May/June 2016 | Volume V, Issue 3

2016 Legislative Session:Bills Important to the CPA ProfessionPAGE 14

PAGE 8

T h e G e o r g i a S o c i e t y o f C PA s

T h e G e o r g i a S o c i e t y o f C PA s

WORKS FOR Y UYour GSCPA Membership

RENEW YOUR M

EMBERSHIP TODAY!

To

renew your

membership,

please visit

www.gscpa.org.

Your Profession, Your Voice

To register, visit the event catalog at www.gscpa.org or call GSCPA’s CPE Department at 404-504-2985.

GSCPA Clusters gives you the

opportunity to design your own unique

education series and earn up to 16 hours

of CPE credit.

During this two-day event you can

choose from 12 different sessions across

three tracks of study: Accounting and

Auditing, Tax, and Management.

• Mix and match tracks to gain a

breadth of knowledge or deepen

your expertise in a specific area of

study by following one track.

• Attend all sessions over two days, or

come for morning or afternoon only

sessions

• Attend in person or log in from your

home or office via live stream—this

is education your way.

Spring ClustersMay 19-20, 2016GSCPA LEARNING CENTER

ATLANTA, GEORGIA

LIVE STREAM ATTENDANCEAll Clusters seminars are available to live stream

Live stream allows you to attend from your home, office or anywhere you can access the Internet. You view

the sessions in real time as part of the audience and have interaction with other attendees via chat areas.

For more information or to register, visit olc.gscpa.org or call 404-504-2985 or 800-330-8889, Opt. 3.

May/June 2016 3

GSCPA OFFICERS 2015-2016CHAIRJ. Lowell Mooney, Ph.D., CPA

CHAIR-ELECTBarbara J. Evans, CPA

TREASURERRodney L. Chandler, CPA

SECRETARYBoyd E. Search, CAE

IMMEDIATE PAST CHAIRTerry I. Parker, CPA

GSCPA DIRECTORS2015-2016FIRST OF A TWO-YEAR TERMK. Scott CollinsKaren C. DrescherG. Tom HarrisonLee Ellen FieldsJames W. Freeman

SECOND OF A TWO-YEAR TERMJennifer W. Birtz, CPA Amanda J. Carman, CPA Kirk J. Jarrett, CPA Ben P. Lee, CPA

Current Accounts is published six times a year by The Georgia Society of Certified Public Accountants (GSCPA). Statements and opinions expressed are those of the authors and not necessarily those of GSCPA. Publication of an advertisement does not constitute an endorsement of the product or service by GSCPA. Articles may be reproduced with permission. Copyright 2016 Current Accounts.

EDITOR-IN-CHIEFJamie P. Etzbach

DESIGNERFaith B. Ellis

CEOBoyd E. Search

COOGreg A. Wilder

VICE PRESIDENT, LEGISLATIVE AFFAIRSDon P. Cook

T h e G e o r g i a S o c i e t y o f C PA s

FEATURES

SOCIETY NEWS

8 | YOUR GSCPAMEMBERSHIP WORKS FOR YOU

14 | 2016 LEGISLATIVE SESSION: BILLS IMPORTANT TO THE CPA PROFESSIONDon P. Cook

5 | CEO MESSAGEBoyd E. Search, CAE

7 | CHAIR MESSAGEJ. Lowell Mooney, Ph.D., CPA

26 | STAY INFORMEDWITH GSCPA INTEREST COMMUNITIES

28 | ANNUAL CONVENTION

30 | MEMBER NEWS

32 | CPE

34 | CLASSFIEDS

36 | SELF-STUDY TEST

38 | MEMBER VIEWEncouraging the Best and the BrightestBeverly Smith, CPA, CFE,CGMA, MBA

Contents

COLUMNS16 | TAXATIONWhile You Were Away:Tax Updates from the 2016 Filing SeasonAnson Asbury, J.D., LL.M., Arthur Auerbach, CPA, CGMA, and Brian Gardner, Esq.

18 | A&AEmployee Benefit Plan Audit Quality IssuesChris Rouse, CPA

20 | INDUSTRYTaking an Innovative Approach to Communication in the Corporate World Peter A. Margaritis, CPA

22 | TECHNOLOGYTablets, Accounting, and Technology ChangesCalvin J. Wong

24 | FRAUDIdentifying ProbableDeception Through Observation and BehaviorDon Berecz, CPA, CFE, CFI

16

22

Current Accounts4

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May/June 2016 5

Understanding and Valuing ExperienceBoyd E. Search, CAE

CEO MESSAGE

I’ve been thinking a great

deal lately about wisdom

and the value of experience.

I started piecing together

some thoughts that I could

share right here. Then I

came across a piece by my

good friend and colleague

Gary Bolinger, and I

thought why not just share

his very words. If you know

me, you know I am rarely at a loss for words, but experience

has taught me to sometimes just let others say it:

If I knew then …

Well. Have you ever said that? If I knew then … what I know

now. Or even if you didn’t say it, maybe you thought it. Of

course you have! We all do!

That’s life. We all learn from experience. Once you learn to ride

a bike, you never seem to forget. You may get a bit rusty, but

you really never forget. It’s like playing a musical instrument,

you don’t forget. You lose your “chops” but you still know

“how.” But actually doing the how part is what’s difficult. I

speak from experience on that one. As a long time drummer

who still understands the rudiments, but with execution that is

now iffy at best.

Experience is a great thing. As we go through our day, we

should keep in mind a very important aspect of “experience.”

And it isn’t just reserved for “old people.” Age is not the

determining factor. I am surrounded by younger people who

have all kinds of experience that I don’t have. Maybe they have

traveled somewhere that I am planning to visit and they can

give me some tips. Those tips are valuable because I don’t have

that experience. I don’t know which sights to see or restaurants

that are the best.

Or they may have some technology skill that I need to be

more aware of. Young people today become proficient using

technology at very early ages. By the time they hit college or

the workforce, they are ready for anything. And they also seem

better at adapting as technology changes because they have

grown up with it and have that familiarity where updates and

changes don’t phase them.

On the other hand, more “mature” people simply have more

experiences. Now that is a factor of age. Some experiences I

have had, I didn’t learn from. Why? I just didn’t understand

the potential value of that experience. I do think that as you

mature you do understand the value of experience more and

more. With a toddler, new experiences are just part of growing.

They learn to walk, to talk and to communicate – slowly at first

and then more effectively. But they aren’t thinking about the

value of the experiences as they acquire those skills.

No matter how you look at it, experience is valuable. Incredibly

valuable. What experience is most valuable to you? Have you

had some experiences that you didn’t learn from? If so, are you

now able to understand what you might have failed to learn

and how to take advantage of those opportunities?

The problem is, we don’t understand the value of experience

until we have it. So, I encourage you to take advantage of every

opportunity you have to gain experience. Especially the new

ones.

Gary Bolinger, CAE is the President & CEO of the

Indiana CPA Society

T h e G e o r g i a S o c i e t y o f C PA s

Current Accounts6

June 16, 2016 | Cobb Galleria Centre, Atlanta, Ga.

Event Codes: 13001 | LS13001

8 hours of CPE credit with a possible 3 hours of A&A (CLE credit applied for)

Real Estate Conference

The real estate market presents ongoing challenges for financial professionals. The ever-changing real

estate market requires CPAs like you to be on top of the latest changes, techniques, and strategies to

help your clients succeed.

The 2016 Real Estate Conference will provide you with everything you need to know on topics

ranging from a commercial real estate update with forecasts, challenges and opportunities; transit-

oriented and economic development; conservation easements and the impact green space has on the

community; accounting update for the real estate industry; and cybersecurity.

Who Should Attend: CPAs, CFOs, controllers, financial planners and financial professionals working

with real estate clients or real estate organizations.

The Georgia Society of CPAs

To register, visit the event catalog at www.gscpa.org or call GSCPA’s CPE Department at 404-504-2985.

May/June 2016 7

As I struggled to organize

my thoughts for this final

message, the lyrics from one

of my favorite musicals came

to mind: “Let’s start at the

very beginning…” So here

goes. I can never thank you

enough for the opportunity to

serve as Chair. My life, both

professionally and personally,

has been enriched in more

ways than words can express.

Like the mighty SOARING eagle, GSCPA remains at the top of its

food chain as I conclude my term. With its gifted and innovative

leadership and cutting-edge technology, the Society is executing

in an extraordinary way its mission to provide superior advocacy,

leadership, service, lifelong learning, and personal and professional

development opportunities to all of its members.

I’ve always taken pride in being an accountant. After all, how

many professions have been around for 10,000 years? But my

appreciation and respect for our profession and its future have

increased tremendously after working and interacting with so

many of you during this year. Sure, the profession has had its ups

and downs, yet it is ENDEARING. Why? Because we always step

up and face our challenges head on. We’re doing exactly that right

now as we reinvent our peer review process and our approach for

measuring how we learn.

