The Trusted Professional

January 1999 Articles

State Board Recommends CPE Expansion
The New York State Board for Public Accountancy voted at its November 18 meeting to recommend that the State Education Department include technology and some practice management courses as qualifying for continuing professional education in New York. (Article)

Committee Responds to AICPA Ethics Proposal
The NYSSCPA Professional Ethics Committee, chaired by Allen L. Fetterman (Mid Hudson), recently responded to the AICPA exposure draft that provides guidance on commissions and contingent fees in relation to attest clients and proposes changes to a number of other ethics interpretations and rulings. (See related article in the December issue of The Trusted Professional (Article)

AICPA Analyzes Social Security
In an effort to aid legislators in what is expected to be a complex and contentious debate in the 106th Congress, the AICPA recently released a comprehensive nonpartisan analysis of Social Security, including options for reform. (Article)

President's Commentary
Influence and control--who has them and who does not? An interesting question. I am always amazed at the inferences heard around the state. And beyond the inferences and innuendos, there are the absolute statements of fact I am confronted with as I travel about. (Article)

Daniel J. Dustin Appointed Executive Secretary of State Board
On December 11, the New York State Board of Regents appointed Daniel J. Dustin, CPA, as executive secretary of the New York State Board of Public Accountancy, which advises the Regents and the State Education Department on licensure, practice, and professional conduct issues concerning CPAs. (Article)

New Jersey Permits Commissions and Contingent Fees
The New Jersey State Board of Accountancy adopted regulations on November 16 that allow commission and contingent fee arrangements for CPAs licensed in the state. (Article)

Century Business Services Forms Alliance with Merrill Lynch
Century Business Services recently announced that its Century Retirement and Wealth Management Services subsidiary has entered into a strategic national alliance to offer Merrill Lynch's financial products and services to Century's clients. (Article)

New Program to Certify Bookkeepers
The American Institute of Professional Bookkeepers (AIPB) recently announced a new nationwide program to certify bookkeepers. (Article)

Symposium Explores Independence Issues
In an effort to shed light on the growing controversy concerning independence issues in public accounting, the NYSSCPA and The CPA Journal sponsored a December symposium, "Auditor Independence: Illusion or Reality?" (Article)

State Transportation Department Works to Clarify New Law
In an effort to clarify implementation and cost-benefit concerns of a 1998 state law that mandates using Federal Single Audit Act concepts in audits of state transportation funds disbursed to municipalities and authorities, the New York State Department of Transportation recently announced it would pay for 10 such audits in a trial program to resolve these open-ended issues. (Article)

State Offers Advice on Working with Problems Resolution Officers
New York State Department of Taxation and Finance Problems Resolution Officer for Manhattan Diane Farrell recently offered advice to CPAs on how to best work with her and her colleagues. (Article)

Chapter Presidents-Elect Exchange Ideas
At the annual Chapter Presidents-Elect Workshop on December 3, representatives from all 11 NYSSCPA chapters received information to assist them in their tenure as presidents and had the opportunity to discuss their goals for their upcoming terms. (Article)

Trivia Event Tests Staten Island CPAs
Members of the NYSSCPA Staten Island Chapter battled wits with other professionals in Brainstorm, a local charity event held in October that featured a Staten Island trivia contest. (Article)

COCO Approves New Policy on Committee Minutes
The Committee on Committee Operations (COCO) recently announced that NYSSCPA staff members will now attend committee meetings and prepare minutes for chairs' approvals. The new policy became effective on December 1, 1998. (Article)

Society Scholarship Applications Available
he NYSSCPA and its Foundation for Accounting Education encourage Society chapters and members to inform college students about the Excellence in Accounting Scholarship. The Society sends applications to accounting departments, accounting clubs, and financial aid offices in late January.(Article)

Life Insurance Provides Flexible and Affordable Coverage
The NYSSCPA group term life insurance plan offers an affordable way for members to provide financial security for themselves and their families. The plan provides economical rates and the flexibility to choose the amount of coverage needed. (Article)

Committee and IRS Representative Discuss Worker Classification
At the November 17 meeting of the NYSSCPA Relations with the Internal Revenue Service Committee, Martin Abrams, IRS Manhattan district employment tax coordinator, and committee members discussed various worker classification issues and audits. (Article)

Implementing the New 150-Hour Requirement
Now that New York has adopted a 150-hour education requirement for admission to the CPA examination, attention turns to implementation. Schools must have programs in place by 2004, and candidates will be required to meet the new standard by 2009. (Article)

New York Loosens Requirements for Group Returns
The New York State Department of Taxation and Finance recently announced it has amended regulations for filing group personal income tax returns, which will allow more businesses to file such returns on behalf of their nonresident partners or shareholders. (Article)

Career Advice and Candidates Information on New Website
The New York State Association of CPA Candidates' new website, www.cpacandidates.com, is a resource for Association members as well as any individual interested in becoming a CPA. (Article)

Which Parts Should I Take First?
With New York as one of the few remaining states in which a CPA candidate can take fewer than four parts of the CPA exam at the initial sitting, the most common question posed to me is, "Which parts should I take first?" (Article)

New York State Association of CPA Candidates President's Message
he past few months marked significant achievements by the CPA Candidates Association. We have successfully launched the association's website, www.cpacandidates.com, and had a record turnout at this year's Career Fair. (See related stories on page 10 and below.) We also hosted an interviewing workshop, a college mixer, and a management skills seminar. (Article)

