Trusted Professional - NYSSCPA

Vol. 15 No. 10 • October 2012 The Newspaper of the New York State Society of Certified Public Accountants www.trustedprofessional.com

Trusted Professionalhe

President’s Commentary .....2Newsmaker .........................3Industry ..............................7Tech..................................12

Chapter News....................24 FAE Listings ......................27Classifieds ........................30NYSSCPA

n e w y o r k s t a t e s o c i e t y o f

c e r t i fi e d p u b l i c a c c o u n t a n t s

www.nysscpa.org

AdirondackManhattan/BronxMid Hudson

NassauRocklandSyracuse

CHAPTERS INSIDE:

See Breakfast Briefing, on page 4See Fiduciary, on page 4

BY CHRIS GAETANOTrusted Professional Staff

Though the Patient Protection and Affordable Care Act(PPACA) was signed into law in 2010, many of its moresweeping effects have yet to be implemented and,indeed, legal challenges made it uncertain whether

major parts of the act would be implemented at all. TheSupreme Court upheld the constitutionality of the reform act,for the most part, in June; however, GOP presidential candi-date Mitt Romney has promised to repeal the law if he is votedinto office. Whatever the outcome, the PPACA is leading tobig changes in many areas of the economy.

To assess how some of these changes may play out, theNYSSCPA convened a panel of experts during a Sept. 5 break-fast briefing entitled, “SCOTUS Approved: The AffordableCare Act―What It Means for Your Clients and Business.” Thepanel was moderated by Trudy Lieberman, contributing editorto the Columbia Journalism Review, and included NYSSCPAPast President and tax planning specialist David A. Lifson;Shawn J. Nowicki, director of health policy at the NortheastBusiness Group on Health; Les Funtleyder, president ofPoliwogg’s Investment Advisory Division; and Charles W. F.Bell, programs director for the Consumers Union, which pub-lishes Consumer Reports magazine.

One of the changes that will come with the implementa-tion of the health care law will be the introduction of a num-ber of new tax provisions, such as the increased Medicaretax on high earners. Among the first of new levies to be intro-duced, it will take effect Jan. 1, 2013, with single peoplemaking more than $200,000 and married couples makingmore than $250,000 seeing a .9 percent tax increase on theirwages, according to Nowicki.

However, not all of the act’s tax provisions occur in thefuture. Bell noted that the small business tax credits thatcame with the bill are available right now: Employers withunder 25 full-time employees with average annual wages of$50,000—not counting the wages of the owner or their fam-ily—can qualify for a credit of up to 35 percent, providedthat the employer pays at least 50 percent of his workers’premiums, Bell said. He brought up the case of a bagel shopowner from Utica, who utilized the act’s 35 percent tax cred-it to increase the contribution to his employees’ premiumsfrom 50 percent to 65 percent, as an example of the type ofsmall business that could benefit from this credit. However,while 81 percent of small businesses in New York state areeligible for the credit, fewer than expected have claimed it,mainly because they simply don’t know about it, he added.

Reflecting on the numerous tax provisions that will comewith the act, Lifson wondered whether the IRS, which has beencharged with overseeing many parts of the law’s implementa-tion, has the capacity to handle the responsibility. He said thatthe service’s staff has been working for two years on writingthe numerous regulations connected with the act, which takestime away from tasks such as answering matching notices.

For example, the IRS will also need to administer the newpremium tax credit in 2014, which facilitates the purchase of

Experts talkhealth reform atbreakfast briefing

NYSSCPA warnsagainst changing definition of ‘fiduciary’

Society weighs in on 3AICPA exposure drafts

NYSSCPA Past President David A. Lifson, left, addresses fellow panelists at the Society’s Sept. 5 breakfast briefing.


T he NYSSCPA is urging Sen. Kirsten Gillibrand (D-N.Y.) to cosponsor a bill that would protect CPAsfrom being considered fiduciaries, that is, as someoneresponsible for the administration of property owned

by others, under the Employee Retirement Income SecurityAct (ERISA). The Society made its appeal in a letteraddressed to the senator on Aug. 16.

The bill, S.1232, was written in response to a proposedrule change from the Department of Labor (DOL) in 2010that would expand the definition of fiduciary to mean onewho provides investment advice to pension plans for a fee orother compensation. The DOL proposal is intended to pro-tect plans, participants and beneficiaries from conflicts ofinterest, according to a press release issued at the time. Thedepartment has argued that the current rules inappropriatelylimit its ability to do so.

The Society’s letter, however, warned that this might holdnegative consequences for CPAs because their valuationactivities in service of employee stock ownership planswould cause them to fall under the definition of a fiduciary,which would lead to a shift in the fundamental nature oftheir activities with such plans.

“CPAs would be required to abandon the current purposeof their appraisal–attempting to find the most likely fair mar-


T he NYSSCPA expressed its general support for a seriesof AICPA proposals regarding audit data, the simplifica-tion and clarification of compilation and review stan-dards, and the association’s ethics standards, in three

comment letters published in August and September.The letter regarding ethics standards, which was drafted

by the Society’s Professional Ethics Committee, was inresponse to the AICPA exposure draft Proposed Revised andNew Interpretations and Proposed Deletion of EthicsRulings, which was released in June. The draft is intended to address a perceived inconsistency within Interpretation101-3, regarding the independence of the CPA.

Specifically, the AICPA is proposing to add a provision toits ethics rules that would emphasize how providing multiplenon-attest services to a client could increase the significance ofthreats to independence, even if each individual service doesnot, itself, impair independence. The NYSSCPA, in its com-ment letter, expressed support for this addition, agreeing thatthe cumulative effect of providing multiple non-attest servicescan be problematic with regards to independence if there arenot multiple safeguards to eliminate or reduce such a threat.

For example, the letter said, if a CPA provides multiple non-attest services to an attest client, it could be construed that theattest client has a dependency on the CPA. Conversely, basedon the aggregation of non-attest fees, a CPA may lose or maybe perceived to lose his or her objectivity.

“If the practitioner provides too many permissible nonattestservices, the cumulative effect may cross the line in the eyes of

See AICPA, on page 4

Society leaders met in Albany duringSeptember for the NYSSCPA’s firstannual Governance Forum. As afocused event attending to the busi-

ness of running the Society, the GovernanceForum brought together members of our Boardof Directors, FAE trustees, chapter president-elects and Political Action Committee trustees.By consolidating these important face-to-facemeetings into two days, we were able toachieve significant cost savings and also createa streamlined and efficient program, allowingattendees to exchange ideas and build a rap-port with one another through networkingopportunities and targeted work sessions.

Attendees were armed with information onupcoming legislative issues the Society will beaddressing, and resources to bring back tomembers at home. Incoming chapter presi-dents-elect received tips on chapter businessfrom NYSSCPA President-elect J. MichaelKirkland; learned how to run a chapter boardfrom past chapter presidents Greg Altman andBarbara Marino; and picked up some lessonson leadership from Marilyn Pendergast, a

past president of theNYSSCPA.

The forum also fea-tured an enhanced focuson the importance of the NYSSCPA’s PoliticalAction Committee, whichallows the collective voiceof the NYSSCPA to beheard in Albany. (Formore information on thePAC, talk to your chaptertrustee, listed on the nyss-cpa.org website under theGovernment Affairs tab.)Of particular value wasthe opportunity to con-nect the dots on how sup-porting our PAC speaks toleaders in Albany, not only with respect toannual donations but—more importantly—in regard to overall constituency representa-tion. To that end, we had an opportunity tocollect funds for the PAC. I would like tothank all who contributed and ask that all

Society leaders considermaking such a contribution.

The forum was also atime for the Board ofDirectors to take criticalvotes that moved importantSociety issues forward,including adoption of formalresolutions accepting thecombined audited financialstatements for the fiscal yearending May 31, 2012. In itsindependent auditors report,the NYSSCPA’s auditor,Friedman LLP, stated thatthe combined financialstatements were, in all mate-rial respects, fairly present-ed. The board also approved

a new government relations plan and author-ized Executive Director Joanne S. Barry tonegotiate lease transactions on behalf of theboard, in order to facilitate the organiza-tion’s relocation in August 2013; you will bereading more about these critical votes in the

next issue of The Trusted Professional.Following an open Board meeting, membersobserved proceedings and were able to takeadvantage of the opportunity to share ques-tions and concerns they had, although com-munications with Society leadership canoccur at any time through your chapter andcommittee leaders, or me. My email addressis listed below.

Throughout the forum, I was reminded ofwhat can be accomplished in an atmosphereof trust, mutual respect and shared commit-ment to a common cause. I was also remind-ed of why the Society has been able to makesuch tremendous gains over the past fewyears, when a difficult economy has crippledother organizations: because our leaders arededicated to representing our members andthe public we serve.

[email protected]

2 www.trustedprofessional.comOPINIONThe Trusted Professional / October 2012

PRESIDENTGail M. Kinsella, CPA

PRESIDENT-ELECTJ. Michael Kirkland, CPA

SECRETARY/TREASURERScott M. Adair, CPA

VICE PRESIDENTSSherry L. DelleBovi, CPADavid Evangelista, CPASuzanne M. Jensen, CPAAnthony J. Maltese, CPA

EXECUTIVE DIRECTORJoanne S. Barry

DIRECTOR OF COMMUNICATIONS

Colleen Lutolf

EDITORNicole Saunders

STAFF WRITERChris Gaetano

COPY EDITORSGene Cioffi

Christopher Davis

EDITORIAL ASSISTANTAnna Rakovsky

ART DIRECTORLarry E. Matthews

GRAPHIC DESIGN Sara Gold

GRAPHIC DESIGN MANAGERErnesto Darío Lara

Permission to reprint The Trusted Professional articles is grantedwith few exceptions. Written requests indicating title, author, pub-lication date and intended use of the reprint should be made priorto each use by contacting the editor at 3 Park Avenue, New York,NY 10016-5991, 212-719-8321, or [email protected].

Views expressed in articles printed in The TrustedProfessional are the authors’ only and are not to be attributed to the publication, its editors, theNYSSCPA or FAE, or their directors, officers, oremployees, unless expressly so stated. Articles contain information believed by the authors to beaccurate, but the publisher, editors and authors arenot engaged in rendering legal, accounting or otherprofessional services. If specific professional adviceor assistance is required, the services of a competentprofessional should be sought.

T he New York State Society of CPAs and The TrustedProfessional greatly value editorial contributionsfrom our members, readers and those affiliated withthe accounting profession. Additionally, we are

happy to publish pertinent ads and notices. To ensure thateach issue of The Trusted Professional is distributed on atimely basis, we have issued the following deadlines bywhich such materials must be received:

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The Trusted Professional (USPS 017-482) is published on the 1st of each month, by the New York State Society of Certified Public Accountants, 3 Park Avenue, New York,NY 10016-5991. Copyright © 2012 by the New York State Society of Certified Public Accountants. The NYSSCPA retains the copyright on all material. Subscription Rate:members $15, nonmembers $20. Periodicals postage paid at New York, N.Y., and additional mailing offices. POSTMASTER: Send address changes to The TrustedProfessional, 3 Park Avenue, New York, NY 10016-5991, Attn: Subscription Department.

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PRESIDENT’S COMMENTARY

Are you an NYSSCPA member interested in writing for The Trusted Professional?

No matter what your practice area, The Trusted Professional might be interested in publishing your work. All published stories

should be between 700 and 1,500 words in length and must follow Associated Press—not academic—style guidelines. Submitted

stories should be geared toward the education and general interests of the readership. Articles written to sell a service or to

promote a business or office will not be considered. Final acceptance of material submitted for publication is at the editor’s

sole discretion. Interested members should email Nicole Saunders at [email protected] for more information.

Interested in Writing for The Trusted Professional?

Gail M. Kinsella

Governance Forum: Leadership in Action

www.trustedprofessional.com 3The Trusted Professional / October 2012

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Risk ManagementHow to handle a nonpaying client

Page 11

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TechKeeping sensitive documents

out of the wrong hands

Page 12

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Career

Positioning yourself for a promotion

Page 13


CPAs engaged in atax dispute withthe state are likelyto become famil-

iar with the Bureau ofConciliation and MediationServices (BCMS). An inde-pendent unit that reportsdirectly to the commission-er of the New York StateDepartment of Taxationand Finance, it was createdto resolve taxpayer dis-agreements with bills ornotices in a less costly andless formal setting than taxcourt. Though it’s notmandatory—CPAs canelect to go straight to theDivision of Tax Appealsfor a hearing—some 90percent of all cases start here, with the bureau seeing upwardsof 6,000 cases a year. Trusted Professional staff writer ChrisGaetano recently spoke with Kevin R. Law, BCMS directorsince 2011, about the ins and outs of the bureau and how it’sadapting to address taxpayer concerns.

What are the bureau’s biggest priorities right nowand what is it doing to meet them?

My first priority is to move cases faster through thepipeline and, along with that, get them fully resolved atBCMS. Or, if they cannot be resolved, to narrow the issuesthat need to be addressed at the Division of Tax Appeals.Tax Appeals has quite a backlog of cases, and adding to itisn’t in anyone’s best interests—not the state’s, not the tax-payer’s, not the tax department’s. The second priority is tohave online filing capability, which we are testing rightnow. It should be up in a couple of months. As long as thetaxpayer has an online service account, they would havethe ability, if they receive a statutory notice, to file arequest for a conference online. The third priority is just tomake sure that we give all taxpayers a fair shot if they geta statutory notice they don’t agree with. The feedbackwe’re receiving now is very positive. When I first came onboard, the feedback that the commissioner, the executivedeputy commissioner and I were receiving was that BCMSwas merely a rubber stamp of the audit division. While weare part of the tax department, BCMS is independent. Wedon’t report to the audit division—we report directly to thecommissioner.

Were any changes made in response to thatcriticism?

I’ve spoken to the bureau’s mediators and told them, firstand foremost, our job is to mediate a resolution. But if a res-olution can’t be reached, then you are to make a decision. Ifyou feel the tax should be sustained, then sustain it; if youfeel it should be modified, then modify it; if you feel itshould be cancelled, then cancel it. The mediators are theones there to make the decision, not the auditors, not the tax-payer. They are to listen, keep an open mind and take the lawand facts and principles of justice and equity into account,but they must make a determination. We’ve also gotten a lotof cooperation from the audit division. The director, NonieManion, has instructed her staff to be more amenable toresolving matters at the conference level because, as we said,it makes no sense to have these cases move any further thanBCMS, although I understand that some just can’t beresolved for whatever reason.

While speaking at a recent conference, TaxCommissioner Thomas H. Mattox said that themajority of cases that go before BCMS usuallyend up in favor of the taxpayer while, in con-trast, the majority of those that go before thetax court usually end up in favor of the state.Why would you say this is so? Is it a differencein approach?

We’re going to try to resolve as many cases as possible atBCMS. We resolve almost all the easy cases and most of thetough cases. The ones that don’t get resolved—meaning eitherfully sustained or [where] there’s a modification that’s notgood enough in the taxpayer’s mind—are going to taxappeals. That’s a very formal process, like court. Rules of evi-dence don’t generally apply, but there’s a court stenographer;you have to enter evidence into the record; there’s testimony,briefs, etc. ... and the burden of proof needs to be clear andconvincing. If there are questions, generally, tax appeals willfind the taxpayer did not meet the burden of proof.

What is the most common type of case thatyour department mediates?

About 45 percent of them are income tax cases, another45 percent are sales tax cases, and the rest are a mix of cor-porate franchise and miscellaneous tax cases. Most of thecases that get resolved prior to conference are income taxcases, generally your desk audit type cases, itemized deduc-tions, etc. The ones we see more of are your sales tax fieldaudit cases. We see quite a bit of audits of bars, restaurants,

delis—your typical cash-based businesses where taxpayersdo not have books and records or adequate books andrecords, so the auditor is forced to resort to an indirectmethodology.

How long does a mediation typically last? Historically, it has taken about three to four months to get

a conference scheduled and assigned to a conferee, and thentwo or three months after that to actually get some sort ofresolution. Right now, we’re looking at two or three monthsto get a case scheduled, but it also depends on the case andthe location as well. If it’s a case that’s in the new MetroTecharea regional office, they won’t be out at two months, but alittle longer than that.

What are some of the things you’re doing tospeed up the process?

We try to get through cases a little faster as a matter of prin-ciple. We keep certain cases on a hold in the hopes that theaudit division would resolve them without a conference.Human nature being what it is, sometimes taxpayers willignore requests but then make them more of a priority oncethere’s an actual statutory notice out there with a dollar amounton it. That’s generally when a lot of information the audit divi-sion was initially looking for gets produced. Historically, wekept some of those cases on hold for few months before sched-uling, but we've cut that time in half. We’ve spoken with the

audit division and said, this is what we’re going to do and let’ssee if we can work together to get these things resolved.

How involved, generally, are you with cases? There are 6,000 to 7,000 cases coming in, so I’m not

involved in every one of them, but I have an open door policy ifthe mediators want to talk about a case. They are then to reportback to me. The other thing they are to report on is if they seesimilar types of cases coming through. Sometimes, we’ll seecases we think aren’t in the best interests of the tax department,the state or taxpayers, and ask why do we keep getting thesetypes of cases? We have reporting mechanisms that I will use toreport back to the commissioner and the director of the auditdivision and say, here’s what we’ve been seeing, we don’t thinkthis is either legally correct or we don’t think it works, andmaybe someone should look at that and some new policiesshould be set. Though we’re not bound to the audit division andwe report to the commissioner, to an extent, we are involved insome of the policy making.

Can you give an example? We were concerned with the earned income tax credit

cases. With a lot of the taxpayers who were eligible forearned income tax credits, it seemed to us that the audit divi-sion was taking a very hard-and-fast rule on what wasacceptable as far as documentation for proving income orexpenses for dependent childcare credits. So, I went back tothe commissioner with the taxpayer rights advocate, and afew changes were made. Right now, there is no taxpayerrights advocate, but the office is still functioning, so I willtalk to staff there as well about cases.

Are the mediators mostly people with tax backgrounds?

Well, all [of them] were team leaders, which is not yourfirst-line auditor, but they were supervising auditors andtechnicians at civil service grade 23. Most come in at [civilservice] grade 18 and, if they get promoted, they get to grade23. We look for personality. It is a big, big component, hav-ing someone who can work with the taxpayer—not onlywith low-income taxpayers, but highly skilled taxpayers.The second thing we look at is skill set—what is their taxbackground and how knowledgeable are they? It helps ifthey have been advocates for the department and we’ve seenthem in action. We take the cream of the crop, as far as we'reconcerned.

What’s one thing that every CPA should knowabout BCMS?

One thing everyone should know is that the time frames areabsolute. On that statutory notice, there will be a time framewithin which you must ether request a conference or file a peti-tion for tax appeals. One day late is not good enough. That’sthe biggest thing; we see a lot of cases where the taxpayer doesnot file timely for whatever reason.

[email protected]

Newsmaker: Kevin R. Law, Bureau of Conciliationand Mediation Services director

“When I first came on board, the feedback that the commissioner,the executive deputy commissioner and I were receiving was that

BCMS was merely a rubber stamp of the audit division.”

–Kevin R. Law

Kevin R. Law

plans bought on the health insurance exchangesthat, as part of the act, are to be set up through-out the country starting that same year,Nowicki said. The exchanges are meant to be aone-stop shop for buying health insurance,which allows consumers to make comparisonsbetween plans so as to encourage competitionbetween companies and creates a single riskpool for individual and small group markets.Nowicki pointed out that the exchanges are acenterpiece of health reform, and while theywill initially only be open to small groups—those with 1 to 100 employees—in 2017, larg-er groups will be able to access them as well.

Some states are already working on settingup their exchanges. Connecticut has the mostadvanced exchange in the country so far,Nowicki said, having set it up more than a yearago as an active purchaser that will negotiate toget high-quality and low-cost plans.Connecticut has already hired staff, but stillneeds to do a lot of the policy and businessprocess work before opening next year for itstest launch. New York state established its ownexchange, housed in its Department of Health,

through executive order during the 2012–2013budget cycle after legislation doing so stalled incommittee, though much work is still requiredfor implementation, such as hiring staff, build-ing the information technology infrastructure,and applying for federal exchange certification.New Jersey, Nowicki added, is at a standstill:While the executive branch is studying the proj-ect, legislation that would formally establishthe exchange was vetoed by the governor thispast May.

While one audience member noted that,except for the past year, health care costs haveonly been increasing since the passage of thelaw, Bell said that small businesses may seebenefits in a reduction in administrative costsassociated with maintaining a health care ben-efits package program for their employees.

“This could provide relief of the adminis-trative burden for small businesses withfewer than 10 employees,” he said, addingthat the exchanges could provide “de factoHR services for them.”

Beyond taxes and exchanges, the reform actwill also have an impact on the industry itself,

said Funtleyder. Since the Supreme Courtdecision, he said, there have already been threemajor mergers and acquisitions in the healthcare industry, and this is likely to continue;while it’s not strictly on account of the reformact, he said that it has accelerated the process.Part of this is because, as time goes on, com-panies will need to get bigger. This means thatone of the big winners of this process will beHMOs, he said, noting that someone is goingto have to control costs in the face of far morepatients entering the system. He pointed outthat the losers, on the other hand, will be thephysicians, due to changes in the Medicarereimbursement rates, as well as pharmacies,medical device manufacturers and testing lab-oratories, because the impression people haveis that there is too much costly testing in thesystem right now.

Less clear, he said, are how things willwork out for small businesses, due to thetaxes and penalties that are matched withlower premiums, theoretically, as well as hos-pitals, who will have more patients but willalso be more tightly regulated and controlled.

The full impact of the health care reformlaw remains to be seen, Lifson said.

“Things could change,” Lifson said.“There are some things in this law that couldlead to negotiation at a later date.”

“In the meantime, CPAs and advisers willneed to create links with subject matterexperts to navigate this responsibility,” hesaid, in much the same way as a practitionermight reach out to a LIFO (last-in, first-out)expert if she takes on an auto dealer as aclient. Bell agreed, saying that people needto get the word out about programs like thesmall business tax credit, which, he added,not enough people know about.

Lifson encouraged anyone who wants acomprehensive summary of the PPACA’s tax provisions to log onto the IRS’sAffordable Care Act Tax Provisions page atwww.irs.gov/uac/Affordable-Care-Act-Tax-Provisions.

[email protected]

Breakfast Briefing

4 www.trustedprofessional.comFROM THE COVEROctober 2012 / The Trusted Professional

FiduciaryContinued from page 1

Continued from page 1

ket value—and adopt a new purpose—deter-mining the value that most favors the benefi-ciaries of the plan,” NYSSCPA PresidentGail Kinsella said in the letter.

This, in turn, would contradict the AICPA’sCode of Professional Conduct, as well as theNYSSCPA’s, which requires that a CPA be“impartial, intellectually honest, disinterestedand free from conflicts of interest.”

The NYSSCPA has plans to eventuallyadopt the AICPA’s code of conduct, howev-er; currently, the NYSSCPA’s code has veryfew differences from that of the AICPA.

The two-page S.1232 bill, which was intro-duced in June 2011, would exclude from theexpanded definition of fiduciary anyone whoprovides appraisal or fairness opinions withrespect to qualifying employer securities includ-ed in an employee stock ownership plan. In itsletter, the NYSSCPA said that the DOL shouldalso require plans to hire only qualified valua-tion analysts with requisite training and creden-tials, as well as mandate the use of professionalstandards, which would be more cost-effective.

The bill is currently being considered bythe Senate Committee on Health, Education,Labor and Pensions.

