Attestation Update – A&A for CPAs. – Page 23 – Technical stuff for CPAs providing attestation services.

Wild guess on the tally of people enslaved by Alexander the Great

Statue of Alexander the Great at Thessaloniki, Greece. Image courtesy of Adobe Stock.

One more followup on the human devastation caused by Alexander the Great.

There are a lot of posts on my blog discussing Professor Frank Holt’s delightful book, The Treasures of Alexander the Great: How One Man’s Wealth Shaped the World.

In Appendix 2, the professor tallies the reported plunder, tribute, and other resources seized by Alexander the Great. Quantifying the destruction is not possible because the ancient literature often does not quantify amounts, only that slaves, or plunder, or cattle, or tapestries, or something else was seized.

The professor does quantify the reported information in an algebraic format. I’ve previously mentioned:

Total proceeds from the wars is then estimated in a formula expressed as 81.67( X) +311,761.

The author guesses the grand total for his years of campaigning at something between 300,000 and 400,000 talents. With the fixed portion of the second estimate at 311k, I think the total would be well over 300k.

Those amounts are in talents, with each talent being a massive amount of wealth. For an order of magnitude, consider that my guess is an ancient Athenian talent would be expressed something somewhere in the range of around $28M today.

I just went through the Appendix looking at the tally of slaves taken.

…

Wild guess on the tally of people enslaved by Alexander the GreatRead More »

Wild guess on the tally of people enslaved by Alexander the Great Read More »

Fun reading for accountants

Leave a Comment / Accounting, Other stuff / Jim Ulvog

Manual accounting records. Anyone miss those? Didn't think sol. Image courtesy of Adobe Stock. — Manual accounting records. Anyone miss those? Didn’t think so. Image courtesy of Adobe Stock.

A few fun reads for accountants:

Why no Hollywood movie will ever show a profit.
Adrienne Gonzalez is back at Going Concern, talking about the idea of TBTF Big 4 firms possibly, maybe, becoming SIFI (not likely to ever happen, but a fun read anyway).
Talent shortage appearing in the CPA world.
Research from Management of an Accounting Practice now available.

9/14/11 (yes, 2011) – The Atlantic – How Hollywood Accounting Can Make a $450 Million Movie “Unprofitable” – If you have never taken a look at the astoundingly creative accounting in Hollywood, this article will give you a superb introduction.

Several years ago I took a fraud education CPE course in which the instructor went on a tangent to explain why no Hollywood movie has ever made a profit and none of them ever will.

…

Fun reading for accountantsRead More »

Fun reading for accountants Read More »

Common findings on audits during peer review

Leave a Comment / Audits, Peer Review / Jim Ulvog

Image is from AICPA. Used under Fair Use since, after all, I am promoting three of their products. — Image is from AICPA. Used under Fair Use since, after all, I am promoting their products.

The AICPA’s annual Audit Risk Alert General Accounting and Auditing Developments—2016/17 provides a useful summary of common peer review findings on audits.

What I like about this particular list is that it is short enough to actually provide focus. Frequently such lists have the filter set so broadly that the list covers practically all the findings that have surfaced during all peer reviews. Sometimes I’m left with the feeling that a list of findings reads like a list of every single step you need to perform during an audit.

Here is the short list provided in the risk alert, along with my explanation:

Incorrect dating of audit report – The auditor’s report needs to be dated no earlier than when sufficient appropriate audit evidence has been obtained to support the opinion. This means …

Common findings on audits during peer reviewRead More »

Common findings on audits during peer review Read More »

A few highlights from 2017 Audit Risk Alert

Leave a Comment / Accounting, Audits / Jim Ulvog

The AICPA’s annual audit risk alert had been out a little while. There is a lot of good stuff covered that all auditors really ought to check out. I heartily recommend reading the annual update before you get very far into your 12/31 audits. The document is Audit Risk Alert General Accounting and Auditing Developments—2016/17.

I will mention just a few highlights.

…

A few highlights from 2017 Audit Risk AlertRead More »

A few highlights from 2017 Audit Risk Alert Read More »

In case you hadn’t hear, those telephone calls claiming to be from the IRS demanding you immediately pay back taxes are a scam.

Leave a Comment / Fraud, Other stuff / Jim Ulvog

Wouldn't it be nice if the phone id actually was that accurate for every call? Image courtesy of Adobe Stock. — Wouldn’t it be nice if the caller ID was actually that accurate for every call? Image courtesy of Adobe Stock.

