skyscapes june 2011

SkyscapesJune 2011

Vol. 3 Issue 9

Newsletter of the Kansas Society of CPAs www.kscpa.org

IN THIS ISSUE:IFRS and Private Company GAAP:

Emerging Opportunities for the Acccounting Profession

The Chartered Global Management Accountant Credential

Recognizing the Unique Competencies and Expertise of Management Accountants Worldwide

Internal Controls - So Much Time for So Little Benefit

http://www.facebook.com/pages/manage/#!/pages/Kansas-Society-of-CPAs/113059345438208

http://twitter.com/#!/KSCPAteam

2 kscpa.org

Warm regards,

John H. Bruckner,78th Chair of the Kansas Society of CPAs

FROM THE CHAIR

Greetings!

Springtime is coming to and end and summertime is heating up. I hope you all have an enjoyable summer. The KSCPA courses held in May and June were successful. The analysis and listening tour paid off because there was increased attendance and instructors with practical experience who were able to address the specific needs of the audience.

Electronic materials are being implemented with great feedback from the members.

Tammy Bryant, CPA, Owner at Varney & Associates, CPAs, LLC in Manhattan, said “Having the materials electronic for the course was awesome, and I am very excited to continue this going forward.”

Joyce Terbovich, CPA, of Shawnee Mission, said “I found the electronic version of the course materials to be very effective. It will be a much more utilized manual on my computer versus it sitting on the shelf.”

The KSCPA team is preparing for two conferences this summer; namely, the Conference on Kansas Taxes to be held June 27 in Topeka and the Business & Industry Expo (NEW!) in Wichita on August 10. The Women to Watch Conference and Award Luncheon is around the corner on September 16 in Wichita, so please start to think about who you want to nominate for this prestigious AICPA/KSCPA award. Complete

information will be available in the July newsletter. The team hopes you are enjoying the new website as much as they are – check out some instructions later in the newsletter.

Speaking of the KSCPA team, there is a new face at the Society office, Marlene Shellenberger, who is the Administrative Manager. She comes to the KSCPA with 30 years of experience in the State and private sector. Marlene will handle administrative tasks as well as serve as the liaison to the leadership. She has excellent skills and is a welcome addition to the team! Danielle Bulson, who many of you spoke to during her internship

with the KSCPA, graduated from the University of Kansas with a degree in journalism. Danielle has assumed the position of Membership & Communications Coordinator. We are looking forward to Danielle working on membership growth, student membership, member relations, and communications (e.g. Skyscapes, and our social media strategy).

Have a fun summer, and we’ll be back next month! Thank you for your support of the KSCPA.

MarleneShellenberger Danielle

Bulson

16Member Profile: Dan Crumb, CFO, Kansas City Chiefs

Statements of fact and opinion are made by authors alone and do not imply an opinion on the part of the officers or members of the KSCPA. Publication of an advertisement in Skyscapes does not constitute an endorsement of the product or service by Skyscapes or the KSCPA. Copyright © 2011 Kansas Society of CPAs; Topeka, KS. All rights reserved.

OfficersJohn H. Bruckner, Chair, Designated AICPA Council Representative Robert J. Schuster, Vice ChairM. Aron Dunn, Secretary/TreasurerGary C. Allerheiligen, Immediate Past ChairBoard of Directors(Term Expires 2011)Richard K. DinkelJohanna D. LyleGreg B. SevierNathan L. Spearman Lisa P. TroutVirginia A. Powell, KSBOA LiaisonKyle J. Hawk, AICPA Council Rep.

Board of Directors(Term Expires 2012)Chet BuchmanM. George DurlerLewis R. EricksonGregg C. GoodwinMichelle Schneider

Educational Foundation Board of TrusteesDan S. Deines, ChairJohn C. Rich, Vice ChairNorman P. Hope, Secretary/TreasurerJohn H. BrucknerKyle J. HawkJeffrey J. KochJohn W. DenneyKenneth A. SelzerPaul T. MasonPolitical Action CommitteeDenis W. Miller, ChairJames T. Clark, TreasurerDeAnn A. HillEric J. LarsonLeon C. LoganKathryn J. MitchellMichael V. Rogers

Mary R. MacBain, MS, CPA. CITP President/CEOTeresa Keating, Peer Review Admin. & Event PlannerKaren Mitchell, CPAFinance DirectorMarlene Shellenberger,Administrative ManagerDanielle Bulson,Membership & Communications CoordinatorKevin Moravec, Graphic Designer

Editors: Mary R. MacBain, Editor-in-ChiefContributing Writers: Alan Anderson, CPA; Hubert Glover CRISC, CIA, CMA,CPA, Ph.D.

The Kansas Society of Certified Public Accountants, Inc.100 SE 9th Street, Suite 502Topeka, KS 66612-1213Phone: 785.272.4366, FAX: 785.272.4468

Board of Directors(Term Expires 2013)James K. BoomerGinger L. FarneyCarolyn C. GeorgeMindi A. OrmistonMatthew R. List

Improving the Code of Professional ConductFrom the AICPA18

Check out the new feature on the KSCPA website.Using the Education Tracker34

Get to know your local government officials.Meet the Governor and His Cabinet24

Congratulations to the new members of the KSCPA!New Members32

Find out what’s going on with your fellow KSCPA members.Member News33

Take a look at photos from our latest KSCPA Conferences.Conference News26

Classifieds & Ads36

Register for CPE Courses Online22An easy, step-by-step tutorial of how to register for CPE courses on the KSCPA website

SkyscapesJune 2011

Vol. 3 Issue 9

UPDATES AND UPCOMING EVENTS

FEATURES

IFRS and Private Company GAAP:

by Hubert Glover

4Emerging Opportunities for the Acccounting Profession

8The Chartered Global Management Accountant CredentialRecognizing the Unique Competencies and Expertise of Management Accountants Worldwide

Internal Controls - So Much Time for So Little Benefitby Alan Anderson

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4 June 2011

IFRS and Private Company GAAP:Emerging Opportunities for the Accounting Profession

by Hubert Glover, CRISC, CIA, CMA,CPA, Ph.D.

This is an exciting period for the accounting profession; enrollment in accounting programs, gradua-tions and placements are increas-

ing and strong even in the midst of a re-covering economy. Along with this positive state of affairs regarding the profession, we have two emerging issues, IFRS and Private Company GAAP which are being

FEATURE

discussed by the SEC, FASB and various other accounting organizations including the KSCPA and AICPA.

This article seeks to provide a brief history and current status of both key issues to ensure that the KSCPA members are cur-rent and able to position themselves ac-cordingly as progress occurs.

Skyscapes - Newsletter of the Kansas Society of CPAs 5

IFRS OverviewThe discussion of harmonization of accounting standards to enhance comparability of financial statements has occurred among professional organizations, regulatory agencies and academicians since the 1970’s. In fact, the same year the Financial Accounting Standards Board (FASB) was estab-lished in 1973, the International Accounting Standards Com-mittee was established (IASC). However, during that time the economy was not viewed as a global marketplace as it is in the 21st Century. The advent of technology, emerging economies such as India and China and their critical role in supply chain management and the fall-ing of political borders such as in the Soviet Union, have led to the impor-tance of cross-border investments and related financial information exchange.

Key political and economic unions such as the G-20 and European Union, along with the International Organization of Securities Commissions (IOSCO), also led to the demand for a formal focus on the harmonization of accounting standards. This led to the reorganiza-tion of the IASC in 2001 into what is now called the International Financial Reporting Standards (IFRS) Foundation which is modeled after the Financial Accounting Foundation (FAF) that over-sees FASB and GASB.

In it’s 28 years, the IASC issued 41 International Accounting Standards (IASs) and 33 interpretations. IFRS, through the International Accounting Standards Board (IASB), which is a counterpart to FASB, has issued 13 International Financial Reporting Standards (IFRSs) and 19 interpretations since their formation in 2001.

In 2002, the IASB and FASB agreed to work on a conver-gence project to plan the transition, agreement and resolution of key differences in IFRS and U.S. GAAP. The two stan-dard setting bodies have worked diligently on various key topics from leasing to fair value to business combinations. In 2011, IASB issued four IFRSs primarily focusing on consoli-dations and fair value which reflected the joint efforts with FASB. However, it is noted there will still be differences, es-pecially in fair value that FASB is still reviewing and receiv-ing comments. In April 2011, both organizations also noted that they had achieved significant progress on topics such as consolidations but still had more work to accomplish on other projects, such as revenue recognition and leases. IASB and FASB concluded that they would not meet their June 2011 target date to complete all of the projects and accord-ingly noted it would probably take until 2012.

The Chairman of the SEC, Mary L. Schapiro, has also com-missioned a report which was issued on May 26, 2011 en-

FEATURE

titled “Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Finan-cial Reporting System for U.S. Issuers: Exploring a Possible Method of Incorporation.” This report discusses potential method of full adoption, convergence or a combination but does not provide the critical update to the potential adoption timeline. The timeline that the U.S. and the rest of the global economy is waiting to hear is pending on Schapiro’s deci-sion that the SEC will officially allow or mandate or embrace some type of adoption method as noted in the recent SEC re-

port. Until that date, plans for adoption of any kind cannot be finalized.

While the U.S. and the rest of the world await the SEC decision, several ini-tiatives are being executed to ensure readiness for a transition to IFRS. Three certificates have been developed for professionals to document their com-petency in IFRS. The Institute of Char-tered Accountants in England and Wales launched the first IFRS Certification which some U.S. -based accounting pro-grams are offering for continuing educa-tion credits. Kaplan, well known for the

entrance exam preparation courses such as SAT or GMAT, launched a certification program in 2010, and the AICPA launched a certification program in 2011. All of these certi-fication programs are offered through online modules where you complete an exam to demonstrate successful completion to receive certification. To ensure that new entrants into the accounting profession possess the basic understanding of IFRS (see the CSO for the exam), the AICPA began includ-ing questions on portions of the exam on IFRS in 2011.

Private Company GAAP OverviewDuring 2009, the perfect storm occurred surrounding an is-sue that had been discussed informally and occasionally on a formal basis—GAAP for privately-held companies. His-torically, the emphasis of FASB has been on large enterprises and most often publicly traded. Likewise, academia gen-erally focuses on large companies in the examples used in the core curriculum and often encourages entrance into the public accounting profession with particular emphasis on the “Big Four” who primarily audit publicly-traded companies.