[email protected]

a reasonable person,” said Sal Collemi, a mem-ber of the Professional Ethics Committee andone of the letter’s principal authors. “We hopeto give our practitioners as much consistency,clarity and guidance as possible by providingexamples within the Code.”

The AICPA also proposed in this expo-sure draft that financial statement prepara-tion and cash-to-accrual conversions per-formed by an AICPA member for a client beconsidered non-attest services, regardless ofwhether the services are performed as part ofan audit. The NYSSCPA agreed with thispoint in its comment letter.

In response to potential impediments toauditor independence posed by management,the AICPA proposal suggests that membersevaluate the significance of management par-ticipation threat created by performing separateevaluations of a client’s internal control system,and examine how ongoing monitoring proce-dures that are management’s responsibilitycould impair independence, an idea that, again,the NYSSCPA supported.

Requesting additional guidanceThough the NYSSCPA expressed its gen-

eral support for another of the AICPA’s pro-posed standards, Association WithUnaudited Financial Statements andCompilation of Financial Statements, it alsosuggested the AICPA clarify some areas thatseemed insufficient or unclear. The exposuredraft—released to the public June 29, andmeant to bring clarity and simplification toaccounting and review standards by makingthem easier to read, understand and apply—does not include specific application guid-ance with respect to governmental entitiesand smaller, less complex entities.

The changes the AICPA has proposed inthe draft include a clarification that financialstatement preparation is a non-attest service;clarification that a CPA should exercise aprofessional judgment in the performance ofa compilation engagement; a requirementthat the engagement letter be signed by boththe CPA or CPA’s firm and management orthose charged with governance; a stipulationthat the CPA consider the effects of addi-tional or revised information on the financial

statements, including whether they are mate-rially misstated; and a requirement thatheadings throughout the compilation reportclearly distinguish report sections.

The draft also proposes requiring CPAs toinclude other-matter paragraphs in their compi-lation reports on financial statements that referto required supplementary information whenthey have unresolved doubts about whether therequired supplementary information is present-ed in accordance with prescribed guidelines orhas departed from prescribed guidelines entire-ly, as well as when some or all of that informa-tion is omitted or has been uncompiled, unre-viewed or unaudited. Required supplementaryinformation is defined in the proposal as infor-mation that a designated accounting standardsetter requires to accompany an entity’s basicfinancial statements.

The AICPA also suggests that entities indi-cate a financial statement was not compiled,reviewed or audited by noting this on each pageof the financial statement, or attaching a reportto unaudited financial statements explicitly say-ing so. The NYSSCPA, in a comment letter pre-pared by the Accounting and Review ServicesCommittee, said that the understanding betweenthe accountant and client in the area of uncom-piled financial statements needs to be docu-mented, but recommended that additionalrequirements to obtain an engagement letterdesigned for the type of engagement be added.

“The engagement letter, if required,should include a client’s acknowledgementthat an accountant will not report on thefinancial statements and a disclaimer on thereport to be issued,” the Society wrote.

The NYSSCPA also suggested that thefinal proposal include additional guidance toclarify the difference between “materialinconsistencies” and “material misstate-ments” on financial statements, saying thatwhile people understand the origin of theseconcepts, there needs to be further elabora-tion to distinguish one from the other.

The Society also asked for additionalguidance regarding the draft’s directives forCPAs who believe a financial statement maybe materially misstated. Existing literature,specifically paragraph 13 of AR section 80,says that in circumstances where the CPA

believes that the financial statements may bematerially misstated, he or she should obtainadditional or revised information. However,when taken with the draft, which would alsorequire that those CPAs obtain additional orrevised information and then consider itseffects, “it gives the impression of a loopprocess,” the Society said. “We do not feelparagraphs A18 and A19 are providing anyproper guidance or explanations. Additionalguidance is needed on the purpose to be con-veyed or a re-writing that will convey moreclearly the message of the standard-setter.”

In addition, the proposal says that account-ants should possess or obtain an understandingof the industry in which the reviewed entityoperates, which includes knowing the account-ing principles and practices generally used inthat industry. The comment letter suggested astronger wording, changing “should” to “must,”but also noted that this seems self-evident, as itis unclear how a practitioner would be able towork effectively without one.

Audit data standardsMeanwhile, the NYSSCPA’s Technology

Assurance Committee had a number of sugges-tions for an AICPA exposure draft on audit datastandards. The proposed standard, released tothe public on July 18, is the first that the AICPAhas drafted concerning the use of informationtechnology during the course of an audit.

The proposed standard itself covers anumber of technical areas, such as the for-mat in which such data is compiled (eitherXBRL GL or flat file format), user informa-tion within the data (every systems usershould have a full name, title, and role, ifavailable, within the system), and what testsshould be performed on extracted data,among many other points. The NYSSCPAapplauded the AICPA for turning its atten-tion to audit data standards, in a commentletter published on Sept. 5.

“The advances in technology in auditing cre-ated a growing need for this Audit DataStandard. So the AICPA’s response—by way ofthis exposure draft—is both timely and rele-vant,” said Yigal Rechtman, a member ofNYSSCPA’s Technology Assurance Commi-ttee and the letter’s principal author.

AICPA Continued from page 1

However, the letter also noted that there areseveral areas where the standard could beimproved. For example, audit data should notcontain the breadth of internal user informationadvocated by the proposed standard, as it couldleave people open to risks of identity theft.Conversely, the Society suggested that the stan-dards include a type of record that identifies afile as associated with integrated testing facili-ties, a method of continuous auditing. The let-ter also said there should be a field to contain aserial number of the journal entry and a date-posted field.

[email protected]


Just in time for the final deadline of taxseason, the IRS has unveiled the latestincarnation of its website, IRS.gov,with features the agency said had been

designed to better reflect how people typi-cally use the site, as well as deliver servicesat a faster pace.

The changes are part of an estimated$320 million the IRS intends to spend on itswebsite over the next decade. According to aU.S. Government Accountability Office(GAO) report released last December enti-tled, “2011 Tax Filing: Processing Gains,but Taxpayer Assistance Could Be Enhancedby More Self-Service Tools,” use of IRS.govhas grown significantly over the past fewyears: The site recorded 250 million visits in2011, vs. 168 million visits in 2007. Yet, thenumber of searches tripled in that time, from106 million to 312 million, in part becausetaxpayers had such difficulty locating infor-mation, the report said. Having an easilysearchable website is important for the IRSbecause it reduces the number of phone callsthe agency receives, the report added.

As part of the new rollout, the site fea-tures a rearranged menu that provides easieraccess to what analyses have determined arethe most used features—information about

filing, payments, refunds, credits and vari-ous forms. It will also offer a variety ofonline tools to help people interact with theIRS. The lineup of those tools, according toan IRS press release, will regularly changein order to coincide with filing and registra-tion due dates, as well as new programs andsystem enhancements.

In addition, the revamped site includessocial media functionality, which will allowthe IRS to share the latest information on taxchanges, initiatives, products and services,and will feature YouTube videos, Twitterupdates and podcasts. It also has non-English support on each of its pages forspeakers of Spanish, Chinese, Korean,Vietnamese and Russian.

The GAO report criticized the IRS’sonline strategy for not allowing taxpayers to

access account information, but that compo-nent remains unchanged with the redesign.

Several Society members said they wereexcited by the ease in navigation that therevamped website offers, including DavidSands, a member of the Tax DivisionOversight Committee. Sands said he’dthought that that the older version had been“a little behind the times,” as it didn’t pro-vide as many options on a page and requireda number of clicks to get through.

“I like that it brings you a lot more quicklyto the area you’re looking for … so that youdon’t have to drill down as much, and that itgets to the most frequent issues that needanswers,” he added.

Still, Jeffrey Gold, chair of the NewYork, Multistate and Local TaxationCommittee, pointed out that the transition

hasn’t been completely seamless, notingthat, as of press time, some links, such as“Pros,” go to different pages depending onwhether one clicks the screen or uses thedrop-down menu. He also noted that thesearch function is still difficult to navigateand not very intuitive. The IRS has said thatthe site’s search capabilities will evolve asit is used more, and the agency identifiescontent to tag and deliver in search results.

Gold also advised that people update theirbookmarks to correspond to the new site, asthe transition to the website might causethem to be out-of-date.

[email protected]

IRS unveils a more user-friendly website

www.trustedprofessional.com 5TAXATION The Trusted Professional / October 2012

DO YOU CONSIDER THE NEW IRS SITE TO BE AN IMPROVEMENT?

Tweet us about it, @nysscpa.

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FAE 2012 Conferences

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YEARS 1972-2012

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New York State Taxation Conference

■ Tax Preparer Responsibility■ New York State Residency Audit Guidelines■ Business and Sales Tax Nexus■ Combined/Unitary Reporting

Wednesday, December 5, 2012Doubletree by Hilton Metropolitan Hotel569 Lexington Avenue, at 51st StreetNew York, NY 100228:00 a.m.–5:00 p.m.

Stay on top of the latest tax preparation and planning developments to best serve your clients or company

This is an FAE Paperless Event. Visit www.nysscpa.org for more information.

HOT TOPICS

■ Thomas H. Mattox, Commissioner, New York State Department of Taxation and Finance

FEATURING:REGISTRATION DETAILS:

Course Code: 25612311 (In-Person)CPE Credit Hours: 8

Field of Study: TaxationIn-Person Member Fee: $385

Nonmember Fee: $510

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Course Code: 35612311 (Live Video Webcast) CPE Credit Hours: 8

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BY RICHARD J. KORETOTrusted Professional Correspondent

T he New York State Department ofTaxation and Finance (NYSDTF)recently announced three proposalsand two adoptions on a wide range of

tax issues, including fuel use tax regulations,real property tax administration, franchisetaxes and hotel use. For the proposals, thedepartment is inviting commentary frominterested parties through October; sum-maries of the proposals as well as instruc-tions for commenting by email or by printedletter are available at www.tax.ny.gov/rulemaker.

The end of the one-week ruleIn this proposal, the state is suggesting the

elimination of a one-week stay test that wasused as one of the factors to determinewhether the rental of a bungalow or similarliving unit was subject to sales tax, accord-ing to a description on the NYSDTF’s site.As the department’s summary says, previ-ously, a one-week test was used to determinewhether the rental of a bungalow or similarliving unit was essentially a “hotel occu-pancy” and, thus, subject to sales tax, or wasto be considered the rental of real property,which is not subject to sales tax.

Earlier, a Division of Tax Appeals admin-istrative law judge had struck down this test,

and the department decided not to fight it butto incorporate the change into state tax law.(Visit our website, www.nysscpa.org/trustedprof, for more on this ruling.) This proposalis open for comments, but the summarynotes that objections are not expected“because it merely repeals a regulatory pro-vision that is no longer applicable to anyperson. …”

Leo Parmegiani, a member of theHospitality Industry Committee, said thatthe ruling and regulation had to do with theline drawn between a rental space and ahotel space, which was why there had beena cutoff when it came to differentiatingbetween the two. While he wasn’t certainwhat the effects of the proposal would be, hesaid that it would ease one more administra-tive burden on the hotel industry.

“It’s a policy to administer. … The stateforces you to collect it until that time framepasses, then it becomes a credit,” he said.

The NYSDTF is also using this opportu-nity to make the regulatory language morepolitically correct: References to hotel“maid services” are being changed to thegender-neutral “housekeeping services.”

Real property: new administrativechanges adopted

According to the NYSDTF’s summary,Part W of Chapter 56 of the Laws of 2010transferred various responsibilities relating

to real property tax administration from theNew York State Board of Real PropertyServices and the Office of Real Property TaxServices to the Commissioner of Taxationand Finance. Therefore, certain rules had tobe renumbered, obsolete references had tobe corrected and various other technicalchanges had to be made, according to thesummary.

Among the terms included in definitionchanges are “arm’s length transfer,” whichhas been changed to conform to currentforms and procedures, according to the sum-mary, as well as “certified counties” and“certified school districts.”

Franchise taxes: a technical mixThese proposed changes are a hodge-

podge of alterations. Some are mere coderenumberings with relatively minor techni-cal changes, but a few could be more signif-icant. The NYSDTF is proposing—

• to amend section 3-2.2 of the regula-tions to eliminate language relating to for-eign sales corporations (FSCs) because thecorresponding Internal Revenue Code provi-sions relating to FSCs have been repealed;

• to delete language which provides thata foreign corporation not subject to tax willnot be required to be included in a combinedreport unless inclusion is necessary to prop-erly reflect the tax liability of one or moretaxpayers in the group because of various

reasons, outlined in the regulations (anexample is given); and

• to add new language providing thatwhere a corporation’s taxable year differsfrom that of the taxpayer parent, the applica-ble taxable year to be included in the com-bined report is the taxable year that endswithin the taxable year of the taxpayer parent.

Fuel tax: adopted and proposedThese final and proposed changes relate

to the sales tax component and the compos-ite rate-per-gallon of the fuel use tax onmotor fuel and diesel motor fuel for the thirdquarter of 2012, as well as possible rates forthe fourth quarter.

The NYSDTF is keeping it simple: Theadopted rules for the third quarter show thatthere are no rate changes from the secondquarter, and the proposed rules for the fourthquarter show that the department is not plan-ning on changing them going forward either.However, anyone who disagrees with thelack of changes in the fourth quarter is wel-come to comment.

[email protected]

Hotels, property and fuel: new rules at the NYSDTF

6 www.trustedprofessional.comTAXATIONOctober 2012 / The Trusted Professional



e d u c a t i o n

For More Information and to Register for This Conference: Visit www.nysscpa.org/banking or call 800-537-3635.FAE

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Banking Conference How major developments in accounting, auditing, andtax will impact banks and financial institutions

KEYNOTE ADDRESS: Benjamin M. Lawsky, Superintendent, NewYork State Department of Financial Services. Mr. Lawsky will sharehis unique perspective on recent updates in the banking environ-ment and will provide a look toward next year.


CONFERENCE INFORMATION

■ CFO/Presidents’ Panel: current concerns about future business■ Expert Panel on enterprise risk management■ Federal and state tax developments impacting the financial services industry■ And Much More!

OTHER HOT TOPICS INCLUDE:

Course Code: 25538311 (In-Person) 35538311 (Live Video Webcast)CPE Credit: 8 hours (6 Specialized Knowledge and Applications, 1 Auditing, 1 Taxation)

NYSSCPA Member Fee (by October 17)$305 (In-Person); $205 (Live Video Webcast)

Non-Member Fee: (by October 17)$430 (In-Person)$330 (Live-Video Webcast)

NYSSCPA Member Fee (after October 17): $335 (In-Person); $235 (Live Video Webcast)

Nonmember Fee:(after October 17): $460 (In-Person)$360 (Live Video Webcast)

Early Bird Discount - Save $30

Wednesday, November 14, 2012FAE Conference Center3 Park Avenue, at 34th Street 19th FloorNew York, NY 10016


A pair of releases from the PublicCompany Accounting OversightBoard (PCAOB)—one a discussionpaper aimed at audit committees,

the other a standard aimed at auditors—looks to improve the quality of communica-tions between the two on both sides of theconversation.

The publications, “Information for AuditCommittees About the PCAOB InspectionProcess,” and the PCAOB’s AuditingStandard 16, Communications with AuditCommittees, were put out in August. Theformer presents audit committee memberswith a primer on topics and issues theymight wish to raise with auditors, while thelatter creates new rules for what auditorsmust communicate to audit committees.

“Communications between the auditorand the audit committee allow the auditcommittee to be well-informed aboutaccounting and disclosure matters, includingthe auditor’s evaluation of matters that aresignificant to the financial statements,” saidPCAOB board member Jeanette M. Franzelin a statement of support for the new stan-dard. “An informed and engaged audit com-mittee will be better equipped to execute itsoversight responsibilities.”

The Society voiced its own thoughts on thematter when the standard was first proposed.In a comment letter published on Feb. 28,2012 and drafted by members of the AuditingStandards, Stock Brokerage and SEC PracticeCommittee, it voiced overall support for theproposal, noting that “audit committees fulfillan important role in enhancing audit qualityand that this standard appropriately recog-nizes their contributions in this regard.”

On the auditor side, the new standard isthe result of years of deliberation and out-reach; it was first proposed in 2010 and thenreproposed in 2011. It defines what an auditcommittee actually is―a committee orequivalent body established by a company’sboard to oversee the accounting and finan-cial reporting process―and expands thenumber of points that an auditor is requiredto go over with that committee.

For example, under AU sec. 310, the audi-tor is required to establish an understandingwith the client regarding the services to beperformed. But under the new standard, theauditor must establish an understanding ofthe terms of the audit engagement itself withthe committee, and record them in anengagement letter.

The new standard also expands therequired communications outlined in AUsec. 380 by requiring the auditor to talk withthe committee about the company’s account-ing policies and practices, the quality of thecompany’s financial reporting, informationrelated to significant unusual transactionsand the business rationale behind them, andany identified concerns about significantaccounting or auditing matters that arisewhen management consults with anotheraccountant.

In addition, auditors are required to com-municate, among other things, an overviewof the overall audit strategy, informationabout the nature and extent of the special-ized skill needed in the audit, difficult or

contentious matters and other matters thatthe auditor deemed to be significant to theoversight of the financial reporting process.

Anthony S. Chan, past chair of the SECPractice Committee who also sits on itsPCAOB subcommittee, said the new stan-dard doesn’t represent a radical departurefrom what auditors have typically done inthe past. As a practical matter, he said, mostauditors already include such communica-tions in their quarterly discussions and com-munications with audit committees.

“For most auditors, it should not be a bigchange, as such communications have beenconducted informally and orally during thequarterly discussion with the audit commit-tee,” he said. “It has [just] been formalizedand will be evidenced in writing.”

Steven Kreit, who is also on the commit-tee and serves as an audit partner in his firm,made a similar assessment, noting that whatthe standard does is require that which hadbeen previously offered by auditors on a vol-untary basis. However, he said it will still behelpful, particularly for new audit commit-tee members who may not be as experiencedin interacting with auditors as some of theirmore seasoned colleagues.

“It [will] spur important conversationsbetween audit committees, the board and audi-tors,” he said. “That’s a positive [that] I don’tthink adds a significant burden to anyone. Soit’s a lot of good without a lot of bad.”

The exception, he said, is the requirementthat auditors discuss significant and unusualtransactions and the business rationalebehind them, which, he said, strays fromwhat the auditor’s role generally is. It is thecompany that determines the businessrationale, not the auditor, he pointed out.

“The auditor can certainly relay to theaudit committee what management has toldthem, but … there’s not really a lot there thatthe auditors can add insight into becausewe’re not part of the decision-makingprocess,” Kreit said. “So, that might be onearea where the PCAOB is asking auditors togo beyond the scope of what they had [done]in the past.”

Empowering audit committeesOn the audit committee side,

“Information for Audit Committees Aboutthe PCAOB Inspection Process” was intend-ed to be a primer for audit committee mem-bers on communicating with auditors, par-ticularly about the PCAOB inspectionprocess and their audit firms’ performancewithin it.

The document explains the nature of thePCAOB inspection process, including how itis performed and what the report on theinspection includes, and suggests possiblequestions that audit committee members canask the auditor about it. For example, it saysthat audit committee members can askwhether the PCAOB identified deficienciesin the audit process, whether the firm agreedwith the PCAOB’s findings, and if not, whyand what topics are included in the Part IIfindings.

The purpose of the document, PCAOBChair James R. Doty said in a press callwhen it was released, is to empower auditcommittee members, who have told thePCAOB that they desire more substantiveand complete discussion with their auditors,

but that because some information about theinspection findings are not made public,there can sometimes be confusion over whatcan and can’t be asked.

“This is a little different [from AuditingStandard 16 in that] this doesn’t require any-one to do anything; this is simply an infor-mation device which audit committee mem-bers may or may not think they need to takeadvantage of,” Doty said.

David M. Rubenstein, a member of theChief Financial Officers Committee, notedthat even though audit committees musthave at least one financial expert, not allfinancial experts have the same level ofknowledge. For example, he said, somemight do a lot of work in the tax area butmay not have as much experience withfinancial reporting, while others may havebeen retired for a while and aren’t up-to-dateon the latest rules and regulations. However,

Rubenstein added that there has been muchmore education of audit committees takingplace, and the release’s information regardingwhat audit committee members can discusswith their auditors is part of this overall effort.

“I think everyone’s trying to do the samething: They’re trying to get it right andthey’re trying to get the financial reportingand underlying systems of control in place,and better and better,” he said.

The new standard and related amend-ments, if approved by the Securities andExchange Commission, will be effective forpublic company audits of fiscal periodsbeginning after Dec. 15, 2012.

[email protected]

PCAOB looks to improve relations between audit committees and auditors

www.trustedprofessional.com 7INDUSTRY The Trusted Professional / October 2012

Upcoming Industry Committee Meetings

Banking Thurs., Oct. 11

Chief Financial Officers Wed., Oct. 31

Construction Contractors Thurs., Oct. 25

Entertainment, Arts and Sports Wed., Oct. 17

Fashion and Furnishings Tues., Oct. 23

Hospitality Industry Tues., Oct. 30

Internal Audit Tues., Oct. 2

Investment Companies Thurs., Oct. 25

Private Equity and Venture Capital Mon., Oct. 22

Real Estate Wed., Oct. 3

Small Business Outreach Wed., Oct. 17

Stock Brokerage Tues., Oct. 16

This is a partial listing, which is subject to change. For a complete and updatedlisting of meetings, visit www.nysscpa.org, click on “About Us,” and choose

“Committees” from the drop-down menu.

Interested in joining a committee? Fill out an application online or contactNereida Gomez, Manager, Committees and Administrative Services,

at 212-719-8358 or [email protected], to find out more information.

Upcoming Industry Conferences

Restaurant & Hospitality Breakfast Thurs., Oct. 4

CFOs, Controllers, and Financial Executives Wed., Oct. 10

Private Equity and Venture Capital Thurs., Oct. 25

Real Estate Wed., Oct. 31


T hough the party was nice while it lasted,the days of 100 percent bonus deprecia-tion are over, and construction compa-nies need to know which expenditures

must now be capitalized during the course of business, according to Anthony F.Dannible, a speaker at the FAE’s ConstructionContractors Accounting, Consulting, andTaxation Conference held Aug. 9.

As a temporary measure to help spur eco-nomic activity, the government raised thebonus depreciation allowance from 50 percentto a full 100 percent, under the Tax Relief,Unemployment Insurance Reauthorization,and Job Creation Act of 2010. But when thatmeasure expired at the end of 2011, theallowance was cut back in half, “meaningmore work must now be done to capitalize anddepreciate,” said Dannible, a member of theClosely Held and S Corporations Committee.

“We’ve sort of been lulled asleep with the100 percent bonus depreciation. … Much ofthe new equipment [companies] got, [they]expensed, but now we’re in 2012 and it’s 50 percent this year,” he said.

What’s more, depreciation and capitaliza-tion rules are currently being governedunder a set of temporary IRS regulations thatwill expire in early 2014 but are significant

for the time being because they “change a lotof the [previous] concepts we’ve dealt with,”he added.

Many of the big changes affect what maybe counted as a unit of property, with individ-ual components of a structure now consideredwhole units in and of themselves, Danniblesaid. For example, while just a few years ago,

an entire building and everything within itwould collectively count as a single unit ofproperty—making things like construction,renovation and repair easier to expense—under the temporary regulations, a building’splumbing; heating, ventilation and air condi-tioning system; electric wiring; security sys-tem and gas distribution would all be brokenout as separate units of property.

Under the temporary regulations, ifexpenditures related to each of those indi-vidual units of property pass what Danniblereferred to as the “BAR” or “betterment,

adaptation, restoration” test, they willprobably need to be capitalized.

