December 2009 - Journal of Accountancy

It’s Friday at 4 p.m., seven days before the filing deadline for an SEC registrant’s annual financial statements. The general counsel has just received a detailed but anonymous email alleging improper revenue recognition at the company’s Chinese subsidiary and must decide what to do next. This scenario, enough to panic

The aim of the risk assessment auditing standards was to improve the quality and effectiveness of audits by substantially changing audit practice. Statements on Auditing Standards nos. 104–111 provide increased rigor to the audit process in a number of key areas including the assessments of inherent and control risks and

From seeds sown 40 years ago this month in a gathering of accountants in the living room of CPA Frank Ross, the National Association of Black Accountants (NABA) has grown to more than 50 professional and 150 student chapters nationwide. To succeed, it has had to reach consensus on its

In July 2009, the International Accounting Standards Board (IASB) released International Financial Reporting Standards designed for use by small and medium-sized entities (SMEs). IFRS for SMEs is a self-contained, standalone set of financial accounting and reporting standards. Along with the standards, the board released implementation guidance, such as example financial

Another tax season is coming and with it come renewed vows of “going paperless”—or at least going in that direction. The CPAs who have gone completely paperless—scanning in the beginning of the process, using triple monitors so the third screen replaces the physical source docs and essentially never touching a

Following an initial customer confirmation request with no response, a first-year auditor mails a second and third request, all under the supervision of the auditor-in-charge assigned to the account. Field work begins on the audit, but there is still no response from the customer. Another auditor scanning the cash journal

Preparers of private company and not-for-profit organization financial statements will have to implement provisions of Topic 740 of the FASB Accounting Standards Codification (ASC) relating to accounting for uncertainty in income taxes (formerly FASB Interpretation no. 48, commonly known as FIN 48) for annual financial statements for periods beginning after

The JofA and The Tax Adviser conducted a survey of their readers to determine what aspects of their tax preparation software they like and what they dislike. The survey, which received 9,776 responses, was carried out in late June and early July 2009. Of the 13 products identified for the