As you know, the AICPA periodically conducts a practice analysis

for the purpose of REALIGNING the Uniform CPA Exam with

the knowledge and skills required of newly licensed CPAs. The next

version of the Exam, which a group of our fellow members helped

craft, will increase the assessment of the higher-order skills (e.g.,

critical thinking, problem-solving, and analytical ability) that today’s

CPAs need to protect the public interest.

By now, you know of my love for history. The first time the title

“CPA” was used in Georgia was 1903. You have to admire the wisdom

of those seven men who formed GSCPA just two short years later. If

you haven’t had the opportunity to visit the History Hall in the Society

office, I encourage you to stop by and spend some time enjoying

highlights from our past. Sometimes I worry that I spend too much

time looking through the rearview mirror, but I just have to believe

that time spent VALUING our past is not time wasted.

In my most recent message, I challenged us to move outside our

comfort zone. In this era of mindboggling change and complexity, if

our profession is to compete successfully then we must attract and

value diverse talent. We have a task force currently exploring different

ways of helping us do that. While there is certainly a strong business

imperative for EXPANDING our tent, we must also do it because it’s

the right thing to do.

All in all, it’s been a great year. The GSCPA executive team of Boyd

Search, Greg Wilder, and Don Cook, is, in a word, outstanding. In

addition, I worked with every director, Elizabeth Cook (membership

and communications), Jamie Etzbach (publications and marketing),

Jessica Mytrohovich (accounting), Jen Oleksa (CPE), Calvin Wong

(IT), and Jennifer Poff (peer review). They and their teams taught me

so much. Finally, I had the wise counsel and support of a great board:

Barbara Evans, chair-elect; Rodney Chandler, treasurer; Terry Parker,

immediate past chair; and statewide directors Jennifer Birtz, Amanda

Carman, Scott Collins, Karen Drescher, Lee Ellen Fields, James

Freeman, Tom Harrison, Jr, Kirk Jarrett, and Ben Lee. As my year

ends, my optimism about GSCPA’s future could not be higher.

I especially want to acknowledge the love and support of Paula and

our kids, Jessica, Sarah, and Christopher. Paula’s wise counsel

influenced by her invaluable been there-done that experience no

doubt minimized my “Oh-my-gosh” moments and my children’s

patience waiting on me to make decisions or get back into town was

greatly appreciated. I also had strong support from Tim Pearson,

director, and Dwight Sneathen, Tim Cairney, and my other colleagues

at Georgia Southern.

In closing, thanks again for this great honor. Good luck, Barbara!

We’re ANTICIPATING great things from you and team GSCPA in

the year ahead.

AnticipatingJ. Lowell Mooney, Ph.D., CPA

CHAIR MESSAGE

T h e G e o r g i a S o c i e t y o f C PA s

Current Accounts8

WORKS FOR Y U

THE GEORGIA SOCIETY OF CPASVISION, MISSION, AND CORE PURPOSEVisionOur vision is to enhance the accounting profession.

MissionOur mission is to achieve excellence in the practice of

accounting in all forms.

Core PurposeWe achieve excellence by providing superior advocacy,

leadership, service, lifelong learning and personal and

profession development opportunities.

FEATURE

STRATEGIC PRINCIPLESUnderstanding Members’ Needs GSCPA programs are and will continue to be designed

to meet the needs of the members. But in order for

that to happen, GSCPA must have a clear picture of the

varied interests and challenges of our 14,000 members.

Member input through such varied activities as volunteer

engagement, focus groups and surveys will all play

a part in helping to develop a real understanding of

member needs.

your ASSOCIATION

The Georgia Society of CPAs (GSCPA) is privileged to serve as your partner in creating value

for you as members, promoting the importance of the CPA credential and helping you meet

the challenges created by the ever-shifting landscape CPAs now face. Your GSCPA membership

is a critical part of a successful career in the accounting profession.

As a CPA in Georgia, you have a tremendous impact on our great state through your work

with business and individuals. No matter what area of the profession you’ve chosen,

The Georgia Society has resources to assist you. Whether its up-to-date information and analysis,

continuing education provided by the leaders of the profession, or serving as your voice before legislative

and regulatory bodies, GSCPA is prepared to advance your career and your profession.

With everything GSCPA has to offer, it’s easy to see why the majority of Georgia’s CPAs call GSCPA home.

Your GSCPA Membership

May/June 2016 9

Your GSCPA continued on page 10

FEATURE

Recruitment Recruitment impacts us on two fronts: growth in GSCPA

membership and growth in the profession. Attention to

membership growth is vital to our association’s long-

term health. But equally as important is the growth

of the profession through the attraction of the best

and brightest leaders of tomorrow. GSCPA and its

Educational Foundation work to see that both remain

successful priorities.

Technology-Oriented As technology advances, so will GSCPA. The Society will

continue to invest in technology that gives us actionable

intelligence and that also allows members to access the

many services and benefits offered to them through a

variety of platforms; GSCPA will continue the push to

make membership benefits and resources available at

your fingertips.

Increase in Legislative and Regulatory Presence As CPAs our voice has a unique perspective and GSCPA

strives to give power and influence to that voice. Simply

put, we want GSCPA to be the premier professional

proponent and advocate within the regulatory and

legislative community. With events like CPA Day at the

Gold Dome and our new Key Person program we’re

making great progress at turning up the volume of the

voice of Georgia’s CPAs.

Opportunities for Member EngagementAssociations are about the power of members. Through

an active and engaged member base, GSCPA will be

able to deliver upon the totality of this strategic plan.

The power of the collective in advocating for, protecting

and advancing the profession can be seen through our

member leaders.

Pursuit of Excellence GSCPA strives to be an organization of excellence that

is recognized as such by the profession, the public and

policy makers. As the premier professional organization

for CPAs in the state of Georgia, we will continually

endeavor to be the primary resource for the pursuit of

excellence in the profession, for continuing education,

for news and information, and for the protection of the

interests of both the profession and the public.

membership SNAPSHOT

Public Accounting 51%

Industry 27%

Students 8%

Lifetime Members 6%

Other 3%

Government 2%

Education 1%

*Excludes student members

Boomers 44%

Gen X 30%

Millenial 14%

Greatest 8%

Unknown 4%

PRACTICE AREA

GENERATION

GENDER

Male 57% Female 43%

AVERAGE AGE

MEMBERSHIP NATIONWIDEGSCPA has members in 41 states. Florida has the second most

members, and Alabama has the third most.

50

1-10 members11-50 members51-100 members101-150 members151-200 membersNo members

Current Accounts10

‘‘

FEATURE

The Georgia Society of CPAs understand that staying

on top of your professional news can feel overwhelming,

and we are committed to helping you stay ahead

of the curve. From tailored e-newsletters to videos

highlighting hot topics, GSCPA brings you the latest

news, insider perspectives and in-depth analysis. From

Current Accounts and The Voice to gscpa.org, Interest

Communities and GSCPA Studios, GSCPA is the official

source of professional information for Georgia’s CPAs!

After learning that I could earn two hours of CPE just for

reading Current Accounts, I decided to make the investment

of time for the CPE gain. I quickly learned that while

gaining two hours of CPE, I was also exposed to relevant

information, applicable stories, and it was a win overall.”

SAM LATIMER, CPA

The Georgia Society of CPAs recognizes that continuing

education is crucial not only to advance you as an

accounting professional, but also to improve the

profession as a whole. As a GSCPA member, our top-

quality offerings upgrade your knowledge while also

providing you with convenient options to fulfill the

requirements for keeping your CPA license up-to-date.

GSCPA understands that your time is valuable, and we

are committed to assisting you in getting the most out

of your CPE hours. GSCPA’s catalog of events available

to you as a member includes an extensive range of

subject matter and ensures that time and distance are

no longer obstacles to you in obtaining the CPE you

need and want.

GSCPA always says that membership pays for itself once

you register for two or more conferences. I checked, and I

actually paid for my membership two times, saving over

$400 in 2015 by taking my CPE hours from GSCPA!”

CARLA HATTERSON, CPA

Visit www.gscpa.org today to check out GSCPA’s online

event catalog. This customizable catalog gives you

access to GSCPA’s largest suite of education options.

Browse and modify your selections to find speakers,

topics and platforms that best fit your needs.

your CONTINUING EDUCATION

The Southeastern Accounting Show, held annually in

August, is GSCPA’s showcase event spanning two days

and offering 18 hours of CPE in seven tracks of study.

your NEWS

‘‘

2016 EDUCATIONAL EVENTS

20

325 90

CONFERENCES

SEMINARS LIVE STREAMS

May/June 2016 11

FEATURE

The Georgia Society of CPAs is committed to promoting

and safeguarding your highly regarded CPA credential

and profession. GSCPA works to ensure that the public

understands the true and unique value that CPAs

provide. As a CPA in Georgia, the profession benefits

from and takes pride in the contributions you make that

place the profession at the pinnacle of the business

community.