However, the political environment from Congress to the White House to state and local governments demonstrated an unprecedented advocacy for small businesses due to the eco-nomic downturn and the realization small businesses are a solid source of new jobs. For example, the repeal of the 1099 portion of the Affordable Care Act became viral with groups

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from the AICPA to the U.S. Chamber of Commerce, making their pitch to Congress regarding the hardships the require-ment would impose on small business leading to a successful repeal earlier in 2011. In addition, in 2009, IASB issued IFRS for SMEs (small to medium-sized businesses). Finally, the original target date of the completion of the IASB and FASB joint convergence project was scheduled for 2011. Thus, the Financial Accounting Foundation (FAF) who oversees FASB, the AICPA and the National Association of State Boards of Accountancy (NASBA) joined together to address the long-term issues regarding privately-held companies.

FAF, AICPA and NASBA formed a Blue Ribbon Panel (on which this author served) of 18 members who represented privately-held organizations from multi-billion dollar enter-prises to small companies, along with representatives from large and small banks, venture capitalists and large and small firms. In addition, there were observers and presenters to the five meetings held from the regulatory community, including from other countries, to provide a comprehensive context of the issues.

The panel was charged with developing a recommendation for addressing the needs of users of privately-held companies along with resolving the issues and concerns of complexity, relevance and costs for GAAP compliance under the current model. The Panel reviewed various options and ultimately made a recommendation for creating a separate board that would report to FAF in the same manner that FASB does with an initial charge to create a conceptual framework to meet the needs of privately-held companies. This separate board would have a sunset clause to be reviewed in a three to five-year period. The Board would consist of 5 members who would also be charged with reviewing the existing GAAP and identifying where exceptions for privately-held companies could be made.

The Panel presented their recommendation to FAF in Febru-ary 2011, and in March 2011, FAF formed a working group to review the recommendations and develop a response and rec-ommendation to present to FAF by the Fall of 2011. During the review period, the working group would solicit comments via roundtables and other mediums from various constituents to ensure sufficient insight was gained and considered during the process.

Summary & ConclusionsThis is an exciting and unique time in the accounting pro-fession. The emerging prospects of IFRS and Private Com-pany GAAP indicate that your ongoing investment through continuing education is critical. It is also essential that as a professional you stay engaged in your local state society, like KSCPA, to not only obtain valuable and relevant CPE, but also to connect with your colleagues who will all be dealing with one or both of these issues to exchange best practices and assist each other accordingly.

About the AuthorDr. Glover recently joined the fac-ulty at Drexel University LeBow College of Business as a Clinical Associate Professor. Dr. Glover also serves as Chairman and co-founder of REDE Inc. (www.rede-inc.com) established in 1998 and provides institutional support and consulting services to federal agencies includ-ing NASA, USDA, Commerce, EPA and Department of Energy. REDE has an employee base of more than 250 employees provid-ing IT and administrative support services from California to Florida. REDE was recognized in 2010 as the Houston Minority Supplier Development Council Strategic Teaming Company of the Year; 2010 as NASA Kennedy Space Cen-ter Small Prime Contractor of the Year; in 2007 and 2009 as NASA Johnson Space Center Minority Contractor of the Year; 2007 and 2009 Texas A&M # 1 Aggie 100 Winner based on three-year compound growth; and in 2008 one of the Houston Minority Business Council Emerging 10 Business Winners.

Dr. Glover has more than 30 years experience in manage-ment and leadership. This includes both the private sectors where his leadership roles included tenure as a CEO of a joint venture with Shell Oil and as CEO for a subsidiary of Price-waterhouseCoopers. Dr. Glover’s leadership portfolio also in-cludes the public sector serving as the chair of the accounting department for the School of Business at Howard University (accredited by the AACSB) and leading small businesses to provide services for major federal agencies such as DOE and NASA.

Dr. Glover currently serves on the Board of Directors for the Institute of Management Accountants (IMA) (www.imanet.org). He also recently completed service on the Blue Ribbon Panel for Private Company Standard Setting (AICPA/FAF/NASBA) which presented its recommendations to FAF in February 2011. Dr. Glover just completed terms as a mem-ber of the Board of Directors for the American Institute of Certified Public Accountants (AICPA) (www.aicpa.org) and IMA’s Foundation for Applied Research, and a term as Coun-cil-at-large for the American Accounting Association (AAA) (http://aaahq.org/). Dr. Glover also served as the Chair of Audit Committee for a publicly traded company, Modavox (www.modavox.com) from 2003 to 2008 and for the Emmaus Services for the Aging (www.emmausservices.org) from 2007 to 2009.

Dr. Glover has written more than 35 articles for trade pub-lications, professional organizations and academic journals in the areas of organizational change, auditing and business education. Dr. Glover is also a Certified in Risk Information Systems Control, Certified Internal Auditor, Certified Man-agement Accountant and Certified Public Accountant.

FEATURE

www.imanet.org

www.imanet.org

www.aicpa.org

http://aaahq.org/

www.modavox.com

www.emmausservices.org


The AICPA’s IFRS Certificate Program was specially designed to help accountants build the knowledge needed in International Financial Reporting Standards for success in today’s global business world. Knowledge of IFRS is now standard entry-level practice for CPAs. As IFRS use spreads around the world, it’s important for many in the profession to be bilingual – that is, know both U.S. GAAP and IFRS. Developed with input from subject matter experts from across the globe, the program is designed to provide CPAs and accounting profes-sionals with the training, knowledge and practical guidance needed to use IFRS.

The new AICPA certificate is awarded for the completion of a comprehensive, integrated curriculum of 25 on-line, self-study training courses. The multimedia courses are interactive, engaging and scenario-based, with nearly 50 IFRS experts involved in their development. CPAs who successfully complete all the courses in the curriculum receive a Certificate of Educational Achievement and approximately 42 hours of continuing educa-tion credit. Non-CPAs receive an Award of Educational Achievement after completing the program.

While the e-learning courses will cover basics of the standards, the primary focus of each course will be ap-plication of the standards in multiple problem scenarios.

Visit the AIPCA’s IFRS website for more information:www.ifrs.com

Private companies play a vital role in our economy. There are about 29 million private and not-for-profit com-panies in the United States, including 7 million small- to medium-size businesses. CPAs who work for these companies, or who serve them, have been saying for a long, long time that these businesses have financial information needs that are much different from those of large public entities. Their financial statement users need straightforward, understandable information that addresses what they need to know – no more, no less. Given private companies’ key role in job creation and economic development, it is more vital than ever that their financial statement users and other stakeholders, such as owners of those companies, have relevant and useful financial information.

Years of studies and research, a joint advisory committee with the FASB (i.e., the Private Company Financial Reporting Committee), private company constituent representation on the FASB board and comment letters on proposed accounting standards in the past have not yielded meaningful results. The AICPA believes it is im-perative that there be a board made up of private company constituents who would set the different standards affecting the private company financial reporting system. As it stands now, issues affecting public companies are what drive accounting standards and impact how they are written.

Take Action NowThe AICPA is providing an online tool to help you compose letters to the Financial Accounting Foundation (FAF) regarding the need for private company financial reporting. The AICPA is asking you, your state society, your firms and companies, your fellow CPA practitioners and preparers, and bank lenders to write individual letters to FAF now in support of the Blue Ribbon Panel’s recom-mendations for differential standards and a separate, autonomous private company standard-setting body reporting directly to FAF.

Personalized letters have the greatest impact. The AICPA has provided the letter-writing tool as an aid, but please recognize how im-portant personalization is in letter campaigns. To access the letter-writing tool, go to https://apps.aicpa.org/pcfr . There you will see instructions for developing your letter and suggested talking points that you can use to build your personalized message. Standard-setters value most those comment letters that are unique and customized; therefore, the AICPA encourages you to share individual insights, as well as specific examples and perspectives. You can also use the online tool to send your own, completely original letter.

This online tool is open to all. In helping to generate letters from your CPA members/colleagues and bankers/lenders/sureties out-reach, please direct them to the website. Educational resources to help them understand the issue are available at www.aicpa.org/privateGAAP.

For a recap of Barry’s discussion at Council on private company financial reporting, click here.

FEATUREWhat is the IFRS Certificate Program?

Private Companies: Why is a Separate, Autonomous Standard-setting Body Important?

IFRS Certificate Program

www.ifrs.com

http://www.aicpa.org/News/AICPATV/Council/Pages/TakeActionforChangePCFR.aspx

http://ifrs.com/certificate/index.html

8 June 2011

On May 23, the AICPA governing Council unanimously approved a new credential called the Chartered Global Management Accountant (CGMA), a joint venture of the AICPA and the London-based Chartered Institute of Management Accountants (CIMA). Qualifying AICPA vot-

ing members will have the most favored pathway for obtaining the new credential. The credential advances the science of management accounting, while supporting and growing the U.S. CPA as the worldwide standard of professional excellence in accounting. It also recognizes the unique competen-cies and expertise of management accountants who are leading the world’s most successful organi-zations and providing employers with the best professional management accounting talent to drive sustainable business outcomes.

“This is an exciting time for our members in business, industry and government,” said Nathan Spear-man, CFO, Viega LLC and a KSCPA director. “The CGMA credential gives them an opportunity to further distinguish the significant work they do serving on the front lines of financial operations at organizations here in Kansas and around the world. The fact that it will have international recogni-tion as the premier designation for management accountants will open many doors and makes it very attractive.”

FEATURE

The Chartered Global Management Accountant Credential:Recognizing the Unique Competencies and Expertise of Management Accountants Worldwide

Credential to Launch First Quarter of 2012

Beginning in the first quarter of 2012, AICPA voting members will be automatically eligible for the credential upon verifying three years of qualifying experience. CPAs who are mem-bers of both the AICPA and their state CPA society will receive a special discounted an-nual fee to maintain the CGMA credential.

In addition to management accountants, the CGMA may appeal to members or CPAs working in other environments. For example, members in public accounting whose prima-ry responsibilities are focused on the man-

agement and operations of a firm may consid-er pursuing this credential to highlight these specific skill sets to their clients and within their markets.

