March 1997 - Journal of Accountancy

EXECUTIVE SUMMARY AUDITOR LITIGATION RESEARCH SHOWS that auditors encounter a significant level of weak claims and engage in costly activities to dispose of these weak claims. DEFENDING AGAINST WEAK LAWSUITS is a difficult, time-consuming and financially burdensome experience. The average weak claim costs $3.7 million to defend against and 3.7

EXECUTIVE SUMMARY PUBLIC COMPANIES ARE increasingly putting their annual reports and other financial information on their Web sites, where extra room and hyperlinks provide many options. AS YET, THERE IS LITTLE SEC or other guidance, although the AICPA auditing standards board has issued an interpretation on electronic sites for audited

EXECUTIVE SUMMARY THE BENEFITS OF ACTIVITY-BASED costing are well documented. Less well known are the substantial income tax savings that some companies can achieve if ABC is used to determine taxable income. TAX SAVINGS COME FROM TWO MAJOR sources. There will be savings if some of a company’s products use

EXECUTIVE SUMMARY BECAUSE THE INTERNAL REVENUE Code and Treasury regulations do not adequately address several fundamental issues concerning deficiency notices, the Internal Revenue Service has been involved in considerable litigation with taxpayers. A NOTICE OF DEFICIENCY is a letter from the IRS stating the amount of a taxpayer’s deficiency and

EXECUTIVE SUMMARY BUILDING SKILLS IN technology is important. The new computer tools make CPAs more productive and valuable as professionals. Here are five technologies that CPAs in all areas of the profession should be using: WINDOWS 95 OR NT : The major benefit of the new Windows operating systems is

As reengineering, streamlining and downsizing rage across the corporate landscape, the job of the internal audit department frequently becomes harder. With fewer people in place inside and outside the department, ensuring the accuracy of financial information turns into an even greter challenge. At Praxair Inc., a $4 billion industrial gases

JOIN THE REVOLUTION An information revolution is occurring, one that profoundly affects CPAs. It frees information from paper and puts it where it is needed most-on the screens of computer users. At the heart of this revolution is the World Wide Web (the Web), a medium that brings a vast