The betterment criteria, Dannible said,essentially asks whether an improvement thathas been made to the property results in amaterial addition. “Does it enlarge? Does itexpand? Does it extend that particular proper-ty? If that’s the case, you have a betterment,”

he said. However, construction could alsocreate an improvement in areas such ascapacity, production or efficiency at a plant,which can also count as a betterment.

Under the adaptation test, the questionposed would be: Does it adapt a particularbuilding or equipment to a new or differentuse? And for the final test, restoration, theIRS will want to know if the work returnsthe unit to its operating efficiency, if it con-stitutes a major component or substantialunit of property, and if it returns the buildingto a like-new condition after its class life.

For example, Dannible said, imagine thatyou’re putting a new roof onto a building.That would appear to be a betterment, mean-ing that it would have to be capitalized. Ifinstead of a new roof, a significant portion ofthe old roof was repaired, it would still beconsidered a materially significant better-ment and would be capitalized. However, if

an insignificant portion of the roof wererepaired, he said, the company could writeoff the expense.

“When you look at your particular addi-tions and look at the BAR test—the better-ment, the adaptation, the restoration—twokey words are ‘material’ and ‘significant,’so there’s an awful lot of subjectivity ingetting you to take some of those deduc-tions,” he said.

[email protected]

Temporary regulations change thinking on capitalizing expenses

8 www.trustedprofessional.comINDUSTRYOctober 2012 / The Trusted Professional

“We’ve sort of been lulled asleep with the 100 percent bonus depreciation.… Much of the new equipment [companies] got, [they] expensed, but now

we’re in 2012 and it’s 50 percent this year.”

— Anthony F. Dannible, Closely Held and S Corporations Committee member



e d u c a t i o n

For More Information and to Register for This Conference: Visit www.nysscpa.org/auditing or call 800-537-3635.To Register for the Live Video Webcast: Visit www.nysscpa.org/e-cpe or call 877-880-1335.FAE

YEARS 1972-2012


40

Auditing Conference

■ Comprehensive updates from professionals involved in standards setting and in the comment and implementation processes

■ Emphasis on audits of smaller, less complex entities■ Practitioner insights into contentious issues

Thursday, November 8, 2012FAE Conference Center 3 Park Avenue, at 34th Street19th FloorNew York, NY 100168:30 a.m.–4:50 p.m.

Find practical guidance on significant developments—including the rollout of auditing (clarity) standards


DON’T MISS OUT ON THESE ESSENTIAL TOPICS:

■ Martin F. Baumann, CPA, MBA, Chief Auditor and Director of Professional Standards, PCAOB■ Cynthia M. Fornelli, Executive Director, Center for Audit Quality

FEATURED SPEAKERS INCLUDE:

REGISTRATION DETAILSCourse Code: 25135311 (In-Person)35135311 (Live Video Webcast)CPE Credit Hours: 8Field of Study: Auditing

NYSSCPA Member Fee: $335 (In-Person);$235 (Live Video Webcast)Nonmember Fee: $460 (In-Person);$360 (Live Video Webcast)


T hough New York State MedicaidDirector Jason Helgerson has alreadymade significant changes to the state’spublic health system, netting billions

in cost savings for the program during the last budget cycle, he’s not done by a longshot, he said in a speech at the NYSSCPA’sHealthcare Conference Sept. 13.

Helgerson, who delivered the confer-ence’s keynote address, said that New York’spublic health system faces considerablechallenges―the state is the largest purchas-er of medical services in the country, andMedicaid makes up one-third of its budget.

While he acknowledged that Medicaid hasoften been a “political football,” he said thatthe problems it faces in the state have madeAlbany eager to work with him to improve thesystem. Moreover, the Affordable Care Act,upheld by the Supreme Court this past sum-mer, has sparked an overall national climate ofreexamining health care.

Still, changing the system has never been,nor will it be, easy, he noted. “We not onlyhave the largest program in the country butone of the most complex, so it’s not some-thing you can turn on a dime,” he said.

According to Helgerson, state-levelreforms will come in three phases. Phase one,finding $2.3 billion in savings in the overallprogram budget, has already been completedand was approved as part of the most recentbudget. That gives the program some breath-ing room to begin working on more substan-tive and sustainable reforms for the long term,he said. Phase two is built around a five-yearplan that will focus on improving care, lower-ing costs and improving health.

A central part of this phase will be shift-ing the Medicaid program from a fee-for-service model to managed care, a “major seachange” that is intended to realign incentivesto encourage cost savings among health careproviders. The current fee-for-service modelincentivizes a mentality of “the more I do,the more I get paid,” whereas a managedcare model makes providers ask, “how can Ido shared savings around better populationmanagement,” he said. Because this repre-sents a major change not only in the struc-ture of the program but of the mindset and

culture that comes with it, Helgerson saidthat “it cannot happen overnight,” and thestate will need additional resources to helpfacilitate the transition among providers.

The switch to a managed care paradigmwill essentially mean that the state Medicaidprogram will operate similarly to privatehealth plans and, similar to what states likeArizona have already done, offer a variety ofprepaid health care plans.

Annmarie Covone, a conference speakerwho gave a presentation on the future oflong-term care, said that the state has

already been talking a lot about managedcare with providers, noting that it “is reallythe buzzword now in long-term care.”

“The environment is changing [and]reimbursement will change as time goeson,” she added.

Managed care, she explained, deals withwhat she called “capitation,” which is a fixedmonthly payment to a managed care organi-zation for each member enrolled in thehealth plan. This means that “we don’t lookat days and rates; we look at per member permonth,” she said. Within this capitated pay-ment structure, the provider must administerall medical services for each individual,whether it be nursing or hospital care or X-ray labs, or even support services like trans-portation and nursing homes―all with theallotment given by the state each month.

This, she said, shifts risks from the payer,as it is under a fee-for-service model, to theplan, as it is under the managed care model.She said that the focus of long-term care isthe member health status over the long term,which means oversight of chronic condi-

tions, and providers will have to activelymanage that patient’s care or else their riskwill increase. This is contrasted with fee-for-service, which has episodic payments.

This active management of patient health isa major component of the overall reforms thatHelgerson is seeking. He noted that a minori-ty of patients, often with chronic illnesses,account for the majority of health care costs.This means that by actively managing the“most complex” patients, care can beimproved, while significant cost savings forthe rest can be made. Active management,though, will come with providers coming

together to focus on a single patient. Ratherthan having a number of medical profession-als whose only interactions with each otherare through making referrals, the new modelwill require them to actively work together.

“We really want health care to be a teamsport in New York. We want to integratedelivery and have providers working togeth-er,” he said. “We can no longer afford to havea system where providers sit in silos and notcommunicate or work together because whenwe do that, we are not serving the needs ofthese complex patients and incurring costsbeyond what we can afford.”

Working in harmonyTo enable such coordination, Helgerson

said that the state is going to encourage theuse of a network of providers he called“health homes,” though he noted that theterm is used loosely because it also includesa wide array of organizations such as com-munity health organizations and local gov-ernments that come together and coordinatecare. This network, he said, will be held

accountable for managing the needs ofMedicaid’s highest cost patients. To give anidea of what kinds of costs are involved, hesaid that the 100 most expensive Medicaidpatients cost about $54 million—roughly ahalf million dollars per person.

“If we can find some way to get theseindividuals moving in the right direction forthe basic services we pay for, we canimprove the qualities of their lives and lowercosts,” he said.

In order to incentivize health homes tofocus on these patients, he said that each ofthese organizations will not only be paid carepayments, but if they are successful in lower-ing the costs of these individuals, they will beable to share in the savings generated.

“It’s a change in philosophy in how to payfor health care [that is] much more focusedon outcomes than inputs, and we think thishas merit for us moving forward,” he said.

All told, the various reforms that the stateis planning to make to its Medicaid programwill save the government about $17 billionover the course of the five years Helgersonestimates it will take to implement them. Thisleads directly into phase three, where the statewill take these savings and reinvest them intothe health care system itself in order toincrease capacity and quality. The money willbe funneled into areas such as increasing pri-mary care services—which Helgerson saidNew York simply does not have enough ofright now—health home development; tech-nological improvements, particularly IT sys-tems; and new care models.

The state will need these improvements ifit is to be able to handle the effects of theAffordable Care Act, which he said will giveinsurance access to roughly 7 million NewYorkers for the very first time. The concernis that the health care workforce is not at alevel to accommodate this increaseddemand, which, he pointed out, is what hap-pened in Massachusetts when they imple-mented a similar plan.

“If we can make the system more effi-cient, we can free up capacity to meet thatdemand,” he said. “There are areas, particu-larly in primary care, where we do not havethat capacity, and we must find a way toexpand that capacity.”

[email protected]

State Medicaid to undergo paradigm shift

www.trustedprofessional.com 9INDUSTRY The Trusted Professional / October 2012


In September, the Financial AccountingFoundation (FAF) appointed the first 10members of the new Private CompanyCouncil (PCC), a standards-setting body

for private companies. The roster includesthree members of the NYSSCPA: MarkEllis, a Westchester Chapter member who sitson the Chief Financial Officers Committee;

Nassau Chapter member Neville Grusd, aformer Society vice president; and LawrenceWeinstock, also from the Nassau Chapter.

The council will be chaired by BillyAtkinson, a Texan who previously served aschair of the National Association of StateBoards of Accountancy.

The PCC’s main function will be to deter-mine whether GAAP standards properlyaddress the needs of the users of privatecompany financial statements and, if not, to

craft modifications and exceptions to thesestandards, which will be subject to review bythe Financial Accounting Standards Board(FASB). In addition, it will also serve as theFASB’s main advisory body on mattersrelated to private companies.

“Each of the new Council members hasdemonstrated a strong appreciation for theimportance of independent standard-setting,and unwavering commitment toward greaterclarity and well-informed decision-making

in private company financial accounting andreporting,” said FAF President and CEOTeresa Polley. ”Their diverse backgroundsand perspectives will provide valuableinsights and leadership to the PCC and theFAF.”

[email protected]

Private Company Council boasts three NYSSCPA members

“We can no longer afford to have a system whereproviders sit in silos and not communicate or worktogether because when we do that, we are notserving the needs of these complex patients andincurring costs beyond what we can afford.”

— Jason Helgerson, New York State Medicaid Director


Most U.S. retail investors lackbasic financial literacy—andtheir weak grasp of even elemen-tary financial concepts is leaving

them vulnerable to predatory investmentfraud schemes, according to a study by theSecurities and Exchange Commission(SEC).

The SEC was required to conduct thestudy, which was released to the public onAug. 30, as ordered under Section 917 of theDodd-Frank Wall Street Reform andConsumer Protection Act. The research,entitled, “Study Regarding FinancialLiteracy Among Investors,” was intended tonot only assess how financially literate theinvesting public is, but to pinpoint ways inwhich that literacy might be improved so asto create a more informed market.

After undertaking quantitative and quali-tative analyses, soliciting public commentand reviewing existing literature, the SEC’sassessment of how financially literate mostpeople are is a bleak one: Research indicatesthat retail investors often do not understandconcepts such as compound interest andinflation, the difference between a stock anda bond, or how investment costs impactreturns. According to the report, certaindemographics such as women, the elderlyand the poorly educated have “an evengreater lack of investment knowledge thanthe average general population.”

“Low levels of investor literacy have seri-ous implications for the ability of broad seg-ments of the population to retire comfort-ably, particularly in an age dominated bydefined-contribution retirement plans,” thereport said.

Financial professionals who work withthe public share the SEC’s concerns.Catherine Censullo, chair of the PersonalFinancial Planning Committee, said thatwithout the help of a professional, manyinvestors are flying blind in the economic

world and don’t seem able to make the deci-sions necessary to successfully manage aportfolio—if they even know which deci-sions need to be made in the first place.

“Many times, if they do have the advan-tage of some kind of retirement plan, theydon’t necessarily understand the choicesthey have and how to diversify in a portfolioor [what] their risk-taking tolerance is,” shesaid. “And all those things are just very fun-damental things for someone [who is]investing.”

This same dynamic plays out even amongpeople who may be business savvy in otherways, said Joshua DuBrow, chair of theSmall Business Outreach Committee. Themost common financial literacy problemwhen it comes to small businesses, he said,is in properly managing cash flow. Problemsin this area generally occur when peoplewait too long to get a professional—and bythe time they realize they need one, “it’salways, for the most part, too late,” he said.

In terms of investment, DuBrow explainedthat many small business owners have troublebecause of the opaque nature of the variousdocuments that come with it. The SEC, hesaid, gives investors a lot of protections byrequiring myriad disclosures from filers, butthe average investor has no clue what theymean.

The SEC itself makes a note of this intheir report; it said that one change thatcould help investors understand investmentsbetter is to provide them with disclosuresthat are “concise, use plain language andcommon terminology, and incorporate someuse of electronic delivery.” The report alsosuggested that the SEC change the timingsof its disclosures, as the research indicatesthat investors would prefer to receive theinformation either before or at the time theymake a decision on whether to engage afinancial intermediary or purchase an invest-ment product or service.

The report added that changes to how dis-closure content is structured may also be agood way to help investors better understandwhat they are getting into, proposing a two-tiered disclosure framework where one layerwould consist of a concise summary of thedisclosure document, and the other wouldoffer detailed information on fees and serv-ice charges, specific details of all arrange-ments in which the firm receives an eco-nomic benefit, and any other informationneeded to disclose conflicts of interest.

The report also mentioned the importanceof easily accessible and efficiently deliverededucation programs that would be research-based and goal-oriented, emphasizingimportant investor education concepts thatare relevant to target audiences. In particu-lar, the report talked about creating, support-ing or augmenting investor education pro-grams targeted at young investors, lump-sum payout recipients, investment trustees,members of the military, underserved popu-lations and older investors.

The Small Business Outreach Committeeregularly holds financial education work-

shops, with one in particular this year cater-ing to military veterans. DuBrow said thatthese sessions are meant to be an absolutebeginner’s primer, with a special emphasison learning how to ask the right questions.

“What we try to do,” he said, “is educatesmall business owners on the basics … not sothat they learn how to do accounting andfinance in one sitting, but really so they knowthe proper questions and can come away think-ing ‘… I’ve got to reach out to an accountant orattorney or someone else because there’s noway I can do this on my own.’”

[email protected]

SEC: public lacks financial literacy

10 www.trustedprofessional.comINDUSTRYOctober 2012 / The Trusted Professional

Research indicates that retail investors

often do not understandconcepts such as com-

pound interest and inflation, the differencebetween a stock and a

bond, or how investmentcosts impact returns.

Editor’s Note: “War Stories,” drawn fromCamico claims files, illustrate some of thedangers and pitfalls in the accounting pro-fession. All names have been changed.

BY RANDY R. WERNER, CPA, J.D.,LL.M (TAX)

Hope Accounting & Auditing (HAA)had performed financial statementaudits for Pulp Fabrication (PF), alarge paper products manufacturer,

for several years. Though PF had a solid his-tory of paying fees in full and on time, itexperienced cash flow problems as a resultof the recession and began to make partialpayments to HAA instead. This requiredextra patience on the part of HAA collec-tions, which waited until the end of themonth to bill.

During the last audit, PF made a partialpayment after the first month’s billing, andanother partial payment after the secondmonth’s billing. The engagement appearedto be going well, but soon after the secondpartial payment, PF’s largest customer, whoaccounted for nearly half of its revenues,went bankrupt. At this point, PF was nolonger able to pay the audit fees.

PF management did not tell HAA auditorswhat had happened, because it needed a cleanfinancial statement audit in order to qualify formore credit so that it could pay the invoices.When its payments to HAA fell behind sched-ule, PF lied and told HAA collection callersthat the payments were actually scheduled forthe following payment cycle.

HAA continued to perform work for PF,in spite of the company’s delinquentaccount. By the time HAA auditors finallylearned about the bankruptcy of PF’s largestclient, however, and about PF’s inability tosettle its outstanding bill unless it couldqualify for a higher credit limit, HAA’s feeshad accumulated to over $100,000.

HAA considered suing PF, but after con-sulting with legal counsel, realized that PFhad nothing to lose by countersuing for mal-practice, however baseless. Moreover, thelegal fees that would be incurred and thebillable time lost due to litigation would cer-tainly exceed the amount owed to the firm.HAA saw no choice but to accept the loss inrevenue.

Loss prevention tips• Do not allow fees to build up to the pointwhere you can no longer walk away fromthem. Always include a stop-work clause inthe engagement letter, and enforce theclause according to the terms in the letter.• Consider billing more frequently thanmonthly, as smaller invoices are paid soonerthan larger ones. Billing weekly, forinstance, may be a better option.• Before reaching the point of no return,make a business decision about how muchthe firm is willing to lose in the form ofaccounts receivable for each client. At whatpoint will the firm stop work for a client—atwhat amounts owed, at what dollar limit—until the client brings the payments up-to-date? What is the point of no return?• Include a mediation clause in your engage-ment letter for all disputes, as well as a bind-

ing arbitration clause for fee disputes, andmake sure the letter is signed by the client.Claims experience shows that simple feedisputes are better resolved through media-tion and arbitration given than through liti-gation. Mediation is recommended as a firststep, and binding arbitration—for fee dis-putes only—as a second step. (Arbitrationisn’t recommended for all disputes, because

the limitations of the process may constrictand impair a legal defense when comparedto litigation.)

What are the first steps to takewhen a client is not paying?

Good communication with a nonpayingclient will either spur payment or set up cir-cumstances that will make a potentialdemand for arbitration more effective. Thisinvolves sending the following series of let-ters requesting payment and informationfrom the client: • An initial letter that politely notes the non-payment of fees owed, requests paymentand asks if there is any reason for the delayin payment • A second letter that reiterates all pointsmade in the first letter • A final letter that notes the continued non-payment and requests a call to discuss pay-

ment arrangements by a specified deadline.This letter should stipulate that if no call isreceived by the date given, the result will bea demand for arbitration concerning the feedispute, effective as of that date.

Whether or not you receive a response,the letters can be used to show that the clientdoes not have a valid basis to claim that thefees were not owed; had there been any dis-satisfaction with the work, the client wouldhave communicated it when given theopportunity.

Always consult with your legal counseland liability insurer when considering theoptions, risks and consequences of efforts tocollect fees. Lawsuits and countersuitsalmost always result in the firm spending farmore in attorney fees and in lost billabletime than is warranted.

Randy R. Werner, CPA, J.D., LL.M(Tax), is a loss prevention specialist withCamico (www.camico.com). She respondsto Camico loss prevention hotlineinquiries and speaks to CPA groups onvarious topics.

War story: A client’s nonpayment of fees

www.trustedprofessional.com 11RISK MANAGEMENT The Trusted Professional / October 2012

For information on the Camico program, contact:

Upstate:Reggie DeJeanLawley Service, Inc.716-849-8618

Downstate:Dan HudsonChesapeake Professional Liability Brokers, Inc.410-757-1932

Or call Camico direct at 800-652-1772

Do not allow fees to build up to the pointwhere you can no longer walk away from

them. Always include a stop-work clause inthe engagement letter, and enforce the clause

according to the terms in the letter.

BY JOEL LANZ, CPA/CITP, CFF,CISA, CISM, CISSP, CFE

Q: How can I secure Microsoft Word docu-ments?A: There are a few basic protections thatevery Microsoft Word user can implementto enhance security. This includes employ-ing the password and encryption featureswithin the software, which Microsoft hasstrengthened in more recent versions, suchas Word 2010. To locate them, pull downthe “file” tab and select “info.” You will bepresented with a “protect document”prompt. Click on it to bring up a variety ofaccess permission options that includeseverything from instituting a password toopen or modify the file, to limiting furtherdistribution of the document.

In addition to access privileges, anothermajor threat is the unintended use of themetadata contained in the document. Thesehidden data can reveal details about yourcompany or about the document itself thatyou may not want to share publicly. Forexample, the document may include infor-

mation on the date it was created and mod-ified, the author and changes to the docu-ment content itself. Newer versions ofWord are embedded with a DocumentInspector utility that allows you to self-check for this type of data.

For further information, see the article“Remove Hidden Data and PersonalInformation from Office Documents,” avail-able on the Microsoft website at http://office.microsoft.com/en-us/excelhelp/r e m ove - h i d d e n - d a t a - a n d - p e r s o n a l -information-from-office-documents-HA010037593.aspx.

Keep in mind, however, that enforcingsecurity on a particular document is depend-ent on a number of factors. For example, ifthe PC or server on which the documentresides is not secure, it may be possible tooverride certain controls protecting the docu-ment. In that regard, any attempts to secureWord documents should be part of a larger,comprehensive security plan for protectingyour entire computer system.

Q: My client has just been hacked. Whatshould he do?A: Ideally, your client has lis-tened to your advice and hasimplemented the incidentresponse plan that you rec-ommended (see my columnin the August 2012 issue ofThe Trusted Professional, p. 15). Unfortunately, thismay not be the case, des-pite the profession’s best efforts to promote preventivemeasures.

CPAs should be verycareful when providingguidance in this area. You’llneed to ensure that anyinstructions you providecomply with existing enga-gement letters and malprac-tice insurance carrier re-quirements. You may alsoneed to consider intendedfuture actions by the client,such as seeking criminalprosecution. To add to thechallenge, responses mayvary by industry and theuniqueness of the attack.

This means that your veryfirst step should be to deter-mine whether you areappropriately qualified toaddress the problem. Re-commending that yourclient consult with a creden-tialed and experienced com-puter forensic professionalwould be an appropriateaction for the majority ofCPAs to take.

The National Institute ofStandards and Technology(NIST) provides moredetailed guidance for

responding to an incident in SpecialPublication 800-61, Computer SecurityIncident Handling Guide (csrc.nist.gov/publications/nistpubs/800-61rev2/SP800-61rev2.pdf). Of particular note is thereport’s incident response life cycle and itsAppendix G, which provides a high-quali-ty, one-page checklist of key actions totake, such as documenting and preservingevidence, removing malware and returningsystems to an operationally ready state. TheFederal Trade Commission has also pub-lished incident-response guidance for busi-nesses, “Information Compromise and theRisk of Identity Theft: Guidance for YourBusiness,” focusing on customer notificationto minimize the impact of identity theft-related breaches. It’s available athttp://www.ftc.gov/bcp/edu/microsites/idtheft/business/data-breach.html. And fina-lly, last year the Wall Street Journal pub-lished an excellent executive-level overviewof some of the key steps that should be takenwhen responding to an incident entitled,“What to Do if You’ve Been Hacked”( o n l i n e . w s j . c o m / a r t i c l e / S B 1 0 0 01424053111904265504576566991567148576.html).

Q: What are some of the key issues thatshould be included in our IT vendor manage-ment oversight efforts?A: CPAs and their clients are increasinglyreviewing IT vendor performance and thevendor’s ability to meet compliancerequirements as applicable. Traditionally,vendor management oversight has beenconsidered one of the core competencies ofthe financial profession, especially forthose performing controller responsibili-ties. It is the nomenclature and complexityof IT that has challenged these profession-als when overseeing IT vendors.

The good news is that the best practicesused to oversee other types of vendors canalso be applied to IT vendors. Start byobtaining a complete list of your IT ven-dors, first by asking all your managers forthe names of the vendors they contract withand then reconciling those names with pay-ments made as recorded in the financialrecords (e.g., accounts payable). Depending

on the particular business and the industry itserves, each IT vendor represents a differentrisk to the business, and given the reality ofresource constraint faced by all companies,efforts will need to be prioritized. For exam-ple, a health care company that is subject toHIPAA [Health Insurance Portability andAccountability Act] requirements and wouldtherefore need to comply with the securityrules of the mandate, would classify anyvendor with access to patient information asa higher risk requiring more thorough over-sight activities.