Resources and Professional Development to Support CGMAs

CGMAs worldwide will have access to relevant and timely resources, a proprietary website housing resources to help them develop man-agement accounting competencies, collateral to promote the CGMA to their employer and a global social online network and commu-nity. To guide their professional development for continuous improvement throughout their


FEATURE

careers, CGMAs will tap into a competency self-assessment tool. This new platform will help them understand the skill sets they need to remain relevant and valued in the rapidly changing business world and identi-fy courses of action to meet their objectives.

The Kansas Society of CPAs will explore op-portunities for shared CPE and other con-tent opportunities.

Raising the Science of Management Accounting Worldwide

The AICPA and the Kansas Society CPAs recognize their unique responsibility to help members understand the issues and oppor-tunities presented by the increasingly glob-al nature of accounting and business. The CGMA credential will demonstrate members’ expertise in such areas as partnering stra-tegically with management to make more informed decisions, helping organizations manage change, risk and uncertainty, pro-tecting corporate assets, and promoting op-erational efficiency and effectiveness. Along-side their U.S. CPA designation, the CGMA credential will show their expertise as objec-tive financial professionals contributing to the success of businesses.

Through this joint venture, the AICPA and CIMA will leverage the collective power of more than 550,000 members to advance the science of management accounting worldwide, substantial-ly benefitting the public, members and students. The CGMA credential de-livers value to those CPAs practicing in both business, industry and government and public accounting.

About CIMA

Started in 1919, CIMA is the largest and one of the most re-

spected international management account-ing professional associations, representing more than 183,000 members and students in 168 countries. CIMA’s curriculum prepares students and professionals in the business, industry, government and not-for-profit are-nas for two accounting credential programs.

CIMA has created strong relationships with employers, universities and high-school lev-el academies and maintains strong visibility in countries, such as the UK and Ireland, In-dia, China, South Africa and Australia. With its commitment to upholding the highest ethical and professional standards, and to ensuring public confidence in management accounting, CIMA is the AICPA’s ideal part-ner in the CGMA.

About AICPA

The American Institute of Certified Public Ac-countants is the world’s largest association representing the accounting profession, with nearly 370,000 members in 128 countries. Its mission is to provide members with the resources, information and leadership that enable them to provide valuable services in the highest professional manner to benefit the public, as well as employers and clients. In fulfilling its mission, the AICPA works

with state CPA societies and national and international organizations, and gives

priority to those areas where public reliance on accountants’ skills is

most significant.

To Learn More

For more information about the CGMA and what it means for the profession, we invite you to view this video of AICPA

President & CEO, Barry Melan-con discussing the new creden-

tial and joint venture and read the press release.

10 June 2011

Internal Controls – So Much Time for so Little BenefitBy Alan W. Anderson, CPA

President, ACCOUNT-ability Plus

Copyright 2011 Alan W. Anderson, used with permission.

While I often wonder if an auditor understands what is required when s/he performs the internal control procedures contained in audit programs, I am also confident that most auditors question the benefit of completing the procedures. In spite of the fact that there is little perceived benefit, auditors continue to complete all the steps on the “canned” audit programs because they don’t question the efficacy of the forms as it relates to the client.

Auditing “military style”…..doing what you are told without question, may work in the military but not in the audit. A fundamental component of the audit itself is to ask questions, something one of my mentors in my early years coached everyone to do. Yes, his words to “just ask questions” will make you a better auditor.

Without asking questions to gain a better understanding and simply following the forms leads to the auditor’s perception of “so much time for so little benefit.” Instead, by asking questions to gain a better understanding will help you determine if there is a better and more efficient way. This article focuses on several important questions and offers ideas to help auditors develop a better and more efficient way to understand the client’s internal control.

10


Internal Controls – So Much Time for so Little BenefitBy Alan W. Anderson, CPA

President, ACCOUNT-ability Plus

Copyright 2011 Alan W. Anderson, used with permission.

While I often wonder if an auditor understands what is required when s/he performs the internal control procedures contained in audit programs, I am also confident that most auditors question the benefit of completing the procedures. In spite of the fact that there is little perceived benefit, auditors continue to complete all the steps on the “canned” audit programs because they don’t question the efficacy of the forms as it relates to the client.

Auditing “military style”…..doing what you are told without question, may work in the military but not in the audit. A fundamental component of the audit itself is to ask questions, something one of my mentors in my early years coached everyone to do. Yes, his words to “just ask questions” will make you a better auditor.

Without asking questions to gain a better understanding and simply following the forms leads to the auditor’s perception of “so much time for so little benefit.” Instead, by asking questions to gain a better understanding will help you determine if there is a better and more efficient way. This article focuses on several important questions and offers ideas to help auditors develop a better and more efficient way to understand the client’s internal control.

Why does the auditor need to consider internal control as a part of the audit?

All audit standards are designed to assist the auditor in minimizing audit risk. Since audit risk (the risk of issuing a clean opinion when the financial statements contain a material error) exists on every audit, the auditor is expected to focus audit effort in the areas where they believe there could be a risk of material misstatement (RMM).

When the Audit Standards Board (ASB) issued the risk based standards in 2006, they eliminated the ability for the auditor to “opt out” of completing any internal control procedures by assessing internal control risk at the maximum. The ASB believed that when an account carried potential for the risk of material misstatement, the auditor should make a determination if internal control over that account had the ability to mitigate that risk. As such, the standards require the auditor to determine if the design of controls at the client has the ability to prevent or detect a material misstatement. If the design is deemed to be sufficient, the auditor is then required to determine if the design has been implemented by performing a walkthrough.

Do I need to determine the design of internal control for all accounts or classes of transactions?

No. This is one area where the auditor spends unnecessary time. Many auditors dive into completing all the internal control forms without first determining which accounts or classes of transactions contain the potential of RMM. The auditor is required to understand the design of internal control for only the RMM accounts or classes of transactions. If you currently document the design of internal control on non RMM accounts, make a note for next year to have the audit team focus only on the RMM accounts.

Do I need to determine everycontrol that exists for the account or class of transactions?

No. The standards ask the auditor to determine the key control or controls that would have the ability to prevent or detect a material misstatement. The

standards do not ask the auditor to determine all controls.

Many auditors spend a significant amount of time determining all of the controls rather than determining a key control or controls. It is important to remember that these requirements are all about helping the auditor design better the substantive audit procedures in areas of the greatest risk. Gaining an understanding of a key control helps the auditor determine the audit plan. Identifying all controls, on the other hand, in an unnecessary use of time and doesn’t add any additional value to the audit process.

If I don’t have to look at all accounts or all controls, why do the “canned” audit programs have every account and all controls for the auditor to consider?

The “canned” programs that many firms use generally will cover all areas and all controls. The developers of these programs attempt to provide the auditor with virtually every potential scenario so nothing is missed. The developers cannot prepare a generic set of forms and procedures that assumes a low level of client complexity or make assumptions about RMM. As such, these packages assume a high level of audit complexity and that all accounts or classes of transactions contain RMM. It is the expectation that the auditor will focus and refine their level of effort based upon the nature of their client. This is something only the auditor, who, by asking questions, can answer.

Those “canned” forms seem so complex. How would I go about modifying them to match the complexity of my client situation?

The forms are in the audit package are merely tools and not requirements. The method of documentation the auditor chooses is always a matter of professional judgment. The methods of documentation include flowcharts, narratives, questionnaires and client-prepared manuals. In many situations, it may be far more efficient to develop your own streamlined documentation methodology based in the client and/or the client’s industry. Creating your own streamlined approach allows you to focus on only the RMM

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12 June 2011

accounts and key control(s) rather than all accounts and all controls.

How can I best determine a key control or key controls?

The auditor needs to first understand the two types of internal controls that can be in place in an organization; namely preventive and detective. A preventive control is a control that is designed to prevent a material misstatement from ever being recorded in the records of the client. An example of a preventive control is the advance approval of a purchase order. Generally, preventive controls are placed at the transaction level and occur every time a transaction takes place.

Detective controls are controls that are designed to identify a misstatement after it has been recorded in the books and records of the client. A typical detective control is the preparation of account reconciliation. Detective controls generally occur at month end as the books and records are being closed for the month.

I generally recommend that the auditor look first for detective controls related to a RMM account or class of transactions. They are easier to identify and since they are mainly month-end controls they occur only twelve times a year and many are looked at as a part of your year-end audit procedures.

Most internal control documentation packages, however, typically identify preventive controls first and then move to detective controls. This happens because the forms follow the typical approach to process flow in an organization. They start with initiation of a transaction, move to the processing of the transaction which then leads to the recording of the transaction in the general ledger which ultimately ends up being reported in the financial statements of the client.

In summary, the key process flow terms are:

• Initiation

• Processing

• Recording

• Reporting

Documenting internal control following the above process flow generally results in excess documentation and the identification of most if not all controls. Both types of controls work to manage the risk of material misstatement, and it is the auditor’s

challenge to determine which control or controls can be considered a key control.

I recommend reversing the order when looking for a key control or controls in an RMM account or class of transactions. Start by looking for a detective control first at the reporting level, then move to recording if you cannot determine a key control at the financial reporting level. In most companies, you will be able to identify sufficient detective controls in place within those two levels to satisfy your audit needs.

What am I expected to do when my client doesn’t have decent internal controls?In many smaller organizations, it is very possible that there may not be any internal controls in place to prevent or detect a material misstatement. Again, the purpose of the audit standard is to identify a key control or controls that could potentially mitigate the risk of material misstatement. If no controls exist, you can only conclude that there are no controls in place to mitigate the risk of material misstatement and adjust the audit procedures accordingly.

In situations such as this, document your conclusion that controls are not in place for the RMM account or class of transactions, adjust substantive audit procedures and consider the SAS 155 implications to communicate this material weakness to your client.

In Summary Performing internal control procedures should not be as time consuming as they tend to be. The auditor can be far more efficient if s/he considers the following key points:

1) Identify the RMM accounts and classes of transactions

2) Identify a key control or controls not all controls

3) Focus on detective controls rather than preventive controls

4) Find the key control or controls by considering reporting and recording steps first

5) When no controls exist, document your conclusion and move to SAS 115 communication

A word on walkthroughs – When the above suggestions are considered, the time that is takes to

12


accounts and key control(s) rather than all accounts and all controls.