(Cross-posted from my other blog, Nonprofit Update, so you may refer your clients to an article that provides depth on how to avoid becoming victim of recent scams.)

The most frequent scam in 2016 was the phone calls saying “This is the IRS and if you don’t pay your past due taxes this instant we will send someone to your house to arrest you right now.”

There are many things wrong with those calls.

As a starter, your first contact with the IRS will never be by phone. You will instead get a letter explaining what the IRS thinks you messed up.

…

In case you hadn’t hear, those telephone calls claiming to be from the IRS demanding you immediately pay back taxes are a scam.Read More »

In case you hadn’t hear, those telephone calls claiming to be from the IRS demanding you immediately pay back taxes are a scam. Read More »

Postage rates changing 1/22/17

Leave a Comment / Other stuff / Jim Ulvog

Postal rates will change again effective January 22, 2017.

Chronicle of Philanthropy reports New Postal Rates Will Boost Costs for Charities. Article says increase for charities will range from 2.8% up to 4.3%.

A significant change is that mail which was previously marked as “standard” will now be categorized and marked as “marketing mail.” That is a concern for an industry representative who said that may reduce the likelihood of recipients actually opening such items, which would obviously reduce the effectiveness of a mailing.

You can find the new rates at the USPS site: January 2017 Price Change.

…

Postage rates changing 1/22/17Read More »

Postage rates changing 1/22/17 Read More »

2017 Risk Alerts available

Leave a Comment / Accounting, Audits, Compilations & reviews / Jim Ulvog

The 2017 audit season is about to begin. Planning is well underway for all those 12/31 clients.

To help you get ready, the annual updates to AICPA risk alerts are available. Consider:

I read the risk alerts every year. They are great for reminding me of what I already knew and even better for pointing out what tidbits I had missed.

You might want to check them out in the lull before the rush of field work hits.

2017 Risk Alerts available Read More »

Minor updates on Wells Fargo fiasco

Leave a Comment / Other stuff / Jim Ulvog

Concord stage coach at Wells Fargo museum in San Diego. Photo by James Ulvog.

Not a lot of news in the last few days about the Wells Fargo new account fiasco, but there are a few pieces of information.

12/12 – Reuters – Prudential stops distribution of policies sold through Wells Fargo – With the increased attention on the low-cost life insurance product from Prudential, called MyTerm, which was sold by Wells Fargo, the insurance company suspended sales of the product through the bank.

Article says that separately Wells Fargo suspended sales of renters insurance that goes through a different insurance company.

The California Insurance Commission has opened an investigation of the product sales.

Article says the California regulators says the New Jersey insurance regulator has also opened an investigation. Reporter cannot get confirmation from the New Jersey regulator.

12/16 – Francine McKenna at MarketWatch – Prudential allegations complicate Wells Fargo’s work with new partners – …

Minor updates on Wells Fargo fiascoRead More »

Minor updates on Wells Fargo fiasco Read More »

More regulatory punishment for Wells Fargo. Another possible dimension of the fake account fiasco.

Leave a Comment / Other stuff / Jim Ulvog

Wells Fargo 'mud wagon' at Seely Stable museum in San Diego' Old Town state park. Photo by James Ulvog. — Wells Fargo ‘mud wagon’ at Seely Stable museum in San Diego’s Old Town state park. Photo by James Ulvog.

More punishment on the way from the OCC.

Also, accusations emerged over the weekend that staff of Wells Fargo may have been opening insurance products from Prudential without customer permission. Keep in mind those are only accusations by terminated staff. If substantiated, this could be a new layer of the fake account scandal.

I previously mentioned OCC imposing additional consequences from the fake account scandal. Background for the next article:

11/18 – Wall Street Journal – Banking Regulator Imposes New Restrictions on Wells Fargo – Apparently the consent degree signed by Wells had some harsh language in it which was immediately waived by the OCC. On Friday the OCC unilateally revoked their waiver. As of now, Wells Fargo must get OCC permission before it hires or fires senior executives, before it make changes to the board of directors, and before making any “golden parachute” severance payments to executives. Approval will be required to changes in the bank’s business plans.

Update on that action: 11/20 – Wall Street Journal – Wells Fargo Grapples With OCC Move – Internal communication from the new CEO indicates the restrictions from OCC are not due to new developments. Sources for the article indicate uncertainty for the reason. Could be a bureaucratic reaction to criticism the OCC was slow to catch on to the issue or that the agency went too lightly on the bank.

