October 1998 Issue

October Features:

The New CPA-Client Privilege: A Mixed Blessing

By James A. Woehlke and Stephen A. Pascarella II  (Article)

CPAs and other tax advisors who are authorized to practice before the IRS have been extended a new privilege by the 1998 act. Just like lawyers, their conversations and dealings with taxpayers, if done properly, will be protected from discovery in certain legal proceedings. But the catch is "done properly." Also, it affords no protection in criminal proceedings.

New Accounting for Derivatives and Hedging Activities

By Arlette C. Wilson and Ronald H. Rasch  (Article)

FASB has finally issued SFAS No.133 to address the problems in accounting for derivatives. The new model seeks to increase derivatives' transparency and comparability, eliminate inconsistency in current accounting, and provide comprehensive guidance for future products; however, the statement is not without its critics.

Ethical Issues Facing CPA Tax Practioners

By Scot A. Yetmar, Robert W. Cooper, and Garry L. Frank  (Article)

Accounting professionals have long recognized the need for high ethical standards; the authors put that commitment to the test. Their survey of 1000 tax professionals reveals a respect for these standards, and reminds that constant education is necessary to maintain the profession's high standing.

Trends in Human Resources

By Janice Maiman  (Article)

The workplace of the future will be a very different place than it is now, and CPAs need to be prepared. The author stress the importance of technological fluency, a service orientation, and the flexibility to change.

AICPA Competency Model for the New Finance Professional

By Mary Jane Scott  (Article)

In recognition of the demands on CPAs in industry, the AICPA has created the "Competency Model for the New Finance Professional." The model identifies the attributes and competencies that today's CPAs in industry need to remain relevant in an increasingly complex business environment, and can be used in self-assessment, education, and career development.

The New Single Audit

By Venita M. Wood and Deborah A. Koebele  (Article)

For many years, single audits have been required for many governments and not-for-profit organizations receiving Federal funding. A new, risk-based approach is designed to make the process more and effective. The authors examine these significant changes in requirements and methodology brought about as a result of OMB Circular A-133 and SOP 98-3.

October Departments:

Accounting

New standard on accounting for start-up costs  (Article)

Auditing

1998 audit interpretations to date  (Article)

Estates and Trusts

Tax Court guidance regarding welfare benefit plans

The CPA in Industry

Five fundamental principles of employment practices liability  (Article)

IRA Planning

Roth IRAs--technical corrections  (Article)

Federal Taxation

New letter ruling procedure for environmental cleanup cost issues  (Article)

Personal Financial Planning

An accountant's guide to the major legal issues affecting hedge funds  (Article)

October News & Views:

Salary roundup puts CPAs near the bottom of the list  (Article)

Internet to replace print as business news source  (Article)

Craig appointed editor-in-chief  (Article)

IRS issues stunning confession about use of exam statistics  (Article)

IFAC survey finds most countries aren't ready for Y2K   (Article)

The implications of American Express on SSARS  (Article)

National Society of Accountants takes leading position on behalf of UAA  (Article)

CPAs can learn from judge's pet peeves  (Article)

IRS rules QSST's taxable on deemed sale  (Article)

Wolitzer honored by Long Island University  (Article)

Recent developments in non-cpa ownership of cpa firms  (Article)

University students prepare to compete in seventh annual Arthur Andersen Tax Challenge  (Article)

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