How can I best determine a key control or key controls?

The auditor needs to first understand the two types of internal controls that can be in place in an organization; namely preventive and detective. A preventive control is a control that is designed to prevent a material misstatement from ever being recorded in the records of the client. An example of a preventive control is the advance approval of a purchase order. Generally, preventive controls are placed at the transaction level and occur every time a transaction takes place.

Detective controls are controls that are designed to identify a misstatement after it has been recorded in the books and records of the client. A typical detective control is the preparation of account reconciliation. Detective controls generally occur at month end as the books and records are being closed for the month.

I generally recommend that the auditor look first for detective controls related to a RMM account or class of transactions. They are easier to identify and since they are mainly month-end controls they occur only twelve times a year and many are looked at as a part of your year-end audit procedures.

Most internal control documentation packages, however, typically identify preventive controls first and then move to detective controls. This happens because the forms follow the typical approach to process flow in an organization. They start with initiation of a transaction, move to the processing of the transaction which then leads to the recording of the transaction in the general ledger which ultimately ends up being reported in the financial statements of the client.

In summary, the key process flow terms are:

• Initiation

• Processing

• Recording

• Reporting

Documenting internal control following the above process flow generally results in excess documentation and the identification of most if not all controls. Both types of controls work to manage the risk of material misstatement, and it is the auditor’s

challenge to determine which control or controls can be considered a key control.

I recommend reversing the order when looking for a key control or controls in an RMM account or class of transactions. Start by looking for a detective control first at the reporting level, then move to recording if you cannot determine a key control at the financial reporting level. In most companies, you will be able to identify sufficient detective controls in place within those two levels to satisfy your audit needs.

What am I expected to do when my client doesn’t have decent internal controls?In many smaller organizations, it is very possible that there may not be any internal controls in place to prevent or detect a material misstatement. Again, the purpose of the audit standard is to identify a key control or controls that could potentially mitigate the risk of material misstatement. If no controls exist, you can only conclude that there are no controls in place to mitigate the risk of material misstatement and adjust the audit procedures accordingly.

In situations such as this, document your conclusion that controls are not in place for the RMM account or class of transactions, adjust substantive audit procedures and consider the SAS 155 implications to communicate this material weakness to your client.

In Summary Performing internal control procedures should not be as time consuming as they tend to be. The auditor can be far more efficient if s/he considers the following key points:

1) Identify the RMM accounts and classes of transactions

2) Identify a key control or controls not all controls

3) Focus on detective controls rather than preventive controls

4) Find the key control or controls by considering reporting and recording steps first

5) When no controls exist, document your conclusion and move to SAS 115 communication

A word on walkthroughs – When the above suggestions are considered, the time that is takes to

complete a walkthrough is reduced as well. The auditor will only need to walkthrough one or a few controls rather that all controls. In addition, when the focus is on detective controls, which tend to be month-end controls, you are likely looking at many of those controls during your normal audit procedures and will not need to make the walkthrough a separate step. It can be included at a part of your normal audit process.

Alan W. Anderson - Bio Al has over 25 years of experience in the accounting profession. After working primarily as a partner and National Director of Audit in the firm of McGladrey and Pullen, LLP and with the American Institute of CPAs as Senior Vice President of Member and Public Interest, Al founded ACCOUNT-abilityPlus headquartered in Minneapolis. Prior to starting his new company, Al led the firm of LarsonAllen, LLP in coordinating accounting and assurance services across industry groups as the Managing Principal of Accounting & Assurance Services.

As President of ACCOUNT-ability Plus, Al is building a company to address the educational needs of auditors and to help push the vision of those he teaches to exceed client expectations by providing relevant services and meaningful information using real-time methodology.

Al’s experience in the world of auditing reaches far and wide. This includes helping to standardize the global audit approach of McGladrey and Pullen, overseeing the AICPA’s technical audit and accounting standards, including self-regulation and the CPA examination and implementing paperless solutions.

Al served as Chair of the AICPA Assurance Services Executive Committee for 6 years and continues to lead task forces of the Committee.

The 9th in a Series of “ANDERSON’S AUDIT EXPRESS” The KSCPA is excited to that Al Anderson is committed to helping the Society enhance the quality of the Accounting & Auditing (A&A) professional development and, therefore, the quality of our members’ A&A services. This article is the ninth of a series of 13 articles to be published over the next year.

We asked Al to create articles that will stand the test of time and at the same time create a vision for how CPAs can stay relevant by adding value to their clients and organizations they serve.

You can look forward to the following topics:

“Total Client Service: Did you deliver all of Your Services, or Just the Audit?”

“What Brings Value to the Audit? Value-Based Audits?”

“The Characteristics of an Auditor”

“The Goal of the Audit”

Register for “ANDERSON’S

AUDIT EXPRESS” Today!

Each article is supplemented with a video webcast or podcast produced and delivered by the KSCPA. Go to www.kscpa.org for the complete list of live webinars. Register on the KSCPA website, or call 785.272.4366 for more information. Webcasts that provide 2 hours of A&A CPE are $79 each.

Al will also be providing A&A courses in our PD catalog, speaking at conferences, and is available for in-firm training, including a new offering “Reality Based Learning.”

Contact Mary MacBain at [email protected] for further information.

13

14 June 2011

EXPOBUSINESS & INDUSTRY

HILTON WICHITA AIRPORT

Sponsored by:

Wednesday, August 10, 2011 • 8:30am – 4:30pm

8hrsCPE

The KSCPA Business & Industry Expo is a new conference and exhibition sponsored by the KSCPA to provide CPAs and others the opportunity to receive general and technical education targeted specifically to accountants in business & industry. Participants work in a range of organizations and are primarily composed of CPAs who are involved in financial reporting, taxation, CFOs, accounting and finance managers and directors, and staff accountants.

The 2011 conference, “Trends for CPAs in Business & Industry” is both an educational and networking event. This is a chance to take a breather from the challenges of everyday to focus on updating knowledge and learning about new initiatives for members in business & industry, including the new AICPA-CIMA Designation, a globally recognized management accounting designation.

Conference is followed by a networking reception



[email protected]

Kathy Brents, CPAP. O. Box 70

Cleveland, Arkansas 72030(501) 669.2505

Mobile (501) 514.4928Fax (501) 669.2291NORTH AMERICA'S LEADER IN PRACTICE SALES

Go with the biggest in the industry. We are North America’s leader in marketing accounting and tax practices because we understand the value of your firm, know how to market it and have hundreds of buyers who want a practice. Our biggest concern is you. Our wealth of experience culminates to make sure your comfort level is met, your questions are answered and everything is being done to sell your firm. Give us a call today so that we may go to work for you and produce the results you desire. Call Kathy Brents today!

We Go To Work For You.

www.accountingpracticesales.com

16 June 2011

Dan Crumb

1. Name, title, current employer, family: Dan Crumb, Chief Financial Officer, Kansas City Chiefs, Wife - Janet, 2 children - a son and a daughter.

2. What is your current KSCPA involvement? Member

3. What was your first Job? Staff Accountant at KPMG

4. What was your worst job? Every job has its challenges and some jobs are better than others but I have learned something from every job that has helped me develop as a person and a professional.

5. What are three words that best describe you? Determined, dependable, intuitive 6. What book (if any) are you currently reading? “Kansas’s War - The Civil War in Documents” 7. What are your hobbies? American History, fishing, hunting, exercise, horseback riding, golf, going to the movies, the KC Symphony, the KC Lyric Theatre and the Nelson-Atkins Museum of Art.

8. What are your favorite foods? I’m from New Orleans - shrimp creole, crawfish etouffe, duck and Andouille gumbo, jambalaya, alligator, turtle soup and beignets to name a few. However, I have acquired a taste for the great bbq of this region.

9. What is your favorite movie(s)? Glory, Gladiator, Master and Commander, Unforgiven, Syriana, Pirates of the Caribbean series

10. What is your dream vacation? Europe - Paris, Rome, London

11. What is your biggest pet peeve? Shortsightedness

12. What do you try to avoid? Negativism 13. Who is the person you most admire and why? That is very hard to say as there have been so many people who have impacted my life in different ways. It would not be fair to select just one person.

MEMBERPROFILE:


14. Name one person (dead or living) you would like to meet. Why? Abraham Lincoln. He had to overcome so much adversity throughout his entire life. He had to learn quickly and make incredibly tough decisions that saved this country and avoided catastrophic consequences and through all of this was a very principled person. 15. What is your favorite song and artist/musical group? Sunshine of Your Love by Cream. It was the first song I learned how to play on guitar. 16. What is your greatest accomplishment or greatest impact you have had? Being a parent and community service. 17. If you could have any job you wanted, what would it be? A filmmaker. 18. How do you achieve balance between your personal and professional life? Spending time with my family, my Catholic faith, community service and my hobbies. 19. What would you like to get around to doing when you have time? Travel 20. What might people be surprised to learn about you? I can weld, like to ride horses and I have a pretty mischievous personality. 21. What talent would you most like to have? Speed reading - I have to read so much it would save me a great deal of time. 22. If you could be present at any historical event, which one would you choose? The Battle of New Orleans. It was fought in my hometown and really ended any further attempts by the British to continue the War of 1812. 23. How would you like to be remembered? As a person that was devoted to his family and faith, achieved success the right way and had a positive impact on those around him. 24. Why did you choose to pursue the CPA designation? CPA’s are highly trusted professionals that have the ability to understand the measures of success and failure like no others within the organization and have the ability to greatly impact those opportunities for success and avoiding failure.

Would you like to be profiled in the KSCPA Newsletter? This is one of the most widely read articles! Our members want to know more about other members.

Join in the fun… send an e-mail to [email protected].

18 June 2011Copyright 2011. American Institute of Certified Public Accountants, Inc. All rights reserved. Used with permission.