In many, but not all, situations, a thorough examination of the IT vendor’sService Organization Control report (espe-cially SOC 2) can facilitate the review.Appropriate contract provisions that specifyexpectations as to service delivery and right-to-audit are key. Preparing contract abstractssummarizing key contract provisions canalso help with oversight efforts. Moreover,understanding IT vendor plans for securitybreaches and business continuity can helpdetermine if the IT vendor will facilitatebusiness operations in a crisis situation.

Although geared to banking, the BankingInformation Technology Secretariat/FinancialServices Roundtable has developed an excel-lent contract provision list focused on IT ven-dors, which is available at www.bits.org/pub-lications/vendormanagement/BITSExitStrategy0505.pdf.

Finally, though very comprehensive butnot specifically focused on IT, the DefenseContract Audit Agency’s “Contract AuditManual,” available at dcaa.mil/cam.htm, isan excellent source of ideas, when it comesto developing IT vendor performance over-sight programs.

Joel Lanz, CPA/CITP, CFF, CISA, CISM,CISSP, CFE, is the sole proprietor of JoelLanz, CPA P.C., and an adjunct professor atSUNY–College at Old Westbury. He is a mem-ber of the NYSSCPA’s Technology Assuranceand Banking committees, and The CPA JournalEditorial Board. He is a past chair of theTechnology Assurance Committee. Mr. Lanzcan be reached at [email protected].

12 www.trustedprofessional.comTECHOctober 2012 / The Trusted Professional

Joel Lanz

Tech Q&A for Today’s CPA The right tools for the jobAn ounce of prevention and a pound of cure: how to keep sensitive documents out of the wrong hands—and help clients bounce back after being hacked

These hidden data can reveal details about your company or

about the document itself that youmay not want to share publicly.

Q: I didn’t get a promotion I think I deserved.What should my next step be?A: First, have a talk with your manager andfind out why you were passed over for pro-motion. What were his or her expectations?What can you do differently to better meetthe criteria for the position you seek?Communication is key, so ask your manag-er to be candid with you. Then, schedule atime to revisit promotion talks. For instance,if a promotion can’t be instituted now, ask ifa midyear promotion is possible. But be sureto come to the conversation prepared—thatmeans bringing along supporting documenta-tions of accomplishments, contributions andinstances in which you’ve met role competen-cies, in order to demonstrate that you’re able totake on additional responsibilities.

If there are areas in which you mustimprove in order to advance, work with yourmanager to create a mutually agreed-uponindividual development plan that outlinesyour goals for meeting the requirements forpromotion. As you work toward meeting thegoals you’ve established, ensure that yourmanager and his or her manager recognizethat you’re working toward a promotion.Monitor your progress frequently with themto ensure that you’re on track.

If the prospect of getting that promotion withyour current employer doesn’t align with yourcareer plans, you may need to explore otheropportunities. No matter what your decision,continue to develop your skill sets.

Q: One of my clients is very aggressive andtakes up a lot of my time with frequentphone calls and emails. How can I set betterboundaries, while still providing good cus-tomer service?A: To ensure good client management, it’sbest to set expectations and also to foster arelationship where you can speak honestly.Express your desire to provide excellentservice to your client—and make it clearthat, in order for that to happen, you mustask that they work with you. It may help toestablish a time frame during which you’llrespond to their inquiries—for instance,scheduling a regular conference call eitheronce daily, or one to three times a week.Explain that you will be more effective andefficient when abiding by a timeline, andthat while they can still email you the itemsthey need your guidance on, or reach youquickly if there’s an emergency, allowingyou to otherwise respond at a set time willgive you an opportunity to prepare, researchand formulate proper guidance.

Ask your client to communicate requestsand deadlines in advance, when possible. Ifyou are going to be away for a meeting, con-ference or vacation, let them know so theycan plan accordingly. And do not hesitate tonegotiate the delivery date with the client.There is more flexibility than you know.Everything is worth a conversation.

Further, good client management isknowing which clients are worth your timeand which are not. If a client is sucking upso much of your attention that the situationbecomes less than profitable, you need toevaluate whether you want to keep thatclient. Your energy may be better spent pro-viding additional service to existing hassle-free clients, or sourcing and contracting anew client.

Q: I excel at the technical aspects of my jobbut want to show my colleagues that I havestrong leadership skills, too. How can I getstarted?A: Volunteer! One way to hone and demon-strate your leadership skills is to volunteer forspecial assignments, project teams, task forcesor committees. Participate in professionalorganization, such as the NYSSCPA, and take

on leadership roles. Serve on nonprofitboards. Or offer to mentor or coach staff.

A leader has self-understanding; seeksevery opportunity for improvement; is proac-tive, forward thinking and flexible; possessesgood interpersonal and relationship skills; is asolid communicator; empowers and developsothers; creates, aligns, translates and commu-nicates her vision; has a holistic view; andthinks strategically about business. Look fordaily opportunities at your workplace or inyour personal life to develop and displaythese competencies. And most importantly,communicate your involvement to your col-leagues and managers.

Pei-Cen Lin, CPA, SPHR, is a strategictalent management and organizationaldevelopment professional in the humanresources field. She is also a past chair ofthe Human Resources Committee and a cur-rent Board member. Ms. Lin can be reachedat [email protected].

www.trustedprofessional.com 13CAREER The Trusted Professional / October 2012

Professional DevelopmentFinding your voiceHow to position yourself for a promotion, handle difficult clients and shore up your leadership skills

Pel-Cen Lin



e d u c a t i o n

For More Information and to Register for This Conference: Visit www.nysscpa.org/nytax or call 800-537-3635.To Register for the Live Video Webcast: Visit www.nysscpa.org/e-cpe or call 877-880-1335.FAE

YEARS 1972-2012


40This is an FAE Paperless Event. Visit www.nysscpa.org for more information.

Investment Companies Conference

David G. Tittsworth, Executive Director

and Executive Vice President, Investment Adviser Association

KEYNOTE SPEAKER:

n Keeping out of trouble: lessons learned from recent casesn European and U.S. regulatory updates n What Form PF means to you

OTHER IMPORTANT TOPICS INCLUDE:

Thursday, November 1, 2012New York Marriott Marquis atTimes Square1535 Broadway, at 45th Street New York, NY 10036

A Must-Attend Conference on Critical Topics In the Investment Industry

CONFERENCE INFORMATION:Course Code: 25305311 (In-Person); 35305311 (Live Video Webcast)In-Person CPE Credit: 8 hours (Breakdown based on Concurrent Sessions)Live Webcast CPE Credit: 4 Specialized Knowledge and Applications; 2 Accounting; 1 Auditing; 1 TaxationNYSSCPA Member Fee: $485 (In-Person); $385 (Live Video Webcast) Nonmember Fee: $610 (In-Person); $510 (Live Video Webcast) There will be a $100 surcharge for POP Pass users for this conference. Call 800-537-3635 to register with POP.

BY DANIEL G. MAZZOLA, CPA, CFA

Ed note: As part of an ongoing series, TheTrusted Professional will be examining waysin which the traditional role of the CPA haschanged, prompting both a shift in thinkingabout the profession and the need to expandskills. To submit articles for consideration,email the editor at [email protected].

W ith a wide-ranging skill set andthorough understanding of finan-cial statements, CPAs are assum-ing a more active role in an

increasingly litigious world. Whether it isby participating in divorce or bankruptcyhearings or providing business valuationanalysis, CPAs with acumen in litigationservices can offer enormous support in legalcases. It is imperative, therefore, that a CPAwho aims to be well-rounded becomeknowledgeable about legal terms and pro-ceedings. Of course, having an understand-ing of some legal concepts and proceduresdoes not qualify a person to practice law, andCPAs must be careful not to represent them-selves as attorneys. Nevertheless, a CPAwho understands the legal process can betterassist clients, enhance the profession in theeyes of those in the business community andfurther advance his or her own career.

One of the activities of the legal processin which a CPA may participate is discovery,the part of the pretrial litigation process dur-ing which each party requests relevant infor-mation and documents from the other side in

an attempt to “discover” pertinent facts.During discovery, a CPA can play a key roleby ensuring that important financial facts aredisclosed and all relevant financial docu-ments maintained. However, CPAs will alsoneed to understand the changes the processhas undergone in the digital age.

Discovery can include depositions of parties and potential witnesses, questionsand answers written under oath, and requestsfor documents. The scope of informationobtainable through discovery is quite broadand not limited to what can be used in a trial.Federal courts and most state courts allow aparty to discover any information calculatedto lead to the finding of admissible evidence.

Electronic documents are becoming thedominant form of evidence requested forcivil and litigation purposes. The nature ofdigital data makes it extremely well suited toinvestigation. Unlike paper documents thatmust be scrutinized manually, digital datacan be electronically searched with ease;what’s more, it’s also difficult or impossibleto completely destroy, particularly if it isembedded in a network. This is because dataappear on multiple hard drives and becausedigital files, even if deleted, can be undelet-ed. The only reliable way to destroy a com-puter file is to physically destroy every harddrive where the file has been stored.

In the process of electronic discovery,data of all types can serve as evidence. Thisincludes text, images, calendar files, data-bases, spreadsheets, audio files and anima-tion. In 2006, the U.S. Supreme Court

amended the Federal Rules of CivilProcedure to create a special category forelectronic records that, for the first time,explicitly named emails and instant mes-sages as likely records to be archived andproduced when relevant. Text messages andemail can be an especially valuable sourceof evidence because people are less carefulin these exchanges than with hard copy cor-respondence such as memos and letters.

Metadata, the structured informationabout an electronic document that is embed-ded in the file, can be quite valuable, too. Infact, it has become a hidden threat whenreleasing information to an opposing partyduring the discovery process. Metadata isthe digital DNA of a record—the data aboutthe data. A skillful computer technician,with minimal effort, will be able to deter-mine from the metadata when the documentwas assessed, who looked at it and if it wasaltered from its native format. The discoveryamendments of 2006 explicitly recognizethe existence and discoverability of metada-ta, and in establishing the facts of a case,

metadata can tell a great deal about arecord’s integrity and its subsequent reliabil-ity as evidence.

In a critique of the legal profession, attor-ney and New York Law School ProfessorCameron Stracher posited that “with thenoble intent of leveling the playing field sothat no party has an under-informationadvantage, the writers of the-discovery rulescreated a multilevel playing field where theinformation-rich can kick the informationpoor in the head and remain unscathed.‘Discovery’ is anything but.” While we candebate the merits of Stracher's conclusion,we can agree that discovery, due to theadvances of the digital age, is an evolvingfield that gives rise to multiple legal, consti-tutional, political, security and privacyissues, many of which have yet to beresolved.

Daniel G. Mazzola, CPA, CFA, is a regis-tered investment adviser for AmericanPortfolios Financial Services, Inc.

14 www.trustedprofessional.comCAREEROctober 2012 / The Trusted Professional

A changing landscape

Why it pays for CPAs to have a solid grasp of legal principlesLegal AID

FAE Learning Center—Eastern New YorkServing CPAs in the Adirondack, Northeast, and Utica Chapters

ETHICS

Nov. 16 FAE’s Ethics Update 2012 4

Dec. 13 FAE’s Tax Ethics and Tax Practice in the 21st Century (4 Ethics; 4 Taxation) 8

TAXATION

Oct. 22 Debt-Related Tax Issues: Foreclosures, Short Sales, and Cancellation of Debt 8

Nov. 14* Choosing the Best Entity Structure Under the New Tax Law 8

Dec. 6 FAE’s Individual Taxation: Review and Update for Experienced Practitioners 8

Special Pullout SectionFAE Seminars

Keep this special pullout section of October–December 2012 CPE Seminarsfor easy reference. For seminar details, to register and for updates, visitwww.nysscpa.org/fae.

Find the new FAE Learning Center in your region!• FAE Learning Center—Eastern New York, serving CPAs in the Adirondack,Mid Hudson, Northeast and Utica chapter region. Seminars are scheduled at theAlbany Marriott.

•FAE Learning Center—Long Island, serving CPAs in the Nassau and Suffolkchapter region. Seminars are scheduled at the Melville Marriott Long Island.

•FAE Learning Center—New York City, serving CPAs in the Manhattan/Bronx,Queens/Brooklyn and Staten Island chapter region. Seminars are scheduled atthe FAE Conference Center in Midtown.

•FAE Learning Center—Westchester, serving CPAs in the Mid Hudson,Rockland and Westchester chapter region. Seminars are scheduled at theDoubletree Hotel Tarrytown.

•FAE Learning Center—Western New York, serving CPAs in the Buffalo,Rochester, Southern Tier, Syracuse and Utica chapter region. Seminars arescheduled at the Holiday Inn Rochester Airport. (Due to high demand, popularseminars are also scheduled in Buffalo and Syracuse.)

Seminars Scheduled at the Albany MarriottTOPIC COURSE TITLE CPE

ACCOUNTING

Nov. 19 Governmental and Nonprofit Annual Update 8

Nov. 26 FAE’s Financial Statement Disclosures for Small- to Medium-Sized Businesses 8

Nov. 29 FAE’s Accounting Update 2012 8

AUDITING

Nov. 15* Now I See! Comprehending OMB A-133 8

Nov. 27 Advanced Employee Benefit Plan Topics 8

Nov. 30 FAE’s Auditing Update 2012 4

Nov. 30 FAE’s Compilation and Review Update 2012 4

Dec. 3 Audit Workpapers: Documenting and Reviewing Field Work 8

FAE Learning Center—Long IslandServing CPAs in the Nassau and Suffolk Chapters

Seminars Scheduled at the Melville Marriott Long IslandTOPIC COURSE TITLE CPE

ACCOUNTING

Oct. 26 Fair Value Accounting: A Critical Skill for All CPAs 8Nov. 1 FAE’s Compilation and Review:

In-Depth Analysis Using Case Studies 8Nov. 2 FAE’s Financial Statement Disclosures

for Small- to Medium-Sized Businesses 8Nov. 14 Not-for-Profit Accounting and Reporting:

From Start to Finish 8Dec. 10 FAE’s Accounting Update 2012 8Dec. 20 The Most Common Financial Statement and Asset Fraud Schemes:

How to Detect and Prevent Them (2 hrs. Accounting; 2 hrs. Auditing) 4

AUDITING Nov. 16 Now I See! Comprehending OMB A-133 8 Nov. 20 Audits of 401(k) Plans 8 Dec. 11 FAE’s Auditing Update 2012 4 Dec. 11 FAE’s Compilation and Review Update 2012 4Dec. 30 FAE’s Performing Small- to Medium-Sized

Business Audit Engagements: 2012 and Beyond 8 ETHICSNov. 19 FAE’s Tax Ethics and Tax Practice in the 21st Century

(4 hrs. Ethics; 4 hrs. Taxation) 8

Dec. 13 FAE’s Ethics Update 2012 4

SPECIALIZED KNOWLEDGE AND APPLICATIONSNov. 5 Internal Control Essentials for Financial Managers,

Accountants, and Auditors 8Dec. 7 Case Studies for the Financial Manager:

Real-World Lessons Learned 4Dec. 7 Expand Your Value-Adding Skills:

Uncovering the CPA’s Worth to the Organization 4Dec. 20 Nonprofit Accounting and Auditing: Avoiding the Icebergs 4

TAXATION Oct. 23 Hot IRS Tax Examination Issues for Individuals and Businesses 8Nov. 7 Determining How Much Money You Need to Retire, and Tax Ideas

and Money Management in Retirement 8Nov. 8 The Best S Corporation, Limited Liability,

and Partnerships Update Course by Surgent McCoy 8Nov. 26 The Complete Guide to Payroll Taxes and 1099 Issues 8

October–December

2012

FAE Learning Center LocationAlbany Marriott 189 Wolf Road Albany, NY 12205-1100

*Off-Site Location Holiday Inn Albany 205 Wolf Road Albany, NY 12205-1124

FAE Learning Center LocationMelville Marriott Long Island 1350 Old Walt Whitman Road Melville, NY 11747-3012

*Off-Site Location Four Points by Sheraton Plainview 333 South Service Road Plainview, NY 11803

Nov. 27* FAE’s Individual Taxation: Review and Update for Experienced Practitioners 8

Dec. 4 Cash and Tax Basis Financial Statements: Preparation and Reporting 8Dec. 6 Fringe Benefits: 2012/2013 8 Dec. 17 FAE’s Individual Taxation: Review and Update for Experienced

Practitioners 8

FAE SeminarsDec. 10 iPad: An Effective Business Tool 4Dec. 11 Chief Financial Officer: Executive-Level Skills for Financial Managers 8Dec. 12 Advanced Excel 8Dec. 14 Common Frauds and Internal Controls for

Revenue, Purchasing, and Cash Receipts 8

Dec. 19 Expanding the Role and Influence of CPAs in Organizations 8

TAXATIONNov. 5 Closely Held Business Taxation: Smart Strategies to Slash Taxes 8Nov. 5 Multistate Taxation of Corporations: Theory, Practice, and Compliance 8Nov. 15 Pass-Through Entities: Advanced Tax Issues 8Nov. 15/16 AICPA’s 1040 Tax Return Workshop by Sid Kess 16Nov. 16 Hot IRS Tax Examination Issues for Individuals and Businesses 8Nov. 16 Disasters and Other Involuntary Conversions 8Nov. 20 FAE’s 2012 Solid Family Tax Planning:

Key Market for Your Tax Practice 8

Nov. 26 FAE’s New York State Taxation Workshop Update 2012 8Nov. 28/29 AICPA’s 2012 Corporate Income Tax Returns Workshop by Sid Kess 16Dec. 3 Tax Research Techniques for Compliance, Planning, and Communication 8Dec. 5 Basis/Distributions for Pass-Through Entities: An IRS Hot Spot 8Dec. 7 Accounting Methods: 130 Options for Federal Income Tax Reporting 8Dec. 7 Choosing the Best Entity Structure Under the New Tax Law 8Dec. 10 Federal Estate and Gift Tax Returns: Forms 706 and 709 Workshop 8Dec. 12 Debt-Related Tax Issues: Foreclosures, Short Sales,

and Cancellation of Debt 8

Dec. 14 Current Federal Tax Developments 8Dec. 19 Surgent McCoy’s 1040 Tax Season Survival Guide 8Dec. 20 The Best Individual Income Tax Update Course by Surgent McCoy 8Dec. 27 FAE’s Tax Ethics and Tax Practice in the 21st Century



Serving CPAs in the Buffalo, Rochester, Southern Tier, Syracuse, and Utica Chapters

TOPIC COURSE TITLE CPE

ACCOUNTING Oct. 24 Fair Value Accounting: A Critical Skill for All CPAs 8Nov. 19 FAE’s Accounting Update 2012 8

AUDITING Nov. 1 Now I Oversee: Advanced OMB-133 Issues 8Nov. 15 Audits of 401(k) Plans 8Nov. 20 FAE’s Auditing Update 2012 4Nov. 20 FAE’s Compilation and Review Update 2012 4Nov. 26 Audit Workpapers: Documenting and Reviewing Field Work 8

Nov. 27/28 How to Conduct a Review Under the AICPA Practice Monitoring Program 16

ETHICS

Nov. 30 FAE’s Tax Ethics and Tax Practice in the 21st Century (4 hrs. Ethics; 4 hrs. Taxation) 8

Dec. 14 FAE’s Ethics Update 2012 4

SPECIALIZED KNOWLEDGE AND APPLICATIONS

Oct. 26 AICPA’s Controllership: 25 Critical Lessons from the Trenches 8

Dec. 10 Excel Tips, Tricks, and Techniques for Accountants 8

October–December

2012

FAE Learning Center—New York CityServing CPAs in the Manhattan/Bronx, Brooklyn/Queens, and Staten Island ChaptersSeminars Scheduled at the FAE Conference Center

TOPIC COURSE TITLE CPEACCOUNTINGOct. 22 Forensic Accounting Investigative Practices 8Oct. 22 Fair Value Accounting: A Critical Skill for All CPAs 8Nov. 9 IT: Risks and Controls in Traditional and Emerging Environments

(4 hrs. Accounting; 4 hrs. Auditing) 8Nov. 19 Corporate Accounting: Hone Your Skills

(4 hrs. Accounting; 2 hrs. Ethics; 2 hrs. Specialized Knowledge and Applications) 8

Nov. 20 Governmental and Nonprofit Annual Update 8

Nov. 28 Not-for-Profit Accounting and Reporting: From Start to Finish 8Dec. 10 Convergence and Private Company Accounting:

More Changes on the Financial Reporting Horizon 8

Dec. 11 Forensic Accounting: Uncovering Schemes and Scams 4Dec. 12 FAE’s Financial Statement Disclosures for

Small- to Medium-Sized Businesses 8Dec. 13 FAE’s Compilation and Review:

In-Depth Analysis Using Case Studies 8

Dec. 17 FAE’s Accounting Update 2012 8Dec. 18 Financial Reporting: Turn Information into Action! 8

Dec. 20 International Versus U.S. Accounting: What in the World Is the Difference? 8

AUDITING

Oct. 12 FAE’s Understanding and Implementing the New Clarified Auditing Standards 4

Oct. 31 Private Foundations: Planning for Family Philanthropy 8Nov. 2 Now I Oversee: Advanced OMB-133 Issues 8Nov. 9 Advanced Employee Benefit Plan Topics 8Nov. 19 Audits of 401(k) Plans 8Nov. 29 Audit Workpapers: Documenting and Reviewing Field Work 8Dec. 3 FAE’s Performing Small- to Medium-Sized Business

Audit Engagements 8

Dec. 11 Revenue and Cash Receipts: Common Frauds and Internal Controls 4Dec. 18 FAE’s Auditing Update 2012` 4Dec. 18 FAE’s Compilation and Review Update 2012 4

ETHICS

Dec. 19 Risk Analysis and Management: What Every Financial ManagerMust Know (6 hrs. Auditing; 2 hrs. Ethics) 8

Dec. 21 FAE’s Ethics Update 2012 4Dec. 27 FAE’s Tax Ethics and Tax Practice in the 21st Century


SPECIALIZED KNOWLEDGE AND APPLICATIONSOct. 23 The Controller and CFO in the Organization of the Future 8Oct. 29 AICPA’s Controllership: 25 Critical Lessons from the Trenches 8Nov. 28 Excel Tables: Revolutionize How You Work with Excel 4Nov. 28 Office 365 4Nov. 29 Excel Tips, Tricks, and Techniques for Accountants 8Dec. 3 Trusted Business Advisor Workshop II 8Dec. 10 Cloud Security and Compliance: What’s Your Responsibility? 4

FAE Learning Center LocationFAE Conference Center 3 Park Avenue, at 34th Street19th Floor New York, NY 10016-5991

FAE Learning Center—Western New York Serving CPAs in the Buffalo, Rochester, Southern Tier, Syracuse, and Utica Chapters

FAE Learning Center—New York CityServing CPAs in the Manhattan/Bronx, Brooklyn/Queens, and Staten Island ChaptersSeminars Scheduled at the FAE Conference Center

Seminars Scheduled at the Holiday Inn Rochester Airport

Off-Site Locations

TAXATIONOct. 17 Current Federal Tax Developments 8Oct. 22 Hot IRS Tax Examination Issues for Individuals and Businesses 8Oct. 23 Fringe Benefits: 2012/2013 8Oct. 29 FAE’s New York State Taxation Workshop Update 2012 8Oct. 30 Tax Research Techniques for Compliance, Planning, and Communication 8Oct. 31 Closely Held Business Taxation: Smart Strategies to Slash Taxes 8Nov. 6 Accounting Methods: 130 Options for Federal Income Tax Reporting 8Nov. 7 Preparing Complex 1040s 8Nov. 14 Surgent McCoy’s 1040 Tax Season Survival Guide 8Nov. 29 FAE’s 2012 Solid Family Tax Planning:

