Attestation Update – A&A for CPAs. – Page 19 – Technical stuff for CPAs providing attestation services.

Time to renew your PTIN for 2018. Good news: no fee this year.

Leave a Comment / Other stuff / Jim Ulvog

Recall you must renew your PTIN for next year in order to file tax returns as a paid preparer.

There is no fee for your 2018 renewal. Recall that back in June, a federal court tossed the fee. If I recall correctly from another article, the Treasury appealed the ruling which postponed the refund of all fees paid which the court ordered. I guess that means eventually we will either get our money back or have to start paying the fee again.

You can start the renewal process here.

It took me 8 minutes to renew. Last year it took 12 minutes plus fifty bucks.

Time to renew your PTIN for 2018. Good news: no fee this year. Read More »

Lots more disciplinary actions from California Board of Accountancy

Leave a Comment / Audits, Peer Review / Jim Ulvog

It takes thirty-two pages to describe the current round of disciplinary actions from the California Board of Accountancy in the Spring/Summer 2017 edition of the Update newsletter (Issue #84). By my count there are 38 actions, exclude one situation where a firm and the CPA are listed separately.

The overwhelming portion of cases are for CPAs who have an audit or review or compilation failure. Most of those firms also have a peer review problem, either not getting a peer review, failing two consecutive reviews, or getting a very late review.

Just in case you were wondering whether CPAs are regular people with the same, um, foibles as the general population, there were 7 CPAs disciplined for conviction of a crime.

I tallied the results for this edition of Update and came up with these results:

…

Lots more disciplinary actions from California Board of AccountancyRead More »

Lots more disciplinary actions from California Board of Accountancy Read More »

Who picked up the bill for our freedom?

Leave a Comment / Other stuff / Jim Ulvog

For our freedom, I offer up a humble thank you to all who have gone before standing endless watch, slogging through the jungle mud, freezing in a foxhole, shooting Nazis with a machine gun at 30,000 feet, doing yet another round of dreary maintenance, brought home a life-long injury, or paying the ultimate price fighting to defeat the Confederacy.

Because of millions who did what had to be done, I can say what I wish without fear of being thrown in jail.

It seems so insufficient, but I’ll say it anyway – – Thanks.

“It is the soldier, not the reporter,

who has given us freedom of the press.

It is the soldier, not the poet,

who has given us freedom of speech.

It is the soldier, not the campus organizer,

who has given us the freedom to demonstrate.

It is the soldier, who salutes the flag, who serves beneath the flag and whose coffin is draped by the flag,

who allows the protester to burn the flag.”

Jeremiah A. Denton Jr.

Who picked up the bill for our freedom? Read More »

A Halloween costume that would make any CPA pass out from fright – an auditor performing one pension plan audit

Various thoughts from continuing education classes this year, part 3. Not so good news on audit and peer review quality.

Leave a Comment / Accounting, Audits, Peer Review / Jim Ulvog

The road we CPAs need to be on, but not all of us are…
Image courtesy of Adobe Stock.

As I’ve mentioned here and here, I have reread my notes from several continuing education classes this year. Thought I would share a variety of stray ideas.

Probably need to note again that I have not gone back and read the original pronouncements supporting each idea and therefore I do not have a specific citation for you. (Reading three of the documents is the next step for my writing project.)

(Cross-posted from my other blog, Nonprofit Update.)

I should probably throw in a disclaimer. All of the comments I’m mentioning were the opinion of the presenter, not the agency from whom the person was drawing a paycheck. That is why I’m not mentioning the names of the presenters, or even the CPE event. In addition, the rephrasing of their comments is my interpretation, not their words.

Here are some tidbits you might enjoy:

More interest in Financial Reporting Framework for Small- and Medium-sized Entities (FRF-SME)?

The FRF-SME framework is a non-GAAP alternative to GAAP. It is dramatically less complicated with the promise it will not be revised more often every three years.

…

Various thoughts from continuing education classes this year, part 3. Not so good news on audit and peer review quality.Read More »

Various thoughts from continuing education classes this year, part 3. Not so good news on audit and peer review quality. Read More »

Various thoughts from continuing education classes this year, part 2

Leave a Comment / Accounting / Jim Ulvog

“nonprofit” by sinclair.sharon28 is licensed under CC BY 2.0: EKG Technician Salary

As mentioned in the previous post, I’ve reread my notes from several continuing education classes this year. Thought I would share a variety of stray ideas.