The AICPA’s Professional Ethics Executive Committee (PEEC) isundertaking a project to recodify the Institute’s ethics standards.The Ethics Codification Project’s primary focus is to improve the

AICPA Code of Professional Conduct so that members and others canapply the rules and reach correct conclusions more easily. To achievethis, PEEC will restructure the Code into topical areas, edit the Codeusing consistent drafting and style conventions, and revise certain Codeprovisions (primarily independence) to reflect the “conceptual frame-work” approach. PEEC will expose the restructured and redrafted Codefor public comment before considering it for final adoption.

Revised structure,wording will make ethics standards moreconsistent.

by Catherine Allen, CPA

TIME TO REORGANIZEThe AICPA Code is being rewritten and re-structured for the same reasons that FASB

created its Accounting Standards Codifi-cation (ASC). The AICPA’s project,though, is on a much smaller scale than the

Improving the

Code of Professional

Conduct

Improving Professional Conduct _JOA 6/1/11 10:59 AM Page 38

www.journalofaccountancy.com June 2011 Journal of Accountancy 39

FASB ASC, which simplified user access byreorganizing authoritative U.S. GAAP intoa single, searchable code.

While the AICPA Code is technically“codified” today, some subjects are scat-tered about the Code, making it more dif-ficult for members and other users to knowwhether they have considered all relevantstandards. In addition, a substantialamount of nonauthoritative ethics guid-ance is found outside the Code. These ma-terials include informal AICPA staff posi-tions; frequently asked questions onnonattest services; and basis-for-conclu-sions documents that can help membersbetter understand and apply certain ethics

rules. The Codification Project gives PEECan opportunity to re-evaluate that guid-ance, where it resides, and its connectionto the Code. Some of that material may be-come authoritative through this process.

INTERNATIONAL CONNECTIONAs a member body of the InternationalFederation of Accountants (IFAC), theAICPA agrees to have ethics standards thatat a minimum meet the ethics standards is-sued by the International Ethics StandardsBoard for Accountants (IESBA). Since2001, the AICPA Code has been con-verging with the IESBA Code of Ethics forProfessional Accountants. For example, in

2006, PEEC adopted as an authoritativestandard the Conceptual Framework forAICPA Independence Standards (AICPAFramework [ET § 101-1]), and, in 2010,PEEC adopted an independence standardon network firms (ET § 101.19). Theconceptual framework and the networkfirm standard are integral parts of theIESBA Code; the former lays the founda-tion for the entire code. PEEC’s Codifi-cation Project will continue to considerconvergence issues.

WHAT IS A CONCEPTUALFRAMEWORK? A conceptual framework helps members


FROM THE AICPA

Skyscapes - Newsletter of the Kansas Society of CPAs 19Copyright 2011. American Institute of Certified Public Accountants, Inc. All rights reserved. Used with permission.

The AICPA’s Professional Ethics Executive Committee (PEEC) isundertaking a project to recodify the Institute’s ethics standards.The Ethics Codification Project’s primary focus is to improve the

AICPA Code of Professional Conduct so that members and others canapply the rules and reach correct conclusions more easily. To achievethis, PEEC will restructure the Code into topical areas, edit the Codeusing consistent drafting and style conventions, and revise certain Codeprovisions (primarily independence) to reflect the “conceptual frame-work” approach. PEEC will expose the restructured and redrafted Codefor public comment before considering it for final adoption.

Revised structure,wording will make ethics standards moreconsistent.

by Catherine Allen, CPA

TIME TO REORGANIZEThe AICPA Code is being rewritten and re-structured for the same reasons that FASB

created its Accounting Standards Codifi-cation (ASC). The AICPA’s project,though, is on a much smaller scale than the

Improving the

Code of Professional

Conduct



FASB ASC, which simplified user access byreorganizing authoritative U.S. GAAP intoa single, searchable code.

While the AICPA Code is technically“codified” today, some subjects are scat-tered about the Code, making it more dif-ficult for members and other users to knowwhether they have considered all relevantstandards. In addition, a substantialamount of nonauthoritative ethics guid-ance is found outside the Code. These ma-terials include informal AICPA staff posi-tions; frequently asked questions onnonattest services; and basis-for-conclu-sions documents that can help membersbetter understand and apply certain ethics

rules. The Codification Project gives PEECan opportunity to re-evaluate that guid-ance, where it resides, and its connectionto the Code. Some of that material may be-come authoritative through this process.

INTERNATIONAL CONNECTIONAs a member body of the InternationalFederation of Accountants (IFAC), theAICPA agrees to have ethics standards thatat a minimum meet the ethics standards is-sued by the International Ethics StandardsBoard for Accountants (IESBA). Since2001, the AICPA Code has been con-verging with the IESBA Code of Ethics forProfessional Accountants. For example, in

2006, PEEC adopted as an authoritativestandard the Conceptual Framework forAICPA Independence Standards (AICPAFramework [ET § 101-1]), and, in 2010,PEEC adopted an independence standardon network firms (ET § 101.19). Theconceptual framework and the networkfirm standard are integral parts of theIESBA Code; the former lays the founda-tion for the entire code. PEEC’s Codifi-cation Project will continue to considerconvergence issues.

WHAT IS A CONCEPTUALFRAMEWORK? A conceptual framework helps members


FROM THE AICPA

20 June 201140 Journal of Accountancy June 2011 www.journalofaccountancy.com

comply with ethics requirements (see“Comparing the Ethics Codes: AICPA andIFAC,” Oct. 2010, page 24). For example,the AICPA framework defines severalconcepts and terms (such as independence,threat, safeguard and acceptable level), andprovides examples of different types ofthreats and safeguards. A member whoidentifies a threat to his or her compliancewith independence standards would usethe framework, evaluate the significanceof the threat, and, if necessary, determine

whether safeguards could be applied toeliminate or reduce the threat to an ac-ceptable level. Some have questioned theeffectiveness of a system that relies soheavily on a member’s judgment, but oth-ers believe the conceptual framework ap-proach helps achieve a stronger Code,overall. That is because ethics codes, bytheir very nature, cannot possibly addressall—or even most—of the issues practi-tioners will encounter. A framework pro-vides a foundation for the rules and adds

consistency and discipline to a member’sanalysis when no rules address a situa-tion. The IESBA Code fully embraces theconceptual framework approach, and theCodification Project provides an oppor-tunity to further integrate the frameworkinto the AICPA Code. This is consistentwith PEEC’s convergence objectives.

It is important to note that the frame-work cannot be used to overcome exist-ing prohibitions or requirements con-tained in the AICPA Code. PEEC intendsto maintain a robust set of independencerules as part of the codification, and anyrevisions proposed as part of re-evaluat-ing those rules will undergo full dueprocess, including exposure and com-ment by the public and members.

The following illustration demon-strates how the conceptual frameworkapproach would be applied to address ahypothetical independence matter:

An audit partner’s nondependentdaughter is a human resources man-ager with the client. His daughter in-forms him that she has received anunexpected and very expensive giftfrom the company’s controller. Thisoccurred during the audit when thepartner and the controller were hav-ing tense disagreements over the con-troller’s accounting for certain mate-rial assets. The concerned partnerconsults the Code and concludesthat his independence would be im-paired if he received an expensivegift from the client, however, theCode is silent in terms of gifts given

E X E C U T I V E S U M M A R Y

■ The Professional Ethics Exec-utive Committee (PEEC) willapply drafting and style conven-tions to the entire Code to im-prove consistency and make itclearer. ■ PEEC will recast several pro-visions to reflect the applicationof the conceptual frameworkapproach, a significant changesince very few rules today mention

these concepts. ■ The preliminary structure in-cludes a new numbering sys-tem and two-part organization.The preface will describe thestructure of the codification, itsapplication, and the principles andunderlying definitions. Part 1 willapply to members in public prac-tice. Part 2 will apply to membersworking in other areas of the pro-

fession, such as academia, gov-ernment and private industry. ■ Both parts will include broadtopics, subtopics and interpre-tive sections. Each part will con-tain several broad topics that alignwith relevant rules of conduct.Some topics will have one ormore subtopics. Sections, whichwill come under these topics orsubtopics, will interpret the rules.

Catherine Allen ([email protected]) is the founder of theconsulting firm Audit Conduct andis a consultant to PEEC’s Codifica-tion Task Force.

To comment on this article or tosuggest an idea for another article,contact Matthew G. Lamoreaux,senior editor, at [email protected] or 919-402-4435.

Exhibit 1 AICPA’s Independence Rule (ET § 101.07) Example

(Words added to reflect the conceptual framework approach arehighlighted.)

Loans (Independence) A loan between a covered member and an attest client, any officer or director of theclient, or any individual owning 10 percent or more of the client’s outstanding equitysecurities or other ownership interests, may create a self-interest threat to the mem-ber’s compliance with Rule 101, Independence.

Except as stated in paragraph x below, a loan between a covered member and anattest client creates a self-interest threat that would be so significant that no safeguardscould reduce the threat to an acceptable level. Accordingly, independence would be im-paired if such loan is held during the period of the professional engagement.

x. Loans from financial institutions: permitted loansThis interpretation permits only the following new loans and leases from a financialinstitution attest client. These loans and leases must be obtained under the institu-tion’s normal lending procedures, terms, and requirements and must, at all times, bekept current as to all terms.

a. automobile loans and leases…..

E T H I C S / P R O F E S S I O N A L I S S U E S


Skyscapes - Newsletter of the Kansas Society of CPAs 2142 Journal of Accountancy June 2011 www.journalofaccountancy.com

to his close relatives. In this case,the AICPA Code (ET § 101.02, OtherConsiderations) requires that he applythe framework. Turning to the AICPA framework, the

partner identifies the situation as an“undue influence” threat to his inde-pendence (ET § 100.01.17(c)), includingthe appearance of his independence.Next, he considers whether or not thethreat is significant. If he concludes thethreat is not significant because it is at an“acceptable level” (that is, would not taintor appear to taint his objectivity in per-forming the audit), he would not need toevaluate the matter any further. Howev-er, he believes the threat is significant, sohe must also consider whether safe-guards—actions or other measures thatcounter threats—could eliminate or re-duce the threat to an acceptable level.

