Improving Professional Ethics

By Jane B. Romal and Arlene M. Hibschweiler

Recent financial accounting scandals have generated unwanted and unfavorable publicity for CPAs, including those working as comptrollers or chief financial officers. The plight of David Duncan, the lead audit partner at Arthur Andersen on the Enron account, underscores the consequences accountants may face under professional responsibility rules. Duncan pleaded guilty to obstruction of justice in connection with document shredding. The Texas State Board of Public Accountancy, in lieu of further disciplinary proceedings, revoked Duncan’s license, effective February 6, 2003. Other examples of such disciplinary proceedings can be found on the websites of the SEC, accounting societies, and licensing authorities. Full Story


Essentials
Publisher's Column
Finance

Transitioning to the Fair Value Method

Since 1995, when FASB issued SFAS 123, Accounting for Stock-Based Compensation, companies have had the option to use the fair value method of accounting for employee stock options. Until recently, however, most companies continued to use the intrinsic value method of APB 25. Full Story

Embracing the Evolution of Peer Review

CPA firm peer review as a quality-control mechanism has always had its supporters and detractors. On the plus side, it has fostered best practices within the accounting profession and facilitated registration of firms in a number of states. Full Story

Structuring Corporate Buy-Sell Agreements

Within a closely held corporation, shareholders are often concerned about what might occur if one of the owners dies. Will the deceased shareholder’s family retain the economic value of the corporate interest? Full Story



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