A few articles for your growth. Comp and Review reports under SSARS 21 and 19. Bake-your-own net income measures. Lunch money thief gets 5 years in prison and $1.8M restitution
1/7 – CPA-Scribo – SSARS 21 Reports – Preparation, Compilation, and Review – Charles Hall has a great post providing sample reports under SSARS 21. Gives the reports under SSARS 19 for contrast. You gotta’ check it out.
…
More good stuff for auditors – 1/9 Read More »
Here are two articles of interest for accountants and auditors:
12/28 – The Accounting Onion – The Double Illusion of Financial Statement Comparability and Auditability: Through the Lens of Falling O&G Prices – …
More good stuff for auditors – 1/5 Read More »
How many failures in the smell test can you identify in this story, which was published by New York Magazine?
In a few years of trading*, a 17-year old* High School junior has cleared $72 million* in profits from a diverse strategy* of penny stocks*, oil futures, and mid-cap stocks. He owns a BMW and has already rented an apartment in Manhattan that his parents won’t let him live in*. He lives with his parents in the same place they’ve lived for a while*. To validate his story, a fact-checker looked at a* Chase bank statement* that shows a $72M balance*. The stock whiz now says he met with the fact-checker “for about 10 seconds” to view the one statement*.
Update, forgot this part: After one of the interviews, he was going to an appointment with some guy who wanted to give him* a $150M investment* to start a hedge fund* the day he turns 18*.
The whole thing was a hoax.
…
Gotta’ love the drawing of a seated Doberman with a wondering look on his face as he stares at a trail of muddy feline paw prints. Staring around helpless are three other dogs. The befuddled watchdog has a tag labeled “PwC” in case you hadn’t yet caught the point.
The previous drawing was of an overfed cat in a three-piece suit helping himself to a bag of cash from a safe as four dogs snoozed in front of the safe. Said dogs have a tag identifying each as a member of the Big 4.
If you are an auditor, you really should get a fresh cup of coffee and check out The Economist’s discussion of The dozy watchdogs. Will let you see what non-accountants think of the profession (not too much) and the job the big firms are doing (not so great).
Yeah, there is a problem
…
“The dozy watchdogs” – Deep discussion in The Economist on the state of audit professionRead More »
“The dozy watchdogs” – Deep discussion in The Economist on the state of audit profession Read More »
The SEC Chief Accountant had some comments in a speech today that reduces my worry that IFRS converadoption ™ may resurrect from the dead.
Check out Remarks before the 2014 AICPA National Conference on Current SEC and PCAOB Developments – The SEC Chief Accountant, James Schnurr spoke to the AICPA conference.
I don’t know how to read between the lines of a prepared speech from a senior official. My simplistic reading of the comments suggests that he has been asked to look at the IFRS issue again to see if there is any way to move forward or else close the door completely.
…
IFRS adoption likely to stay dead Read More »
A few links and comments of interest to auditors. – The corpse of IFRS is looking more like a vampire. There are little muscle twitches, suggesting it isn’t fully dead.
12/3 – Edith Orenstein at FEI Daily – SEC Chief Accountant Has Fourth Alternative on IFRS – The Chief Accountant is considering a fourth option, following the options of 1) surrendering all standard setting authority to IFRS, 2) giving option to everyone to file with IFRS, and 3) ‘condorsement’, aka convergadoption ™ .
…
More good stuff for auditors – 12/5 Read More »
Apparently it is not yet universally believed that adopting IFRS for the U.S. is a horrible, fatally flawed concept that would harm the U.S. capital markets. I’ll mention yet another catastrophic flaw in the concept after a few jokes at the expense of IFRS.
First, some indication there is still a heartbeat in the otherwise decaying corpse.
I hope there’s still not hope for convergadoption ™
Mentioned before that the New SEC Chief Accountant {is} Weighing Switch to Global Accounting Rules – The new chief accountant is reviewing past work at the SEC on IFRS.
On November 6, the Wall Street Journal reported he hopes in a few months to have “movement” on the issue. Didn’t give a hint what direction he thinks the agency should go.
Professors Paul Miller and Paul Bahnson discuss IFRS at length in their article, IFRS in the U.S.: The opera star has already sung (free registration required).
In the article, they explain that SEC chair Mary Jo White said she thought IFRS adoption might be a good idea in a meeting with the FAF.
A heaping helping of ridicule
…
IFRS adoption: Yet another fatal flaw and a heaping dose of ridiculeRead More »
IFRS adoption: Yet another fatal flaw and a heaping dose of ridicule Read More »
A few articles of interest to auditors. Uh oh – perhaps IFRS isn’t completely dead. A couple of ideas on social media.
11/6 – Wall Street Journal – New SEC Chief Accountant Weighing Switch to Global Accounting Rules – …
More good stuff for auditors – 11/10 Read More »
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.
FASB is starting to write a major overhaul of NPO accounting Read More »
While I’ve been getting a book into print and writing some CPE classes during the last few months, Charles Hall has posted a bunch of great articles of interest to CPAs. Haven’t mentioned any of them yet. Here’s a few that I think would be most helpful for you.
Here’s some more posts that would well be worth your time.
…
Update for accountants – posts from CPA-Scribo Read More »
I’ve written another batch of CPE courses for CCH.
Six one-hour modules delve into the Financial Reporting Framework for Small- and Medium-Sized Entities. That’s an entirely new reporting framework separate from GAAP that will allow for simplified reporting by smaller business entities.
…
6 CPE courses on FRF for SMEs and 1 on PCC arriving soonRead More »
6 CPE courses on FRF for SMEs and 1 on PCC arriving soon Read More »
A few links and comments of interest to auditors.
9/14 – The F Student – It’s a Good Hurt – Exercise is boring. Sometimes the stretching after a run is painful. Yet exercise is critical for good health overall. Stretching is imperative (as I understand) to prevent injury next time you run.
Internal controls and all those accounting procedures are the same thing, according to Rumbi Bwerinofa. …
More good stuff for auditors – 9/25 Read More »
Previous post started a discussion that the tax-only accounting firm of Wealth & Tax Advisory Services, or WTAS, has acquired the right to use the name Andersen. The firm will change its name to Andersen Tax.
More discussion this week
Prof Schaub rolled his ideas into a full article – 9/4 – LinkedIn – No Surprise to See Andersen Resurrected – …
A tax-only accounting firm that was started by 22 or 23 partners from the imploded Arthur Andersen firm has acquired the name Andersen from the bankruptcy trustee. The firm of WTAS LLC, abbreviation for Wealth & Tax Advisory Services, will change their name to Andersen Tax.
The issue is getting a bit of attention in the accounting world this week.
9/2 – Wall Street Journal – Tax Firm to Revive Arthur Andersen Name – …
Andersen name returns from the dead. Part 1 Read More »
A few links and comments of interest to auditors. The Andersen name is back, how to classify ‘trapped cash’, government assigning audits, and The F Student (twice). Wow, am I confused. The Andersen name resurfaces, and vinyl record sales are surging. What’s next, disco?
August 2014 – The CPA Journal – Meet the Future of the Profession – Rumbi Bwerinofa-Petrozzello is one of the bloggers I follow. She writes on fraud at Figuring Financial Forensics.
She and three other young professionals were featured in the linked article in the NY state society. The four discussed their perspectives. Well worth a read.
In particular, I enjoyed the following comment from Ms. Bwerinofa:
…
More good stuff for auditors – 9/1 Read More »