Key Market for Your Tax Practice 8Dec. 20 FAE’s Individual Taxation:

Review and Update for Experienced Practitioners 8

Seminars Also Scheduled Off-sitein Buffalo Due to Popular DemandTOPIC COURSE TITLE CPEACCOUNTINGNov. 19 Not-for-Profit Accounting and Reporting: From Start to Finish 8Oct. 4 FAE’s Accounting Update 2012 8

AUDITINGOct. 5 FAE’s Auditing Update 2012 4Oct. 5 FAE’s Compilation and Review Update 2012 4

ETHICSOct. 23 FAE’s Ethics Update 2012 4Nov. 29 Cases in Corporate Ethics for New York CPAs 4

SPECIALIZED KNOWLEDGE AND APPLICATIONSNov. 28 Chief Financial Officer:

Executive-Level Skills for Financial Managers 8Nov. 29 Lean Accounting: Apply Lean Thinking to Financial Management 4

TAXATIONOct. 9 Debt-Related Tax Issues: Foreclosures, Short Sales,

and Cancellation of Debt 8

Oct. 11 Hot IRS Tax Examination Issues for Individuals and Businesses 8

Seminars Also Scheduled Off-Site in Syracuse Due to Popular DemandTOPIC COURSE TITLE CPEACCOUNTINGOct. 16 The Most Common Financial Statement and Asset Fraud Schemes:

How to Detect and Prevent Them (2 hrs. Accounting; 2 hrs. Auditing) 4

Oct. 25 Top Ten Fraud Schemes: How to Detect and Prevent Them (4 hrs. Accounting; 4 hrs. Auditing) 8

Oct. 29 FAE’s Accounting Update 2012 8

AUDITINGOct. 30 FAE’s Auditing Update 2012 4Oct. 30 FAE’s Compilation and Review Update 2012 4

ETHICSNov. 6 FAE’s Ethics Update 2012 4

SPECIALIZED KNOWLEDGE AND APPLICATIONSOct. 16 Nonprofit Accounting and Auditing: Avoiding the Icebergs 4Oct. 17 Case Studies for the Financial Manager:

Real-World Lessons Learned 4Oct. 17 Expand Your Value-Adding Skills:

Uncovering the CPA’s Worth to the Organization 4Oct. 24 AICPA’s Annual Update for Controllers 8

FAE SeminarsTAXATIONNov. 5 The Best Individual Income Tax Update Course by Surgent McCoy 8Nov. 9 The Best S Corporation, Limited Liability,

and Partnerships Update Course by Surgent McCoy 8

FAEYEARS 1972-2012


40

Buffalo/Niagara Marriott 1340 Millersport HighwayAmherst, NY 14221-2902

Doubletree Hotel (formerlythe Wyndham) 6301 Route 298 East Syracuse, NY 13057

FAE Learning CentervLocationHoliday Inn Rochester Airport 911 Brooks AvenueRochester, NY 14624-3107

FAE Learning Center—WestchesterServing CPAs in the Mid Hudson, Rockland, and Westchester Chapters

Seminars Scheduled at the Doubletree Hotel, TarrytownTOPIC COURSE TITLE CPEACCOUNTING Oct. 29 Corporate Accounting: Hone Your Skills

(4 hrs. Accounting; 4 hrs. Specialized Knowledge) 8 Nov. 7 Forensic Accounting: Uncovering Schemes and Scams 4Nov. 26 FAE’s Accounting Update 2012 8

AUDITINGOct. 30 Private Foundations: Planning for Family Philanthropy 8Nov. 7 Revenue and Cash Receipts: Common Frauds and Internal Controls 4Nov. 27 FAE’s Auditing Update 2012 4Nov. 27 FAE’s Compilation and Review Update 2012 4Dec. 18 FAE’s Performing Small- to Medium-Sized Business Audit Engagements 8

ETHICSNov. 30 FAE’s Ethics Update 2012 4Dec. 14 FAE’s Tax Ethics and Tax Practice in the 21st Century


SPECIALIZED KNOWLEDGE AND APPLICATIONSNov. 9 AICPA’s Annual Update for Controllers 8Dec. 11 Excel Tips, Tricks, and Techniques for Accountants 8

TAXATIONOct. 19 Current Federal Tax Developments 8Nov. 2 FAE’s New York State Taxation Workshop Update 2012 8Nov. 6 Determining How Much Money You Need to Retire, and Tax Ideas

and Money Management in Retirement 8Nov. 8 Multistate Taxation of Corporations: Theory, Practice, and Compliance 8Nov. 13 Choosing the Best Entity Structure Under the New Tax Law 8Nov. 15 Preparing Complex 1040s 8Nov. 19 Tax Research Techniques for Compliance, Planning, and Communication 8Nov. 20 Closely Held Business Taxation: Smart Strategies to Slash Taxes 8Nov. 29 Federal Estate and Gift Tax Returns: Forms 706 and 709 Workshop 8


Dec. 17 Surgent McCoy’s 1040 Tax Season Survival Guide 8Dec. 19 Preparing Individual Tax Returns for New Staff and Paraprofessionals 8

FAE Learning Center LocationDoubletree Hotel, Tarrytown 455 South Broadway Tarrytown, NY 10591-6002

For seminar details and to register, visit www.nysscpa.org/fae or call 800-537-3635.

October–December

2012

FAE Learning Center—WestchesterServing CPAs in the Mid Hudson, Rockland, and Westchester Chapters

18 www.trustedprofessional.comSPECIAL SECTIONOctober 2012 / The Trusted Professional

Have some fun in celebrating the Foundation for Accounting Education’s 40th Anniversary by taking our 1972 Trivia Quiz, where you can win a complimentary registration to attend afull-day FAE CPE Conference of your choice (in person or via live webcast)!

1. What product was banished to the historybooks with the introduction in 1972 of the firstscientific handheld calculator, the HP-35?

2. The first financial derivatives exchangeopened in May 1972. What is it called?

3. Which Broadway show won the Tony Awardfor 1972 Best Musical?

4. John Hicks and Kenneth Arrow won the 1972Nobel Prize in Economics for their pioneeringcontributions in what areas?

5. Increased agricultural irrigation causedwhich major Chinese waterway to temporarilydry up for the first time in 1972?

6. What was the name of the first video gamesystem that went on sale in August 1972 andsold 330,000 units before it was discontinuedin 1975?

7. The Godfather was released in 1972. Whatactor plays a Vatican accountant in Part III ofthe movie series?

8. Who was governor of New York in 1972?

9. Which song won the Grammy Award for the1972 Record of the Year?

10. Who became the first Foundation forAccounting Education president when FAE wasestablished in 1972?

Celebrating FAE40: 1972 Trivia Quiz

All Quiz entries with correct answers will beplaced into a drawing, and one entry will beselected for the complimentary Conference registration.

DEADLINEThe deadline for submitting your 1972 Trivia Quizentry is December 31, 2012, so don’t delay!

ENTERTo enter and to submit your Quiz answers, visit www.nysscpa/fae40. See website for Contest rules.

#21FORTY ANNUAL CONFERENCES

featuring renowned speakers sharing their expertisecan all be attended either IN PERSON

or via LIVE VIDEO WEBCAST.

REASONS to turn toFAE for Quality CPE40

FAEYEARS 1972-2012


40Celebrating 40 years as one of the Northeast’s premier continuing professional education resources for high-quali-ty, cost-effective seminars, conferences, and technical sessions for CPAs and other financial professionals.

FOR MORE INFORMATION AND TO SEE MORE FAE40 REASONS, VISIT WWW.NYSSCPA.ORG/FAE40.

TRIVIA QUIZ

BY DEBBIE A. CUTLERProfessional Ethics Committee Chair

On August 22, 2012, the NYSSCPAExecutive Committee (EC) adoptedadditional modifications to the ethicsinterpretations of the Code of

Professional Conduct (“Code”) proposed bythe Professional Ethics Committee (PEC) byunanimous vote. The following is a summary ofthe additional modifications to the Code. Thereare revisions to four interpretations: 101-2—Subordination of Judgment by a Member; 102-3—Performance of Nonattest Services; 203-1—Departures from Generally AcceptedAccounting Principles; and 501-1—Responseto Requests by Clients and Former Clients forRecords. There are also three new interpreta-tions: 203-5—Financial Statements PreparedPursuant to Financial Reporting FrameworksOther Than GAAP; 505-4—Misleading FirmNames; and 505–5—Common Network Brandin Firm Name; and one technical correction tointerpretation 102-11—Modified Applicationfor Engagements Performed in Accordancewith Standards on Statements for AttestationEngagements under Rule 102.

Revisions to IndependenceInterpretations

The EC previously approved adoption ofAICPA Independence Interpretations underAICPA Rule 101. The Society is providingnotification of recent revisions to 102-3—Performance of Nonattest Services underRule 102. (The corresponding AICPA inter-pretation is 101-3.) The revisions to 102-3added clarity to nonattest services guidance.Some of the changes include, but are notlimited to, replacing the term “managementfunctions” with a new term, “managementresponsibilities.” To facilitate understandingof this new term, an explanation of whatmanagement responsibilities imply wasadded (the term “general activities” wasdeleted), and examples previously referredto as general activities are now referred to asexamples of management responsibilities.

There are also additions and revisions to theexamples provided that would not impairindependence. The AICPA revisions alsoinclude incorporating non-authoritativeguidance that was in the FAQs. The AICPAalso made a technical correction toInterpretation 101–11, Modified Applicationof Rule 101 for Engagements Performed inAccordance with Standards on Statementsfor Attestation Engagements, under Rule101, which appears as Interpretation 102-11in the Society’s Code.

An additional modification has beenmade to 101-2—Subordination of Judgmentby a Member, that included updating the ref-erencing to professional standards, movingexisting text to a footnote and deleting thereference to “as defined herein.”

Other interpretation revisionsInterpretation 203-1—Departures from

Generally Accepted Accounting Principlesunder Rule 203, Accounting Principles, pro-vides clarification that a member would not bein violation of Rule 203 when preparing orreporting on financial statements that have beenprepared using a financial reporting frameworkthat is not promulgated by a body designatedby AICPA Council to establish such principles.

Interpretation 501-1—Response toRequests by Clients and Former Clients forRecords under Rule 501, Acts Discreditable,included several modifications including, butnot limited to, revisions to defined terms sole-ly for use in this interpretation, including anew category for member’s work product toaddress deliverables that result from anengagement by adding tax returns as an exam-ple of a member’s work product, edited thedefinition of member’s working papers toshow that records that are prepared by theclient for use in a specific member engage-ment are considered the member’s workingpapers, not client-provided records, and toprovide additional clarity to the phrase“including hard copy or electronic reproduc-tions of such records” was added to the defi-nition of client-provided records, and deletingthe terms client records prepared by the mem-

ber and supporting records. The revision alsoclarifies members responsibilities for return ofclient records in situations where there areunpaid fees by adding a provision that failureto comply with the more restrictive provisionsof the state board rules regarding a client’srequest for records would constitute a viola-tion of the interpretation, and moving thereminder to members to comply with the morerestrictive provisions to the beginning of theinterpretation. Guidance is provided for whena member is permitted to withhold his or herwork product (e.g., if there are fees due to themember for specific work product; if the workproduct is incomplete; for purposes of com-plying with professional standards; or ifthreatened or outstanding litigation exists con-cerning the engagement or member’s work).Additional wording was added to clarify that amember is not required to convert recordsfrom one electronic format to another,although the member should provide recordsin the requested format if such records arealready available in that format and in themember’s custody and control. In addition,when a member has created a document dur-ing an engagement, such as a spreadsheet thatcontains underlying formulas, the member isnot required to provide the underlying formu-las, unless the member was engaged to pro-vide such formulas, or the formulas supportthe client’s records.

New interpretationsInterpretation 203-5—Financial Statements

Prepared Pursuant to Financial ReportingFrameworks Other Than GAAP, under Rule203, provides guidance that members are notprecluded from preparing or reporting on finan-cial statements that have been prepared inaccordance with certain financial reportingframeworks. Interpretation 203-5 describes thetypes of financial reporting frameworks that amember may report on that are not promulgat-ed by financial reporting frameworks generallyaccepted in another country, including jurisdic-tional variations of International FinancialReporting Standards (IFRSs), such that the

Society Executive Board Adopts EthicsInterpretations

www.trustedprofessional.com 19NOTICE The Trusted Professional / October 2012

L awrence A. “Larry” Wolff earnedhis accounting degree at BaruchCollege in the 1960s and got his NewYork state CPA license in October

1969. He joined Rosen Seymour ShapssMartin & Company LLP in 1984 and servedin their quality review department. Hisresponsibilities included reviewing financialstatements and workpapers for compliancewith the firm’s policies and professionalstandards, and assisting in the research ofany auditing or accounting issues.

Larry had been a member of theNYSSCPA’s Accounting and Review ServicesCommittee (ARSC) since 1988. He alwaysattended the committee meetings, providingvaluable opinions and comments about the lat-est developments in the profession. He waswilling to share his experiences and insightswith others. Indeed, he was always able to addvivid examples to the professional standardsand pronouncements in order to make themmore understandable, and he brought ques-tions, scenarios and cases to our “practiceissues” section. Although he was an experi-enced professional, he was open to hearingideas and “best practices” from others. Hispresence added a lot of flavor and a number ofvital ingredients to our plate.

“Larry was one of those people who youcould always count on to see the humor inthings, even accounting!” said Jay H.Goldberg, a current member and past chair ofthe ARSC. “He always asked questions thatnobody else did, but most everyone agreedwere insightful.”

While we mourn the loss of a great account-ing professional, we will always rememberLarry’s devotion and his valuable contributionsto the committee and the Society.

–The ARSC

In MemoriamThe Accounting and Review ServicesCommittee bids farewell to one of its own

See Ethics, on page 26


It was the end of January and, like manyCPAs, Queens/Brooklyn Chapter boardmember Edward J. Torres already had afull plate of the spring tax season ahead

of him―there were clients to talk to, docu-ments to update and reams of paperwork tofill out. But when the NYSSCPAcontacted him to see if he’d beinterested in doing pro bonowork for a woman in dire need ofcompetent financial services, theanswer was easy: Torres said yes.

Since becoming a CPA in1992, Torres has typically takenon 10 to 12 engagements a yearpro bono or for a reduced fee.(Though he does not advertisepro bono services, he said thatpeople are referred to him eitherby attorneys or other clients.)That he donates his time andexpertise in this way, he said, is areflection of his upbringing;when he was a child, his social-worker mother often took him to volunteerat soup kitchens or for programs such asMeals on Wheels, emphasizing the need tobe “considerate of other people.”

Society representatives connected Torreswith the attorney of a homeowner whosemortgage was “underwater,” or had a bal-ance higher than the value of the property,and was headed for default. The attorney had

come to the NYSSCPA in search of a CPAwho could make sense of the figures thebank was throwing at him, Torres said.

The first thing Torres did was review acopy of the spreadsheet, which he found tobe convoluted. What’s more, upon furtherexamination, he noticed that the numbers lit-erally weren’t adding up—though therewere formulas in some cells, they were

missing or incorrectlyplaced in others. Heasked bank officials ifhe could review theofficial spreadsheet,with all of the formu-las intact. But theyrefused, “and it[became] a con-tentious relationship,”he said.

Undeterred, Torresdecided to recreate thetransactions himself.The process of trans-lating data from thepaper documents intoan Excel spreadsheet

took about three months, he said, butbrought about an important development inthe case.

“Once I started trying to recreate their for-mulas, it was easy to see that the numbersjust didn’t work out,” he said.

In fact, Torres would eventually find thatthe bank had been overcharging the client.Confident in the calculations that he had

produced, Torres offered to testify on theclient’s behalf. However, he wouldn’t needto: The information he provided ultimately“turned the tables on the bank, and the clientwas then in a much better position to havethe loan renegotiated to something [more]affordable,” he said.

In addition to the various pro bonoengagements he takes on at his firm, Torresalso helps to manage his church’s books as amember of the organization’s finance com-mittee. Torres added that his church’s mon-signor had hoped to bring on a CPA toensure that money was spent wisely and thatthe budgets were appropriate because thechurch had experienced difficulties in thewake of the economic downturn.

Torres also helped to modify the tuitionformula for the school that the church ranand spearheaded efforts to get a better rate ofreturn on church investments by meetingwith various bankers in the area. This, inturn, has led to improved facilities and amore efficiently run school “without hard-ship for anyone.”

Furthermore, since he joined the church’sfinance committee, it’s been able to attracttwo other CPAs and several bankers, he said.

“One of my favorite movies is “Pay ItForward,” and that’s kind of how I feel—thatif I do my part and help people, somewherealong the line, those people will help oth-ers,” Torres said. “[Ultimately] we can pushour society in the right direction with everylittle bit.”

[email protected]

HOW YOU CAN HELP

The NYSSCPA is currently workingwith the Lawyers’ ForeclosureIntervention Network (LFIN), a jointproject of the City Bar JusticeCenter and the Federal ReserveBank of New York, to providehomeowners facing foreclosurewith free financial consulting. Manyof the cases that come before theprogram require a CPA’s expertisein order to develop a comprehen-sive plan for assistance, accordingto Lynn Armentrout, LFIN’s director.“The main issue is reading anddeciphering payment historiesbecause they are really impenetra-ble to understand, from a layper-son’s perspective,” she said. CPAsinterested in volunteering shouldcontact Robert Busweiler [email protected].

CPA uses training, financial skills to help New Yorkers facing foreclosure

Edward J. Torres

CHAPTER NEWSCPA Roundtable 21 I FAE & CPE Events 23 I Chapter News 24

| The Trusted Professional | October 2012

Find Us on Facebook!

NYSSCPAn e w y o r k s t a t e s o c i e t y o f

c e r t i fi e d p u b l i c a c c o u n t a n t s

You can always find us on the web by visiting our homepage…but did you know you can “like” theNYSSCPA on Facebook? You can even connect with us on our LinkedIn group and follow us on Twitter!

Over 700 people are fans of the NYSSCPA on Facebook … and we’d love to have you among them! We also have aLinkedIn group that has over 2,500 members, so make sure to check out our LinkedIn company profile and join in.

Have you seen our “tweets”? Find out why almost 800 people are following us on Twitter—sign up to follow us and youcan get daily updates from the NYSSCPA on regulatory actions, breaking financial news, upcoming events, and much more.

When it comes to social media, we’re right there on the front lines.

Follow us on Twitter: twitter.com/nysscpaJoin us on Facebook: Visit facebook.com and search for NYSSCPA.Connect with us on LinkedIn: linkedin.com/companies/nysscpa

www.trustedprofessional.com 21CHAPTER NEWS The Trusted Professional / October 2012

When I graduated from college and started my accounting career, I found that I gravitated toward the tax side of the profession, asopposed to the audit side, because I felt that I learned more in that area than I did doing standard audit work. At my firm, we all do alittle bit of everything, so I was able to compare the two.

This eventually led me to start specializing in tax, which I’ve done for about six or seven years at this point. It’s a great mental challenge. Idon’t really focus on any particular area of tax—I’m an all-arounder. I do everything from corporate to partnership to individual. All of

them, though, can be like putting together a great big puzzle. All the research—going through the volumes of paper and books—is worthit when things start to fall into place.

Of course, this means that you must be extremely detail oriented—the mindset of a tax specialist is that of someone who can be cre-ative and meticulous at the same time. The devil is in the details, and so you have to have a good grasp of what’s going on with the

rules and regulations, as well as what’s going on with your client. Still, my advice would be to try a couple of different things andsee what you like best, because everyone is different.

[email protected]

❚ CPA ROUNDTABLE

What made you pickyour specialty?

The CPA Roundtable is a monthly featurewhere we ask CPAs from around the state

to weigh in with their thoughts on an issuerelevant to the profession.

If you are interested in becoming aRoundtable participant, drop us a line at

[email protected].

When I was going to school, I went into accounting, and public accounting firms were the first tocome onto campus to interview. I was lucky enough to get a job at what was then PriceWaterhouse, and I just slid into the audit department at the Buffalo office. My first audit was aninitial audit of a large retailer in western New York, so I got the joy of documenting controls and

assessing deficiencies. I wasn’t updating prior years’ audit workpapers, because there were no prior years,so I had to learn very quickly and work independently, and be responsible for my audit section. This,though, led me to realize that I really enjoyed audit. I learned from it and loved doing what I did. I loveunderstanding why the pronouncements are what they are and discussing the impact with our clients andstaff. It may sound weird, but I love assessing audit risks, scoping out projects and really thinking outsidethe box, as it relates to a particular client. Also, I work with some really talented professionals—people[I’m glad] to know.

If someone wants to specialize in audit, beyond getting a job at a respected public accounting firm thatwill provide you with training (my own at Price Waterhouse was amazing), an auditor needs to be ableto work independently, learn new accounting systems very quickly, be a quick read on things and enjoyworking with the public, particularly clients

[email protected]

I’ve been a CPA in private industry for about 30 years now. I’d always had an interest inaccounting―I was good with numbers from a young age and, according to my mother, when myteacher asked what I wanted to do as far as a career, I said I wanted to be an accountant. To me, itwas natural. I took my first accounting class in high school, loved it and majored in it in college. After graduating from college, my thought process was, what industry would be most supportive to

my needs, so that I could learn everything I could? Public accounting seemed perfect at first because,well, that’s their product. But after a few years, my thought pattern changed. I wanted to go frombeing a provider of services to a buyer of services. As an auditor, you provide services and, in the longrun, I thought it would be better to be a buyer, like you would be at the CFO level, where I am now. It’seasier and the learning curve is better. You can reach out to a specialist, as opposed to being pigeon-

holed into one area. My perception of public accounting is that your scope of responsibilities can be narrow at times; auditors,

consulting, bankruptcy—these are all very practical but they all just [speak to] one particular area. In a CFO’srole, you’re getting into everything you can imagine, from accounting to reporting to taxes to all the specialized

practices that CPA firms have in their consulting wings, plus the product that the company itself sells. With this in mind, I thought I would have a better career path—as far as knowledge and learning goes—in

private industry. For those interested in a lifetime of learning, the CFO role is a rich path.

[email protected]

JACK VIVINETTONassau Chapter

Specialty: Private Industry

Look for

A new online edition of The Trusted ProfessionalVisit www.trustedprofessional.com

DOMENICK DEL ROSSO Mid Hudson Chapter

Specialty: Tax

PATRICIA A. McGRATHBuffalo Chapter Specialty: Audit

on the Web

22 www.trustedprofessional.comCHAPTER NEWSOctober 2012 / The Trusted Professional

FAE 2012 Technical Sessions


e d u c a t i o n

For More Information and to Register for the In-Person Sessions: Visit www.nysscpa.org/fae or call 800-537-3635.To Register for the Live Webcast Sessions: Visit www.nysscpa.org/e-cpe or call 877-880-1335.FAE

YEARS 1972-2012


40

Annual Accounting and Auditing of Broker/Dealers Technical Sessions

■ Basics of broker/dealer audits ■ Reporting requirements ■ Introduction to net capital■ Unique problems of auditing broker/dealers■ Dealing with regulatory changes■ Current developments ■ Case study

Friday, November 30, 2012FAE Conference Center3 Park Avenue, at 34th Street 19th Floor New York, NY 10016

Learn about the recent developments in the industry


CONFERENCE INFORMATION:In-Person Course Code:

27177347 (Morning Session); 27177349 (Afternoon Session)Live Webcast Course Code:

37177347 (Morning Session); 37177349 (Afternoon Session)Morning CPE Credit: 3:

1 hour Accounting; 1 hour Auditing;1 hour Specialized Knowledge and Applications

Afternoon CPE Credit: 3:2 hours Auditing; 1 hour Specialized Knowledge and Applications

NYSSCPA Member Fee: $75 per Session (In-Person and Live Webcast)Nonmember Fee: $125 per Session (In-Person and Live Webcast)

Hear from industry leaders on important updates for broker/dealers including:

By CHRIS GAETANOTrusted Professional Staff

T he Syracuse Chapter marked the 10thanniversary of its annual food drivebenefitting the Food Bank of CentralNew York, by collecting twice as much

in cash donations and nearly 100 pounds morein food donations than they did last year.