Additional punishment…

12/9 – Wall Street Journal – Wells Fargo Likely Face Regulator Downgrade, harming Its Prospects – OCC may be downgrading Wells’ rating under the Community Reinvestment Act. This would be another round of extra-judicial punishment for the fake account fiasco.

…

More regulatory punishment for Wells Fargo. Another possible dimension of the fake account fiasco.Read More »

More regulatory punishment for Wells Fargo. Another possible dimension of the fake account fiasco. Read More »

Remember to renew your PTIN. It expires in about three weeks.

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.

Fee is still $50.00.

For more information, you can find the IRS announcement here.

You can start the renewal process here.

In addition to the fifty bucks, it took me 12 minutes to renew, but I had to search a couple of minutes for the page to enter the PTIN system.

Remember to renew your PTIN. It expires in about three weeks. Read More »

What to do about the new overtime rules since they are on hold?

Leave a Comment / Accounting, Other stuff / Jim Ulvog

The new overtime rules were set to go into effect tomorrow, December 1. The rules are on hold as a result of an injunction issued by a federal judge. What should charities do about changes that have been implemented, or announced, or on the drawing board?

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

Two articles have some suggestions:

11/29 – Baltimore Business Journal – Plenty of questions still surround blocked overtime pay law – It is very uncertain how the new overtime rules will be handled. Article cites the CEO of an outsourcing and payroll company. His advice is stay tuned to developments. The rules could be implemented, overturned, or modified.

…

What to do about the new overtime rules since they are on hold?Read More »

What to do about the new overtime rules since they are on hold? Read More »

Overtime rules on hold after federal judge issues nationwide injunction

Leave a Comment / Accounting, Other stuff / Jim Ulvog

places a hold on the new rules regarding

(Cross-post from my other blog Nonprofit Update.)

A federal judge in Texas issued an injunction putting on hold the new Department of Labor rule increasing the threshold for paying overtime. The judge concluded there was a reasonable likelihood (I don’t quite appreciate the technical description so will use casual wording) that the lawsuit by 21 states and a lot of businesses would succeed. He also concluded the rule could cause irreparable financial harm. Thus, he issued the injunction, which applies nationwide.

…

Overtime rules on hold after federal judge issues nationwide injunctionRead More »

Overtime rules on hold after federal judge issues nationwide injunction Read More »

Update on Panama Papers – 11/22

Leave a Comment / Fraud, Other stuff / Jim Ulvog

Either there hasn’t been much going in the money laundering news or I’ve not paid enough attention. On the other hand, governmental investigations are run behind the scenes. Perhaps the regulators are working out of sight.

Here are a few articles I’ve noticed in the last few months.

7/28 – U.S. Prosecutors Probe ‘Panama Papers’ Law Firm’s Employees – Leaks say Department of Justice has opened an investigation of various staff in the D.C. office of Mossack Fonseca.

…

Update on Panama Papers – 11/22Read More »

Update on Panama Papers – 11/22 Read More »

A few more updates on the ongoing banking fiascos: Wells Fargo and J.P. Morgan

Leave a Comment / Other stuff / Jim Ulvog

October 2016 photo at Wells Fargo's museum in San Diego by James Ulvog. — October 2016 photo at Wells Fargo’s museum in San Diego by James Ulvog.

Odd development yesterday in the fake account fiasco at Wells Fargo. The OCC decided to get involved in lots of internal decisions at the bank.

The side fiasco of banks hiring relatives of clients in order to gain future business is off point from the banking fiascos I’ve been focused on. However, one settlement has caught my eye. Two articles describe the mess at J.P. Morgan.

11/18 – Wall Street Journal – Banking Regulator Imposes New Restrictions on Wells Fargo – Apparently the consent degree signed by Wells had some harsh language in it which was immediately waived by the OCC. On Friday the OCC unilaterally revoked their waiver.

As of now, Wells Fargo must get OCC permission before it hires or fires senior executives, before it make changes to the board of directors, and before making any “golden parachute” severance payments to executives. Advanced approval will be required to any changes in the bank’s business plans.

…

A few more updates on the ongoing banking fiascos: Wells Fargo and J.P. MorganRead More »

A few more updates on the ongoing banking fiascos: Wells Fargo and J.P. Morgan Read More »