By utilizing the collective voice of almost 14,000

members throughout the state, The Georgia Society

places the interests of the profession front and center

as decisions are being made at the statehouse as well

as within Congress. As part of GSCPA’s continuing

efforts to magnify the role of CPAs and the accounting

profession, we maintain an aggressive legislative agenda.

GSCPA supports the efforts of local elected officials by

providing our CPA members as experts who are uniquely

skilled and qualified to offer input and advice.

As GSCPA members, you see the value and impact you

can make by contacting your elected officials. In 2015,

GSCPA saw record numbers of PAC donations and

key people.

Take advantage of

the newest addition

to gscpa.org, GSCPA

Studios. GSCPA Studios

features short videos

summarizing and

highlighting hot topics

and recent developments

related to the profession

along with recaps and

insights on GSCPA

events and conferences.

16,180

GSCPA Interest Communities provide members with

tailored web pages, private LinkedIn groups and

dedicated emails to advance the specific areas of

knowledge that interest you. This online tool brings you

relevant information and unique resources. Join as many

as you like and the best part is, they are free!

your PROFESSION

Georgia CPAs out in force at the Gold Dome to meet

with their elected officials and act as a resource to

Georgia’s General Assembly.

Your GSCPA continued on page 12

E-NEWSLETTERS IN NUMBERS

5000UNIQUE

SUBSCRIBERS

22,137UNIQUECLICKS

GSCPAcommunities 10 INTEREST

COMMUNITIES

NEWSLETTERSSENT

469

TOTAL SUBSCRIPTIONS

Current Accounts12

FEATURE

The Georgia Society is focused on positioning you for

greater success. As the home of the CPA profession

in Georgia, GSCPA is dedicated to expanding your

professional network and industry insight. GSCPA

provides countless opportunities to meet with fellow

CPAs and accounting professionals who will enhance

your life both professionally and personally. As GSCPA

members, you understand the importance of sharing your

expertise and talents while also increasing the awareness

of popular issues that are important to the public and the

CPA profession.

From taking a survey to speaking at an event to writing

articles and giving your time, The Georgia Society benefits

from the time you take to give back to your profession,

your community and your association. Two key examples

of GSCPA members responding to the needs of the

profession are The Annual Georgia Accounting Food Fight

and GSCPA’s Millennial Money Program.

Our profession has a strong and proud culture of giving back.

Participating in this annual food and fund drive competition

is a great opportunity for accountants to help their neighbors

in need.”

LOWELL MOONEY, PH. D., CPA, GSCPA CHAIR

THE EDUCATIONAL FOUNDATION OF THEGEORGIA SOCIETY OF CPAS

The Educational Foundation continues to

focus on its mission of encouraging the best

and the brightest individuals in Georgia to

become certified public accountants. The

Foundation accomplishes this mission through

the sponsorship of programs and scholarships.

It is only able to do so through the generous

support of GSCPA members.

I give to the Foundation annually because I can

see how valuable my dollars are in the number of

scholarships that are awarded each year. I feel like

my donation really helps accounting students pursue

their degree and goal toward becoming a CPA.”

J. ALLEN POOLE, CPA

your CONNECTION

‘‘

I took the time to meet with my reps and let them know that

I am available as a resource and that I am knowledgeable on

the issues that are facing the profession. I want to make sure

I develop a relationship with them and work to influence the

positions they take on issues that are important to me and

important to GSCPA.”

TOM HARRISON, CPA

Visit www.gscpa.org and review the legislative resources

available to you in the Advocacy tab. You can stay informed

on the status of current legislation, save the data for the

2017 CPA Day at the Gold Dome and influence the future by

becoming a key person.

‘‘

‘‘

The Educational Foundation Golf Tournament,

held annually to raise funds for scholarships and

institutional support, raised over $24,000 in 2015!

Visit Foundation.gscpa.org to donate today to

The Educational Foundation of The Georgia

Society of CPAs.

37Scholarships

Awarded

35$102,875

in scholarships awarded

$176,125in funds awarded total

Academic Excellence

Awards

May/June 2016 13

FEATURE

T h e G e o r g i a S o c i e t y o f C PA s

The Georgia Society of CPAs is looking forward to membership year 2016-2017! GSCPA will remain true to its vision, mission and core purpose, continuing to enhance the CPA profession in Georgia. Above all, GSCPA will remain the focal point for CPAs throughout Georgia by providing superior advocacy, leadership, service, lifelong learning and personal and profession development opportunities.

Thank you for your GSCPA membership and your commitment to the CPA profession!

For more information on the many advantages of your membership in The Georgia Society of CPAs,

visit the Membership tab of GSCPA’s website, www.gscpa.org, or call the Member

Services Department at 800-330-8889, extension 2986.

Since its inception in 2014, the Georgia Accounting Food

Fight has collectively raised $197,260 and 21,237 pounds

of food. The second annual Georgia Accounting Food

Fight raised 11,376 pounds of food and $100,006.

During the third annual financial literacy day, Millennial

Money, a one-day outreach initiative, 144 GSCPA

members visited middle school classrooms where they

taught basic financial concepts, such as saving, investing

and budgeting to almost 6,500 eighth graders.

We created Millennial Money to help students understand

that a budget is a tool they should use to make smart

choices about saving and spending money. Eighth grade is

the right age to begin developing financially smart saving

and spending habits that can produce a generation of more

fiscally responsible adults.”

LYNN VIARS, CPA, CHAIR OF GSCPA’SFINANCIAL LITERACY TASK FORCE

In 2016, Millennial Money will take place on Thursday,

November 17. Registration will be available in August.

your GSCPA

With more than 400 volunteers just on GSCPA’s Board

of Directors, Leadership Council, chapter officers and

committees, task forces and special groups, GSCPA

thanks ALL of our volunteers for their dedication.

‘‘

T H A N K Y O U !

Current Accounts14

FEATURE

2016 Legislative Session: Bills Important to the CPA ProfessionDon P. Cook

The 2016 Legislative Session began on Monday, January 12 and ended on Friday, March 25. All bills that passed both the House and Senate have now been sent to Governor Deal. The Governor has 40 days, or until May 3, to review the bills that have been sent to him. He can choose to sign, veto or allow the bill to become law without his signature. A variety of bills for 2016 have an effect on Georgia residents, as well as the CPA profession directly.

Important Bills to Residents of GeorgiaHB 751 set the largest budget in our state’s history at $23.7 billion, an increase of $673.9 million, or 2.9 percent, over the amended FY2016 budget. It includes new transportation appropriations of $824 million, most of which resulted from the change in the gasoline tax under House Bill 170 in 2015. The 2017 budget includes cost of living adjustment (COLA) pay raises totaling three percent for teachers, school bus drivers, school nutrition employees and school nurses, as well as three percent for state employees. This bill passed both houses and awaits the Governor’s signature.

HB 722/SB 145, when it was first introduced as HB 722 this bill included a model for growing marijuana for medical purposes in Georgia. This model was removed in the House Judiciary Non Civil Committee after multiple hearings. The committee issued a substitute bill, which added to the conditions that can use medical marijuana to treat their symptoms. Ultimately this bill passed the House twice and was never heard in the Senate.

SB 369 is a substitute bill to include provisions related to MARTA expansion. The bill adjusts how TSPLOST dollars can be used in Atlanta and Fulton County, and would provide long term transit funding to the City of Atlanta if first authorized by voters. This bill passed both Houses and awaits action by the Governor.

HB 757, known as the Free Exercise Protection Act (formerly the Religious Freedom Restoration Act), passed in the House (104-65) and Senate (37-18) after extensive debate in both chambers regarding changes to the bill. This was easily the most contentious bill that came up this session. The bill was vetoed by Governor Deal on March 28, 2016.

Important Bills to the CPA ProfessionHB 742 (Conformity Bill) was signed into law on February 23, 2016. HB 742 is an annual Internal Revenue Code (IRC) update that incorporates certain provisions of federal law into Georgia law. The bill passed the House 174-0 on January 28, and passed the Senate 51-1 on February 9. HB 742 provides an effective date and applicability (in this case, for taxable years beginning on January 1, 2015), and repeals any conflicting laws that may exist.

It’s important to note that the Georgia conformity bill is written in such a manner that it mirrors the legislative changes that were made federally during 2015 with some exceptions. As written, some of the big pieces of this year’s conformity bill are:

• Section 179 deduction fully matches the feds (made permanent and for tax year 2015 will be $500,000, and will be adjusted for inflation starting in 2016).

• The phase out of the Section 179 will fully match the feds (this is now permanent and for tax year 2015 will be $2,000,000).

• Georgia W-2’s will be due from employers by January 31.• The tax due dates that changed with the IRS have been

added to this bill and will change with Georgia as well.