With the help of seven area firms, thechapter’s Young CPA committee gathered231 pounds of food and $1,035 in cash forthe drive, which was held in August.Members spent a month collecting boxes ofnonperishable goods such as oatmeal,canned vegetables and pastas, according toAlanna J. Abreu, who coordinated theaction for the second year in a row. Lastyear, the chapter secured $500 and 135pounds of food.

“Everyone is willing to collect food dur-ing the holiday season, but [they] forgetabout it during the regular months,” Abreu

said. “That was one of the reasons, when Istarted taking on the food drive, that wemoved it to the summer—to help [the foodbank] when they are low.”

The annual drive is the chapter’s biggestvolunteer project. Firms that participated inthis year’s effort include Green & SeifterCertified Public Accountants, PLLC; Bowers& Company CPAs PLLC; Dermody, Burke &Brown, CPAs, LLC; Testone, Marshall &Discenza, LLP; Fust Charles Chambers LLPCertified Public Accountants; Firley, Moran,Freer & Eassa, CPA, P.C.; Dannible &McKee, LLP; and Daley, LaCombe &Charette PC.

The Food Bank of Central New York pro-vides more than 10 million meals a yearaccording to its website, but without local vol-unteers, it “would be unable to ensure that allfamilies throughout Central and Northern NewYork have the food they need,” said BrianMcManus, the organization’s CommunityRelations Coordinator. “The recent food drive

by the New York State Society of CPAS inSyracuse is an example of the kind of commu-nity involvement that allows us to ensure that

no one need be hungry in our community,” hesaid. “We are very grateful for the support.”

[email protected]

Syracuse Chapter supports food bank with 10th annual drive

Alanna J. Abreu with some of the donations the chapter collected.

Adirondack Chapter Accounting andAuditing Update When: Oct. 22, 9 a.m.–5 p.m. (8:30 a.m. check-in)Where: Crowne Plaza, Lake PlacidCost: $200 per personCPE: 8 (4 accounting, 4 auditing) Course Code: 11112341Contact: Dan Fordham at [email protected] or (518-563-7717 ext.122)

Adirondack Chapter Annual Tax ConferenceWhen: Nov. 28Where: Crowne Plaza, Lake PlacidCost: TBDCPE: 8 (taxation) Course Code: 28612341Contact: Barbara Dwyer at [email protected]

10 Things You Need To Fix Before the 2012Audit Season … and maybe moreWhen: Oct. 24, 8–10 a.m.Where: Canisius Amherst, 300 CorporateParkwayCost: $50 members; $75 nonmembers CPE: 2 (auditing)Course Code: 29010302Contact: Greg Altman at [email protected]

Manhattan/Bronx Chapter Annual Golf Classic When: Oct. 18, 9:30 a.m. (check-in andbreakfast); 11 a.m. (shotgun start); 4:30 p.m.(reception); 5:30 p.m. (awards dinner) Where: Plandome Country Club, 145Stonytown Road, Plandome Cost: $350 golf attendee; $150 reception/dinner only Contact: Gene Shear (212-372-1202) or go tohttp://nysscpamb.dojiggy.com/

Developing Manager Skills(Part of a five-session series) When: Oct. 22, 6–8 p.m.; (5:30 p.m. check-in)Where: FAE Conference Center, 3 Park Ave.,19th floorCost: $20 members; $25 nonmembers; $30 walk-insCPE: 2 (specialized knowledge and application)Course Code: 29150303

Developing Leadership Skills(Part of a five-session series) When: Nov. 5, 6–8 p.m.; (5:30 p.m. check-in)Where: FAE Conference Center, 3 Park Ave.,19th floorCost: $20 members; $25 nonmembers; $30walk-insCPE: 2 (specialized knowledge and application)Course Code: 29150305

Mid Hudson Chapter Golf OutingWhen: Oct. 4, 11:30 a.m. (shot-gun start)Where: Wiltwyck Golf Club, KingstonCost: $75 per personContact: Marc Schain (845-255-5888)

Accounting and Auditing/Comp & Review When: Oct. 19, 8 a.m.–4:30 p.m.Where: Ramada Inn, 542 Route 9, FishkillCost: $160 member; $210 nonmembersCPE: 8 (4 accounting; 4 auditing) Course Code: 28102332 Contact: Marguerite Reilly at [email protected] or (845-473-7774)

Banker, Attorney and CPA Dinner With Special Guest: Baseball Star DarrylStrawberryWhen: Oct. 24 Where: The Grandview, 176 Rinaldi Blvd.,PoughkeepsieCost: $85 per personContact: Jeannie Hudson at [email protected] or (845-695-6800)RSVP by Oct. 18.

Army vs. Air Force Game and ExclusiveTailgating PartySponsored by the Young CPAs Committee(Open to young CPAs, chapter members,other young professionals groups/members)When: Nov. 3, 9 a.m. (party); 12 p.m. (game)Where: Michie Stadium–-Buffalo SoldierField, 700 Mills Road, West PointCost: $40 per person ($15 prepaid parking per car)Contact: Magda V. Reyes [email protected] or (845-567-9000)Space is limited. RSVP by Oct. 3.

Mid Hudson Annual Tax ConferenceWhen: Nov. 9, 8:30 a.m–4:30 p.m.; (8 a.m. check-in) Where: Ramada Inn, NewburghCost: $150 members; $250 nonmembers CPE: 8 (taxation) Course Code: 28602331

Mentor a Student NightWhen: Oct. 17, 6 p.m. (cocktails); 7 p.m. (dinner and presentation)Where: The Chateau Briand, Carle PlaceCost: $60 per personContact: Abby Lucrezia [email protected]

Nassau Annual Half-Day Tax ConferenceWhen: Oct. 27, 9 a.m.–12:40 p.m.; (8:30 a.m. check-in)Where: Long Island Marriott Hotel, UniondaleCost: $85 members; $135 nonmembers CPE: 4 (taxation) Course Code: 28603321

Joint Nassau/Suffolk Accounting &Auditing Conference When: Nov. 3, 8:25 a.m.–4:35 p.m.; (7:30–8:25 a.m. registration and networkingbreakfast)Where: Sheraton Long Island, HauppaugeCost: $150 members; $250 nonmembers CPE: 8 (4 accounting, 4 auditing) Course Code: 28103322

Chapter CPA Ethics Update When: Nov. 7, 3:30 p.m.–5:30 p.m.; (3 p.m. check-in) Where: Wolferts Roost Country Club, 120 Van Rensselaer Blvd., Albany Cost: $20 members; $50 nonmembers (ethics update); TBD (dinner)CPE: 2 (ethics)Course Code: 42773304 Contact: Patrick Hughes at [email protected]

Chapter CPA Ethics UpdateWhen: Oct. 29, 6:30 p.m.–8:30 p.m.Where: St. John’s University, Bent Hall 277ABCost: $25 members; $50 nonmembersCPE: 2 (ethics)Course Code: 42773316

Queens/Brooklyn Annual Tax ConferenceWhen: Nov. 1, 9 a.m.–5 p.m.; (8:30 a.m. check-in) Where: St. John’s University, Bent Hall 277ABCost: $100 members; $150 nonmembers CPE: 8 (taxation) Course Code: 28616312

Chapter CPA Ethics UpdateWhen: Oct. 23, 3 p.m. (check-in); 3:30–5:30 p.m. (ethics); 5:30–6:30 p.m. (networking/cocktails); 6:30 p.m. (hall offame presentation); clambake and dinnerimmediately following.Where: Oak Hill Country Club, 145 Kilbourn RoadCost: Ethics: $25 members; $50 nonmembers; Dinner: price TBD CPE: 2 (ethics)

Course Code: 42773305Contact: Cheryl Yawman at [email protected]

47th Annual Rochester Tax Institute When: Nov. 16Where: Rochester Plaza Hotel, 70 State St.CPE: 8 (taxation)Contact: Michael Desmond [email protected] the chapter website for updates.

Chapter CPA Ethics UpdateWhen: Nov. 2Where: Casa Mia Manor HouseCost: TBD CPE: 2 (ethics)Course Code: 42773317Contact: Michael Milisits at [email protected]

Southern Tier Annual TaxationWhen: Oct. 25, 8:30 a.m.–5 p.m.; (8:30 a.m. check-in) Where: Holiday Inn Downtown Arena, 8 Hawley St., Binghamton Cost: $175 members; $250 nonmembers CPE: 8 (taxation) Course Code: 28606361

Accounting and Auditing UpdateWhen: Oct. 2, 6–8:30 p.m.Where: Angelina Ristorante, 399 Ellis St.Cost: $50 members and nonmembersCPE: 2 (1 accounting, 1 auditing)Course Code: 29070301Contact: Anthony Tanzi at [email protected]

Staten Island Annual Taxation ConferenceWhen: Nov. 16, 8:30 a.m.–4:30 p.m.; (8 a.m. check-in) Where: Hilton Garden Inn, 1100 South St.Cost: $150 members; $250 nonmembers CPE: 8 (taxation) Course Code: 28607321

World of AccountingWhen: Oct. 19Where: College of Staten Island.Contact: Cynthia Scarinci at [email protected]

Education NightWhen: Oct. 25Where: Li Greci’s Staten, 697 Forest Ave. Contact: Cynthia Scarinci at [email protected]

Chapter CPA Ethics UpdateWhen: Nov. 29, 7–9 p.m.Where: Staten Island University Hospital,475 Seaview Ave.Cost: $25 members; $50 nonmembers CPE: 2 (ethics)Course Code: 42773307

Staten Island Chapter Bowl-a-thon Charity Event When: Nov. 3Where: Rab’s Country Lanes, 1600 Hylan BoulevardContact: Gerard LoVerde [email protected]

Chapter CPA Ethics UpdateWhen: Oct. 3, 6–7 p.m.; 7–9 p.m. (cocktails, dinner and program) Where: Irish Coffee Pub, 131 Carleton Ave.,East IslipCost: $40 members; $50 nonmembers CPE: 2 (ethics)Course Code: 42773308Contact: Mark A. Cirelli at [email protected]

Estate Tax Examinations: What thePractitioner Should KnowWhen: Oct. 19, 8:30–11 a.m.Where: SCBA Center, 560 Wheeler Road,Hauppauge

Cost: $65 per personCPE: 2 (taxation)Course Code: 29080306Contact: Seymour Goldberg at [email protected] or 516-222-0422

Joint Nassau/Suffolk Accounting &Auditing ConferenceWhen: Nov. 3, 8:25 a.m.–4:35 p.m.; 7:30–8:25 a.m. (registration and networkingbreakfast)Where: Sheraton Long Island, HauppaugeCost: $150 members; $250 nonmembers CPE: 8 (4 accounting, 4 auditing) Course Code: 28103322

Casino and Networking Night When: Nov. 8, 6–9 p.m.Where: TBAContact: Ruby Nello at [email protected] (516) 240-4268

Understanding Transaction Value(Part of a four-session series)When: Oct. 17, 9 a.m.–12 p.m.Where: Mohawk Global Logistics Offices,North SyracuseCost: $40 member; $60 nonmember (Take all four parts for only $120 member;$180 nonmember)CPE: 3 (2 accounting, 1 specialized knowledge) Course Code: 29090303Contact: Chuck Miller at [email protected]

Cost of Customs & Trade Compliance(Part of a four-session series)When: Nov.14, 9 a.m.–12 p.m.Where: Mohawk Global Logistics Offices,North Syracuse Cost: $40 member; $60 nonmember (Take all four parts for only $120 member;$180 nonmember)CPE: 3 (specialized knowledge and applica-tions) Course Code: 29090304Contact: Chuck Miller at [email protected]

Syracuse Chapter Annual Tax ConferenceWhen: Nov. 27, 8:30 a.m.–4:30 p.m. (8 a.m.check-in) Where: Crowne Plaza Hotel, 701 EastGenesee St.Cost: $150 members; $250 nonmembers CPE: 8 (taxation) Course Code: 28609351

Pass Through Taxation for Partnerships, S Corporations and LLCsWhen: Oct. 4, 8:30–4:30 p.m.Where: Coleyard Charlie’s, 100 Depeyster St., Rome Cost: $225 per person (group discount: $200 person for four or more attendees);lunch includedCPE: 8 (taxation) Course Code:Contact: Eric Longway [email protected]

Auditing and Accounting Update When: Oct. 31, 8 a.m.–4 p.m.Where: Radisson HotelCost: $225 per person; (group discount: $200 person for four or more attendees) CPE: 8 (4 accounting, 4 auditing)Course Code: 11112353Contact: Eric Longway [email protected]

Chapter CPA Ethics UpdateWhen: Nov. 7, 6–8 p.m.Where: 800 Westchester Ave., Rye Brook Cost: $25 members; $50 nonmembersCPE: 2 (ethics)Course Code: 42773311


ADIRONDACK

BUFFALO

MANHATTAN/BRONX

MID HUDSON

NASSAU

NORTHEAST

QUEENS/BROOKLYN

ROCKLAND

SOUTHERN TIER

STATEN ISLAND

UTICA

SYRACUSE

ROCHESTER

SUFFOLK

WESTCHESTER

By LISA A. HAYNIENassau Chapter President

T he last major deadline of tax season willsoon be behind us, and the NassauChapter is gearing up to offer membersseveral informative, educational

and professional networking events.These events will surely spark your inter-est and satisfy your CPE requirements.

On Sept. 19, along with the SuffolkChapter, we hosted “An Evening ofNetworking” for bankers and other pro-fessionals at the Crest Hollow CountryClub. I would like to thank SuffolkChapter President Mark A. Cirelli andcommittee chair James LaRocca fororganizing this well-attended event.

On Oct. 17, please join us for our chaptermeeting, which will carry the theme “Mentor-a-Student Night” and will be held at the ChateauBriand in Carle Place. We encourage all profes-sionals to come and meet future accountantsfrom local Nassau County colleges. These stu-dents look forward to networking with you andlearning about your experiences. It will be a ter-rific opportunity to share your wisdom and yourstories, and give back to the profession. Manythanks to Abby Lucrezia and CarolineFalconetti, who cochair our Cooperation withEducational Institutions Committee. They organ-ized this great event in conjunction with NassauCounty college administrators and students, aswell as industry and public accounting CPAs.

The annual half-day Tax Conference, worthfour CPE credits in taxation, is scheduled for

Oct. 27 at the Long Island Marriott Hotel inUniondale. Our Tax Committee chairs, RobertJ. Schaffer, Robert Barnett and IolaDamante, are planning an informative seminarwith outstanding speakers to prepare you foryear-end tax planning. Some of the topics to be

discussed include federal and statetax updates, the Health Care Act andits impact on small business, a salestax update and year-end tax plan-ning. Save the date!

Our annual wine-tasting extrava-ganza with local bar associationswill take place on Nov. 28. Pleasemark your calendars and join us atthe Crest Hollow Country Clubfrom 6 to 8:30 p.m. What a greatway to spend an evening—reuniting

with old friends and perhaps making some newones, all while enjoying a glass of your favoritewine. Many thanks to Neil D. Katz, Jill S.Scher, Kristina M. Albarella, ChristinaYaccarino, Christopher Bourell, Alan Z.Schwartz, Wayne Steinberg and Craig S.Wolman for putting together this spectacularevent!

We look forward to the upcoming holi-days and spending time with family andfriends, and tackling the post–Oct. 15 list ofthings to do. We hope you include NassauChapter events in your to-do lists. Continueto check our chapter website (www.nyssc-pa.com/nassau) for more event updates. Ilook forward to seeing you all!

[email protected]

Student mentoring, wine tasting on tap for Nassau Chapter

24 www.trustedprofessional.comCHAPTER NEWSOctober 2012 / The Trusted Professional

NASSAU

BY DAVID R. HERMANRockland Chapter President

Hi all, and welcome to the fall season.Football is under way and theRockland Chapter is starting a cou-ple of ambitious CPE programs.

First, our Aug. 9 seminar that includedeight IRS agents was a verygood program. As usual, yougot to meet actual agents, get their business cards andwalk away with some solidinformation.

On Oct. 3,, we are having ourannual sponsor thank you din-ner. It is a fun evening, and eachyear it gets better and better. Wehave been lucky to have spon-sors and local professionalspeakers support our chapter,and we greatly appreciate their help.

On Nov. 6 (yes, Election Day), we arepartnering with Rockland CommunityCollege to present an all-day Auditing andAccounting Update, worth 4 credits inauditing, 3.5 credits in accounting and .5credits in ethics. This should be a greatprogram, and we are very much lookingforward to it.

On Nov. 28, we’ll be holding our annualethics update and officer visitation. Thisthree-credit event will be held at Casa MiaManor House in Blauvelt. There will be a

charge for the ethics program, but dinner ison the chapter.

On Dec. 5–6, we will be partnering againwith Rockland Community College to pres-ent the first-ever two-day Individual andCorporate Tri-State Regional Tax Update,worth 16 CPE credits. Speakers will presenton federal updates, New York updates and

Connecticut updates. The New JerseyDepartment of Taxation will also beattending the event, along with theNew York City Department ofFinance, and a representative from theNew York Workers’ CompensationCompliance Board. Although it’s stillin the planning stages, we have ourannual holiday party and Toys forTots night to look forward to as well.

Please keep up-to-date with thechapter webpage at www.nysscpa.org/rockland, or contact either myself at

the email below, or the continuing educationcochair Shari E. Berk at [email protected]. As always, we are looking forideas, so please contact us with your thoughtsfor new programs.

[email protected]

Rockland plans fall events, CPE programs

ROCKLAND

FROM THE

PRESIDENTFROM THE

PRESIDENT



e d u c a t i o n

For More Information and to Register for This Conference: Visit www.nysscpa.org/publicschools or call 800-537-3635.To Register for the Live Video Webcast: Visit www.nysscpa.org/e-cpe or call 877-880-1335.FAE

YEARS 1972-2012


40This is an FAE Paperless Event. Visit www.nysscpa.org for more information.

Public Schools Accounting and Auditing Conference

Monday, November 5, 2012Albany Marriott189 Wolf RoadAlbany, NY 12205

Gain the tools you need to face unprecedented challenges affecting New York State school districts

■ Current Activities from the OSC ■ Use of Reserves : The Hows, Whys, and Whens■ School District Financial Conditions■ School District Reorganizational Results■ On-line Banking: Best Practices to Minimize Fraud Risks

IMPORTANT ISSUES TO BE DISCUSSED INCLUDE:

CONFERENCE INFORMATIONCourse Code: 25152341 (In-Person);35152341 (Live Video Webcast)CPE Credit Hours: 8: 1 hour Accounting; 3 hours Advisory Services;4 hours Auditing

NYSSCPA Member Fee: $345 (In-Person);$245 (Live Video Webcast) Nonmember Fee:$470 (In-Person);$370 (Live Video Webcast)

Hear about upcoming GASB pronouncements fromGASB ChairRobert H. Attmore, CPA, CGFM


By SHERIF SAKRManhattan/Bronx Chapter President

Some argue that the landmarkSarbanes–Oxley Act of 2002 (SOX),now entering its second decade, wasthe driver for one of the most active

eras of the accounting profession as a resultof its impactful changes andimplications for U.S. public com-pany boards, management andpublic accounting firms. SOXwas enacted in an era remem-bered for its major corporate andaccounting scandals, and wasaimed at restoring public confi-dence in the credibility of corpo-rate financial reports.

But our current era is probablyno less regulated than it was at theheight of the SOX days; it simply has a dif-ferent emphasis, competing objectives andvarious directions. Among the many exam-ples of the extensive activity the professionis directly and indirectly dealing with aresweeping regulatory changes focusing onrisk, accounting changes meant to achievelong-aspired convergence goals, and tax reg-ulations that are designed to close loopholesin the current Internal Revenue Code, butdon’t make the Code shorter or any lesscomplicated.

Take the Dodd-Frank Wall Street Reformand Consumer Protection Act of 2010, anoth-er well-known bill designed to enact regula-tions that address the shaken public confi-dence brought forth by the last financial crisis.Dodd-Frank, now in its third year, proposedsweeping changes in the financial regulatoryenvironment in the United States that affect allfederal financial regulatory agencies andalmost every part of the financial servicesindustry, with global implications.

Converging U.S. Generally AcceptedAccounting Principles (GAAP) withInternational Financial Reporting Standards(IFRS)—a goal long aspired to by many inthe profession as well as users and preparersof financial statements—has been in theworks for 10 years with some progress, butcertainly less than what many would havehoped for. The Financial AccountingStandards Board (FASB) and InternationalAccounting Standards Board (IASB) havebeen working on trying to converge what wecall the “Big Three”—leases, revenue recog-nition and financial instruments. The leasesproject will get rid of the current rule-basedleasing model and the overly prescribedrules defined by bright-line thresholds inU.S. GAAP, and replace them with a sub-

stance-based model that will result in allleases being on balance sheets by lessors,with certain limited exception for short-termleases, reflected in a right-of-use asset and acorresponding lease liability.

The revenue recognition project is attemptingto create a one-size-fits-all, principles-basedmodel to eliminate inconsistencies and weak-

nesses in the current accountingframework and improve comparability.And then comes the financial instru-ments project (with its three majorcomponents of classification andmeasurement, impairment, andhedge accounting)—a top priorityafter the financial crisis—with anaim to reconsider the recognition andmeasurement of financial instru-ments, address the issues identifiedwith the current incurred-loss basedmodel that resulted in too-little, too-

late recognition of impairment losses, andsimplify the overly complex requirementsrelated to hedge accounting, all under a prem-ise of increasing convergence. With one delayafter another, progress is slow on these BigThree projects, but we are seeing some light atthe end of the tunnel on convergence ofaccounting related to leases and revenuerecognition, despite rollercoaster progress onthe financial instruments project.

The Foreign Account Tax ComplianceAct (FATCA), Subtitle A of Title V of theHiring Incentives to Restore EmploymentAct of 2010 (HIRE)—another law passed inthe past two years—requires foreign finan-cial institutions to provide detailed informa-tion about U.S. account holders to the IRSand U.S. withholding agents with non–U.S.clients to document the FATCA complianceof those entities. Earlier this year, the U.S.Treasury Department and the IRS releasedproposed regulations that provide financialinstitutions with a clearer—if not final—road map to compliance.

Indeed, this may be the era to see the mostrapid change for the profession. Please staytuned for updates on these topics and moreas we face a period of many fundamentalchanges. The Manhattan/Bronx Chapter willbe hosting CPE events on many of the afore-mentioned topics, plus other topics of impor-tance to the profession during the currentyear. Please stay up-to-date on CPE offeringsand other chapter events by visiting the chap-ter’s page on http://www.nysscpa.org/

[email protected]

An era of rapid change for theprofession

MANHATTAN/BRONX

By WILLIAM F. BERARDIMid Hudson Chapter President

T he summer here in the beautifulHudson Valley has passed, but the fab-ulous fall has taken its place. (Comesee the foliage! You can take exits 17

through 20 off of Thruway I-87, counties ofDutchess, Putnam, Orange,Sullivan and Ulster.) Meanwhile,the work and planning of our Boardand committee members haveresulted in many wonderful upcom-ing events. Please check our chap-ter webpage and keep a lookout foryour Mid Hudson Chapter Digestemail for registration information.

