New AICPA chairman will build on foundation of quality | U.S. shutdown likely to cut Wall Street's earnings | Engagement partner's "audit style" has impact, study finds
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October 23, 2013
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New AICPA chairman will build on foundation of quality
Source: AICPA
Bill Balhoff, CPA, CFF, CGMA, who began his term Tuesday as the AICPA’s 101st chairman of the board of directors, brings to the role an emphasis on quality service forged by strong mentors and a deep sense of family. Read Balhoff's inaugural address for more information. Journal of Accountancy print issue (11/2013), Journal of Accountancy online (10/22)
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U.S. shutdown likely to cut Wall Street's earnings
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(Michael Nagle/Getty Images)
The partial shutdown of the U.S. government could deprive Wall Street of the strong earnings it was hoping for during this year's second half. Wall Street investment houses brought in $10.1 billion in the first half of 2013. Expectations that the Federal Reserve was to begin tapering also dampened growth for Wall Street. The New York Times (tiered subscription model)/DealBook blog (10/22)
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A&A Report
Engagement partner's "audit style" has impact, study finds
A study of audit work performed by the Swedish subsidiaries of major audit firms found that the audit reporting style of the engagement partner assigned to an account had a significant impact on the audit. The market penalized companies exposed to audit partner reporting decisions that were aggressive, according to the study. Public Company Accounting Oversight Board Chairman James Doty is citing the research as he pushes for a requirement to disclose the names of U.S. public company auditors. Compliance Week/Accounting & Auditing blog (10/22)
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Tax SpotlightSponsored By
2014 tax season will start late
For the second year in a row, the start of tax season will be delayed, the Internal Revenue Service announced on Tuesday. Due to the 16-day government shutdown, the IRS says it needs more time to program and test its systems. However, the April 15 due date is not being pushed back. Journal of Accountancy online (10/22), The New York Times (tiered subscription model) (10/22)
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IRS mistakenly distributed at least $110.8B in earned income tax credits
The Internal Revenue Service erroneously distributed between $110.8 billion to $132.6 billion in earned income tax credit payments between 2003 and 2012, according to Treasury's Inspector General for Tax Administration. An executive order in 2009 called for the IRS to set targets to roll back improper payments, but it hasn't done so yet. The IRS is meeting with the Office of Management and Budget to address this issue. The Hill/On the Money Blog (10/22)
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States' discretionary tax authority can have unpredictable effects on tax returns
Companies can be blindsided by a state's tax agency when it wields its discretionary authority to make adjustments to a return, according to this analysis. In some notable cases, these adjustments have been made in the absence of a supporting law or regulation or administrative guidance. CFO.com (10/22)
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Policy & Regulatory
SEC gives 24-hour notice for crowdfunding rule vote
The Securities and Exchange Commission unexpectedly announced it would hold a vote on proposed crowdfunding rules today. Although mandated under the Jumpstart Our Business Startups Act, the SEC's move was unusual in that only one day's notice was given for the vote. Compliance Week/The Filing Cabinet blog (10/22)
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Data analysis helps SEC uncover abuses
Increased technological power to analyze large swaths of data helped the Securities and Exchange Commission detect a variety of trading violations at securities firms, says Mary Jo White, head of the SEC. The findings from the analysis could prompt the SEC to step up enforcement efforts, experts say. Reuters (10/22)
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International View
India issues draft rules for accounting authority
India's National Financial Reporting Authority, the proposed regulator under the new Companies Act, would have the authority to review audits of companies, including those listed outside India, according to draft rules issued by the Corporate Affairs Ministry. Under the draft rules, the authority also could undertake peer reviews of auditors or audit firms and impose severe penalties, including debarring an audit firm for a maximum of 10 years. The Economic Times (India)/Press Trust of India (10/22)
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Here & There
How some states' measures can unintentionally undermine CPA mobility
CPA mobility laws have been put in place in 49 states and the District of Columbia, but some state legislatures have passed measures that unintentionally counter the push for CPA mobility, according to this post. These measures include the streamlining of military family occupational licensure processes, the creation of film tax incentives that require audits by in-state CPAs, and the growing trend of state tax tribunals in which CPAs represent taxpayers. AICPA Insights (10/22)
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Get an update on the AICPA Fall Meeting of Council
The three-day fall meeting of the AICPA governing Council, which ended yesterday, included professional issue updates from AICPA leadership, the National Association of State Boards of Accountancy and the Private Company Council, as well as guest speakers, including Sal Khan, founder of the Khan Academy. Various awards were also presented and a new Chairman of the AICPA Board of Directors was elected. Read a full summary of the Council's activities in this special issue of AICPA News Update.
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SmartQuote
The man who offers an insult writes it in sand, but for the man who receives it, it's chiseled in bronze."
-- Giovannino Guareschi,
Italian journalist
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About AICPA
The American Institute of CPAs is the world’s largest member association representing the accounting profession, with more than 394,000 members in 128 countries and a 125-year heritage of serving the public interest. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for the profession and U.S. auditing standards for audits of private companies, non-profit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination and offers specialty credentials for CPAs who concentrate on personal financial planning; fraud and forensics; business valuation; and information technology. Through a joint venture with the Chartered Institute of Management Accountants, it has established the Chartered Global Management Accountant designation to elevate management accounting globally.
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AICPA Service Center
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Durham, NC 27707-8110
Phone: 888.777.7077
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