August 2001 Articles

AICPA Teaches the XYZs, but Questions Remain

NEW YORK— The American Institute of CPAs this month stepped up its campaign for the controversial XYZ global credential, as the three-year, $5 million initiative hurdles toward a November vote. (Article)

New York Courts First in Nation to Directly Address MDP Regulation for Lawyers and Law Firms

NEW YORK—On July 24, the four Appellate Divisions of New York’s Supreme Court jointly adopted new rules that will allow, yet regulate, contractual relationships between lawyers and nonlegal professionals for the purpose of offering to the public, on a systematic and continuing basis, legal services by the lawyer or law firm and nonlegal professional services by the nonlegal professional or nonlegal professional services firm. (Article)

Pitt Confirmed as New SEC Chair

WASHINGTON—Securities lawyer Harvey Pitt was confirmed by the U.S. Senate as the new commissioner for the Securities and Exchange Commission earlier this month. (Article)

President's Commentary

Everything I needed to learn to live life well, I learned in kindergarten. While this might sound a little far-fetched, there is inherent truth to the statement. (Article)

Society Invites Candidates for 2002 Nominating Committee

Article IX of the New York State Society of CPAs bylaws contains the procedures for Nominating Committee selection. A copy of the bylaws can be obtained at www.nysscpa.org/society/bylaws.htm or by contacting Society staff. (Article)

A Fable

Once upon a time, in a kingdom far, far away, it was decided that testing the queen’s food was too important a task to be left to just anyone who was willing to provide that service. (Article)

. . . And Throughout the Kingdom, Prosperity Reigned

Before the vote was taken, many CRTs had already begun to realize that there was a need for CRTs to think about the future of their profession. Indeed, even the CRTs from the distant and remote places now recognized that food tasting would not be a task that would be forever done manually by testers. New technology now enabled those tasting tasks, originally done by the tasters, to be done by the royal court with the aid of the new TurboTaste computer analysis. (Article)

Is the XYZ Really Your Vision?

I cannot ever remember waking up from a dream and saying to myself: “The CPA designation is not good enough; I need to be a globally credentialed Cognitor.” (Article)

Closing the ‘Expectation Gap’: Pros and Cons of Limiting Liability Language in Engagement Letters

Engagement letters are superb tools for managing client expectations. The process of clearly defining and coming to mutual agreement about the scope of a job is one of the essential benefits. (Article)

Society Tackles Exposure Drafts, Makes Recommendations to AICPA and GAO

As hot button accounting issues like the model UAA bill, the proposed global credential and the recent MDP ruling continue to steal the spotlight, the New York State Society of CPAs believes that its membership should also be kept abreast of Society initiatives that take place behind the scenes. (Article)

Society Updates Press on New Tax Legislation

Though the new estate tax law is slated for complete repeal in 2010, there are five congressional and two presidential elections that could say otherwise. (Article)

AICPA Workload Compression Relief Proposal Slated for End of Year

The American Institute of CPAs is currently working on a legislative proposal for workload compression relief that the Institute hopes will have a congressional sponsor by the end of the year. (Article)

In Memorium (Article)

NYSSCPA.ORG Use Growing in Popularity

The NYSSCPA.ORG website is averaging more than 1.5 million hits per month and even topped 2 million hits a few months ago, indicating that the site is growing in popularity with New York State Society of CPA members, according to recent figures compiled by independent tracking software. (Article)

Moving Toward a Company Policy on Electronic Communications

As employers become aware of the potential for abuse of their electronic communication system, more and more are monitoring e-mail and Internet usage by their employees. (Article)

Letters to the Editor

The guest commentary in the April 2001 issue, “The E-Business Downturn and CPAs,” by Bruce Nearon, was very timely. It contained many useful points and I’m sure was relevant for many readers, not just as auditors but also as individual investors in e-businesses themselves. (Article)

Calling All CPA Poets

The masses seem to think that it’s a contradiction to speak of CPAs and the arts in the same breath. I discovered this perception when I published a book of poetry earlier this year. Great surprise was expressed because of my profession—all the more reason that we use every forum available to share with the world our artistic skills. (Article)

New Tax Law Brings Challenges and Opportunities to Small and Family Businesses

Tax breaks for businesses took a back seat this year in Washington as Congress and the White House finalized a tax cut package aimed at individuals. (Article)

Why I Joined the Entertainment and Sports Committee

Well folks, it’s that time of year again. No, I am not talking about picnics, warm sunny days, or the mad rush to get our required CPE credits before the Aug. 31 deadline. At this time every year, the New York State Society of CPAs asks its members to perform one of the most important functions they can: active committee membership. It is a function that benefits members, the Society, and the public at large. At one time I did not think this was true. (Article)

The CFO’s Role in Managing Employment Practices Liability Exposures

Three recent U.S. Supreme Court rulings, coupled with the recent highly publicized Wal-Mart, Coca-Cola, Texaco, Miller Brewing Company, and Salomon Smith Barney cases, have increased the need for CFOs to reevaluate their organizations’ approach to addressing the financial impact of allegations of sexual harassment, discrimination, and wrongful termination. (Article)

Industry Profile (Article)

Budget Discussion Tops Conference

Changes in cash flow persuade financial officers in diverse industries to create highly flexible budgets, often with contingency plans to cover hard times, a recent New York State Society of CPAs panel discussion indicated. (Article)

Expert Speaks on Tax Credits and Compliance

Processing payroll is particularly taxing on the hospitality industry, requiring businesses to take heed of regulations that are subject to change every year, according to a restaurant payroll expert who spoke at a recent New York State Society of CPAs meeting. (Article)

COAP Concludes Another Successful Residency Program

Networking, goal-setting, and oral communication were among the skills learned by 55 students at Pace University and 40 students at Hofstra University during the intensive sessions of a summer accounting residency program. (Article)

Society Launches Career Center

The New York State Society of CPAs has always touted networking as one of the best reasons to become a member, but the debut of its new career center at www.nysscpa.org means that networking at the Society has taken on a whole new dimension. (Article)

Website FAQs (Article)

ZDNet AnchorDesk

ZDNet is a wholly-owned subsidiary of CNET Networks, Inc. (Nasdaq: CNET), a global source of technology and commerce-related information, data, exchanges and services. (Article)

Letter to the President

I read your President’s Commentary in The Trusted Professional for June 2001. I applaud you on your stance in regard to the survey sent out by the State Education Department (SED) to all the CPAs in New York state regarding many issues affecting the accounting profession. (Article)