He considers the sample safeguards inthe framework, including their effective-ness and availability, and concludes thatthe only safeguards that would eliminatethe threat to his independence would beto have his daughter return the gift to thecontroller or for him to withdraw fromthe engagement and have another part-

ner in the firm complete the audit. Hediscusses these facts with other appro-priate persons in his firm and agrees tobring the matter to the attention of theclient’s audit committee. He also docu-ments his analysis and actions.

EMBEDDING THE CONCEPTUALFRAMEWORKAs the codification is developed, PEECwill also propose certain textual changes.First, PEEC will apply drafting and styleconventions to the entire Code to im-prove consistency and make it clearer.PEEC also will recast several provisions(primarily under the topic “Indepen-dence,” but also other topics such as “In-tegrity and Objectivity”) to reflect the ap-plication of the conceptual frameworkapproach, a significant change as very fewrules today mention these concepts.

PEEC believes recasting will enhanceunderstanding of the Code by providingadditional context for the rules of con-duct and guidance on the application ofthe framework. However, recasting willnot change the substance of existing rulesor allow members to apply judgmentwhere none is permitted today. For ex-ample, under the AICPA framework, if acovered member holds stock in an auditclient, the only safeguard that wouldeliminate or sufficiently mitigate the “fi-nancial self-interest” threat to independ-ence would be to dispose of that interestor cease being a “covered member”—thesame outcome as under the current rule.

Exhibit 1 illustrates how the AICPA’sindependence rule (ET § 101.07) onloans with attest clients may be recast,while retaining the current substance.

As demonstrated, the codification willincorporate the concepts from the frame-work but retain the same prohibitionsand exemptions that exist today. Thecommittee also recognizes that some rulesin the Code, such as those for acts dis-creditable, false advertising and confi-dentiality, likely will not lend themselvesto a conceptual framework approach andnot be recast. For those rules, PEEC willapply only drafting and style conventions.

STRUCTURAL CHANGESPEEC has developed a preliminary struc-ture for the codification, which includes anew numbering system. This structure issubject to change as the codification is de-veloped, but presently applies as follows:

The preface, which applies to all mem-bers, will describe the structure of thecodification, its application, and the prin-ciples and definitions that underlie theCode. Two separate and distinct parts willfollow the preface. Part 1 will apply tomembers in public practice. Part 2 willapply to members working in other areasof the profession, such as academia, gov-ernment and private industry. The newstructure is designed to allow membersto seek ethics guidance that is relevant totheir area of practice in a separate, self-contained part of the codification.

Each part will contain several broadtopics, which align with relevant rules ofconduct. Some topics will have one ormore subtopics. Sections, which comeunder these topics or subtopics, will in-terpret the rules.


Exhibit 2Snapshot of Preliminary Structure

Part 1: Members in Public Practice

000 INTRODUCTION

100 INTEGRITY AND OBJECTIVITY Topic001 Integrity and Objectivity Rule

200 INDEPENDENCE 001 Independence

300 GENERAL STANDARDS 001 General Standards

Exhibit 3Snapshot of the Detail

200 INDEPENDENCE Topic001 Independence Rule

205 Introduction Subtopic

210 Conceptual Framework Approach 010 Independenceconceptual framework Section020 Other considerations

220 Accounting Firms 010 Networks and network firms 020 Alternative practice structures


22 June 2011


A snapshot of the preliminary struc-ture (showing four topics under Part 1)appears in Exhibit 2.

Another snapshot of the structure—ata more detailed level—shows how a topicmay include various subtopics and sec-tions (see Exhibit 3).

WHAT WILL CHANGE?The largest change will be the structureof the AICPA Code, specifically, the top-ical format, new numbering scheme, andcreation of two separate parts geared tomembers in public practice and memberspracticing in other areas of the profession.

Sections will provide interpretations ofthe rules under relevant topics or subtopics,and all of the ethics rulings (that is, thequestions and answers sprinkled through-out the Code) will be phased out. (PEECwill propose that some rulings be deletedbecause they are redundant or inconsistentwith other parts of the Code, and incorpo-rate the rest into the interpretations.)

The committee will apply consistentdrafting and style conventions and incor-porate the conceptual framework through-out the Code, as relevant. PEEC will alsopropose that the conceptual framework ap-proach apply all of the rules of conductwhen specific guidance is lacking. Thecommittee will seek to improve the onlinesearch and other functionalities.

The codification will still be titled theCode of Professional Conduct and contin-ue to be part of the AICPA ProfessionalStandards. The rules and principles willread exactly as before, and the substanceof redrafted and recast interpretations willnot change.

EDUCATIONAL EFFORTSPEEC has made education a top priori-ty to prepare members and other usersfor the dramatic changes to the Code.Since the initiation of the project, PEECrepresentatives have spoken to numer-ous groups (such as state board mem-bers and AICPA committees) to keepconstituents informed and obtain input.Of particular concern are challenges thatstate accountancy boards, which incorpo-

rate by reference the AICPA ethics stan-dards, may face in updating their rules. Toaddress this, PEEC assembled a state boardadvisory group to act as a sounding boardto the committee as it plans for and de-velops the codification. That group com-prises state accountancy board membersand executive directors.

PEEC also assembled a pilot group to“test” draft codification content later thisyear before it is exposed for public com-ment. PEEC will continue its outreachduring the project in hopes of enhancingthe final product. Readers are encouragedto write to PEEC staff liaison Ellen Goria([email protected]) with any questions orcomments. ❖

AICPA RESOURCES

JofA articles■ “Comparing the Ethics Codes: AICPAand IFAC,” Oct. 2010, page 24■ “A Global Standard for ProfessionalEthics,” May 2008, page 46■ “Navigating the Crossroads of Controland Independence,” Dec. 2007, page 42■ “Ethics Rules Get Tighter,” Dec. 2006,page 59

Use journalofaccountancy.com to findpast articles. In the search box, click “OpenAdvanced Search” and then search by title.

Publication■ Independence and Ethics DevelopmentsAudit Risk Alert (#0224710)

For more information or to make a pur-chase, go to cpa2biz.com or call the Insti-tute at 888-777-7077.

Website■ Professional Ethics Division,tinyurl.com/267adgk

OTHER RESOURCES

Websites■ International Ethics Standards Board forAccountants, ifac.org/ethics■ International Auditing and AssuranceStandards Board, ifac.org/IAASB■ Public Interest Oversight Board,ipiob.org




KANSAS TAXESCONFERENCE ON

Monday, June 27, 2011 8:30am – 4:30pm

8hrsCPE

The KSCPA Conference on Kansas Taxes is an annual event spon-sored by the KSCPA to provide CPAs with an opportunity to update knowledge on Kansas tax policy and to meet and network with State officials, legislators, and employees. Participants are from all around the state and work in public practice, business, industry, government, and nonprofit. Public practice tax practitioners make up the largest group of participants. The 2011 conference, “Celebrating 150 years of Kansas”, gathers CPAs and other participants in an educational and net-working event. This is a chance to take a breather from the chal-lenges of the ongoing “busy season” to introduce participants to new members of the Administration, and to gain an update of the happenings of a very busy 2011 legislative session.

CAPITOL PLAZA TOPEKA

7 Hrs CLE Approved

http://www.kscpa.org/professional_development/course/COKT11/conference_on_kansas_taxes

24 June 201124

MEET THE GOVERNORAND HIS CABINET

ADJUTANT GENERAL

SECRETARY OF COMMERCE

GOVERNOR

LT. GOVERNOR

Sam Brownback

Jeff Colyer

Lee Tafanelli

Pat George

GOVERNMENT

SECRETARY OF TRANSPORTATION

Deb Miller


MEET THE GOVERNORAND HIS CABINET

SECRETARY OF COMMERCE

LT. GOVERNOR

Jeff Colyer

Pat George

SECRETARY OF REVENUE

SECRETARY OF WILDLIFE, PARKS & TOURISM

SECRETARY OF LABOR

SECRETARY OF TRANSPORTATION

KANSAS HIGHWAY PATROL SUPERINTENDENT

Deb Miller

Ernie Garcia

Robin Jennison

Karin Brownlee

Nick Jordan

SECRETARY OF AGRICULTURE

Dale Rodman

GOVERNMENT

26 June 2011

The Risk Management Conference was held in Overland Park at the Ritz Charles on May 16. The conference chair was Lynn A. Fountain, CPA, AVP, Internal Auditing, Black & Veatch Corporation. The conference featured speaker, Rick Funston and Melinda McLellan, JD. Funston, author of “Surviv-ing and Thriving in Uncertainty: Creating a Risk Intelligent Enterprise,” spoke about creating strategies using risk intelligence during uncertain times. McLel-lan, an Associate at Hunton & Williams LLP in New York, spoke about identify-ing, evaluating and managing legal risks associated with privacy and secu-rity practices. The conference was followed by a course on risk assessment standards lead by Alan Anderson, owner of ACCOUNT-ability Plus, LLC.

Risk Management Conference: “Creating a Risk Intelligent Enterprise: Best Practices

in Risk Management and Security & Privacy”


The Wealth Management Conference was held at the Ritz Charles in Overland Park on May 16. Gerald Steffes, CPA/PFS, CFP, president of Steffes Financial, Ltd. chaired the conference. The conference fo-cused on helping a client achieve financial goals by creating strat-egies for long-term growth, especially during uncertain economic times. The conference featured speakers: Jerry Bell, JD, The Bell Law Firm, P.A.; Mark Carnes, CFP, Partner, Prosperity Wealth Management, LLC; Gerald Steffes; Kenneth Kinsey, Social Security Public Affairs Spe-cialist, and Bill Bins, Long Term Care Consultant, Target Insurance Ser-vices, Inc. The conference was an opportunity to network with other professionals in financial planning and wealth management.