HB 951 is a state sales tax bill relating to major sporting events (i.e. the Super Bowl), and would position Georgia as a more competitive bidder for major sporting events. It also contains a provision for a back to school sales tax holiday

May/June 2016 15

FEATURE

(July 30-31, 2016) and energy efficient products sales tax holiday (September 30 - October 2, 2016). This bill passed both houses and awaits the Governor’s signature.

HB 952, the Georgia Professional Regulation Reform Act, provides for antitrust immunity for professional licensing boards. This immunity is achieved through added executive oversight of the boards to ensure they have clearly articulated rules, regulations and policies in place. The Supreme Court recommends the oversight not entail day-to-day involvement of a Boards operations or decision making. Rather, the oversight involvement should be limited to ensure that any perception of anticompetitive conduct promotes state policy which is not anticompetitive. As currently drafted, HB 952 might be interpreted as creating broader oversight and red tape than is necessary or meaningful. This bill passed both houses and awaits action by the Governor.

HB 960 provides for added confidentiality of certain tax information and provides for a more equitable interest rate on overpaid and underpaid taxes that will adjust to reflect changes in the prime rate. This bill passed both houses and awaits the Governor’s signature.

Other Bills of InterestHB 364 is legislation to assist the airport concessionaires by clarifying the law that possessory interests in property are not taxable and should not be included on the county tax digest. This legislation provides a method for return of the digest by the department of revenue and a method to take county tax assessors to a tax tribunal for failing to follow the law. This bill passed both houses and awaits the Governor’s signature.

HB 727 allows for local control on the regulation of fireworks while also allowing for more sales of fireworks from tents. This bill passed both houses and awaits the Governor’s signature.

HB 779 regulates the use of unmanned aircraft systems (drones). Except for military or governmental contracts involving research, it is unlawful to sell, manufacture, possess, or operate an unmanned aerial vehicle that is equipped with a

weapon. All drones must be registered and licensed. This bill passed both houses and awaits the Governor’s signature.

HB 991 provides that a tax collector or tax commissioner shall waive the collection of penalties and interest incurred upon default that occurred due to a taxpayer’s military service in a combat zone if the taxpayer pays the underlying tax liability within 60 days of the end of such military service. This bill passed both houses and awaits the Governor’s signature.

HB 1014 extends the sunset date to Dec. 31, 2021 of the existing exemption for donation of real property for conservation use. This bill passed both the House and Senate and awaits the Governor’s signature.

HB 1036 relates to the exercise of power of eminent domain for construction of petroleum pipelines. If signed into law, this bill will temporarily suspend work on the Palmetto Pipeline until 2017. Similar legislation has been considered in South Carolina that impacts construction of the same pipeline. Bill passed both houses and currently awaits the Governor’s signature.

HB 544 (Campus Carry Bill) permits anyone 21 and older who passes extensive finger print and background checks to carry a firearm on public school property. Excluded areas where carrying is allowed is dormitory, fraternity/sorority houses or athletic events. This bill passed both houses and awaits action by the Governor.

Stay InformedThe Georgia Society will continue to monitor future legislation and keep the momentum moving in the right direction. With potential changes and challenges ahead, GSCPA continues to actively participate in the legislative process.

For more information on legislation and representation or to locate your local representatives, visit www.gscpa.org. For questions on the above bills contact Don Cook, vice president, legislative affairs at 404-504-2935 or dcook@gscpa.org.

Don P. Cook is the vice president of legislative affairs at The Georgia Society of CPAs. He is responsible for legislativeadvocacy on behalf of the CPA profession in Georgia. Don is a registered lobbyist in the state and works on thegrassroots training of GSCPA members while providing education on why members should strongly considersupporting the GSCPA-PAC.

T h e G e o r g i a S o c i e t y o f C PA s

Current Accounts16

We return again to update you on tax news you may have

missed while you were away with busy season. Outside of

the IRS, not much has changed since January: the political

parties still haven’t chosen a presidential nominee; the

Braves still play in Fulton County; and Willie Nelson is on

the road again. Here’s what the IRS has been doing.

New GuidanceAdditional Guidance for Reporting Foreign

Accounts and Foreign Assets – On March 1, 2016,

FinCen issued a Notice of Proposed Rulemaking that

applies to financial professionals who file FBARs as part

of their employment responsibilities.1 The proposed

rulemaking removes the provisions that limited the amount

of information reported when a filer has 25 or more foreign

financial accounts. The proposed rule requires detailed

account information from financial professionals on all

foreign financial accounts for which they are required to file

an FBAR.

Application for Change of Accounting Method -

Remember how many questions we had about Form 3115

with the new repair regulations last year? Well, the IRS

decided to update the form with a new revision date of

December 2015. The changes were released on April 4 in

IRS Announcement 2016-14.2 New Form 3115 should be

used beginning on April 19, 2016, so it’s fine if you filed the

old form during busy season. Also note that the duplicate

copy (not attached to the return) required by Rev. Proc.

2015-13 should no longer be sent to Ogden, Utah. The new

address is Internal Revenue Service, 201 West Rivercenter

Blvd., PIN Team, Mail Stop 97, Covington, KY 41011-1424.

Annual Return/Report of Employee Benefit Plan -

New lines were added to Schedules H, I, and R of Forms

5500 and 5500-SF for 2015. However, in guidance released

on February 25, 2016, the IRS has advised plan sponsors

to skip (yes, skip) these questions when completing the

form.3 The new questions on Form 5500 include Preparer

Information, and these lines:

• Schedule H, Lines 4o-p, 6a-d

• Schedule I, Lines 4o-p, 6a-d

• Schedule R, New Part VII (Lines 20a-c, 21a-b, 22a-d,

and 23)

On Form 5500-SF, the new optional lines are:

• Preparer Information (page 1 bottom)

• Lines 10j, 14a-d, and

• New Part IX (Lines 15a-c, 16a-b, 17a-d, 18, 19, and 20)

IRS Extends Due Date of Form 8971 to June 30,

2016 - On March 4, 2016, the IRS finally published

temporary and proposed regulations under Section 1014(f)

and 6035.4 Section 1014(f) requires that the basis of certain

TAXATION

While You Were Away: Tax Updates from the 2016 Filing SeasonAnson Asbury, J.D., LL.M., Arthur Auerbach, CPA, CGMA, and Brian Gardner, Esq.

May/June 2016 17

TAXATION

property acquired from a decedent may not exceed the

value of that property as finally determined for federal

estate tax purposes, or if not finally determined, the value

of that property as reported on a statement made under

Section 6035. Because of the new regulations, the IRS

released Notice 2016-27, extending the deadline to file

Form 8971 or furnish a statement under Section 6035, for

returns that were due prior to June 30, 2016 is now June

30, 2016.5

Examination & Controversy IRS SB/SE Visiting Non-Compliant Businesses - On

February 23, 2016, the IRS reissued guidance to Collection

Officers recommending a field visit to the taxpayer’s

business within 15 days of the receipt of a Failure to Deposit

alert.6 Failure to Deposit alerts are issued to taxpayers that

are semiweekly depositors who have not made Federal Tax

Deposits during the current quarter or are making deposits

in substantially reduced amounts.

New Examination Guidelines from LB&I - In

February, the IRS released Publication 5125 and

corresponding updates to Internal Revenue Manual

section 4.46 outlining extensive changes to the Large

Business & International examination process effective

May 1, 2016. The updated procedures emphasize issue-

based examinations, the preservation of penalties, and

mandatory IDR enforcement procedures if responses are

not received by the agreed date.7 LB&I enforces U.S. tax law

for corporations, partnerships and individuals with assets

greater than $10 million.

New Industry Issue Resolution Program - The

IRS released its new Industry Issue Resolution Program

(IIR) in Revenue Procedure 2016-19, effective April 25,

2016.8 The requester should be an organization or group

of entities that represents a significant cross section of the

entities with the particular tax issue, e.g. a retail industry

group that represents large, nationwide retailers requesting

pre-filing guidance on a Section 263(a) capitalization issue

common to all member retailers. There is no required form

for IIR requests. Interested parties may submit a request

at any time by e-mail to IIR@IRS.GOV. Practitioners

should keep in mind that all IIR requests can and will be

disclosed to the public under the Freedom of Information

Act so submissions should not include confidential or other

taxpayer specific information not intended for disclosure.

Anson Asbury, J.D., LL.M. and Brian Gardner Esq. represent individuals, partnerships and closely-held businesses in tax controversy and tax litigation matters for Asbury Law Firm in Atlanta, Ga.

Arthur Auerbach, CPA, CGMA is an independent tax consultant located in Atlanta, GA, specializing in tax consulting and estate and financial planning for individuals and closely-held businesses.