(Cross-posted from my other blog, Nonprofit Update.)

For what it is worth here are some tidbits you might enjoy:

Presentation of not-for-profit financials – ASU 2016-14

Presenter said that if an organization wanted to break out the with restriction column into more detail there is nothing to resented been broken into two or three columns. Perhaps it could be columns for:

donor endowment
other with restriction contributions
time restrictions
total with donor restriction
without donor restriction
total (total column is not required, but total change in net assets is)

Another possibility to present more detail would be to present multiple lines within the with donor restriction column, such as contributions to donor endowment, various purpose restrictions, time restriction, and a subtotal.

…

Various thoughts from continuing education classes this year, part 2Read More »

Various thoughts from continuing education classes this year, part 2 Read More »

Various thoughts from continuing education classes this year, part 1

Leave a Comment / Accounting / Jim Ulvog

As part of working on a big writing project, I’ve reread my notes from several continuing education classes this year. (More details later and a link to the published material much later.) Thought I would share a variety of stray ideas. Here are a few tidbits from the classes.

Probably need to note that I have not gone back and read the original pronouncements supporting each idea and therefore I do not have a specific citation for you. (Reading three of the documents is the next step for my writing project.)

(Cross-posted from my other blog, Nonprofit Update.)

For what it is worth here are some tidbits you might enjoy:

Leases – ASU 2016-02.

One of the key on/off switches is whether a particular transaction or document is a lease. That will require an assessment of each transaction.

Right of use assets (the new description) resulting from operating and financing leases need to be listed separately on the statement of financial position. Those two categories (operating right of use and financing right of use) will be presented separately from fixed assets.

…

Various thoughts from continuing education classes this year, part 1Read More »

Various thoughts from continuing education classes this year, part 1 Read More »

Tips on how to apologize

Leave a Comment / Other stuff, Pondering / Jim Ulvog

Sorry by HypnoArt is in the public domain (CC0 1.0)

Let’s face it, we all goof up sometimes whether by insulting a client, dropping the ball on a project, or the good ol’ engage mouth before engaging brain routine.

To repair the damage, especially in the work environment, an apology is needed.

The Journal of Accountancy on 9/25/17 offered some great suggestions on How to make a professional apology.

Here are a few of the multiple tips suggested.

…

Tips on how to apologizeRead More »

Tips on how to apologize Read More »

The story on Silk Road, an on-line drug bazaar, shows the power of rationalization and self-deception

Leave a Comment / Other stuff, Pondering / Jim Ulvog

Cover of “American Kingpin” from Amazon. Used under fair use.

The sad tale of Ross Ulbricht and his on-line drug bazaar called Silk Road is a good study of the outer limits of how far rationalization can carry a person.

It is also a frightening illustration of Jeremiah 17:9. From the New International Version, ponder:

The heart is deceitful above all thing and beyond cure. Who can understand it?

Considering the tale of Silk Road is useful for accountants wanting to learn about the outer fringe of the internet and he investigative power of the federal government, believers who would like an illustration of the frightening level of deceit that lives in the human heart, and anyone else wanting to learn more about the dark worlds that normal people will never see.

My posts are gathered into two collections on my other blog, Outrun Change:

…

The story on Silk Road, an on-line drug bazaar, shows the power of rationalization and self-deceptionRead More »

The story on Silk Road, an on-line drug bazaar, shows the power of rationalization and self-deception Read More »

More explanations of virtual currencies and possible applications

California Board of Accountancy is serious about audit quality and enrollment in peer review.

Leave a Comment / Audits, Compilations & reviews, Peer Review / Jim Ulvog

The Winter 2017 Update newsletter (#83) from the California Board of Accountancy shows that the board is continuing its active efforts on disciplinary actions.

There are obviously quite a few of our colleagues who are not performing up to standards.

I’ve heard stories from a distance that the Board has hired more enforcement staff. As I have read the last few issues of Update, it sure seems to me that the increased staffing is showing up in an increased pace of closed cases. Maybe my perception is off, but it seems there are more cases closed with more serious consequences in the last year or so.

I count 39 cases documented in this edition of Update. Only 2 of these have discipline level of suspension or less. All the others are surrenders, revocations, or stayed revocations. Just as a guess, I think that means the editor of Update is filtering out most of the suspensions.

