The National Public Accountant

Audit services used to account for a sizable part of the revenues of accounting firms, but the percentage of profits is becoming increasingly small. The decline in audit income is traced to the rise in lawsuits against auditors, which, in turn, is due to new and more complex standards and court rulings which have increased exposure to litigation. Stiffer competition and declining client loyalty are also cited as factors in the reduction or elimination of auditing services from the mix of serv...

Basic features of the newly enacted SIMPLE retirement plan.

Savings incentive match plan for employees of small employers The savings incentive match plan for employees of small employers (SIMPLE) retirement plans are aimed at promoting greater participation in retirement plan coverage among small businesses by making compliance easier. A SIMPLE plan can be adopted by employers with 100 or fewer employees and can be established either as an IRA for each employee or as a 401(k). Requiring employer contributions, it must be the only retirement plan sponsored by the employer. Employees with two years of service can...

Disclosing past sins: financial reporting of environmental remediation.

The concept of disclosure of potential financial liabilities relating to environmental cleanup emerged in the 1970s. However, many corporations initially remained reluctant about including their responsibilities for remediation in their financial reports. Environmental disclosure appears to have improved in the 1990s, with 13 of the sample corporations in a study of environmental annual report coverage improving their environmental reporting. All seven criteria for environmental reporting als...

Is it really getting better? Race, gender and career advancement in accounting.

Barriers to retention and career advancement appear to remain in the accounting profession. This was gleaned from a survey of four groups of accountants and auditors in North Carolina, namely, African-American females, African-American males, Caucasian females and Caucasian males. For instance, 25% of the African-Americans do not plan on remaining with their current employers, citing lack of career advancement opportunities as the main reason. The need for improved mentoring and networking as...

Personnel audit.

Errors in accounting for the compensation of employees can happen and can reach a sizable amount. However, such errors can be detected and prevented with a sound personnel audit plan. A plan emphasizing personnel matters including worker classification, labor laws, employee wages and payroll taxes, workers' compensation and pension plans is proposed. An employment audit should be made known to employees, but care should be exercised by the auditor and the audited firm in communicating audit f...

Strategies for handling sales tax complications associated with procurement cards.

Procurement cards bring many benefits to corporations and other types of organizations to which they are issued. They can be used to purchase items with small values and can significantly reduce the number of purchase orders and thus lead to substantial savings. Procurement cards can also decentralize purchasing. However, the use of these cards can also lead to problems, primarily in accounting for sales tax since they make the tracking of sales data cumbersome. Proper procedures must be inst...

The practitioner's role in accounting for asset impairments.

Estimates of future cash inflows and fair value of assets are necessary in implementing Statement of Financial Accounting Standards No. 121, or 'Accounting for the Impairment of Long-Lived Assets and For Long-Lived Assets to Be Disposed Of.' The standard allows firms to identify asset impairment and determine impairment loss. Strategies for better management of the balance sheet are presented.