T h e G e o r g i a S o c i e t y o f C PA s

1 Financial Crimes Enforcement Network; Amendment to the Bank Secrecy Act Regulations—

Reports of Foreign Financial Accounts, 81 Fed. Reg. 12613 (proposed March 10, 2016) (to be

codified at 31 C.F.R. 1010).2 Announcement 2016-14, 2016-14 I.R.B. 535.3 IRS Compliance Questions on the 2015 Form 5500-Series Returns at https://www.irs.gov/

Retirement-Plans/IRS-Compliance-Questions-on-the-2015-Form-5500-Series-Returns (last

visited April 10, 2016).4 The new information reporting requirement was created by the Surface Transportation and

Veterans Health Care Choice Improvement Act, Pub. L. No. 114-41.5 IRS Notice 2016-27, 2016-15 I.R.B. 576.6 IRS Memorandum, SBSE-05-0216-0009 (February, 23, 2016).7 For more on the mandatory IDR enforcement program and IRS summonses, See, R.S.V.P.: Late

Responses Trigger Mandatory IRS Enforcement, Current Accounts, The Georgia Society of CPAs,

November/December 2014.8 Revenue Procedure 2016-19, 2016-13 I.R.B. 497.

Current Accounts18

A&A

At the April 2016 Georgia Society Employee Benefit Plan

Conference, the Department of Labor representative

discussed the findings in the Audit Quality Study released

by the DOL last summer. It was certainly not good news.

The DOL found that firms that audit 24 or fewer employee

benefit plans had deficiencies in about 70 percent of the

audits reviewed, and even firms that audit 25 to 99 plans

had deficiencies in about 40 percent of the audits. And

what all the speakers at the conference agreed on was that

the deficiencies in the study were valid deficiencies, that is

they were important audit procedures required by generally

accepted auditing standards.

The AICPA Peer Review Program selected about 90 peer

reviews performed in 2014 and experienced auditors

reviewed some “must select” audit and attest engagements

that the peer reviewers had looked at. The AICPA experts

found that about 40 percent of the engagements had one

or more deficiencies, which is consistent with the DOL

study and consistent with findings by others, including the

President’s Council on Integrity and Efficiency, the PCAOB

and other regulators. Yet peer reviews have consistently

found less than 10 percent of the audits have one or more

deficiencies. In response to this difference in peer review

findings and the findings of others, the AICPA has made,

and continues to make, changes in the peer review program

to improve the effectiveness of the program, and has

undertaken an Audit Quality Improvement Initiative.

Let’s focus on what auditors need to do better on employee

benefit plan audits to improve the profession’s standing with

the regulators. First and foremost, document who did what,

what they found and what they did about it. As the DOL said

at the Conference, “You get credit for what you document,

not what you know.” The lack of documentation required

by GAAS was probably an important factor in the largest

area of deficiencies–internal controls. Some practitioners

may argue that of course they understood the plan’s internal

controls, but think a moment–did all of the staff understand

the controls in the areas they were performing tests in? Did

the audit team recognize deficiencies in internal control and

report them to plan management and plan governance?

One of the key reasons ERISA requires plans to have

audits is so plan management and governance receive an

independent view of areas the plan needs to do better in

taking proper care of participant retirement accounts. If

the plan’s controls over everybody being in the plan that

should be (and vice versa) aren’t adequate, that should

be recognized by the auditor and reported to the plan.

If controls over a participant’s contribution election

aren’t what they should be, the plan should know about

it and correct it. If controls over calculating how much

a participant should receive as a pension benefit aren’t

sufficient to insure the likelihood of an error is less than

remote, GAAS requires the auditor to communicate the

deficiency to management.

Employee Benefit Plan Audit Quality IssuesChris Rouse, CPA

May/June 2016 19

A&A

T h e G e o r g i a S o c i e t y o f C PA s

The next area of deficient audit work was in engagement

planning, specifically in understanding the provisions of the

plan and developing audit procedures specific to the risks

in the plan’s provisions. If participation is complicated, or

if contributions are complicated, then audit tests should

be more robust than in a plan where participation and

contributions is not complicated. Yet the DOL found that

auditors used exactly the same audit program in both

cases. Generally accepted

auditing standards are

clear that audit programs

should be tailored

for the risks that the

financial statements are

materially misstated, and

planning is when auditors

understand the plan’s

provisions, communicate

with management and

governance about the

plan’s operations, perform

planning analyticals, assess

fraud risk and write the

audit programs.

The third area of highest

deficiencies was participant account work. In my view,

this is the whole purpose of a limited scope audit, and

GAAS requires this work to be exactly the same whether

the audit is a full or limited scope audit. Congress gave

plans the opportunity to have a limited scope audit because

they were not concerned about investments held by banks

and insurance companies that were regulated for that

custodial function. Instead they wanted auditors to make

sure that participant eligibility, contributions, investment

elections, account income, distributions and forfeitures

were being handled in accordance with the plan’s provisions

and the participant’s instructions. Yet over half of the

audits performed by firms doing five or fewer audits had

deficiencies in testing participant accounts, and even the

firms doing many plan audits had a preponderance of their

deficiencies in the area of

participant account testing.

If there is anything that will

drive the DOL to increasing its

oversight of plan auditors, I

expect this is it.

There are lots of beans in

the study, and I encourage

all auditors of employee

benefit plans to go to the

DOL’s website, or the AICPA

Employee Benefit Plan Audit

Quality Center website, and

obtain the study and review it.

Not just the overview, but drill

down into Appendix II and

III, which is where the beans

are displayed. Grade your firm’s plan audits against the

findings in the study, and then make appropriate changes

in how you perform your audits. If we want to maintain

oversight of ourselves, we must improve our work product

or else the users of our audit service will demand someone

else oversight it.

Chris Rouse, CPA is an audit and accounting director at Windham Brannon, PC. He has spent his career with Big-8 and large local firms and has served primarily audit clients in his career, including clients in the real estate sector and the financial services industry, manufacturing, distribution and service entities, not-for-profit entities and employee benefit plans.

Current Accounts20

INDUSTRY

What makes a company or corporation great? What is it

that makes them truly stand out among their competitors?

It is by using an innovative approach to the way they

communicate with clients and with each other during day-

to-day inner workings. That innovative approach is found in

the principles of improvisation to promote a simpler, more

effective way to work as a team. Improv is more than stand-

up comedy. At its foundation, improv is about leadership.

Invite Productivity by Holding an Improvisation WorkshopThe foundation for effective leadership is active listening.

When leaders are listening to their employees and engaging

them using the skills learned from improv, growth happens.

Improvisation promotes cooperation and with greater

cooperation, productivity goes up. The principles of improv

fundamentally create productive interactions because it

forces people to truly listen to one another. Many companies

are discovering the powerful effect this has on the way

teams work together. It also has a profound effect on the

way clients feel. It shifts the atmosphere of the entire

corporation into feeling more energized because it will be.

“Yes, and…” is the glue that holds it all together. It is

the basic skill used when two people stand on stage to

improvise. They are not allowed to tell each other no.

Replacing the words ‘No’ and ‘yes, but’ with the phrase

“yes, and…” any chance you get will invite active listening

and valuable input in return. So much is communicated by

that phrase. It is supportive and respectful. It focuses the

conversation rather than shutting it down. It shows you

are listening to the other person and trust what they have

to offer. “Yes, and…” ties all the fundamental principles of

effective communication into a practical and productive

two-word tool that will cause companies to stand up and out.

In today’s dynamic market, companies need to be adaptable

and improv training is great for business. The next

generation wants to have fun. It has really struck a good

nerve amongst the millennials who have been more exposed

to improvisation classes in business schools and the popular

show Whose Line is it Anyway. They are driving the face

of corporate solutions by sparking creative thinking and

ending the corporate jargon that has left innovation stale.

Death to Jargon and Birth to CreativityWe all have some of our favorite “buzz words” we like to

use, and some we can’t stand. They are great at creating

imagery, but is it the kind of imagery that allows everyone

to be on the same page? Think about a few of these common

corporate buzz words used in a lot of meetings and emails

during the day-to-day. Do they create a clear path or is there

just a buzz in the room? Here are some common buzzwords

and what I think of when I hear them:

• Benchmarking: my photo on a bus stop bench

• Back of the Envelope: we need more legal pads

• Go the Extra Mile: a sweaty dude

• Best Practices: a Hallmark card

Taking an Innovative Approachto Communication in theCorporate WorldPeter A. Margaritis, CPA

May/June 2016 21

None of these buzz words mean anything anymore. Too

many of them in the conversation and the listeners, if they

are even that anymore, tune out. They are empty words

and provide very little clear direction and no focus that

employees can rally behind. With no clear direction, stress

increases and productivity goes down. It becomes everyone

doing what they think ‘best practices’ means.

What if we replaced the jargon with a simpler and more

precise speak? A company that states the customer service

policy as “we strive to provide top notch service to all of our

customers” can be innovatively replaced with “we listen to

the customers and meet their expectations.”

“Yes, and… lets hold a quarterly brainstorming session

with all the employees to think of ways we can show the

customers we are listening.”

