RISK MANAGEMENT

Three Fundamental Questions to Ask in Audit

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Are you teaching your team the real work or just the compliance work?

By Alan Anderson, CPA
Transforming Audit for the Future

Instant download:
“The New Manifesto for Accountants.“

When I started in accounting, we wrote audit programs out by hand, and we thought about what it was we needed to do to carry out our audit procedures.

And then, the firm got a copy machine. That started the arts and crafts period of public accounting.

MORE: The Big Issues in Audit: Frustration, Inconsistency and Technology | Five Ways to Increase Audit Efficiency | Early Adopters Gain an Edge in Audit | Talent Retention: Five Tips for an Audit Adjustment | Six Benefits of an Internal Audit | The Ten Financial Controls That’ll Make You a Hero | Five Cash Reports You Can’t Live Without | When an Audit Is a Great Thing
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Because we were going to do the same as last year, every year we would make a copy of last year’s hand-written audit program, cut out the sign-offs, tape that on a new page, make sure to draw the lines for the sign-offs, and then we’d make a copy of that. Then we had our audit program for the new year.

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The Life Insurance That Your Firm Needs

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https://cpatrendlines.com/2020/04/06/accountants-are-emergency-responders-who-will-help-us-recover-from-the-covid-19-crisis/

Guarantee funding when your business needs it the most.

By Russ Alan Prince
Your $5 Million High-Net-Worth Practice

There are times because of death when key people in a company are lost. Key person life insurance provides funds to a business to address the financial losses that can occur when a key person dies.

MORE: Why You Need a Team of Experts | Why a Virtual Family Office? Why Now? | Is Your Client’s Umbrella Big Enough? | Your Client’s Instincts Are Wrong | Preserving Wealth Is a Different Mindset | Three Approaches to Investment Consulting
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Revenue losses can be offset, and money can be tapped to help ensure the business remains viable and doesn’t fail – for example, to find a replacement or train someone to take the job of the key person who died.

This is almost always the most cost-effective approach. Additionally, key person life insurance pretty much guarantees the money required will be available when needed.

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Preparing for the Worst (Thanks to My Wife)

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By Ed Mendlowitz
Call Me Before You Do Anything: The Art of Accounting

One morning my wife and I were having breakfast and she asked me, “What do I do if you and Peter get killed?”

MORE: The 10 Best Movie Accountants | Why Accountants Quit | When Siblings Battle over the Family Business | How Bickering Can Ruin a Family Business | Why Annual Staff Evaluations Fall Short | Why Create an Accounting Firm Business Model? | The Clients that Keep You Awake at Night | Creating a Cross-Selling Culture
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This was a Friday and Peter Weitsen and I were flying together on Sunday to a conference in Palm Springs. My response to these questions was typical: “Don’t bother me. Nothing will happen!”
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Cybersecurity for Tax Professionals

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Welch

CHECKLIST: The 24 steps to prevent and, if necessary, respond to breaches.

By Amy Welch

Last year, there were nearly 90,000 reports of tax identity theft, according to the Federal Trade Commission.

In fact, in June, an IRS agent admitted to stealing someone’s identity. Law360.com reported Special Agent Bryan Cho, 49, pled guilty to aggravated identity theft and wire fraud in a Brooklyn district court. It appears anyone can be a criminal!

Join Donny Shimamoto, CPA, CITP, CGMA, for “Hybrid Work: Holistic Approach to Customer, Employee & Cybersecurity Risks,” Aug. 26, 3:30 pm ET. Register Here | Learn More

It’s also important to note that protecting taxpayer data is the law. According to the FTC Safeguards Rule, “tax return preparers must create and enact security plans to protect client data. Failure to do so may result in an FTC investigation.” Additionally, any “failures that lead to an unauthorized disclosure may subject you to penalties under sections 7216 and/or 6713 of the Internal Revenue Code. READ MORE →

PPP Traps: 1 in 5 Accountants Report Shady Dealings

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Fake employees, fake businesses, and lavish spending mar the COVID relief program.

Have you walked away from any PPP engagements?
PPP Practice Management Do’s and Don’ts:
Join the Survey. Get the Results.

By Sandi Leyva

With fast money comes fast fraud, and the arrests and jail terms are only just beginning for individuals who applied for PPP money under false pretenses and have already been caught. You’ve seen the headlines, where people from every walk of life including reality TV stars, rappers, a Wal-Mart manager, and even an NFL player have been arrested on charges of PPP loan fraud.

PPP fraud has likely already impacted your firm. The extent of the fraud is the real story.

One thing is fairly predictable: “Audits will pick up,” says Bradley Burnett, tax attorney and instructor of the PPP Forgiveness webinars being conducted by Accountant’s Accelerator and CPA Trendlines.

According to respondents of an ongoing survey being conducted by CPA Trendlines and Accountant’s Accelerator, preliminary results show that just over 1 out of every five accounting professionals offering PPP services (22 percent) has had to walk away from at least one PPP engagement.  And one firm has had to walk away from more than five PPP engagements.

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The Clients that Keep You Awake at Night

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Masked man carrying large money bagWhen even the best internal controls fail, guess who the client will blame?

By Ed Mendlowitz
Call Me Before You Do Anything: The Art of Accounting

I have addressed the importance of controls when trying to get a client. But it is also important to retain the client.

MORE: Clients Don’t Lose Sleep for Overpaying Taxes | 6 Ways to Increase Your Fees … If You Dare | The Clients that Got Away | Upselling Made Painless | Boosting a Fixed Fee Substantially | Creative Ways to Retain Staff | What CPAs Can Learn from Lawyers and Doctors | My Top 10(ish) Regrets
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A good system that is not monitored is a sure way to lose your client – and your sleep.

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