A&A news October 2007 | AccountingWEB

A&A news October 2007


IT risks rising up audit committee agendas

Research by KPMG's Audit Committee Institute among over 1,300 audit committee members in 25 countries around the world has found that nearly a third (30 percent) are not satisfied that their committee spends sufficient time looking at IT risk issues, with a further 59 percent only "somewhat" satisfied.

Risky business: Facing adversity and riding the storm

Noah's Ark is the oldest example of a contingency plan, described in the Hebrew Scriptures as a great boat designed to save Noah, his family, and a fair few animals from the great flood. It's nothing new, therefore, to plan for the unexpected whether that is natural or man-made disasters. And there are plenty of examples to glean lessons from, including the recent fires of southern California, Hurricane Katrina, the U.S. terror attacks of 9/11, to name only a few.

Global Risk Management survey reveals some multinationals not ready for risk

Multinational corporations are facing increasingly diverse, complex and exotic risks, and may not have all the resources in place to manage them effectively, according to Aon's first Global Risk Management Survey.More than half of the survey's respondents said they weren't prepared for the risk they rated as most worrisome - damage to reputation. "Executives now see reputation as a major source of competitive advantage," said Ruth Joplin, Aon Global Risk Consulting managing director.

New challenges for internal audit: Business and operational risks

Internal audit departments are in the middle of "an evolutionary transition" facing great opportunity and challenges, according to Ernst & Young's 2007 Global Internal Audit Survey, which analyzes current developments and identifies future trends and leading practices based on findings from a survey of Internal Audit directors of 138 predominantly public companies.

Businesses protected from financial loss with professional liability insurance

A separate coverage can be added to existing insurance policies that protects professionals in the event of a client's claim that they have suffered a financial loss as the result of an error or omission that was committed by a company while performing and delivering their professional services.Whether you are running a small home-based business or a multi-million dollar industry, it is important to plan for disaster mangement to protect against unexpected circumstances.

Eight cash flow secrets of entrepreneurs

Your success as an entrepreneur comes down to whether or not you can pay your bills and still turn a profit. Seems obvious, right? It is, but achieving a healthy balance between monetary intake and output is an art form that confounds many entrepreneurs. According to entrepreneurial guru Ty Freyvogel, your ability to manage your cash flow will either make you or break you. Eight cash flow secrets of entrepreneursBy Ty FreyvogelI have seen otherwise successful entrepreneurs crumble under the stress of poorly managed cash flow.

Ensuring the safety and productivity of your employees

AccountingWEB is pleased to offer a presentation of Small Business Trends Radio. This is an hour-long broadcast that can be downloaded as a podcast or played on your computer.Many small businesses are experiencing a growing need for high quality monitoring services to ensure the security and safety of their business and employees.

FEI and IMA request deferral of SFAS 157

In a letter to Robert H. Herz, chairman of the Financial Accounting Standards Board (FASB), two committee chairmen of Financial Executives International (FEI) have requested that FASB delay implementation of SFAS No. 157 - Fair Value Measurements (FAS 157) for one year in order to allow companies and their accounting firms time to prepare for implementation. Currently, FAS 157 is effective for fiscal years beginning after November 15, 2007. The Institute of Management Accountants (IMA) has also requested the delay, CFO.com reports.

ExcelZone spreadsheet seminar tips: Think first, Excel second

An experienced group of management accountants gathered earlier this year at the Law Society in London for AccountingWEB UK ExcelZone's inaugural seminar on "smarter management reporting with Excel." The event, the first in a series, was sponsored by ExcelZone partner Rugged Logic. ExcelZone contributor Simon Hurst was on hand to pass on tips for smoother working with accounting data and spreadsheets. "Before we get on to the practical stuff, the first thing you need to do when reporting with Excel is to design a good spreadsheet," says Simon Hurst, AccountingWEB contributor.

Tax pitfalls you could face as a small business owner

AccountingWEB is pleased to offer a presentation of Small Business Trends Radio. This is an hour-long broadcast that can be downloaded as a podcast or played on your computer.Starting your own small business can be an exciting venture. However, there are several things that many do not think about in advance that could put them out of business before they have barely begun. And attempting to handle some of these problems on your own may ultimately lead to negative results.Michael Rozbruch, CEO of Tax Resolution Services will assist you in steering clear of these costly pitfalls.

For small businesses cash flow is king

Many small businesses seem to stumble from crisis to crisis as they strive to balance bills, paydays and receivables without a cash budget. Recognizing that new entrepreneurs and owners of rapidly growing small businesses need help in establishing an effective cash management system that makes every dollar count, accounting firms, law firms and banks are beginning to offer cash flow guidance.“Generally, what I see in most in businesses, small and large, is a lot of them don’t do cash budgets,” Barry Worth, a CPA and turnaround specialist with Brown Smith Wallace LLC in St.
Practice Management

How to defend yourself against receivables fraud

Fraud investigator Andy Wilson has produced a list of self-tests that companies can use to measure how well defended they are against receivables fraud.Here's a rundown of his guidelines..."I don't understand it. Business is as good as it has ever been ... but there is no money in the bank," said the owner of a floral business to a group of anti-fraud professionals he had retained to determine if the business was bleeding cash via internal fraud.Two days before the fraud examination was to begin the bookkeeper failed to report to work.
Community News

Record keeping for small businesses

The mindset and behaviors associated with protecting intellectual property start with top management. It's a tough job considering the not-so-surprising latitude for departing employees to take corporate trade secrets with them. The Boston Business Journal reports that even with strict vendor confidentiality agreements, keeping corporate secrets may be difficult. Identifying intellectual property at early stages is a good start."Almost all intellectual property starts out as a trade secret. In a lot of ways, that's the point where it's most vulnerable," James Donnelly Jr.

IRS offers relief for late S corporation elections

Businesses that are eligible to elect S corporation tax treatment now have a simpler process for requesting relief for late elections under a change announced this week by the Internal Revenue Service.Revenue Procedure 2007-62 allows small businesses that missed filing Form 2553, Election by a Small Business Corporation, before filing their first Form 1120S, U.S. Income Tax Return for an S Corporation, to file both forms simultaneously.

IBM expands software line for small and mid-sized businesses

IBM has announced new software and resources to help mid-sized customers more effectively manage the quality of their software and network infrastructures, just like their counterparts in large enterprises. The new software underscores IBM's expanded focus on providing small and mid-sized businesses with the solutions necessary to remain competitive in the market. Typically, IT departments in small and mid-sized businesses lack resources or a formalized IT department to support their operations.

CPA firms are ranked in Assets Under Management survey

CPA Wealth Provider, a SourceMedia publication, is presenting its first-ever ranking of CPA/Financial Planning firms by Assets Under Management (AUM). This ranking is featured in the October 2007 issue of the magazine and is expected to be an annual event. The ranking lists the 11 firms that are in "The Billion Dollar Club," the 41 firms that are in "The $100+ Million Club" and the "Rising Stars" that comprise the remainder.
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