Preview: August 2003 Issue




Tax Shelters Under Attack

In response to public pressure and evidence of abuse, the IRS has been aggressively pursuing the purveyors of questionable tax shelters. The IRS's main tactic is using recently passed disclosure requirements to find shelter techniques and customers. Accountants that offer legitimate tax services should take advantage of this fact and work with the IRS. (Article)

The 150-Hour Requirement and CPA Quality

Is the 150-hour requirement producing better CPAs? The authors surveyed the quality of new CPAs in a state that recently adopted the expanded requirement. They found some evidence that the requirement is working as intended, but there are also disadvantages. (Article)

Disclosing Cash Balance Formulas

Cash balance pension plans can raise a number of issues that should be properly addressed in a company's financial statements. The authors recommend full disclose of a company's cash balance formula, including the interest rate, the payment options available to vested employees, and the company's method for handling the "wear away" effect. (Article)

Internal Audit Outsourcing

Both the appearance and fact of independence is imperiled when external auditors also provide internal audit services. As more large firms assumed internal audit responsibilities, a significant financial reporting fraud on the lines of the Andersen/Enron debacle probably became inevitable. To minimize the chances of more such problems, stricter rules dividing the internal and external audit functions should be required. (Article)

Business Combination Purchase Price Allocation Procedures

Many companies will be using the provisions of SFAS 141 and 142 as they allocate the purchase price of acquired assets. The authors go through an example of the process of valuing the intangibles, and using those valuations in determining the purchase price allocation. (Article)



The CPA in Industry

Cost tracking for nursing home management (Article)


What incoming business students think of CPAs (Article)
African American CPA exam candidates: Participation and performance (Article)

Personal Financial Planning

Tax changes for small business owners (Article)

Corporate Finance

Venture capital: Financial and tax considerations (Article)

State and Local Taxation

New York State 2003/04 budget (Article)

Federal Taxation

Allocation of purchase price for tax purposes (Article)

Guest Editorial

Educating for the public trust (Article)
By Paul M. Clikeman


News & Views

Accounting profession, heal thyself: A matter of survival

Publisher's Column: COAP: Providing a foundation for the future

Intellectual property management tips

Building brand loyalty

Boosting productivity with speech recognition systems

An accounting sense of humor

Book Review: Inside Arthur Andersen: Shifting Values, Unexpected Consequences

Website of the Month: AuditNet

Letters to the Editor: Memo to the accounting profession: Accept change as inevitable ... Going a step further toward auditor independence ... What International Accounting Standard 7 leaves out ... Remembering Emmanuel Saxe


The CPA Journal is broadly recognized as an outstanding, technical-refereed publication aimed at public practitioners, management, educators, and other accounting professionals. It is edited by CPAs for CPAs. Our goal is to provide CPAs and other accounting professionals with the information and news to enable them to be successful accountants, managers, and executives in today's practice environments.

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