Fall 2024
Features
Data Security a Must for 21st Century CPAs
By Brian Trout, CPA, DBA, CGMA, and Cory Ng, CPA, DBA, CITP
The use of technology in accounting is pervasive, as is the collection of client and practice data. All that data is both the lifeblood of every practice and the potential cause of its undoing if not cared for. This feature examines common data security threats and offers strategies for mitigating the risks of keeping this data safe.
When an Auditor Lacks Integrity We All Must Take Note
By Jerry Maginnis, CPA, and Allison M. Henry, CPA
A recent SEC action against the firm BF Borgers CPA PC offers a sobering cautionary tale for all auditors and those who rely on assurance work. This feature explains how the firm incurred a civil monetary penalty of $12 million, what the root cause of the failures were, and why the inadequate auditing was not detected sooner.
2024 Election Guide to Federal Tax Proposals
By Robert E. Duquette, CPA
The election for president is weeks away. Each candidate and each party has a vision for the next four years that includes specific spending and tax proposals. This guide to the competing tax and revenue plans clarifies each party’s positions and their potential impact on the growing debt crisis.
Columns
Reassess and Remeasure: Related-Party Leases
By James J. Newhard, CPA
ASC 842 requires substantially all leases to be reported on balance sheets with right-of-use assets and lease liabilities, and discounted over the lease term that is reasonably certain. But determining the entire “reasonably certain” lease term and the related conditions and provisions when the principal decision-maker for the lessee is also the decision-maker for the lessor has been a bone of contention and challenge.
Build Resilience Early to Strengthen Your Career
By Amanda Serafin, CPA
Resilience is highly regarded in the world of accounting. And those who wish to become resilient must be capable of practicing self-reflection, perseverance, and optimism in the face of adversity.
Pa. Budget Hits Shapiro Priorities, Falls Short on Tax Fixes
By Peter N. Calcara, PICPA Vice President – Government Relations
While the 2024-2025 Pennsylvania budget passed this summer incorporates much of Gov. Josh Shapiro’s priorities and did introduce several positive changes, it was a missed opportunity to further improve Pennsylvania’s tax system. The Pennsylvania Department of Revenue opposed all three measures the PICPA was pursuing to fix troubling shortcomings in state taxation.
Tips on Streamlining the ERP Evaluation Process
By Walter W. Goodfield
There is a widely diverse pool of accounting software and enterprise resource planning solutions out there. When considering new accounting software, there are three critical aspects to evaluate: publisher, product, and partner.
Proper Integration Planning for Storybook Ending to Merger
By Ira S. Rosenbloom, CPA (Inactive)
An M&A success story is highly dependent on a well-planned transition and integration. This column includes critical items where consensus is needed before you embark on your fairy tale enterprise.
When U.S. Taxpayers Have International Reporting Failures
By Andrew M. Bernard Jr., CPA, MST
A failure to file foreign informational forms with complete and accurate information can subject a taxpayer to monetary penalties. Thus, U.S. taxpayers with offshore investments or business interests can easily find themselves inadvertently in noncompliance with reporting requirements and risk financial penalties or a criminal investigation.
Incorporating Behavioral Factors to Mitigate Fraud Risk
By Sarah Boyle
When it comes to addressing the root cause of fraud, analyzing behaviors has become vital. Research into behavioral fraud has led to a comprehensive overview of the stages of anti-fraud preparation, in particular the Fraud Prevention Pyramid.
What Accountants Should Know about Tail Coverage
By Irene M. Walton
As careers evolve, accountants regularly make adjustments to their liability insurance policies. But the last thing you want is to be stuck defending an earlier work product after you’ve let coverage lapse. Find out what tail coverage is and how it could protect you.
Impact of Moore v. United States on Proposed Wealth Tax
By Robert E. Duquette, CPA
Some political policymakers propose instituting a “wealth tax,” which they say would raise billions in federal revenue to reduce projected deficits. However, this column looks at a recent U.S. Supreme Court opinion, Moore v. United States, to gauge where the justices might stand on the constitutionality of a wealth tax.