I count 19 cases of those 39 with peer review problems or audit, review, or compilation failures or some combination thereof. I’ll break that down further:

…

California Board of Accountancy is serious about audit quality and enrollment in peer review.Read More »

California Board of Accountancy is serious about audit quality and enrollment in peer review. Read More »

FASB exposure draft on contributions and grants.

2 Comments / Accounting / Jim Ulvog

FASB has released an exposure draft which slightly redefines the distinction between revenues and contributions for the nonprofit world.

Exposure draft is called Not-for-Profit Entities (Topic 958) – Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made.

On 9/11/17 I watched FASB’s one hour webcast on the exposure draft. This is only the second time I’ve seen a presentation on the issue and I haven’t yet dived into the 51 page document. That means I’m just starting to understand the changes.

What I’m going to do here is give a high level introduction. Keep in mind this is just an overview without all the details. Furthermore it is my preliminary understanding after having only heard the presentation twice and looking at the slide deck once. Please don’t cite this in your workpapers!

This exposure draft does not call for any change in how transactions are presented in the statement of activities. Organizations can present particular transactions as either revenue or contributions as they wish. The point was made several times in the presentation that the rules spelled out here determine which model is used for recognizing a transaction, not what presentation is used on the statement of activity.

There is a fantastic graph in the slide deck that provides a good visualization of the current and proposed accounting. It is copyrighted and thus I won’t be presenting it here. I’m sure you’ll be seeing the graphic before you get very far into your study.

Here’s a breakout of how exchange transactions are currently handled. These are also called reciprocal transactions. Currently we think of these as revenue, although the verbal comments in the presentation indicate that is no longer necessarily how exchange transactions must be presented.

…

FASB exposure draft on contributions and grants.Read More »

FASB exposure draft on contributions and grants. Read More »

Wells Fargo staying in the headlines.

Leave a Comment / Other stuff / Jim Ulvog

Photo at Wells Fargo San Diego museum in October 2016 by James Ulvog.

When I look at the news about Wells Fargo over the last few months, it is amazing to see the number of individual messes the bank has and the amount of time it is taking to get past the issues. Also odd is that new issues are surfacing every month or two. Here are a few articles that I notices in the last month:

8/15/17 – Emily Glazer at Wall Street Journal – Wells Fargo Elevates Former Fed Governor Elizabeth Duke to Chairman Role – As was previously expected (and reported by Ms. Glazer), the bank will replace its current board chair with the former Federal Reserve governor. This is not as big a deal as it would otherwise seem. The current board chair would have hit the bank’s mandatory retirement age four months later anyway.

8/18 – Reuters – Wells Fargo troubles shift from phony bank accounts to real ones – The bank disclosed yet another problem in regulatory filings, explaining the Consumer Financial Protection Bureau is looking at the bank improperly closing real accounts.

…

Wells Fargo staying in the headlines.Read More »

Wells Fargo staying in the headlines. Read More »

Permanent injunction halts proposed overtime rule

Leave a Comment / Economics, Other stuff / Jim Ulvog

The proposed new overtime rules that would have required overtime pay for anyone earning less than $47,476 a year will not go into effect. I do not know if any parties will try to file an appeal, but doesn’t seem to me that is very likely.

The federal judge who issued a temporary injunction last fall has issued a final ruling that the proposed rules violate federal law. The reasoning (if I understand a condensed explanation correctly) is federal law includes a duties test which the proposed rules would essentially make irrelevant.

For more details, check out a Wall Street Journal article on 8/31/17: Texas Judge Quashes Obama-Era Overtime-Pay Rule.

Article says the current administration is working on a new rule, which would likely set a new dollar threshold, but which would be lower than in the previously proposed rules.

(Cross-posted from my other blog, Nonprofit Update.)

Permanent injunction halts proposed overtime rule Read More »

Not only will Wells Fargo fake account fiasco not go away, but new fiascos keep appearing – 2

Leave a Comment / Other stuff / Jim Ulvog

I have accumulated a long list of articles on the mess Wells Fargo has create for itself. Here is the rest of the articles I’ve gathered in the last few months, including two new fiascos. Previous list of articles I’m catching up on are found here.

7/23/17 – Wall Street Journal – Wells Fargo Discloses Accidental Client-Data Release – Oops.

…

Not only will Wells Fargo fake account fiasco not go away, but new fiascos keep appearing – 2Read More »

Not only will Wells Fargo fake account fiasco not go away, but new fiascos keep appearing – 2 Read More »