INDUSTRY

Improvisation promotes innovative thinking by taking

the conversation and pushing it forward into the future.

That is what a good leader does. Ed Herbstman, who is a

cofounder of the Magnet Theater, a New York based theater

conducting corporate training, has even helped teach

courses for companies like Google. He said, “When you’re

the person saying yes to other people, they start to bring

you their best ideas. When you’re meeting things habitually

with ‘yes, and,’ with an energy of agreement, you transform

the way people perceive you.”

When there are more people willing to speak up with their

ideas because they know they will be heard, employees take

a more vested role in the job they have. Their performance

goes up. People get excited about seeing their vision, no

longer just the “head hancho’s” vision, begin to take shape.

It is what sets companies up on the stage while others are

left looking for a chair in the audience.

Peter A. Margaritis, CPA is a speaker, educator, trainer, humorist, and self-proclaimed chief “edutainment” officer for The Accidental Accountant™. Partnering with the Business Learning Institute, his firm helps accountants and other business leaders to increase their profitability by strengthening their business success skills and improving morale through better communication. He is a member of the Ohio Society of CPAs, The Georgia Society of CPAs, National Speakers Association, and the American Institute of CPAs. Peter is also the Author of Improv Is No Joke: Using Improvisation to Create Positive Results in Leadership and Life. www.theaccidentalaccountant.com

T h e G e o r g i a S o c i e t y o f C PA s

Current Accounts22

TECHNOLOGY

Tablets, Accounting, andTechnology Changes

Technology advances have business tools heading toward

major changes within the next five years. Most workplaces

are moving away from good old desktop towers and going

in a variety of different directions, including all-in-one PCs,

tiny, thin clients that fit in the palm of your hand, laptops

in their latest, thinner and lighter iteration, and tablets that

are deceptively powerful.

After the release of the original Surface Pro, Microsoft

has released many iterations of its laptop replacement

tablet, and the current Pro 4 is an excellent device. It is

quite powerful and includes the latest Intel processors

(codenamed Skylake), along with the fast solid state drives

(SSD), bright and sharp 12-inch screen, and improved type

cover.

Enter Apple and its iPad Pro lineup. Aiming to take a piece

of the business market for themselves, the iPad Pro has a

few tools and accessories to make it a formidable device.

The iPad Pro sports a keyboard port where it magnetically

connects and supplies power to the keys. While not in

use, the keyboard snaps magnetically back on to itself and

becomes a part of the cover to protect the screen while not

in use. It also has an Apple Pencil, an accurate stylist pen

that is pressure sensitive, which gives creative types like

designers, artists and photographers additional business

tools.

Which option is best for CPAs, and what should be the long-

term business goals be when choosing a device?

In the past year, Windows tablets such as the Surface Pro 4

and numerous others have tried to enter the market as the

next must-have device for enterprise and small business

users. Interest in them have increased tremendously in

many industries. Delivering power comparable to laptops in

a much coveted form factor has led to its adoption for many

companies seeking mobility.

As for the iPad Pro, many major program developers have

released iOS versions of their desktop software, most

notably Microsoft Office and Adobe Creative Suites. They

are now much less watered down than previous iterations.

Tax software built for individuals and companies like

Quickbooks now have apps and online services to run on

both iOS and Windows devices, which opens the door for

businesses to transition to tablets and utilize cloud-based

software. CaseWare Cloud, CCH Axcess and others have

already developed cloud-mobile friendly applications and

allows for work on tablets as main workstations. Check with

your vendors for your software prior to considering going to

a new type of device.

When using one of these tablets, the first thing you will

notice is the size of the screen. The smaller iPad Pro is

9.7” and the regular sized one is 12.9” whereas the Surface

Pro is 12.3.” If screen size is important to you, tablets may

not be your thing. The iPad Pro does not have capability

to use multiple monitors; you can use Apple TV to mirror

your screen onto a larger monitor. The Surface Pros have

Calvin J. Wong

May/June 2016 23

TECHNOLOGY

Calvin J. Wong, director, information technology, plans and executes information technology for The Georgia Society ofCPAs, overseeing new technology integration, infrastructure maintenance and updates. He is the correspondent betweenthird party technology vendors of the Society.

docking stations that enable multiple monitors (up to

three, including the Surface display) while also provide

an Ethernet connection and additional USB ports. Also, if

you are a fan of number key pads, they are non-existent on

tablet keyboards. You will need to get one separate from the

typical setup.

What are the cons of tablets? Limited choices in terms of

models with limited features due to size. For example, the

Surface Pro only has one stereo audio jack, one USB port,

one micro SD slot and one Mini DisplayPort. The iPad Pro

only has a keyboard connector and a lightning port. Other

tablets from major manufacturers may have up to two USB

ports but since tablets are much smaller they lack the space

to physically provide additional connectors normally found

on laptops. Gone are Ethernet ports and VGA/HDMI ports.

You would need to buy additional adapters in order to

connect to those interfaces.

If the cons are not a big deal to you, the tablets offer a great

deal in terms of quality of life. Carrying these around from

meeting to meeting or traveling will quickly give you a sense

of thankfulness for not having to carry around a much

heavier laptop.

What else are we in store for? Many companies are going

to virtualized desktops on cloud servers and this opens the

door to using less powerful computers since you are using

server-level hardware powering your computing through

a remote application. This, of course, requires internet

service to work. Speaking of virtual, 2016 will be the year

of virtual reality and though it might not affect you or

your business this year, the technology could open doors

to new companies and clientele that eventually will affect

accounting in the years to come. Who knows, perhaps

having virtual workspaces will become the norm.

T h e G e o r g i a S o c i e t y o f C PA s

Microsoft Surface Pro 4 Apple iPad Pro

Current Accounts24

Identifying Probable Deception Through Observation and Behavior

Your interviews will involve many truthful people who

are basically relaxed, cooperative, and helpful. You

may notice the truthful person to be:

• slightly curiousness and interested in the

conversation and your job

• angry and irritated because you are checking their

knowledge, performance and compliance with the

procedures of their employer

• nervous and pondering if there is something they

know or discovered, that maybe they should have

been previously reported

These scenarios are known as outside issues, and

should be considered before mistakenly labeling this

truthful person as deceptive concerning substantive issues.

Let’s focus on the behavior of an assumed

deceptive person. The interpretation of probable

deceptive behavior is not an exact science. With practice

and experience, it is a powerful technique for identifying

issues requiring follow-up questioning – questioning that

most untrained and inexperienced interviewers might

not recognize or even consider. Let’s consider the best

human lie detector ever, the mother. She can reliably

detect probable deception of her child over 90 percent of

the time. This is true because she is the person that spends

the most amount of time with her child. She has been

observing and calibrating her child since birth and can

recognize abnormal threatened behavior.

In a professional setting, reliably spotting

deception is not easy, but like a fraud discovered –

there were probably some red flags that could have been

recognized earlier. When someone withholds significant

information, the threat of being detected of deception

with consequences pushes liars into the “flight or

fight syndrome.” Beyond their control, their brain starts

sending signals to their body to prepare it to get ready to

run from, or to confront and conquer, the threat. A liar may

be able to disguise deception to some degree on any one

moment, but cannot totally control nonverbal behavior 100

percent of the time over the course of an interview involving

good questions. Stress and leakage overcomes the mind’s

ability to disguise everything.

All interviews should start with general questioning

that is nonthreatening and allows you to calibrate

(norm) your interviewee for truthfulness. Ask

(discuss) routine simple background information for which

you already know the answers, or fully expect truthful

answers. “So how long have you been in your current

position, and what proud accomplishments have you

achieved?” “Tell me what you like about your job and this

firm.” Once you have a feel for their truthful behavior, start

your fact finding and then slowly move to the sensitive and

key questions. Start listening for inconsistencies. Keep

your eyes up to observe behavioral clue changes to certain

questions or question areas. Ask open-ended questions

Don Berecz, CPA, CFE, CFI

FRAUD

This is the second in a series of three articles and will discuss identifying probable deception through your observations and

interpretations of the interviewee’s behavior. The previous article discussed professional interviewing techniques and the

gathering of factual information. The article after this one will discuss the methods you should consider using for convincing

someone to provide truthful information that they are withholding.

May/June 2016 25

Don Berecz, CPA, CFE, CFI is a polygraph examiner, retired FBI agent and currently the director, fraud examination and forensic accounting at Georgia Southern University. Georgia Southern offers a Fraud Examination Certificate for undergraduates and a Forensic Accounting Certificate for graduate students. For more information on these programs, visit http://coba.georgiasouthern.edu/soa/fraud-forensic-accounting/

(“Tell me about…”) that should require explanations. You

cannot evaluate their behavior based on quick-response

closed-ended questions that elicit a simple “yes” or “no.”