On Oct. 4, we’ll be holding aninformal golf outing for CPAs,friends and associates at WiltwyckGolf Club in Kingston. This outing isalways fun and gives us a chance to help raisemoney for a local charity. Contact MarcSchain at [email protected] further information. And join the GolfCommittee to help plan next year’s event, ten-tatively scheduled for Sept. 16, 2013.

I would like to thank our Accounting andAuditing Committee for planning a timely,affordable and quality eight-hour Accountingand Auditing CPE Review. This event will takeplace on Oct. 19 at the Ramada Inn, in Fishkill,and will feature Mid Hudson’s favorite presen-ter, Mel Crystal. For more information, pleasedo not hesitate to contact Marguerite Reilly [email protected].

Also in October, our enterprising Relationswith Bankers and Attorneys Committee hasorganized a fabulous networking reception forchapter members. It will take place on Oct. 24 atThe Grandview in Poughkeepsie, and will fea-ture former Yankees/Mets baseball star DarrylStrawberry as our special guest speaker. Toattend this exciting event, please RSVP withJeannie Hudson at [email protected].

Our best and brightest, the Young CPAsCommittee, will be busy this November asthey kick off their Toys for Tots campaignand head to West Point on Nov. 3 to watchan Army football game and host an exclusivetailgating party. If you would like moreinformation on these events, please reach outto Magda V. Reyes at [email protected] Federal and State Taxation Committee

is excited to host the annual TaxConference on Nov. 9, at theRamada Inn in Newburgh. Thisconference will provide atten-dees with eight credits of timely,quality and affordable CPE intaxation, and I encourage all ofyou to attend. For further details,email Domenick Del Rosso [email protected].

On Dec. 5, our Young CPAshave also scheduled a Toys for

Tots Wrap-up and Holiday Free Mixer atPamela’s in Newburgh. This fun event willfollow the two-hour FAE Ethics CPE. Forinformation on the Ethics CPE, please emailSenior Committee CPE Liaison Joyce A.Lewis at [email protected]. To inquireabout the mixer, please reach out to MagdaReyes.

Our Immediate Past President Tracy D.Tarsio and Beth Vought, both cochairs of thechapter’s Sponsorship Committee, haveworked hard to streamline the handling ofimportant sponsorships that help make all ofour events possible. Please contact them [email protected] and [email protected] with any offers of assistance andfor event information. Gary J. Cassiello,another past president, is also heading up ourMembership and Revitalization Committee.He can be reached at [email protected] get in on the action to help our chapter.

[email protected]

Mid Hudson gears up for busy season with CPE, mixers and more

MID HUDSON

FROM THE

PRESIDENT

FROM THE

PRESIDENT

By JACQUELINE E. MILLERAdirondack Chapter President

F all is when the Adirondack Chapterhosts the majority of its events. We’relooking forward to upcoming CPEopportunities as well as member net-

working and interaction. I hope to see you all on Monday, Oct. 22

at the Audit and Accounting Symposiumhosted by Renee Rampulla, CPA. Atour previous Accounting and AuditingUpdate last October, our speaker point-ed out that only one CPA in attendancehad brought an iPad to pull up coursematerials with, while others had simplyprinted off a hard copy of the e-mailattachment that was sent in advance ofthe event. With this in mind, I want totake a moment to thank Buffalo ChapterPresident Patricia A. Johnson, for sharingher Apple Higher Education contact with us.

I can remember, years ago, when taxreturns were prepared by hand. Today, theyear-end brokerage activity is importedinto Schedule D using tax software. Injust a quarter of a century, the efficienciesin technological advances have grownbeen beyond expectations. Who wouldhave imagined that we were so close to

working in a paperless envi-ronment? It will be interestingto see what new tools andtechniques will continue tofacilitate our daily tasks andincrease CPA efficiencies!

As always, please continue to check our chapter website for updates (www.nysscpa.org/adirondack), and please do nothesitate to contact me, at the e-mail address below, with any

questions, concerns, or ideas.

[email protected]

Adirondack encourages CPAs to become tech savvy

FROM THE

PRESIDENT

www.trustedprofessional.com

ADIRONDACK

26 www.trustedprofessional.comNOTICEOctober 2012 / The Trusted Professional

Trusted for 40 years, the Foundation forAccounting Educationremains New York’spremier provider ofaffordable continuing pro-fessional education for accountants.

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entity’s financial statements do not meet therequirements for full compliance with IFRSs aspromulgated by the International AccountingStandards Board; financial reporting frame-works prescribed by an agreement or a con-tract; or an other comprehensive basis ofaccounting, including statutory financialreporting provisions required by law or a U.S.or foreign governmental regulatory body towhose jurisdiction the entity is subject. Whenreporting under such financial frameworks, themember must make clear the financial report-ing framework(s) used.

Interpretation 505-4—Misleading FirmNames, and Interpretation 505-5—CommonNetwork Brand in Firm Name under Rule 505,Form and Practice Name provide guidance onwhen firm names would be considered mis-leading. The new interpretations are consistentwith the guidance contained in the revisedUniform of Accountancy Act and Model RulesSection 14(i), revised in August 2011(http://www.nasba.org/files/2011/09/2011UAAModel-RulesRevised.pdf). Under 505-4,a firm name would be considered misleading ifthe name contains any representation thatwould likely cause a reasonable person to mis-understand, or be confused about, the legalform of the firm or who the owners or mem-bers of the firm are, such as a reference to a

type of organization or an abbreviation thereofthat does not accurately reflect the form underwhich the firm is organized. In addition, mem-bers are reminded to consider the rules andregulations of his or her state board(s) ofaccountancy concerning misleading firmnames that may be more restrictive than therequirements in this interpretation.Interpretation 505-5 states that a firm’s use ofa common brand name as part of the firmname would not be considered misleading,provided the firm was a network firm asdefined by the Society’s Code. However, inorder for a firm to use a common brand nameas the entire firm name, it would need to meetthe definition of network firm and share one ormore of the other characteristics of a network,such as common control or a significant part ofprofessional resources, in addition to sharing acommon brand name.

Upon the last day of the month of the pub-lication of this article, unless noted other-wise in the interpretations, the approvedinterpretations will go into effect.

Please refer to the revised interpretationsof the Code of Professional Conduct, whichwill appear in its entirety on the NYSSCPAwebsite at http://www.nysscpa.org/prof_library/ethicsregulation.htm.

EthicsContinued from page 19

ACCOUNTING11/19Not-for-Profit Accounting and Reporting: From Start to FinishRather than training to run part of the race, train torun the entire race from start to finish. This coursetrains you to clear key hurdles in not-for-profitaccounting and reporting in an efficient and effec-tive manner. Avoid the potholes of confusion andfinish first by providing a financial picture that endusers can truly understand.AC/8 32177381Buffalo/Niagara MarriottAICPA$335\$460\$305\$430

ACCOUNTING11/01Investment Companies Conference AC/2, AU/1, SK/4, T/1 25305311New York Marriott Marquis at Times SquareFoundation for Accounting Education$485\$610

11/01Investment Companies Conference (WEBCAST)AC/2, AU/1, SK/4, T/1 35305311Foundation for Accounting Education$385\$510

11/09IT: Risks and Controls in Traditional andEmerging EnvironmentsAccounting transactions and other types of pro-cessing are conducted in a variety of IT environ-ments. This course will cover topics associatedwith the Internet and cloud computing, testing pro-cedures, management controls, electronic evi-dence, COSO IT controls, and the most recentlyranked top IT technologies.AC/4, AU/4 32883311FAE Conference CenterAICPA$335\$460\$305\$430

11/19Corporate AccountingThis session gives you the opportunity to collabo-rate with other professionals in a hands�on, interac-tive setting. Corporate Accounting is designed asfour miniseminars, providing useful skills for all cor-porate accounting managers.AC/4, E/2, SK/2 34109311FAE Conference CenterExecutive Education Inc.$335\$460

ADVISORY SERVICES

11/20Governmental and Nonprofit Annual UpdateChange is inevitable. Ensure you are current in gov-ernmental and nonprofit accounting and auditing.This update course is designed to prepare you forthe latest accounting and auditing developmentsaffecting governments and nonprofits. AC/8 22631311FAE Conference CenterAICPA$335\$460\$305\$430

AUDITING

10/31Private Foundations: Planning for Family PhilanthropyPrivate foundations are a common way to find and dis-tribute wealth to organizations. There are, however,pitfalls lurking for foundations not meeting the specificrequirements of the code. This course lays outprocesses for creating and funding private foundationsand their operation to avoid these consequences. AU/8 32195311FAE Conference CenterAICPA$335\$460\$305\$430

11/01Investment Companies ConferenceSee course listing under Accounting.

11/01Investment Companies Conference (WEBCAST)See course listing under Accounting.

11/02Now I See: Advanced OMB A-133 IssuesThis course will prepare you for the OMB A-133audit areas, and provide you with indepth insight onkey A-133 issues. AU/8 32193311FAE Conference CenterAICPA$335\$460\$305\$430

11/08Auditing ConferenceAU/8 25135311FAE Conference CenterFoundation for Accounting Education$335\$460

11/08Auditing Conference (WEBCAST)AU/8 35135311Foundation for Accounting Education$235\$360

11/09Advanced Employee Benefit Plan TopicsThis course is designed to explore the more

advanced issues related to auditing employee bene-fit plans. The material will provide the auditor withappropriate tools to address some of the most com-mon problems noted during the audit process. AU/8 32194312FAE Conference CenterAICPA$335\$460\$305\$430

11/09IT: Risks and Controls in Traditional and Emerging EnvironmentsSee course listing under Accounting.

11/14Banking ConferenceAU/1, SK/6, T/1 25538311FAE Conference CenterFoundation for Accounting Education$335\$460

11/14Banking Conference (WEBCAST)AU/1, SK/6, T/1 35538311Foundation for Accounting Education$235\$360

11/19Audits of 401(k) Plans401(k) plans have become a popular option for employ-ee benefit plans, so you need the skills to audit theseplans effectively. Every aspect of how to audit a 401(k)plan and prepare financial statements that satisfyERISA and SEC requirements is covered in this course.Learn efficient ways to plan and conduct 401(k) audits,and understand the differences between 401(k) auditsand other employee benefit plan audits.AU/8 22214311FAE Conference CenterAICPA$335\$460\$305\$430

ETHICS

11/19Corporate AccountingSee course listing under Accounting.


10/31Real Estate ConferenceSK/8 25555311New York Marriott Marquis at Times SquareFoundation for Accounting Education$385\$510

10/31Real Estate Conference (WEBCAST)SK/8 35555311Foundation for Accounting Education$285\$410



11/14Banking ConferenceSee course listing under Auditing.

11/14Banking Conference (WEBCAST)See course listing under Auditing.

11/19Corporate AccountingSee course listing under Accounting.

TAXATION



11/05Closely Held Business Taxation: Smart Strategies to Slash TaxesThis course covers a variety of tax strategies thatevery closely-held business should consider. Thetips and strategies presented in the course willallow you to easily and quickly identify and hone inon tax-saving strategies that fit your client’sunique needs.T/8 32682311FAE Conference CenterAICPA$335\$460\$305\$430

11/05Multistate Taxation of Corporations: Theory,Practice, and ComplianceRecent economic turmoil in the U.S. economy hascaused a search for revenue by most states. Thisprogram explains and illustrates how to avoidbecoming subject to excessive state taxation. T/8 34643311FAE Conference CenterNichols Patrick CPE, Inc.$335\$460

11/13Personal Financial Planning ConferenceT/8 25275311UBS Conference CenterFoundation for Accounting Education$385\$510

The FAE delivers the following programs to help CPAs in all practice areas, including those working in government, industry and academia, satisfy their New York state calendar-year continuing professional education requirements. SIGN UP TODAY!

To search within New York City, refer to Manhattan/Bronx. To search within Albany, refer to Northeast.

AICPA Pricing ScheduleFor AICPA-developed courses, the following pricing schedule applies.

If you are: 8-hour course 16-hour course

A member of both AICPA and NYSSCPA: $305 $475

Only a member of the NYSSCPA: $335 $535

Only a member of the AICPA: $430 $600

A member of neither AICPA nor NYSSCPA: $460 $660

For 4-hour courses, see course description for price information.For details, refer to the registration information on www.nysscpa.org.

According to New York State Regulations,courses may only be categorized as the following fields of study for CPE accreditation:

Accounting ACAdvisory Services ADAuditing AUEthics ESpecialized Knowledge SKTaxation T

Courses that have a concentration in morethan one field of study are labeled with thequantity of credits that apply to each category.

October 30, 2012, through November 26, 2012

FAE LISTINGS

DateCourse TitleCourse DescriptionField of Study Course Code SiteDeveloperMember Fee/Nonmember Fee

KEYGEOGRAPHIC

FIELD OF STUDY

AREA

| The Trusted Professional | October 2012

BUFFALO

MANHATTAN/BRONX

28 www.trustedprofessional.comFAE LISTINGSOctober 2012 / The Trusted Professional

11/14Banking ConferenceSee course listing under Auditing.

11/14Banking Conference (WEBCAST)See course listing under Auditing.

11/16Disasters and Other Involuntary ConversionsFloods, tornadoes, fires and earthquakes are allnatural disasters that cause tax deductible “casu-alty losses” for damage to property. Other casualtylosses may result from uniquely private eventssuch as auto accidents and criminal acts. This pro-gram will prepare you to help your clients affectedby these losses to secure the full tax benefit avail-able under the law.T/8 34606311FAE Conference CenterNichols Patrick CPE, Inc.$335\$460

11/16Hot IRS Tax Examination Issues for Individuals and BusinessesCPAs need clients to understand the need for docu-mentation and procedures in order to substantiatewhat IRS auditors are pursuing. This course willexplore the high audit risk areas and ways to helpclients through an IRS audit. T/8 33643311FAE Conference CenterSurgent McCoy CPE LLC$335\$460

11/20FAE’s 2012 Solid Family Tax Planning: Key Market for Your Tax PracticeThis course provides you with an in-depth look atcomplex family tax planning issues for both unitedand divided families, including updated materialsand the latest revenue rulings and court decisions.The session will integrate the latest legislativechanges at both the federal and tri-state levels andwill offer analytical tools to help you explore thetricks, traps, and pitfalls. T/8 21625311FAE Conference CenterFoundation for Accounting Education$335\$460

11/26FAE’s New York State Taxation WorkshopUpdate 2012This course will update you on the latest New YorkState tax laws, including the lowest individual taxrates in recent years.T/8 21602311FAE Conference CenterFoundation for Accounting Education$335\$460

TAXATION

11/09Mid Hudson Annual Tax ConferenceT/8 28602331Ramada Inn at NewburghFoundation for Accounting Education$150\$250

ACCOUNTING

11/03Joint Nassau/Suffolk Accounting and AuditingConferenceAC/4, AU/4 28103322Sheraton Long IslandFoundation for Accounting Education$150\$250

AUDITING

Joint Nassau/Suffolk Accounting and AuditingConferenceSee course listing under Accounting.

ACCOUNTING

11/05Public Schools Conference AC/1, AD/3, AU/4 25152341Albany MarriottFoundation for Accounting Education$345\$470

11/05Public Schools Conference (WEBCAST)AC/1, AD/3, AU/4 35152341Foundation for Accounting Education$245\$370

11/19Governmental and Nonprofit Annual UpdateChange is inevitable. Ensure that you are current ingovernmental and nonprofit accounting and audit-ing. This update course is designed to prepare youfor the latest accounting and auditing developmentsaffecting governments and nonprofits. AC/8 22631341Albany MarriottAICPA$335\$460\$305\$430

11/26FAE’s Financial Statement Disclosures forSmall- to Medium-Sized BusinessesThis course will familiarize you with the most fre-quently encourntered measurement and disclosureissues associated with preparing financial state-ments for nonpublic small- to medium-sized busi-nesses, including the dicussion of and solution toproblems that may arise. AC/8 21123341Albany MarriottFoundation for Accounting Education$335\$460

ADVISORY SERVICES

11/05Public Schools ConferenceSee course listing under Accounting.

11/05Public Schools Conference (WEBCAST)See course listing under Accounting.

AUDITING

11/05Public Schools ConferenceSee course listing under Accounting.

11/05Public Schools Conference (WEBCAST)See course listing under Accounting.

ETHICS

11/16FAE’s Ethics Update 2012This course provides you with the basic understandingof the fundamental concepts underlying ethicalresponsibilities and increases your awareness of criti-cal standards and regulatons. Available tools andresources, which will help you understand and complywith relevant requirements, are also highlighted. E/4 21277341Albany MarriottFoundation for Accounting Education$170\$235

TAXATION

11/14Choosing the Best Entity Structure Under the New Tax Law By comparing and contrasting the tax aspects of Ccorporations, S corporations, partnerships, sole pro-prietorships, and limited liability companies, thiscourse focuses on planning opportunities andpotential pitfalls in developing a business structure. T/8 33632341Holiday Inn Albany–Wolf RoadSurgent McCoy CPE LLC$335\$460

TAXATION

11/1Queens/Brooklyn Annual Tax ConferenceT/8 28616312St. John’s UniversityFoundation for Accounting Education$100\$150

ACCOUNTING

11/19FAE’s Accounting Update 2012This course delivers information about current andemerging accounting guidance and recent develop-ments. Participants will receive an overview of newand proposed relevant accounting guidance, alongwith practical application through a variety of dis-cussions and questions. AC/8 21111371Holiday Inn Rochester AirportFoundation for Accounting Education$335\$460

AUDITING

11/01Now I See: Advanced OMB A-133 IssuesThis course will prepare you for the OMB A-133audit areas, and provide you with indepth insight onkey A-133 issues. AU/8 32193371Holiday Inn Rochester AirportAICPA$335\$460\$305\$430

11/20FAE’s Auditing Update 2012In a changing global and domestic economy, thissession helps in staying ahead of the emerging andcurrent auditing guidance. Participants will receiveoverviews of new auditing guidance, along withpractical application of that guidance through avariety of discussions and questions. AU/4 21112371Holiday Inn Rochester AirportFoundation for Accounting Education$170\$235

11/20FAE’s Compilation and Review Update 2012Participants will receive discussion and toolsdesigned to help them better perform compilationand review engagements. Recently issuedStatements on Standards for Accounting andReview Services (SSARSs) and the challenges aris-ing from these engagements will be addressedthrough a variety of discussions and questions.AU/4 21113371Holiday Inn Rochester AirportFoundation for Accounting Education$170\$235

11/26Audit Workpapers: Documenting andReviewing Field WorkThis course will teach you the basics of workpaperpreparation—form and content—to ensure thateverything is properly documented. Case examplesshow field work supervisors what factors to consid-er and steps to follow when reviewing workingpapers. Participants will learn to identify typicaldeficiencies and will find out how to minimizepotential liability by making certain that the firm’sreports are fully and accurately supported by docu-mentation. AU/8 32250371Holiday Inn Rochester AirportAICPA$335\$460\$305\$430

TAXATION

10/30Tax Research Techniques for Compliance,Planning, and CommunicationThis course will teach you how to draw and organ-ize facts from authoritative sources, in order tocommunicate your research clearly and effectively. T/8 32689371Holiday Inn Rochester AirportAICPA$335\$460\$305\$430

10/31Closely Held Business Taxation: SmartStrategies to Slash TaxesThis course covers a variety of tax strategies thatevery closely held business should consider.The tipsand strategies presented in the course will allowyou to easily and quickly identify and hone in onthose tax-saving strategies that fit your client’sunique needs.T/8 32682371Holiday Inn Rochester AirportAICPA$335\$460\$305\$430

11/06Accounting Methods: 130 Options for Federal Income Tax ReportingThis course will review how CPAs who provide taxservices to business clients must evaluate account-ing methods in order to respond to changingaccounting standards and business methods.T/8 34604371Holiday Inn Rochester AirportNichols Patrick CPE, Inc.$335\$460

11/07Preparing Complex 1040sThis program is designed for the accountant who isready to handle the most complex individual client’sincome tax preparation.T/8 34608371Holiday Inn Rochester AirportNichols Patrick CPE, Inc.$335\$460

11/14Surgent McCoy’s 1040 Tax Season Survival GuideThis course will get you up-to-date with thechanges and major issues in preparing individualincome tax returns for the current tax season andcurrent tax year. Refresh your knowledge, cover thelatest tax law changes, and learn about changes toforms as a result of new tax laws.T/8 23634371Holiday Inn Rochester AirportSurgent McCoy CPE LLC$335\$460

TAXATION

11/16Staten Island Annual Taxation ConferenceT/8 28607321Hilton Garden InnFoundation for Accounting Education$150\$250

ACCOUNTING

11/01FAE’s Compilation and Review: In-DepthAnalysis Using Case Studies Through the use of case studies, this course willteach you how to apply the requirements ofStatements on Standards for Accounting andReview Services (SSARS) and will discuss the dif-ferent levels of assurance provided by review andcompilation services, including the minimum docu-mentation requirements of each. AC/8 21137321Melville Marriott Long IslandFoundation for Accounting Education$335\$460

11/02FAE’s Financial Statement Disclosures forSmall- to Medium-Sized BusinessesThis course will familiarize you with the most fre-quently encountered measurements and disclosureissues associated with preparing financial state-ments for nonpublic small- to medium-sized busi-nesses, including the discussion of and solution toproblems that may arise. AC/8 21123321Melville Marriott Long IslandFoundation for Accounting Education$335\$460

MID HUDSON

NASSAU

NORTHEAST QUEENS/BROOKLYN

ROCHESTER

STATEN ISL AND

SUFFOLK

www.trustedprofessional.com 29The Trusted Professional / October 2012FAE LISTINGS

11/03Joint Nassau/Suffolk Accounting and Auditing ConferenceAC/4, AU/4 28103322Sheraton Long IslandFoundation for Accounting Education$150\$250

11/14Not-for-Profit Accounting and Reporting: From Start to FinishThis course trains you on not-for-profit accountingand reporting in an efficient and effective manner. AC/8 32177321Melville Marriott Long IslandAICPA$335\$460\$305\$430

AUDITING

11/3Joint Nassau/Suffolk Accounting and Auditing ConferenceSee course listing under Accounting.

