Practice Management

Practice Management

Three Reasons to Expect More Earnings Restatements

According to a report published by the New York Times, the capital markets have good reason to worry about corporate earnings this year. Companies have at least three good reasons to drag all the skeletons out of the closet and try to wipe the slate clean with an earnings restatement. The three reasons:Legacy of the 1990s. Lawyers and accountants blame the excesses of the 1990s. They say capital markets rewarded growth stocks handsomely, and companies sought to manage stock prices as a way of maximizing the value of their stock-based compensation plans.
Practice Management

SEC Orders Corporate Officers to Certify Financial Statements

Support for tough accounting and audit reforms is growing, provided the reforms also include stiff sanctions and penalties for top-level corporate management of large public companies. As the first major step in this direction, on June 28, 2002, the Securities and Exchange Commission (SEC) ordered corporate officers to personally certify that their most recent reports filed with the Commission are both complete and accurate.
Practice Management

Companies Take Steps to Manage Accounting Rumors

WorldCom's plight sent the U.S. capital markets reeling in another wave of accounting shock. It was a jittery week on Wall Street when mere rumors of accounting irregularities were enough to send share prices plummeting. Clearly, the entire telecom sector is on investors' radar screens, but even industrial-era icon General Motors found itself victimized by the rumor mill on June 27, 2002.
Practice Management

Wealthy Clients Can Present Pitfalls For Accounting Firms

Lawsuits involving audits of public companies have gotten the lion's share of the media's attention in recent months. But state tax returns and other services provided to wealthy individuals still present a multitude of pitfalls for accounting firms of all sizes. Two recent cases show how these pitfalls can and do turn into nightmarish negligence lawsuits, no matter how popular and well-regarded the clients.
Practice Management

Deloitte Uses 'Quality of Earnings' to Boost Financial IQs

Deloitte & Touche is taking a leadership role in helping companies and investors understand and move beyond the reasons for today's "crisis in confidence." It recently released "Quality of Earnings," the second in a series of papers designed to help restore investor confidence through the sharing of knowledge and best practices. The paper contains an innovative tutorial that helps companies and investors boost their own financial IQs to a level that complements the Integrity and Quality (IQ) of their independent auditors.
Practice Management

Beware of Doctored Financial Statements

Reprinted with Permission, Camico Mutual Insurance Company. http://www.http://www.camico.com/website/about.asp No professional wants to be deceived, but sometimes it just happens. Criminals lie to their lawyers, students cheat on tests given by their teachers, and clients alter financial statements prepared by their CPAs. "Every month," says Suzanne Holl, CAMICO loss prevention manager and CPA, "I talk to at least one policyholder about a financial statement or tax return that a client doctored.
Practice

Panel to Set Audit Guidelines For Corporate Management

After the Andersen verdict was announced, lawmakers and regulators redoubled their efforts to establish a rigorous oversight process for independent auditors, and other reformists joined together in a parallel track for management under the auspices of the Conference Board.
Practice Management

Survey Shows Opportunities For Small Firms

On June 13, 2002, Intuit Professional Accounting Solutions unveiled the results of its nationwide study on "the Voices of Small Businesses and Accountants." The study shows 88% of small business owners have not lost confidence in their accountant, despite the damage to the profession done by the negative publicity associated with the Enron collapse.
Practice Management

Selective Selling: When Times Are Tough, Make Your Standards Tougher

By Dave Stein, The Stein AdvantageDon't take on just anyone as a client or customer. Consultant, trainer and author Dave Stein offers a wealth of insights on who to avoid . . . and why.If you're in the position of having to bring in new business, you might be feeling a bit desperate. We all know times are tough and money is tight. It may seem that now is the time to take on any business that comes your way. After all, you still have revenue targets to achieve, expenses to cover and stakeholders to whom you must account. Well, hold on to your hat.
Practice Management

Blast From Ex-SEC Cop Shows Shift in SEC's Strategy

In a letter to the editor of the Miami Herald, a former attorney of the Miami office of the Securities and Exchange Commission's (SEC's) enforcement division broke ranks with his normally tight-lipped colleagues and publicly criticized the Commission. Some readers were surprised at the way he blamed three former chairmen for leaving a legacy of crises and blasted the current chairman for undermining the region's prosecutors.
Practice Management

KPMG Surveys Trends in Non-Financial Disclosures

On June 10, 2002, KPMG released the results of its latest survey on non-financial disclosures - a term it uses to describe corporate reporting on environmental, social and sustainability performance. According to firm's press release, sustainability refers to the balance among economic, environmental and social factors necessary to keep a company profitable while being responsive to society's needs.
Practice Management

What Does Your Company Get Out of Having an Ethical Environment?

By, Bruce A. HammHOW NOT TO END UP LIKE ENRONRecent reports about accounting practices, conflicts of interest, document shredding and retaliation against employees at Enron heighten interest in business ethics. Many of us are asking, "What about the ethics in my company?" The reaction from many executives might be "Nothing wrong with my company.
Practice

PwC Finds Accounting Lawsuits Broke Records in 2001

PricewaterhouseCoopers released the results of its 2001 securities litigation study on June 10, 2002.
Practice Management

NYSE Proposes Rules to Calm 'Moments of Madness'

The New York Stock Exchange (NYSE) has drafted proposed rules and recommendations designed to guide the markets past a crisis of confidence that NYSE Chairman Richard Grasso calls "moments of madness" in the days following the Enron collapse.
Practice Management

Six Warning Signs for Small to Mid-Sized CPA Firms

Small to mid-sized CPA firms may not have elaborate risk management systems, but Camico manager John Raspante suggests they can still heed some clear warning signs. Camico is the nation's second largest provider of accountants professional liability insurance and risk management services. Here are the six symptoms that Camico has found are often sure signs of a claim brewing on the horizon.Clients who don't pay. Mr. Raspante says that when CPAs call to discuss a new lawsuit, they often say, "The client was always slow to pay.
Practice Management

Free Report – 'Nixing Negativity In The Workplace'

Negativity in the workplace could pose serious employee motivation and legal problems for employers. The free report -- "Nixing Negativity In The Workplace" -- gives employers a blueprint for recharging their workplace with positive and productive attitudes by laying out negativity red flags to beware of, explaining practical do's and don'ts to incorporate in their management techniques, and even pinpointing legal problems that may attach themselves to negative attitudes.
Practice Management

Professor Finds Value-Based Metrics Often Beat GAAP

Stanford Accounting Professor Stefan Reichelstein
Practice

New Nasdaq Rules Will Put Audit Opinions in The News

On May 24, 2002, the Nasdaq Stock Market announced that its board of directors has approved several important rule changes, including one that will put audit opinions in the news. The Nasdaq Stock Market typically lists smaller companies, including many of the technology companies affected by the bursting of the dot-com bubble.
Practice

Discover Who You Are To Succeed

By Paul J. MeyerIf you were asked to make three brief statements in response to the question, "Who are you?" how would you respond? One response might be to state your name because your name is an important emotional symbol of your identity. You might define yourself in terms of your professional title, especially if you enjoy a sense of dedication and commitment to your career.
Practice

Quiz - Assess Your Management Style

"Business2.0", located at http://www.business2.0.com tapped Stephen Covey's expertise to develop the following quiz. Circle true or false responses to the 15 questions based on your gut reaction, not what you think you should say. Once you have completed the quiz, rate your answers. You may discover that several simple adjustments in behavior or attitude--or both--could help you transform your staff into a high-performance team.

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