Don’t react to any probable lies that are not

material or significant. Everyone tells socially acceptable

lies (5 - 14 times a day), or minimizes potentially threatening

information to themselves. Your goal is to keep the person

talking. Control your reactions when you think

you have identified probable deception. Keep your

professional and supportive conversation going without

revealing your discovery of their possible inconsistency. If

you need to, lightly clarify possible deceptive areas with soft

follow-up questions such as, “I don’t understand..?”

If you become adversarial in their eyes, they will start

shutting down on you and stop talking. Be curious,

nonjudgmental, and when necessary, help the interviewee

save face when they admit a mistake (“That could happen to

anyone…”).

Your chances of spotting hidden deception through

their statements is less likely than through their

physical behavior. Less than 10 percent of true

communication comes out through the verbal

(the words) channel. However, some verbal red flags

to deception could include responses that are told in a

cumbersome and unbalanced nature, and answers which are

qualified, too detailed or too vague in certain areas.

Be prepared to observe inconsistent physical

body movements, and listen for voice changes.

These two areas represent more than 90 percent of true

communication that the deceptive cannot completely

control. As you listen to their explanations and observe their

behavior, be aware for timely nonverbal changes in behavior

not consistent with their words and truthfulness, such as:

Changes in body movements (physical behavior):

• Unusual head tilts, facial expressions, forced smirks,

blushing or white out

• Eye contact that is too little or too much, or changes

at the wrong time

• Arm, hand, finger, leg, foot movements, or sudden

repeated scratching of certain areas

• Posture slumps or tension, breathing that gets

extremely slower or faster

Changes in the voice (tone):

• Volume changes get louder or softer

• Pitch changes that get higher or lower

• Speed of delivery changes that get faster or slower

• Responses which are too quick or too slow

Remember that no one action by a person you are

interviewing is conclusively a sign of their deception…unless

you’re interviewing Pinocchio.

Summary

The majority of people you interview will be good,

professional, and truthful individuals with some normal

unexpressed concerns. Good interview techniques and

questioning will get you useful and factual information.

Coordinating your interviewing efforts to include a proper

interpreting of their behavior, should affirm that the

information they provided can generally be relied on.

Prepare to identify probable deception, and know you

then have a problem area that needs to be addressed and

resolved. Getting an admission of truth from a deceptive

employee is the theme of the next article in this series.

FRAUD

T h e G e o r g i a S o c i e t y o f C PA s

Current Accounts26

SOCIETY NEWS

Stay Informed with GSCPA Interest Communities

The Georgia Society of CPAs (GSCPA) is committed to

helping you stay informed of the latest industry news,

trends, and developments. Member surveys, focus groups,

and comments have made one thing clear—receiving

current news and information are important GSCPA

member benefits. With this in mind, GSCPA created

Interest Communities.

What is an Interest Community?GSCPA Interest Communities are composed of Society

members who share a common interest or specialty.

Interest Communities provide timely, professional news

and updates along with relevant educational events. Each

community represents a different specialty within the

field of accounting. There are 10 different communities to

choose from, you can join as many as you like, and the best

part—it’s FREE!

As a community member, you will receive biweekly

newsletters full of specially selected articles from a variety

of sources to ensure you receive the top stories and most

interesting reads.

Online community networking groups are also available

through LinkedIn, so you can connect with your peers and

exchange information.

As an Interest Community member, you’ll benefit from:

• Curated, biweekly newsletters

• Exclusive access to community web pages

• Expert insights, unique videos and resources

• Access to expertise through private, member-only

LinkedIn groups

• Customized, community-related continuing

education courses

“I have joined several interest communities and look

forward to receiving the biweekly e-newsletters because

they help me to stay informed on the latest issues that

impact my business and clients.”

Bona K. Allen, senior VP/CFO, Kajima Building & Design

Group, Inc.

Enhance your membership experience by joining one or

more of the following interest communities.

How much does it cost?Community membership is complimentary with your

Society membership.

Accounting &Auditing

$

123

Business & Industry

Estate & Financial Planning

Fraud & ForensicServices

Health Care InformationTechnology

Real Estate

Taxation Young CPAs

Managementof an Accounting

Practice

GSCPAcommunities

May/June 2016 27

SOCIETY NEWS

How many communities can I join? GSCPA members can join as many online communities as

they like.

How do I join an Interest Community LinkedIn group?Visit LinkedIn.com. In the search box at the top of any

page, type in the word “GSCPA” followed by the name of

the community that you would like to join. A list of search

results will appear. In the list, click on your chosen group,

and then click the Ask to Join button.

How do I join a community? Sign up for one or more of these online communities

by visiting communities.gscpa.org, or call the Member

Services Department at 800-330-8889, extension 2986.

How can I contribute?We invite members to write and submit articles for

publication consideration. This is a great opportunity

to share your knowledge with the membership at-large.

Interested members can learn more by contacting Liz King,

assistant manager, communications at 404-504-2937 or at

lking@gscpa.org.

NEW! Have you heard?GSCPA has an exclusive video interview

series! In Focus features leading experts discussing topics of interest to the CPA profession.

This series of videos provides up-to-date

information and guidance to help you

advance as a professional.

Visit the GSCPA Studios section of GSCPA’s

website to watch the latest In Focus videos.

Recent In Focus videos: • Recruiting, Managing and Retaining

Young Talent

• Understanding How We

Communicate Subconsciously

• The Professional Development

Equation

• The CPA’s Expanding Role

• Accounting in the Digital Age

ADVISORY COUNCILSLooking for an opportunity to further serve the CPA profession and your professional association?

Volunteer to become a GSCPA Advisory Council member.

Each Advisory Council focuses on a specific interest area and intends to meet the following goals:

• Keep GSCPA members apprised of the latest trends and hottest topics

• Advise on content, analysis, and resources for the membership at-large

• Serve as GSCPA’s “Think Tanks” or “Thought Leadership Groups”

To apply to serve on a GSCPA Advisory Council, visit http://bitly.com/GSCPA-AC

Want even more value from your GSCPA membership?

Join an Interest Community today!

Current Accounts28

June 19-22, 2016 | Atlantis Resort | Paradise Island, Bahamas

GSCPA Annual Convention

SOCIETY NEWS

Annual Meeting - Monday, June 20 GSCPA’s Annual Meeting is open to all members in attendance. Don’t miss the chance to hear about what YOUR

association has accomplished over the past year and what’s in store for 2016-2017 as we welcome our new Chair of the

Board, Barbara Evans, CPA.

Highlights• Join us for the opening reception and dinner for networking and family fun on Sunday evening

• Try one of five delicious restaurants during dine arounds on Monday. The restaurants offer everything from

fresh seafood, to barbecue, to a taste of Caribbean cuisine.

• Explore everything the Atlantis Resort has to offer, including the famous “Leap of Faith,” the waterpark’s most iconic

waterslide, as well as sting ray and sea lion experiences and much more.

• Participate in a Nassau scavenger hunt or a snorkeling excursion as one of two optional activities.

TO REGISTER: Visit ac.gscpa.org

The Georgia Society of CPAs Annual Convention will be held June 19-22, 2016 at Atlantis Resort Paradise

Island, Bahamas. The convention is a family-friendly, fun-filled, four-day event allowing attendees the

opportunity to mix and mingle and meet new friends. CPAs can take advantage of the 11 hours of

CPE being offered on topics including professional issues, technology, leadership and generational

differences. Annual Convention promises something for everyone and allows you to escape to Paradise.

We look forward to seeing you at Atlantis!

May/June 2016 29

SOCIETY NEWS

SCHEDULE OF EVENTS

SUNDAY, JUNE 191 – 5 p.m. Registration

1 – 5 p.m. Exhibits Open

2:30 – 3:30 p.m. Trust Objectives vs. Tax Minimization:

What’s a Trustee to Do? -

Jim Underwood, CPA

3:30 – 3:45 p.m. Break

3:45 - 5 p.m. CPE Session - Patrick Bell

7 – 10 p.m. Opening Reception and Dinner

MONDAY, JUNE 207:30 – 9 a.m. Breakfast Buffet

7:30 a.m. – 12 p.m. Exhibits Open

8:30 – 9:30 a.m. Annual Business Meeting

9 – 11 a.m. Nassau Scavenger Hunt (optional)

9:45 – 11:15 a.m. Professional Issues Update -

Tim Christen, CPA

11:15 a.m. – 6 p.m. Explore Atlantis on your own

6:45 p.m. Dine Arounds (optional)

6 - 8 p.m. Past Presidents & Chairs Dinner (Invite Only)

9 - 10 p.m. Hospitality Reception

TUESDAY, JUNE 217:30 - 9 a.m. Breakfast Buffet

9 a.m. Snorkeling at Stuart’s Cove (optional)

1:30 – 4 p.m. Exhibits Open

2 – 3:20 p.m. Tips and Techniques on Public Speaking

and Presentation Skills -

Peter Margaritis, CPA

3:20 - 3:30 p.m. Break

3:30 - 4:50 p.m. Leveraging Your Leadership Through

Improvisation - Peter Margaritis, CPA

5:30 - 9:30 p.m. Kids Club (ages 5-12)

6 - 9 p.m. Chair’s Reception and Banquet

9 - 11 p.m. Hospitality Reception

WEDNESDAY, JUNE 227:30 – 9 a.m. Breakfast Buffet

7:15 a.m. – 12 p.m. Exhibits Open

8:30 - 9:45 a.m. Managing and Motivating Multi-Generations

in the Workplace - Understand Millennials

and More

9:45 - 10 a.m. Break

10 - 10:50 a.m. Technology Update - Calvin Wong

10:50 - 11 a.m. Break

11 a.m. - 12:15 p.m. Town Hall Meeting - Boyd Search, CAE

12:15 p.m. Adjourn

Courtesy blocks have been set up at several restaurants for

Monday evening. You will choose a restaurant upon arrival on

Sunday at the GSCPA registration desk. Please note: options

are at your own cost.