11/16Now I See! Comprehending OMB A-133 IssuesThis course will help you elevate the proficiencyand efficiency of your audit staff members by pro-viding core training needed to perform OMB A-133audits. For more experienced auditors, this coursecan also serve as a refresher of the key compo-nents to A-133 auditing.AU/8 32299321Melville Marriott Long IslandAICPA$335\$460\$305\$430

11/20Audits of 401(k) Plans401(k) plans have become a popular option foremployee benefit plans, so you must have the skillsto audit these plans effectively. Every aspect of howto audit a 401(k) plan and prepare financial state-ments that satisfy ERISA and SEC requirements iscovered in this course. Tap into ways to plan andconduct 401(k) audits more efficiently and effective-ly, and understand the differences between 401(k)audits and other employee benefit plan audits.AU/8 22214321Melville Marriott Long IslandAICPA$335\$460\$305\$430

ETHICS

11/19FAE’s Tax Ethics and Tax Practice in the 21st Century This seminar will discuss, in detail, guidance andcase studies, and will also familiarize the practiton-er with the quality control tools and technical resou-crces available to address tax standards in thecommunication of tax advice and in the perform-ance of tax preparation and planning services. E/4, T/4 21620321Melville Marriott Long IslandFoundation for Accounting Education$335\$460


11/05Internal Control Essentials for FinancialManagers, Accountants, and AuditorsThis course gives participants a solid understandingof systems and control documentation and intro-duces them to basic tools used to document anaccounting process. Participants will identify therisks of errors and fraud in the accounting systemand the presence (or absence) of compensatingcontrols.SK/8 32185321Melville Marriott Long IslandAICPA$335\$460\$305\$430

TAXATION

11/07Determining How Much Money You Need to Retire, and Tax Ideas and Money Management in RetirementThe purpose of this course is to give CPAs the toolsand knowledge required to help their clients imple-ment tax-effective investment and portfolio strate-gies for successful wealth accumulation and realafter-tax retirement income maintenance. Thecourse discusses specific investment tax planningand money management issues and topics, bothbefore and after retirement. T/8 33642321Melville Marriott Long IslandSurgent McCoy CPE LLC$335\$460

11/08The Best S Corporation, Limited Liability andPartnerships Update Course by Surgent McCoyThis course will update you on the various strate-gies, techniques, innovative tax-planning concepts,income-generating ideas, and other planning oppor-tunities available to S corporations, partnerships,LLCs, and LLPs.T/8 33604321Melville Marriott Long IslandSurgent McCoy CPE LLC$335\$460

11/19FAE’s Tax Ethics and Tax Practice in the 21st Century See course listing under Ethics.

11/26The Complete Guide to Payroll Taxes and 1099 IssuesThis course presents a comprehensive overview offederal payroll taxes, Form 1099, and related compli-ance issues. T/8 33696321Melville Marriott Long IslandSurgent McCoy CPE LLC$335\$460

ETHICS

11/06FAE’s Ethics Update 2012This course provides you with the basic understand-ing of the fundamental concepts underlying ethicalresponsibilities and increases your awareness of criti-cal standards and regulations. Available tools andresources, which will help you understand and com-ply with relevant requirements, are also highlighted. E/4 21277351Doubletree Hotel (formerly the Wyndham)Foundation for Accounting Education$170\$235

TAXATION

11/05The Best Individual Income Tax Update Course by Surgent McCoyThis course will provide you with the latest in taxlaw developments, which will enable you to discussnew tax-saving ideas applicable to your clients andtheir growing needs in light of post-election devel-opments.T/8 23621351Doubletree Hotel (formerly the Wyndham)Surgent McCoy CPE LLC$335\$460

11/09The Best S Corporation, Limited Liability and Partnerships Update Course by Surgent McCoyThis course will update you on the various strate-gies, techniques, innovative tax-planning concepts,income-generating ideas, and other planning oppor-tunities available to S corporations, partnerships,LLCs, and LLPs.T/8 33604351Doubletree Hotel (formerly the Wyndham)Surgent McCoy CPE LLC$335\$460

ACCOUNTING

11/07Forensic Accounting: Uncovering Schemes and ScamsThis course will show you how to identify commonforensic techniques in order to recognize fraudschemes and scams, sharpen your forensic skillsthrough the use of analytical tools, learn to followcash flows, and uncover accounting schemes.AC/4 32507331Doubletree Hotel TarrytownAICPA$170\$235

11/26FAE’s Accounting Update 2012This course delivers information about current andemerging accounting guidance and recent develop-ments. Participants will receive an overview of newand proposed relevant accounting guidance, alongwith practical application through a variety of dis-cussions and questions. AC/8 21111331Doubletree Hotel TarrytownFoundation for Accounting Education$335\$460

AUDITING

10/30Private Foundations: Planning for Family PhilanthropyPrivate foundations are a common way to fund anddistribute wealth to organizations. There are, however,pitfalls lurking for foundations not meeting the specificrequirements of the code. This course lays outprocesses for creating and funding private foundationsand their operation to avoid these consequences. AU/8 32194331Doubletree Hotel TarrytownAICPA$335\$460\$305\$430

11/07Revenue and Cash Receipts: Common Fraudsand Internal ControlsRevenue and cash receipts are two critical areasthat require strong controls to prevent intentionalfraud or unintentional misstatements. This coursewill teach you how to tailor an internal control sys-tem to ensure that the areas of greatest risk receivethe most attention. AU/4 32280331Doubletree Hotel TarrytownAICPA$170\$235


11/09AICPA’s Annual Update for ControllersThis course will educate you in the current trends inaccounting, corporate finance, treasury manage-ment, and business systems. SK/8 32503331Doubletree Hotel TarrytownAICPA$335\$460\$305\$430

TAXATION

11/02FAE’s New York State Taxation Workshop Update 2012This course will update you on the latest New YorkState tax laws, including the lowest individual taxrates in recent years.T/8 21602331Doubletree Hotel TarrytownFoundation for Accounting Education$335\$460

11/06Determining How Much Money You Need to Retire, and Tax Ideas and Money Management in RetirementThe purpose of this course is to give CPAs the toolsand knowledge required to help their clients imple-ment tax-effective investment and porfolio strate-gies for successful wealth accumulation and realafter-tax retirement income maintenance. Thecourse discusses specific investment tax planningand money management issues and topics, bothbefore and after retirement. T/8 33642331Doubletree Hotel TarrytownSurgent McCoy CPE LLC$335\$460

11/08Multistate Taxation of Corporations: Theory,Practice, and ComplianceRecent economic turmoil in the U.S. economy hascaused a search for revenue by most states. Thisprogram explains and illustrates how to avoidbecoming subject to excessive state taxation. T/8 34643331Doubletree Hotel TarrytownNichols Patrick CPE, Inc.$335\$460

11/13Choosing the Best Entity Structure Under the New Tax LawBy comparing and contrasting the tax aspects of Ccorporations, S corporations, partnerships, sole pro-prietorships, and limited liability companies, thiscourse focuses on planning opportunities andpotential pitfalls in developing a business structure. T/8 33632331Doubletree Hotel TarrytownSurgent McCoy CPE LLC$335\$460

11/20Closely Held Business Taxation: Smart Strategies to Slash TaxesThis course covers a variety of tax strategies thatevery closely held business should consider. The tipsand strategies presented in the course will allow youto easily and quickly identify and hone in on tax-sav-ing strategies that fit your client’s unique needs.T/8 32682331Doubletree Hotel TarrytownAICPA$335\$460\$305\$430

For more informatiom about FAE programs, visitwww.nysscpa.org, or call 800-537-3635.

SYR ACUSE

WESTCHESTER

CLASSIFIEDS | The Trusted Professional | October 2012

PROFESSIONAL OPPORTUNITY | BUSINESS | TAX CONSULTANCY | LEGAL | MARKETING | EDUCATION | PEER REVIEW | INCORPORATION | COMPUTER CONSULTING & SOFTWARE | LOOKING FOR SPACE | SPACE FOR RENT | SITUATIONS WANTED | POSITIONS AVAILABLE

NASSAU COUNTY / NEW YORK CITY CPA FIRMEstablished firm with offices in NYC and Long Island, which has successfully completed transac-tions in the past, seeks to acquire or merge with either a young CPA with some practice of his ownor a retirement-minded practitioner and/or firm. Call partner at 516.328.3800 or 212.576.1829.

WALL STREET CPA looking for right individualto share and merge into my office space. Move inready with ultra high tech hardware and softwarebuilt in. [email protected] 212-714-6655.

Two retirement-minded partners looking to affiliatewith energetic sole practitioner for future buyout.Our firm is well established in Putnam County, with a diversity of clients. Contact: [email protected].

Small full service LI CPA firm looking to acquirepractice with revenue of at least $250k. We areready to help the right individual(s) in transition andacquisition of your practice. We have extensive experience in tax and financial statement reportingand will take great care of your clientele. Contact: [email protected].

Rotenberg Meril, Bergen County’s largest independent accounting firm, wants to expand its New York City practice and is seeking merger/acquisition opportunities in Manhattan. Ideally, wewould be interested in a high quality audit and taxpractice, including clients in the financial services sector, such as broker dealers, private equity andhedge funds. An SEC audit practice would be a plus.Contact Larry Meril at [email protected], 201-487-8383, to further discuss the possibilities.

Successful 2 partner firm in Midtown with qualityinfrastructure looking to merge for mutual [email protected].

Are you an entrepreneurial CPA with quality publicaccounting, audit and tax experience? Would youlike to acquire a $500,000 Long Island practice froma retiring CPA ratably over the next five years? If so, provide background for consideration to [email protected].

Established Long Island CPA firm seeks to expand.We are interested in acquiring a retirement-mindedsmall to medium-size firm in the NY Metro Area.We have a successful track record of acquiring prac-tices and achieving client retention and satisfaction.Please contact Andrew Zwerman [email protected].

Accounting practice for sale in Buffalo area. Gross 300-350K. Reply to [email protected].

Young, energetic and dynamic husband and wife accounting team seeks retirement-minded practi-tioner with write-up and/or tax preparation practicein New York City area for merger and eventual buy-out. Contact: [email protected].

Nassau County peer reviewed sole practitioner withMasters in Taxation has available time to assist over-burdened practitioner. Open to merger, buyout orother arrangements. [email protected].

Highly successful, $3.5 million, midtown CPA firm seeks merger with firm/practitioner grossing $1-7.5 million for continued growth and profitability.Steady growth and attractive offices make for uniqueopportunity. E-mail [email protected].

Accounting practice for sale in Buffalo area. Gross300-350K. Reply to [email protected].

Central Jersey CPA firm seeks an individual, prefer-ably with a small practice for future partnershipwith retirement minded partners. E-mail: [email protected].

Long Island CPA with solid diversified practice of$175,000 - $200,000 seeks affiliation with eventualbuyout. Open to any agreement that is mutually beneficial. Practitioner to retire within 10 years.Practitioner has significant time available to work for new affiliated firm. If interested contact:[email protected].

AAA PROFESSIONAL OFFICES FOR RENT.

NASSAU COUNTY. 1-, 2-, 3-room suites

facing Hempstead Tpke. FREE UTILITIES.

FREE FRONT PARKING. 516-735-6681.

Melville Long Island on Rte 110Two windowed offices in a CPA Suite; Full

service building with amenities including use

of a conference room. Cubicles also available.

Contact Lenny at 212-736-1711 or

[email protected].

Windowed Office in CPA Suite, Plainview. Includes

Secretary/Bookkeeping Services.

[email protected].

Midtown CPA firm has nicely decorated offices to

sublet/share with us, fully furnished and

computerized, for up to 20 people. All or part avail-

able. Convenient and cost effective.

Merger possible. [email protected].

WALL STREET CPA looking for right individual

to share and merge into my office space. Move in

ready with ultra high tech hardware and software

built in. [email protected] 212-714-6655.

650 rsf on 5th Avenue @ 34th St. $50 sf. 2 offices. Avenue views. 24/7 access. Elliot @ 212-447-5400.

Sub-lease office space available. Utilities included.Short walking distance to LIRR Great Neck Station.contact: [email protected].

Buffalo, NY: Office in CPA suite. Per diem workavailable. Ken Weinstein - 716-837-2525.

Office 10x12, available in Larchmont $650/monthFurnished windowed office available for profes-sional. Walking distance to [email protected], 914.815.2061.

PEER REVIEW SPECIALIZING IN EMPLOYEE BENEFIT PLANS

CIRA, BROKER DEALERS INSPECTIONS & REVIEW SERVICES

JOHN M SACCO, [email protected]

914-253-8757SACCO MANFRE CPA PLLC

Peer Review ServicesHIGH QUALITY / PRACTICAL APPROACHPeer reviews since 1990. Review teams with recog-nized experts in the profession.David C. Pitcher, CPA / Gregory A. Miller, CPADAVIE KAPLAN, CPA, P.C.585-454-4161 www.daviekaplan.com

PEER [email protected]

718-438-4858Yehuda Bunker, CPA

30 years not for profit accounting

PROFESSIONAL OPPORTUNITIES

SPACE FOR RENT

Peer ReviewIf you need help, the first step is

Nowicki and Company, LLP716-681-6367

[email protected]

CPA FIRMS OR PARTNERS

We represent a number of quality CPA firms who

would like to merge with other CPA firms or Part-

ners with business. Offices are in the Metropolitan

area. This is an opportunity to insure your future

as well as help your clients by expanding your

services to them. Why settle when you can select?

For further info: please contact: Len Danon at

D&R Associates Inc.212-661-1090 ext 14

SERVING THE CPA COMMUNITY

SINCE 1939

Goldstein Lieberman & Company LLC one

of the region’s fastest growing CPA firms

wants to expand its practice and is seeking

merger/acquisition opportunities in the

Northern NJ, and the entire Hudson Valley

Region including Westchester. We are look-

ing for firms ranging in size from $300,000 -

$5,000,000. To confidentially discuss how

our firms may benefit from one another,

please contact Phillip Goldstein, CPA at

[email protected] or (800) 839-5767.

Successful Midtown NYC Firm (founded

1958) with $3M+ practice seeks a firm grossing

$500K - $1M with retirement minded owners for

merger and eventual transition. Contact in confi-

dence. 212-901-6114.

MayerMeinberg, one of the fastest growing

CPA firms with offices in New York City and

Long Island is looking to continue expanding

its practice through merger and/or acquisition

opportunities. We are seeking entrepreneurial

practices ranging from $500,000 to $3,000,000.

Also considering firms with areas of specializa-

tion in Forensic and Litigation Support and

other industry specialization. Please contact:

[email protected].

Established, Northern New Jersey and New York City, mid-sized CPA Firm seeks to merge with another like-minded CPAfirm for mutually beneficial growth. We areseeking Firms in the $500,000 to $2,000,000size in Northern or Central New Jersey or NewYork. This is your opportunity to expand with-out being gobbled up by one of the big guys.To confidentially discuss this opportunityplease contact [email protected].

PEER REVIEWS

Providing Peer Reviews since 1990

Available for Consulting.

Pre-Issuance Reviews

and Monitoring

Kurcias, Jaffe & Company LLP

(516) 482-7777

[email protected]

[email protected]

HELP WITH PREPARING

FOR PEER REVIEW.

Financial statement work,audit procedures, workpapers, drafting

footnotes. Can fill audit engagement quality reviewer, manager, or senior roles.

Many satisfied clients.

CALL SHIMON D. EINHORN, CPA (917) 318-7498

[email protected]

Peer ReviewIf you need help, the first step is

Nowicki and Company, LLP716-681-6367

[email protected]

PEER REVIEW SERVICES

wwwtrustedprofessional.com 31CLASSIFIEDS The Trusted Professional / September 2012

New York City Metro Technical Accounting/Auditing Pro seeks issues-oriented and financialstatements completion-type work, such as draft footnotes and statement format, on a project or otherbasis at a reasonable professional rate for CPAs inneed of this type of temporary help. Also availablefor audit, reviews or compilations workpaper or re-port review. Can serve in SOX/PCAOB concurringpartner review function or independent monitoringfunction under new Engagement Quality Review(EQR) in years between smaller firm AICPA Peer Reviews. Call 516-448-3110.

Small full service LI CPA firm looking to acquirepractice with revenue of at least $250k. We areready to help the right individual(s) in transition andacquisition of your practice. We have extensive experience in tax and financial statement reportingand will take great care of your clientele. Contact: [email protected].

TAX PREPARER - EXPERIENCED(FLUSHING, NEW YORK)FLUSHING EA firm, seeks experienced tax preparer familiar with Lacerte for Tax Season. E-mail: [email protected] or fax to: 718-961-4587.

Tax Manager/Reviewer, CPA, skilled preparer and reviewer, seeks 6-8 days/mo. per diem. [email protected].

INNOVATIVE STRATEGIESfor sales and use tax compliance, audits,

refunds, appeals, and bankruptcy. Extensive multistate experience.

Jeffrey J. Coren, CPA212-594-6970

SALES TAX, AUDITS, APPEALS, & CONSULTATIONS. Experience: Many years with New York State SalesTax Bureau as auditor and auditor supervisor.Jack Herskovits. 718-436-7900.

SALES TAX, ISAAC STERNHEIM & CO. Salestax consultants, audits, appeals, & consultations.Principals with many years of experience as SalesTax Bureau audit supervisors. (718) 436-7900.

PROFESSIONAL CONDUCT EXPERT

Former Director Professional Discipline,

25 Years Experience, Licensure, Discipline,

Restoration, Professional Advertising,

Transfer of Practice; AICPA and NYSSCPA

Proceedings, Professional Business Practice.

Also available in Westchester County

ROBERT S. ASHER, ESQ.

295 Madison Avenue,

New York, NY 10017

(212) 697-2950

NEED TO INCORPORATE?Complete Incorporation Package Includes:

Preparation–State Filing Fees–Corporate Kit via UPS

Registered Agent Services AvailableNEED TO DISSOLVE or REINSTATE or

AMEND?Qualified Staff to Help Accomplish

Your Corporate or LLC Goals!All 50 States. Simply Call.

INTERSTATE DOCUMENT FILINGS INC.Toll Free [email protected]

Is your website attracting enough business? Get practical tips for making your website part of a profit-building plan. For your free copy, call Mostad & Christensen at (800) 654-1654 or go to: www.mostad.com/kc/ss.

Westchester CPA firm seeks to acquire accountsand/or practice. Retirement minded, sole practition-ers, and small firms welcome. High retention andclient satisfaction rates. Please call Larry Honigmanat (914) 762-0230, or e-mail [email protected].

SALES TAX PROBLEMS?

Are you being audited?

Free Evaluation

Former Head of NYSales Tax Division

• Audits • Appeals • Refund Claims •

* Reasonable fees *

(212) 563-0007 • (800) 750-4702E-mail: [email protected]

LRC Group Inc.Lawrence Cole, CPA

Nick Hartman

Buxbaum Sales Tax Consultantswww.nysalestax.com

(845) 352-2211(212) 730-0086

A Leading Authority in Sales & Use TaxFor the State of New York

• Sales Tax Audits –Resolution with Client Satisfaction

• Tax Appeals Representation –Results at the NYS Division of Tax Appeals

• Collection Matters – Resolving Old Debts & New Liabilities

• Refund Opportunities –Recovering Sales & Use Tax Overpayments

More than 40 years of successful results!See our published decisions…

TAX CONSULTANCY

SITUATIONS WANTED

THE BENEFITS OF EXPERIENCEDo your clients require a Retirement Plan, 403(b) Plan and/or a Health & Welfare Plan

Accountant’s Audit Report for Form 5500?

CONTACT US

Certified Public Accountants & Profitability Consultants

Our Employee Benefits & Executive Compensation Accounting and Tax Services Groupprovides the experience and expertise your clients deserve

Avery E. Neumark, CPA, JD, LLMRosen Seymour Shapss Martin & Company LLP

757 Third Avenue, New York, NY 10017Tel: 212-303-1806 Fax: 212-755-5600

[email protected] www.rssmcpa.com

A Member of the AICPA Employee Benefit Plan Audit Quality Center

SALES TAX PROBLEMS?

More than 25 years of handling NYS audits

and appeals. CPAs, attorney, and former NYS

Sales Tax Auditor on staff. All businesses, in-

cluding service stations, pizzerias, restaurants.

Free initial consultation. Rothbard & Sinchuk LLP

516-454-0800, x204

Now you can offer your clientsmulti-state tax consulting services.

■ Let us serve as your firm’s outsourced state & local tax / sales & use tax experts, behindthe scenes or directly with you and your clients.

■ Our team has over 100 collective years of state & local tax experience, including Big 4firms and industry.

■ Team includes former state sales & use tax auditors.■ Experience working with CPA and law firms.■ National firm experience at competitive rates.

■ Nexus services ■ Refund reviews■ Audit representation ■ Advisory services■ M&A transactions ■ Research

Call Andy Toth, CPA, at 716.633.1373 or e-mail [email protected] to learn more.

Solutions Beyond the Obvious www.tsacpa.com

PROFESSIONAL CONDUCT EXPERT

DATA FOR CLASSIFIED ADVERTISERS

Please submit all ads in typed form and indicate what section the ad should appear in.

Closing date:We must receive the ad and payment not later than the 2nd Friday of

the month preceding issue dates.

Payments:Payment must accompany ads. There is no billing.

Rates:Basic rate: $4.00 per word. $56 minimum—14 words.

Word count:Symbols and abbreviations count as words. Box and phone numbers = 2 words;

hyphenated words = 2 words.

Classified display ad:21⁄4'' x col. inch = $150.00 net. All classifieds are noncommissionable.

For further information about advertising in the Classified Section, call Sales Desk

215-675-9208, ext. 201 • FAX 215-675-8376

• E-mail: [email protected]

BUSINESS SERVICES

MARKETING SERVICES

BUSINESS OPPORTUNITIES

Why I’m AMember

Name: Mark Ulrich, CPA

Joined: 2007

Chapter: Queens/Brooklyn

Current position: Director of Budgets and Compliance and AdjunctAssistant Professor of Accounting and Taxation, St. John’s University

Society highlights: Queens/Brooklyn Chapter President-elect;St. John’s COAP Advisory Board Chair

Hobbies/activities: Traveling. Has been to Israel, Japan, India,Jordan, Mexico, England, France, Argentina, Poland and theCzech Republic, always for pleasure, never for business. Also, isa big Yankees fan.

Fun fact: Briefly lived in Tel Aviv after leaving KPMG.

Why I’m a member: “Membership has allowed me to give back to the community. Being involved in the Career Opportunities in the Ac-counting Profession program over the last five years has allowed me to provide local high school students with the tools they need tobecome involved in the profession and be successful. The Society enables me to use my knowledge and professional network to put onthis wonderful event at St. John’s University.”

Personal quote: “We’re lucky to be in a profession that affords us good opportunity. I’m able to do meaningful work in the higher edu-cation industry, while others work in public, private and government. The Society has given me a wonderful platform for networking andalso a venue through which I help the community and profession by taking part in the COAP program.”

With 28,000 members, there are 28,000 reasons to belong.

To become a member, visit www.nysscpa.org/join or email Cara Patterson at [email protected].



e d u c a t i o n

For More Information and to Register for This Conference: Visit www.nysscpa.org/pfp or call 800-537-3635.FAE

YEARS 1972-2012


40

Personal Financial Planning Conference

■ Post-Election Estate and Income Tax Update ■ Social Security Planning ■ Economic Update ■ Incorporate Personal Financial Planning into Your Practice

Tuesday, November 13, 2012New Location! UBS Conference Center1285 Avenue of the Americas (Between 51st and 52nd Streets) 14th FloorNew York, NY 10019

Excel as your clients’ trusted financial advisor

FIND CUTTING-EDGE SOLUTIONS ON TIMELY PLANNING TOPICS:


REGISTRATION DETAILS:

■ Planning Around the 3.8% Investment Income Surtax■ Divorce Planning■ Elder Care Planning■ Marketing and Social Media

GAIN INSIGHT THROUGH INTERACTIVE ROUNDTABLES AND SMALL-GROUP SESSIONS ON:

Course Code: 25275311CPE Credit Hours: 8Field of Study: TaxationEarly-Bird Pricing: (Register by October 16, 2012, and save $30)Member Fee: $355 (In-Person); Nonmember Fee: $480 (In-Person)Price after October 16, 2012In-Person Member Fee: $385; Nonmember Fee: $510

This conference is available for In-Person registration only. There is no Live Webcast option.

Featured Speaker: Ed Slott, CPA, on “Year-End Planning Call to Action”

SAVE $30—REGISTER BY

10/16

Trusted Professional - NYSSCPA

Documents

Transcript of Trusted Professional - NYSSCPA