Thursday, December 15, 2011

12/21 Accounting and Auditing Update Webinar

If you’re looking for an overview of recent developments in accounting and auditing practices, be sure to register for our free webinar on Wednesday, Dec. 21st from noon to 1 p.m.

The session will cover audit and accounting standards in effect for the first time during 2011, review changes and updates to existing standards, as well as provide information on anticipated tax changes. One hour of Continuing Professional Education Credit is available.

“This webinar will leave participants better equipped to communicate with their accounting professionals and determine if they, or their organization, require additional assistance in any of the areas covered,” Karl Newton, CPA, my colleague who will lead the presentation.

Karl, who has been with the firm since 1999, oversees audits for not-for-profit agencies and single audit filings in accordance with the Office of Management and Budget Circular A-133. He has worked with a variety of not-for-profits, including rehabilitation centers, substance abuse centers, membership organizations, foundations and day care centers.

PC-based attendees are required to have Windows® 7, Vista, XP or a 2003 Server, while Macintosh®-based attendees need Mac OS X 10.5 or newer.

Space is limited. Reserve your seat now by going to: http://www2.gotomeeting.com/register/513899818

After registering you will receive a confirmation email containing information about joining the session.

For more information, call 518-785-0134 or shoot me an email kpo@marvincpa.com.

Another Great Article by the Journal of Accountancy

Very interesting for all of those of you on non-profit boards and such:


AICPA Letter to PCAOB Raises Concerns About Mandatory Audit Firm Rotation

December 14, 2011
The AICPA recommended that the PCAOB refrain from imposing mandatory audit firm rotation.
AICPA Chairman Greg Anton, and President and CEO Barry Melancon signed a comment letter sent by email Wednesday to the PCAOB stating that mandatory audit firm rotation is costly and has the potential to hinder audit quality rather than enhancing it.
In August, the PCAOB issued a concept release on auditor independence and audit firm rotation seeking comment. The release noted that proponents of rotation contend term limits could decrease client pressure on auditors and create opportunity for a fresh look at a company’s financial reporting.
The AICPA letter supported the PCAOB’s goals for enhancing auditor independence and objectivity, and professional skepticism. But the Institute said the PCAOB should not impose mandatory audit firm rotation without evidence linking audit firm tenure to audit failures detailed in PCAOB inspection findings.
Even if such a link is indicated through further study, the AICPA would like the PCAOB to carefully weigh the costs associated with mandatory firm rotation and consider other potential enhancements that would be less costly and disruptive.
The AICPA cited research indicating that mandatory firm rotation may hurt audit quality and that audit quality increases with audit firm tenure. The letter also said:
Audit firm rotation may limit institutional knowledge and industry specialization, which the AICPA said increases during audit firms’ relationship with a company and is crucial to a high-quality audit.
Mandatory firm rotation may unintentionally undermine the role of the audit committee by preventing the committee from selecting and retaining the most qualified audit firm to perform a company’s audit.
Existing partner rotation requirements provide the necessary “fresh look” to ensure auditors’ objectivity.
The PCAOB’s release is part of the reason audit firm rotation has become a big issue in recent months. Last month, the European Commission proposed limiting to six years the period in which an outside audit firm can perform audits for public companies. Companies that opt for voluntary joint audits would be allowed a nine-year window; a four-year cooling-off period was proposed.
At last week’s AICPA National Conference on Current SEC and PCAOB Developments, Anton said research indicates that mandatory audit firm rotation has the unintended consequence of increasing the propensity for fraud.
“We caution the EU member states and the European Parliament—as well as the PCAOB—to carefully consider the consequences of such proposals and focus on proven solutions to enhanced transparency, increased objectivity and improved audit quality,” Anton said on Dec. 5.
Wednesday was the final day of the comment period. In March, the PCAOB will hold a public round table on auditor independence and mandatory audit firm rotation.

Monday, December 12, 2011

Mileage rate for 2012 updated!

This article is from the Journal of Accountancy:



The IRS on Friday released standard mileage rates for use in 2012 (Notice 2012-1). Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.



For business use of an automobile remains at 55½ cents per mile. For medical or moving expenses, it is 23 cents per mile (a half-cent decrease from the second half of 2011). For services to charitable organizations, the rate (which is set by statute) is 14 cents per mile.
Rather than using the standard mileage rates, taxpayers may instead use their actual costs if they maintain adequate records and can substantiate their expenses. The rules for substantiating these amounts appear in Rev. Proc. 2010-51.
For automobiles a taxpayer uses for business purposes, the portion of the business standard mileage rate treated as depreciation is 23 cents per mile for 2012 (it was 22 cents per mile for 2011).