Wealth Management Conference:“Strategies for Long Term Growth”

28 June 2011

Mark Your CalendarJune 5 - 6, 2012

Hyatt Regency Wichita

40th Annual KSCPAGovernmental & Nonprofit

Accounting & Auditing Conference


The Governmental & Nonprofit Accounting & Auditing Conference was held at the Hilton Wichita Airport Hotel on May 17 and 18. Mark W. Dick, CPA, executive vice president, assurance services, Allen Gibbs & Houlik, L.C., chaired the confer-ence. The goal of the conference was to allow participants to regain a positive outlook on the future, improve processes, understanding the current issues and enhancing communications. On May 17, speakers included: Bruce R. Hopkins, JD, senior partner, Polsinelli Shughart PC; Jeff Lanza, retired FBI special agent; Alan W. Anderson, CPA, president, ACCOUNT-ability Plus, LLC; Mark Dick, CPA, and Shelly Hammond, CPA, vice president, assurance services, Allen Gibbs & Houlik, L.C. The second day, May 18, featured speakers included: Alan W. Anderson, CPA; Steve Anderson, CPA, budget director, State of Kansas, and Jim Brackens, CPA , vice president firm quality & practice monitoring, ACIPA.

Governmental & Nonprofit Accounting & Auditing Conference:

“Transforming the Challenges into Opportunites”

Benny, the bean counter, made a special appearance.

30 June 2011

Young Professionals Conference: “Leadership Now! Building Relationships,

Achieving Results, and Navigating Change”

The Young Professionals Conference was held at the Hilton Wichita Airport Hotel on May 18. The conference was a way for young professionals to network with others in the industry. Rich Drinon, Drinon & Associates, Inc. was the speaker. He spoke about becoming a leader, building relationships with all types of personalities, getting the results you want and ways to handle change.


Business Fraud Preventionwith Frank W. AbagnaleWednesday, November 2, 2011

You are invited to “catch him while you can” and learn how

to protect your business against fraud. The Business Fraud

Prevention Seminar will be facilitated by Frank W. Abagnale,

subject of the movie and Broadway play “Catch me if you Can.”

Date: August 2, 2011Time: 8:00 am - 12:00 pmLocation: Kansas City Marriott Downtown (2nd Floor)RSVP: Kris Nicholas at [email protected] or 913-324-3941

We look forward to seeing you at the event.

Business FraudPrevention Seminar

P R E S E N T E D B Y U . S . B A N K

For more information, contact the KSCPA at 785.272.4366 or [email protected]

mailto:mailto:mary%40kscpa.org?subject=Business%20Fraud%20Prevention%20Seminar

32 June 2011

MEMBERS

Welcome to the KSCPA!

CPA MembersJennifer AllenAllen Gibbs & Houlik, L.C.Wichita, KS

Kenneth AveryAvery Healthcare Appraisal, Inc.Overland Park, KS

Ronald BaxaTopeka, KS

Vicki FesslerHollis Kuckelman Van De Veer Chtd.Olathe, KS

Timothy GillenSwiss Reinsurance America CorpOverland Park, KS

Tom HalvorsonFreestate Advisors LLCOverland Park, KS

Kelly HanrahanDerby, KS

Douglas IvyTradewind EnergyLenexa, KS

Gina NicoliFidelity BankWichita, KS

Jonathan NussEdward M. Plopa & Associates, L.C.Wichita, KS

Jason SullivanMize Houser & Company, PAOverland Park, KS

John VohsKramer & Associates CPAs, LLCTonganoxie, KS

Sandy WilliamsHarvey & Caldwell PAOverland Park, KS

Ryan YoungeData Solutions LLCMission, KS

Eric YurkovichErnst & Young LLPKansas City, MO

Affiliate MembersAmy DukesWendling Noe Nelson & Johnson, L.L.C.Topeka, KS

Christopher MurphyClubine & Rettele, Chtd.Salina, KS

Sarah MurphyClubine & Rettele, Chtd.Salina, KS

Student MembersConnswilla ApolloButler Co. Community College

Janessa GouldWichita State University

Charles SteinekerWichita State University

Han YanEmporia State University


Aaron Bauck, CPAFrom Ottawa Herald: Aaron Bauck, Birmingham, Ala., has been featured as a 2010 outstanding recent graduate in the spring issue of Spotlight magazine from Emporia State University. He graduated with a bachelor’s and master’s degree in 2001 and 2002, respectively. He is the director of acquisition due diligence for Surgical Care Affiliates. Aaron previously worked for Grant Thornton in Wichita and Charlotte, N.C. Congratulations, Aaron!

Bruce Benyshek, CPA, CVABruce Benyshek, Wichita, has earned the designation of Chartered Merger and Acquisition Profes-sional (CMAP). Bruce has also been named as a 2011 Wichita Business Journal CFP Award Honoree. In addition to his CMAP, Bruce also holds a CVA credential. He is CFO of Equity Bank, N.A. Bruce graduated with a Bachelors in Accounting from Fort Hays University in 1977. Congratulations, Bruce!

Matt Deutsch, CPAMatt Deutsch, Topeka, has been promoted to manager at Berberich Trahan & Co., P.A. He is a gradu-ate of the KSCPA’s “20 up to 40” program. Congratulations, Matt!

Russell Shipley, CPARussell Shipley, Topeka, has been promoted to manager at Berberich Trahan & Co., P.A. He is a cur-rent member in the KSCPA’s “20 up to 40” program. Congratulations, Russell!

Matthew Trost, CPAFrom Kansas City Business Journal: Matthew Trost, Overland Park, has joined McRuer CPAs. He focuses on accounting and tax prepara-tion services for businesses and individuals. Congratulations, Matthew!

Danielle Werner, CPAFrom Attica Independent: Danielle Werner, Wichita, was selected to speak at the 104th annual Attica High Banquet. She gradu-ated with a Bachelors of Business Administration from Washburn University in 2008. She works at BKD National Health Care Group. She is a member of the AICPA, American Society of Woman Ac-countants, Young Professionals of Wichita, etc. Congratulations, Danielle!

Mergers:

Bondi & Co. of Denver to join RubinBrownFrom Kansas City Star: Bondi & Co. of Denver will join RubinBrown LLP of St. Louis effective June 1, 2011. The merger will form a firm with a combined professional staff of more than 400 and offices in Overland Park, Denver and St. Louis. The firm is expected to be among the 50 largest U.S. accounting firms.

Member News

MEMBERS


34 June 2011

Website’s New Members-Only Feature Tracks EducationNeed another benefit for taking courses with the KSCPA? Anytime you complete a conference, course, or event sponsored by the KSCPA, the Education Tracker on our website is automatically updated with the number of hours granted for each course. This member-only feature also allows you to print off a copy of the hours you’ve completed making it quick and easy for you to keep track of your Continuing Professional Education hours. Additionally, you can add programs sponsored by other organizations, and perform a date-range search.

Search FunctionView your education credits within a specific date range by entering a “Start Date” and an “End Date”.

Add EducationAdd a non-KSCPA sponsored course or conference to your Education Tracker by clicking here and entering the corresponding information.

Easy Record KeepingPrint a copy of your Education Tracker or export it to Excel. That way, you always know where you are with your hours.

Add a photo to your Member ProfileYou now have the option of adding your photo to your member profile, accessible only by members. Add a picture to your profile and it will appear in the member directory. Click “Member Home” (the screen you see after you’ve logged in), simply click “Edit Your Information.” Then, scroll down until you see the field that contains your e-mail address. Directly below that field, you’ll see the “Photo” field. Click “Browse” to find the .jpg file of your desired picture. Once you’ve selected your photo, click “Open.” Finally, scroll all the way to the bottom and click “Update.” To view your photo, or those of your colleagues, under “Members” select “Member Diretory.” Search for yourself or another member. Click on the member name. Additional contact information and the photo appear!

USING THE EDUCATION TRACKER


How to Register Online

Step 1: Log-InTo guarantee you are receiving member pricing, make sure to log-in to the website. If you have not been to the website since the new one launched, use the e-mail address you have registered with the KSCPA and your member ID number. If you don’t know what either of these are, contact the KSCPA at 785.272.4366 or e-mail [email protected].

Step 2: Click on Professional DevelopmentThe Professional Development section is your go-to place for all your CPE needs. Search the complete listing of KSCPA-sponsored courses and conferences, view available alternative CPE options, sign-up to be a course administrator, catch up on CPE regulations, and read the KSCPA CPE policies.

Step 3: Access the Course CalendarClick on “Conferences & Courses” listed in the far right column of the Professional Development page to access the course calendar. Here you can scroll through the entire listing of courses or you can narrow your options by adding search criteria.

Step 4: Select a CourseScroll through the list of course and conference offerings and select the course or conference that best fits your needs. Once you click on the course, you will be able to view all the details regarding the course, including the recommended number of CPE credits, the instructor, knowledge level, vendor, course description, course objectives and course highlights. This is also where you will be able to continue the registration process.

Step 5: View Registration FeesAfter you have selected your course and have decided you want to register, double check the registration fees to en-sure you are getting the correct fee. To receive the member fee, you must be a member in good standing and logged in. If you are not logged in you will not receive the member fee. If you are logged in and still not receiving the correct fee, call the KSCPA at 785.272.4366.

Step 6: Click Add to CartAfter verifying your registration fees, click “Add to Cart.” This will take you to a new page called, “Cart.”

Step 7: Review Your Cart

Step 8: Submit PaymentComplete the fields with the appropriate information. Then, click “Pay Now.”

Step 9: Check for Electronic MaterialsFrom the KSCPA Home Page, click on “Electronic Materials” to see if materials are available for your course. Materials are available 2 days to 2 weeks in advance of the course. Please download the .pdf and bring your laptop or tablet to the course or conference, or print out the materials and bring them with you. There is a 15-minute lag time before your registration is complete at the KSCPA server and the materials show, if they are available.You will be notified by e-mail when the materials are on the website, but if you register within 2 weeks, check to see if they are available.

36 June 2011

CLASSIFIED ADVERTISING

ACCOUNTING PRACTICE SALESKATHY BRENTS, CPA

We Have Buyers! We Need Sellers! Let Kathy Brents, CPA make it quick and easy! Available Listings: New: Topeka Gross $220k; New: NW of the KC, KS Metro Area Gross $485k; Wichita CPA w/audit Gross $127k; NW KS Gross $99k.

