells Fargo Museum in San Diego.
The strong boxes used to transport gold and currency were extremely rugged. You can see pictures above and below that I took while touring the museum last year. Several things are quite visible.
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Internal control, 1860s edition – safes Read More »
One thing that jumps out from Amy Wilson’s story is that she takes full responsibility for her actions and the consequences.
There is none of that ‘well, you just don’t understand the pressure I was under’, or ‘I had to do it’, or our culture’s favorite ‘it’s mommy and daddy’s fault’.
Instead, what happened is fully her fault.
Consider her comments, which I extracted from the article. I feel free to quote her extensively since I have permission to reprint her article.
Look at the strong statement early in the article: …
Amy Wilson’s story of her embezzlement and the journey she has taken since then provides insight to the fraud triangle.
That’s the concept which says for a fraud to flourish, three factors need to be present:
In this situation, her opportunity to commit fraud is quite visible.
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Fraud Triangle – a case study Read More »
Previous post raised the question whether it is possible that current accounting rules make a modern balance sheet so complex that it is essentially unauditable.
Another item described by Grumpy Old Accountant Anthony Catanach’ column Is FASB Killing the Auditing Profession? is the PwC audit tool of cumulative audit knowledge and experience.
Audit team experience as substantive assurance?
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Are balance sheets unauditable? 2 Read More »
Previous post started a discussion of the consequences of Amy Wilson’s embezzlement story told here. These two posts are another case study of the tragedy of fraud.
I’ve discussed the consequences of fraud extensively on my blog. Even compiled those posts into a book, available at Amazon.
Let’s wrap up a review of the consequences earned by Mrs. Wilson and the impact on innocent people she loves. Here are more things visible in her article:
I’m guessing this covers sentences a lot of ground: …
Tragedy of fraud – another case study – 2 Read More »
Is it possible that current accounting rules make a modern balance sheet so complex and judgment filled that it is essentially unauditable?
The answer is a hesitant yes, if I’m correctly reading Grumpy Old Accountant Anthony Catanach’s column Is FASB Killing the Auditing Profession?
He contrasts two parts of the PCAOB reports on inspections of PricewaterhouseCooper (PwC). The PCOAB released two consecutive inspection reports for the firm.
My understanding is the confidential portion gets released if you don’t fix the issues by the next inspection. That means to get two consecutive reports released means the problems identified during inspection one weren’t fixed before inspection two and still had not been resolved during inspection three. Ouch.
Reduce partner time on complex audits
Prof. Catanach combines two issues.
First, the firm’s response says the issues involved are …
Are balance sheets unauditable? Read More »
Let’s look at Amy Wilson’s embezzlement story, explained here, as another case study of the tragedy of fraud.
I’ve discussed the consequences of fraud extensively on my blogs. Check out the tags here and here . Even compiled those posts into a book, available at Amazon.
Let’s look at some of the consequences Mrs. Wilson has endured and the impact on innocent people she deeply cares about. Here are some things visible in her article:
She is a convicted felon. I doubt that record will ever go away. Accountants rarely have the political juice to persuade a governor or president to grant a full pardon.
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Tragedy of fraud – another case study – 1 Read More »
It is just a feeling.
That is Amy Wilson’s explanation as she describes her journey through embezzlement into recovery as told in this earlier post. Thanks to Mrs. Wilson for granting me permission to reprint her article.
Her article is very good. It is so well constructed that we can analyze it in detail. I’ll have several posts to draw out my reactions to her article.
Trust is not an internal control
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Trust is not an internal control Read More »
The following article is by Amy Wilson, speaker and staff accountant. It is printed with permission of Mrs. Wilson.
For ease of reading, I won’t put the full article in quotes. Here is her story:
My name is Amy Wilson. I am a wife, a mother, an accountant — and an ex-convict.
Early on as a struggling single mother, I wanted a better life for my children, so I went to night school at the University of Indianapolis and earned my bachelor’s degree. For the next 16 years, I worked hard to achieve a respected position in the corporate world. I started in my teens as a cashier at a car dealership. Next, I worked as a payables clerk for a major hospital in Indianapolis. Finally, degree in hand, I became a staff accountant for a large manufacturing firm. Seven years later, I was hired as an office manager for a small manufacturing business.
For most of my life, I was an overachiever, an attribute that eventually led to my downfall and put me behind bars, a convicted felon.
My slow decline into theft
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One accountant’s journey through fraud, jail, and rebuildingRead More »
One accountant’s journey through fraud, jail, and rebuilding Read More »