AICPA

Community News

AICPA Names James A. O'Malley to Head Public Affairs Division

On September 9, the AICPA will have a new Senior Vice President in charge of public affairs. James A. O'Malley, a former New York advertising executive, will step in to fill the shoes of John Hunnicutt, retiring after many years of outstanding service in the position.Mr.
Community News

Dos And Don'ts For Releasing Records of Deadbeat Clients

A slow economy means slow-paying clients and increased client turnover. This can add up to tough ethical questions for accountants who prepare tax returns. One especially tough dilemma arises when a former client, who hasn't paid his bill, demands that copies of all his records be provided to his new accountant.
Technology

EY to Offer Online Tax Research Through CPA2Biz

Ernst & Young has announced it will offer its Online Tax Advisor to CPAs in other firms through CPA2Biz, the distribution arm of the American Institute of CPAs. Online Tax Advisor will give CPAs a direct connection to tax professionals in Ernst & Young's tax specialty groups. Currently, over 300 Ernst & Young tax professionals participate in the service. They represent international, mergers & acquisitions, real estate and over 20 other specialty groups.

AICPA Describes Transition to New Regulatory Framework

The American Institute of CPAs (AICPA) has e-mailed an alert to its members, advising them of its plans for transitioning to the new regulatory framework established by the Sarbanes-Oxley Act of 2002. As part of its transition plan, AICPA will:Work with the Securities and Exchange Commission (SEC) to establish an orderly transition of the activities of AICPA's SEC practice section.

AICPA Proposes Audit Standard for Interim Financial Info

The Auditing Standards Board (ASB) of the American Institute of CPAs (AICPA) has issued a proposed Statement on Auditing Standards (SAS) entitled "Interim Financial Information." The document defines interim financial information as financial information or statements covering a period of less than a full year or for a 12-month period ending on a date other than the entity's fiscal year.The main reasons for the update, which would replace the standard previously issued on the subj
Technology

AICPA Forms Panel to Improve Trust on Internet

The American Institute of CPAs (AICPA) is helping to put together a panel of industry experts to provide input to the accounting profession on how to incorporate new and improved security standards into its WebTrust program for Certification Authorities.Anthony Pugliese, AICPA's vice president of member innovation, explains that the panel is being formed to enhance standards, particularly in the areas of authentication and identification of digital certificate issuers, so users can
Community News

Congress Pledges Decision Next Week on Accounting Reform

In an abrupt about-face, Rep. Michael Oxley, the sponsor of the House bill on accounting reform, and other influential lawmakers pledged to reach a compromise agreement with the Senate bill by July 26, 2002. This landmark legislation could be the biggest milestone ever in the history of the accounting profession, and positions on the differences between the House and Senate accounting reform bills appear to be changing by the minute.
Technology

AICPA Invites Comments on SysTrust and WebTrust

On July 1, 2002, the American Institute of CPAs (AICPA) and the Canadian Institute of Chartered Accountants (CICA) issued an exposure draft (ED) outlining proposed changes in the structure, order and wording of the principles and criteria for SysTrust and WebTrust services.
Community News

AICPA Will Monitor Remaining Andersen Audits

In light of Andersen's obstruction of justice conviction last week, the American Institute of Certified Public Accountants (AICPA) has accepted Andersen's resignation from the organization's Securities and Exchange Commission practice section (SECPS) effective August 31. In addition, the AICPA will closely monitor all remaining audits of public companies through August 31.

Senate Panel Approves Bill to Tighten Audit Standards

On June 18, 2002, the Senate Banking Committee voted 17-4 to approve a bill to tighten oversight of the audits of publicly-held companies. The approval came despite a strong lobbying effort by the American Institute of CPAs (AICPA) and some of the larger accounting firms who opposed the measure. The approved bill incorporated several last-minute compromises. Full details are not yet available on the Web.

Auditing Standards Board Issues SAS95, Critics Want More

Like accounting standards, auditing standards have "grown like topsy" over the past few decades. To help practitioners come to grips with this expanding and increasingly complex body of literature, the Auditing Standards Board (ASB) of the American Institute of CPAs (AICPA) recently crafted a layered-approach to understanding generally accepted auditing standards (GAAS). But critics still aren't satisfied - some say the limits of GAAS are as hard to understand as the layers.

PCPS Celebrates Its 25th Anniversary

To those who believe that the AICPA may not be adequately representing the interests of local and regional firms in the profession, PCPS Chairman Bill Balhoff has one thing to say - PCPS' voice of over 6100 member firms is stronger and louder than any other time in PCPS' 25 year history.PCPS, AICPA's Alliance for CPA Firms, celebrated its 25th anniversary in style Tuesday evening with a gala at the Guggenheim Museum in Las Vegas, Nevada.

AICPA Signs Controversial Deal for CPA Exams

On May 28, 2002, the American Institute of Certified Public Accountants (AICPA), the National Association of State Boards of Accountancy (NASBA) and Prometric announced the signing of a joint agreement to deliver a computerized Uniform CPA Examination. The agreement is seen as controversial because the state boards were divided in their support for a proposal regarding the computerized exam.
Community News

Court Denies KPMG's Appeal of Charges by SEC

In a decision dated May 14, 2002, a court of appeals denied KPMG's request for a reconsideration of an independence action brought against the firm by the Securities and Exchange Commission (SEC). The court's decision to back the SEC was especially significant because KPMG's position was supported by the American Institute of CPAs (AICPA). The SEC charged that KPMG was not independent when it audited a client who purchased turnaround services from a KPMG affiliate in exchange for contingent fees.

AICPA Warns of 'De Facto Government Takeover'

Battle lines drawn in recent weeks promise a lively debate over audit reforms.
Technology

CPAs Qualify For Elite Dot-Pro Email Addresses

RegistryPro has announced that it is gearing up to operate the first professionally-restricted top level domain on the Internet by the end of 2002. The resulting group of Web sites will end in dot-pro (.pro) instead of dot-com (.com) or dot-org (.org).
Technology

Financial Reporting Ranks as Top Technology Issue

The American Institute of CPAs' top technologies list for 2002 ranks business and financial reporting at the top of the list. The topic rose from No. 3 in 2002. AICPA suspects this rise was driven by concerns raised in the wake of Enron. Wayne Harding, a member of the AICPA's Top Technologies Task Force and Information Technology Executive Committee, officially announced the 2002 rankings during a presentation at the AICPA's TECH 2002 Conference in Washington.

AICPA Issues Guide for Taking on New Audit Clients

The American Institute of CPAs (AICPA) has released a practice aid for accounting firms that conduct audits of publicly-owned companies. It expects some of these firms will be taking on increased numbers of new publicly traded clients and professional staff following the Enron collapse.

AICPA Issues Update on State Legislative Proposals

State legislative initiatives for post-Enron accounting and audit reforms are proliferating and proceeding at rates comparable to federal initiatives. California held a hearing on May 6, 2002 on a controversial amendment to the state's peer review program. In addition, several bills were introduced over the past month in Pennsylvania, including one that would alter both CPAs' and non-CPAs' responsibility for reporting wrongdoing discovered during employment.

AICPA May Ban Reports on 'Hypothetical Transactions'

Auditors may soon be prohibited from playing a controversial role in structuring transactions to achieve a desired effect on financial statements. The change would take effect under a draft of an auditing standard proposed by the AICPA's Auditing Standards Board (ASB) on April 30, 2002.

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