Society Meets with Future CPAs
In an effort to strengthen the NYSSCPA's outreach to college students, Society staff and members are more actively participating in career events at New York colleges and universities to inform accounting students about the Society and its affiliate, the New York State Association of CPA Candidates. (Article)

Candidates Career Day Looks to the Future
With the theme "Opportunity 2000," the New York State Association of CPA Candidates' annual Career Day focused on the changing roles of the accounting professional and the future of the profession. (Article)

Proposal Issued on Y2K Engagements
The Auditing Standards Board, acting on the recommendations of the AICPA's Securities Industry Year 2000 Agreed-Upon Procedures Task Force, recently issued Statement of Position 98-8, which provides guidance on Year 2000 agreed-upon procedures attestation engagements pursuant to rule 17a-5 of the Securities Exchange Act of 1934, rule 17Ad-18 of the Securities Exchange Act of 1934, and Advisories 17-98 and 42-98 of the Commodity Futures Trading Commission. (Article)

Y2K Law Offers Disclosure Protection
The Year 2000 Information and Readiness Disclosure Act, signed into law by President Clinton on October 19, limits the liability of any individual or organization that has issued or will issue any public statements or reports that deal with the Year 2000 problem. The AICPA advises that the act may provide CPAs with protection regarding publishing information on how to fix a Year 2000 problem and in situations where a client requests confirmation with Year 2000 process capabilities. (Article)

Fed Economist Issues Warning on New York City Economy
Senior Economist Rae D. Rosen of the Federal Reserve Bank of New York praised New York City's current economy but warned about a possible downturn in the new millennium. Speaking at a November breakfast meeting sponsored by the NYSSCPA Cooperation with Bankers and Other Credit Grantors Committee, Rosen discussed Wall Street's impact on the city and said that although profits may be down 25 to 30 percent in the securities industry, 1998 still rates as perhaps the third best year on record. (Article)

Evolution of the Fourth Level of Service
CPAs have long looked for ways to answer clients' needs for financial information for management's own use, and they have worked to minimize the cost of such services while still adhering to professional standards. Over the years compliance with standards has been difficult and frustrating for many practitioners, but the issue is not new. (Article)

Member Services from A to Z
The NYSSCPA offers members a wide range of helpful services--from professional and technical resources to business and personal products. Below is a list of key membership services, discount programs, and contact information: (Article)

Vision, Mission . . . What's the Difference?
Mission statements, vision statements, strategic planning, core values, core competencies ... to a "brass tacks" profession like CPAs, these seemingly wishy-washy terms can be confusing. What is the difference between a vision statement and a mission statement, and how do they both fit into strategic planning? Although the experts disagree, the basic differences are as follows: (Article)

Members in the News
(Article)

Movers and Shakers
(Article)

Save on Family Disney Vacations
NYSSCPA members planning vacations to Disney World, Disneyland, or Disney's Hilton Head and Vero Beach Resorts can save money with Walt Disney's Magic Kingdom Club card, a free Society membership service. Benefits include: (Article)

Lifelong Learning: Key to a Professional Future
At the core of any profession are the following defining elements:
* specialized knowledge;
* long, intensive preparation;
* instruction in skills and methods and the principles underlying them;
* maintenance of high standards of achievement and conduct; and
* a commitment to continued study. (Article)

Ethics and Regulatins Q&As
The NYSSCPA offers assistance for members' questions on ethics and regulation. Inquiries address a variety of topics such as: (Article)

ASB Rules on Use of Auditor's Report
The Auditing Standards Board issued Statement on Auditing Standards 87, Restricting the Use of an Auditor's Report, which provides guidance to auditors for determining whether an engagement requires a restricted-use report and, if so, what elements to include in that report. The SAS is effective for reports issued after December 31, 1998. (Article)

SEC Director Addresses Enforcement and Accounting Issues
Henry Klehm III, the Securities and Exchange Commission's northeast senior associate regional director, warned CPAs and bankers that the SEC is concerned about the trend toward "earnings management" by public companies, and that the commission is taking steps to strengthen enforcement and public accounting rules. (Article)

GASB Provides Updates on Y2K and Reporting Model Initiatives
The Governmental Accounting Standards Board requires certain Year 2000 disclosures for "mission critical systems" of governmental entities, explained Leslie Galloway of GASB's research department at the November meeting of the NYSSCPA Public Schools Committee. Galloway's remarks were part of a GASB update which also discussed the board's progress on its basic governmental reporting model. (Article)

Public Records Information and the CPA
Public records information can help CPAs perform a variety of services including fraud audits, litigation consulting, business valuations, and vendor and employee screening, among others. (Article)

AcSEC Issues SOP on Insurance Deposit Accounting
The Accounting Standards Executive Committee recently issued Statement of Position 98-7, Deposit Accounting: Accounting for Insurance and Reinsurance Contracts That Do Not Transfer Insurance Risk, which provides guidance on how to account for such contracts. The SOP does not address when deposit accounting, its term for insurance contracts that do not transfer insurance risk, should be applied. (Article)

FAE CPE: Any Way You Want It
The Foundation for Accounting Education offers a variety of services to help NYSSCPA members and other professionals meet their continuing professional education needs. These include: (Article)

Attention: Members in Industry
Get Top-notch Self-Study from Surgent & Associates (Article)

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