To find out more about our risk-free and confidential services, call Kathy Brents, CPA at office 501-669-2505 or cell 501514-4928 or email [email protected]

HALL’S CULLIGAN WATER CHIEF FINANCIAL OFFICER

Hall’s Culligan Water, a locally owned, progressive, dynamic, growth company with 300+ employees and operations in multiple states is seeking a Chief Financial Officer. For over 70 years Hall’s Culligan has offered the best drinking water and the largest variety of water treatment products and services available for your home or business including water softeners, water filtration systems, reverse osmosis drinking water systems, bottled water, and softener salt delivery. The company has experienced tremendous growth, is in the midst of additional growth, and now serves customers in Kansas, Missouri, Nebraska, Arkansas, and Ohio. This is a new position for our growing company and is based at our headquarters in Wichita, Kansas.

The CFO position will report to the Owner of the company and as part of the management team create and deliver strategic financial initiatives and budgets to drive company results. Develop and implement the financial strategy and operation budget for all business units in a multi-state area. The position supervises IT, HR, AP/AR, CRM, and also facilitates the budget process including variance reports, financial statements, cash controls, long range planning, and amortization schedules. Will also lead the finance team and plan for the continual improvement and efficiency/effectiveness of the group.

The ideal candidate will have a Bachelor’s Degree in Accounting; a CPA certification; and comprehensive accounting and management experience. Knowledge of and experience with company acquisitions is needed, extensive forecasting background; and experience with an accounting software platform upgrade. Multi unit business analysis planning along with working in a company with remote locations is also a plus. Must display a collaborative communication style in a fast paced customer oriented environment; have a track record in implementing operational efficiencies; have the ability to see the “big picture”; be results oriented; with strong business acumen, problem solving and decision making skills. Competitive salary and benefits package. EOE

Send resume and salary requirements to:Rob SouthernHR ConsultantKennedy and Coe, [email protected]

KANSAS MASONIC HOMECHIEF FINANCIAL OFFICER

Kansas Masonic Home has an exciting opportunity for a dedicated individual to work as our Chief Financial Officer. Kansas Masonic Home is a continuing care retirement community serving over 200 residents in Wichita. This important leader reporting to the Chief Executive Officer will work with the board of directors, staff, and external consultants to reposition and expand the campus and assist with financial modeling and acquisition of capital. This position directs financial activities of the organization, and provides direct oversight of Accounts Receivable, Accounts Payable, and Payroll. Important duties include financial benchmark and dashboard reporting to the executive leadership and board of directors finance committee, preparation of monthly financial reports, development and monitoring of a consolidated 12 million dollar budget to maintain a sound financial position of the community. Successful candidate will be experienced in the financial or accounting field. Three plus years of long-term care or health care experience is preferred, but not required. Must have a Bachelor’s degree from a four-year college or university. Must be organized and have proficient computer skills.

Please submit resume and salary requirements to: Kansas Masonic Home 401 S Seneca Wichita, KS 67213 or email info to [email protected]

Kansas Masonic Home is an Equal Opportunity Employer; a Drug and Smoke Free Workplace.

MIZE HOUSER & COMPANY P.A.TAX STAFF

Top Regional Accounting & Technology firm is seeking a self motivated CPA for Tax Staff in our Topeka office. Candidates should have a minimum of 4+ year’s significant experience with individual and business income tax. Position requires strong technical and analytical abilities, and leadership and interpersonal skills. Must be able to communicate effectively with senior management, staff, and clients. Mize Houser offers competitive salary and fringe benefits, minimal travel, challenging projects and ongoing professional development opportunities.

For confidential consideration, please send resume’ and salary requirements to:

Mize Houser & CompanyAttn: Stella Penry534 South Kansas Avenue, Suite 700Topeka, Kansas [email protected] – (785) 233-1078


FHLBANK TOPEKA FINANCIAL REPORTING & ANALYSIS ACCOUNTANT

FHLBank Topeka’s products and services help our member banks provide affordable credit and support housing and community development efforts. We are accepting resumes for:

Assist in the financial and regulatory reporting to ensure compliance with generally accepted accounting principles (GAAP), Securities and Exchange Commission (SEC) and regulatory requirements.•Prepare and review financial and other information provided to the SEC and our safety and soundness regulator.•Assist with writing the narrative of the annual 10-K and quarterly 10-Q reports.•Test and implement new financial reporting applications.•Conduct financial analysis related to SEC and regulatory reporting.

Qualifications:•Bachelor’s degree in accounting and 3 to 5 years of relative experience.•Excellent writing skills and experience with financial statement preparation.•Knowledge of GAAP & SEC reporting.•CPA preferred

In addition to a rewarding, team-oriented work environment, FHLBank Topeka offers opportunities for growth and development, an attractive benefit package including health and dental insurance, 401(k), short-term incentive plan and much more. A more detailed job summary is located on the Bank website at www.fhlbtopeka.com. If interested, please submit resume with salary requirements to: www.fhlbtopeka.com or email [email protected]. - EOEhttp://www.fhlbtopeka.com/s/index.cfm?aid=409

LARAMIE GROUPTAX MANAGER

Our client is one of the largest privately held companies in the US. We are helping them add a critical position to their corporate tax team. In this regard, we are looking for a tax professional with their CPA and approximately 10 years of experience. Expertise in the areas of compliance and/or position management is required and multi-national experience is preferred.

This is an exciting opportunity to join what is essentially a global conglomerate. With this come significant resources dedicated to the support of the Tax Team. Despite the company’s size, it is a lean organization that lacks much of the bureaucratic processes associated with other entities of its size, scope and scale. Finally, it is noteworthy that Tax is seen as a critical and respected business partner within the parent company and its subsidiaries.Contact:Tim [email protected]

ROCKHILL INSURANCE, A STATE AUTO INSURANCE COMPANYGENERAL ACCOUNTANT

State Auto Insurance Company, a ninety-year-old, A+ (Superior rated), property-casualty insurance company has a General Accountant opening in our Rockhill Insurance division in Kansas City, Missouri.

This position performs a variety of daily, weekly, monthly, quarterly and/or annual accounting processes. Responsibilities include completion of: timely and accurate technical worksheets; reports and supplementary schedules for management and regulatory entities. Expectations include: review, analysis, and explanation of financial results; understanding the process flow, asking questions, and recommending changes.

Duties:

Working knowledge of reinsurance accounting, ability to interpret and apply Statutory and GAAP; perform technical account reconciliations to ensure the ledger matches the sub-systems and source worksheets; prepare and post journal entries; prepare reports in accordance with internal reporting requirements, analyze results, and communicate major findings to manager; maintain solid understanding and commitment to internal controls at all levels within the company; ability to work quickly and efficiently; regulatory deadlines will require schedule flexibility when needed. Qualified applicants will have an accounting degree from an accredited four-year college plus three to five years of accounting experience with particular emphasis on property and casualty insurance accounting. Working knowledge of reinsurance accounting is desired. The position requires a solid foundation in General Accepted Accounting Principles and an introduction to Statutory Accounting Principles is helpful. Requires knowledge of and ability to use personal computers and applications to enhance/expedite processing and reporting requirements. Applicants should be working toward professional and/or insurance certifications. A CPA certification preferred. Excellent communication, interpersonal, and organization skills are also required.

Rockhill/State Auto offers competitive compensation, a quarterly bonus program, an excellent benefit program including medical, dental, vision, and prescription insurance coverage, life insurance, matching 401(k) plan, flexible spending accounts, tuition assistance, and a stock purchase plan.

Rockhill/State Auto is a smoke-free work environment. We also utilize drug screening as a condition of employment

CLASSIFIED ADVERTISING

Mark Your Calendar!

Designed for the profession, by the profession. SM

Events Conferences3rd “20 up to 40” Program

July 21-22, 2011 - Manhattan

Business & Industry EXPOAugust 10, 2011 - Wichita

Conference on KS TaxesJune 27, 2011 - Topeka

Business Valuation ConferenceOctober 21, 2011 - Overland Park

61st Annual Tax ConferenceNov. 17-18, 2011 - Overland Park

KSCPA Board RetreatJuly 22, 2011 - Oklahoma City, OK

4th “20 up to 40” ProgramSeptember 22-23, 2011 - Lawrence

AICPA Fall Meeting of CouncilOctober 17-19, 2011 - Phoenix, AZ

AICPA & CPA/SEA LeadershipOctober 15-17, 2011 - Phoenix, AZ

5th “20 up to 40” ProgramNovember 15-16, 2011 - Overland Park

www.kscpa.org

Women to Watch Conference & Luncheon

September 16, 2011 - Wichita

To view more details, click on any event or conference or visit www.kscpa.org.

Heartland Technology ConferenceDecember 15-16, 2011, Overland Park

Issues Update & Annual Meeting80th Anniversary

(Reception - November 15, 2011)November 16, 2011 - Overland Park

1st 2012 “20 up to 40” ProgramJanuary 19-20, 2012 1st Session - Topeka

AICPA Spring Meeting of Council

May 15-18, 2012 125th Anniversary - Washington D.C.

Issues Update & Leadership SummitMay 24-25, 2012 - Lawrence

Risk Management ConferenceMay 8, 2012 - Overland Park

Wealth Mgmt ConferenceMay 8, 2012 - Overland Park

Governmental & Non Profit Accounting & Auditing Conference

June 5-6, 2012 - Wichita

Young Professionals ConferenceMay 24, 2012 - Lawrence

http://www.kscpa.org/professional_development/course/COKT11/conference_on_kansas_taxes


http://www.kscpa.org/professional_development/course/BVC11/business_valuation_conference-2011

http://www.kscpa.org/professional_development/course/W2WCF11/women_leadership_conference

http://www.kscpa.org/professional_development/course/KTC11/61st_annual_kansas_tax_conference

http://www.kscpa.org/professional_development/course/KCCT11/heartland_technology_conference_2011

http://www.kscpa.org/professional_development/course/BVC11/business_valuation_conference-2011

http://www.kscpa.org/professional_development/course/KTC11/61st_annual_kansas_tax_conference

http://www.kscpa.org/events/SPLEAD11/leadership_summit-spring_2011_with_professional

http://www.kscpa.org/events/PIUAM11/professional_issues_update_annual_meeting

http://www.kscpa.org/professional_development/course/W2WCF11/women_to_watch_conference

http://www.facebook.com/pages/manage/#!/pages/Kansas-Society-of-CPAs/113059345438208

http://twitter.com/#!/KSCPAteam

skyscapes june 2011

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