OLIVES (KID-FRIENDLY OPTION) http://bit.ly/OlivesAtlantis

Todd English’s take on Mediterranean cuisine offers a variety of

options from meat to fish to various pasta and flat bread pizza

dishes. The Raw Bar offers a variety of seafood daily.

NOBU

http://bit.ly/Nobu_Atlantis

Featuring various sushi dishes, squid pasta and other Japanese

fare, Nobu offers a different twist by mixing items such as

jalapenos and garlic sauce into the dishes.

CASA D’ANGELO http://bit.ly/CasaDAngelo

Enjoy a blend of Tuscan entrees, southern Italian accents and

Caribbean flavors at this award-winning eatery. Enjoy a drink

from their extensive wine list and make sure you close the

evening with their espresso-soaked tiramisu.

77 WEST http://bit.ly/77WestAtlantis

Atlantis’ newest restaurant offers South American cuisine with

a taste of the Caribbean.

VIRGIL’S REAL BBQ (KID-FRIENDLY OPTION) http://bit.ly/VirgilsBBQ

This family style dining venue offers all your classic BBQ favorites

and will make you feel like you are at home while in the Bahamas.

Dine Arounds

Optional ActivitiesNASSAU SCAVENGER HUNT

$30/adult; $20/child ages 2-11 (includes transportation) Explore Nassau and see the key sights on this scavenger hunt

filled with fun, adventure and lots of history about the area.

SNORKELING AT STUART’S COVE

http://bit.ly/StuartCove

$79/adult; $39/child ages 4-11 (includes transportation and gear) Join other attendees for an exciting snorkeling excursion with

Stuart’s Cove, one of the top snorkeling companies in the

world. First explore a shallow reef and see all the beautiful sea

life that call this area home; second, visit an underwater film

location of wreckage that is being turned into a reef; and third,

swim with reef sharks that reside in the area.

Current Accounts30

SOCIETY NEWS

PROMOTIONS AND NEW POSITIONSThe Atlanta office of Warren Averett has added the

following four professionals as members (the firm’s

equivalent of shareholders): Bryan Hirsch, Susan Hill, William (Billy) Minch and Wayne Williams, Jr.

Kirschner & Associates, PC is pleased to announce that

Susan Weeks, CPA has been brought on as a managing

partner. With that, the firm has adopted the new name of

Kirschner Weeks, LLP.

FIRM NEWSMetcalf Davis is pleased to announce they have entered into

a merger with Warren Averett, effective February 1, 2016.

Warren Averett announces Emerant Wealth, a

new fee-only, holistic financial planning solution for the

emerging affluent, the retiree and the professional.

Moore Colson has been named one of Atlanta’s 2016 Top

Workplaces by the Atlanta Journal-Constitution for the

sixth consecutive year.

Smith & Howard and Smith & Howard Wealth Management recently announced the launch of a new

program for Atlanta’s high school students: Smith &

Howard’s Advancement of Rising Professionals. The goal of

this innovative program is to introduce juniors and seniors

in Atlanta Public Schools to the potential of a career in

accounting or finance.

IN MEMORIAMWe sincerely regret the loss of the following members and

extend deepest sympathy to their family and friends.

Robert R. Ellison, Jr., Columbus, Ga.

Stephen J. Hersch, Johns Creek, Ga.

Alan L. Landis, Atlanta, Ga.

Paul A. Thomas, Watkinsville, Ga.

Member News

877-277-0272

www.AkinsProfessionalBrokerage.com

David L. Akins, CPALicensed Real Estate Broker

David@AkinsProfessionalBrokerage.com

We Specialize in the Brokerage ofCPA and Accounting Firms.

CPA Partnerships uses our expertise in technology and innovation to create loyalty partnership programs for Accounting and Real Estate professionals to increase their revenue and build trust with their clients who invest in commercial real estate.

Free Estimate and Proposal for client

Wholesale rates offered to Accounting Partners

Free marketing materials for Accounting Partners

Comprehensive Cost Segregation final reports that are easy for Accountants to read

New Income stream for Accounting Firms

No AffiliaNo Affiliate or Partner fees

Online brochures

Presentation with company logo

Webpage to educate clients on the benefits of Cost Segregation

Steve Emerson

FREE UP CASH FOR YOUR CLIENTSFREE UP CASH FOR YOUR CLIENTS

(205) 807-4466

steve@cpapartnerships.com

cpapartnerships.com/steve

costsegregationhelp.com/steve

May/June 2016 31

your EDUCATIONSave time and money through GSCPAeducational offerings.

Take advantage of innovative and timely topics taught by leaders of the CPA profession.

Enjoy flexible formats that meet your needs.

your NEWSStay informed on the latest news and analysisof the topics affecting your profession.

Receive frequent updates on industry changes through resources produced with you in mind.

Get the most out of your GSCPA membership by utilizing GSCPA’s top communication vehicles.

Benefits of MEMBERSHIP

your PROFESSIONJoin fellow GSCPA members and be an active part of the collective voice of Georgia’s CPAs.

Showcase your affiliation andcommitment to the CPA profession.

Invest in the future of the profession through recruiting the best and the brightest as CPAs.

your CONNECTIONExpand your influence and connect with adiverse group of almost 14,000 peers.

Gain access to numerous volunteer opportunities to give back to your profession and your community.

Utilize career guidance and professionaldevelopment to help you advance as a professional.

Don’t lose access to these and many more valuable member benefits–Renew today!Visit www.gscpa.org or call GSCPA Member Service at 800-330-8889 ext 2986.

Current Accounts32

SOCIETY NEWS

Early Standard Late

Members $255/$365 $315/$425 $355/$465

Nonmembers $355/$465 $415/$525 $455/$565

SEMINAR FEES - Member vs. Nonmember** (One Day Fee/Two Day Fee)

**Exceptions apply. See specific event information for more details.

June 7-8, 2016Annual Accounting and Auditing Workshop**Event Code: 06002 | GSCPA Learning Center, Atlanta

June 14, 2016AICPA’s Annual Update: Top 12 Governmental and Not-for-Profit Accounting and Auditing Issues Facing CPAs**Event Code: 06005 | GSCPA Learning Center, Atlanta

June 20, 2016Financial Strategies and Decision Modeling - War Plans for the Financial ProfessionalEvent Code: 06010 | GSCPA Learning Center, Atlanta

June 28, 20162016 Current Practice Issues and Update for Audits of Employee Benefit PlansEvent Code: 06016 | Infinite Energy Center, Duluth

July 18, 2016Current Accounting and Attestation Updates for Practitioners with Small-Business ClientsEvent Code: 07007James H. Rainwater Conference Center, Valdosta

August 5, 2016Nonprofit, Government and Compliance UpdateEvent Code: 08005 | GSCPA Learning Center, Atlanta

August 10, 2016Annual Update for Preparation, Compilation, and Review Engagements**Event Code: 08010 | Hilton Garden Inn Albany, Albany

August 12, 2016FASB’s “Big 3” - Revenue Recognition, Leases, and Financial InstrumentsEvent Code: 08019 | GSCPA Learning Center, Atlanta

August 17, 2016Accounting and Auditing Update for Small Businesses**Event Code: 08023 | GSCPA Learning Center, Atlanta

August 19, 2016Governmental and Not-for-Profit Annual Update**Event Code: 08028 | Doubletree Hotel Augusta, Augusta

September 8, 20162016 Accounting & Auditing Update for the Real WorldEvent Code: 09002Oconee Fall Line Technical College, Dublin

September 20, 20162016 Compilation & Review Update for the Local FirmEvent Code: 09010 | Central Georgia Technical College, Macon

September 26, 2016A&A Year in Review: Exploring the Latest Issues and Challenges Facing CPAsEvent Code: 09018 | Coastal Georgia Center, Savannah

October 27, 20162016 Accounting & Auditing Update for the Real WorldEvent Code: 10038 | GSCPA Learning Center, Atlanta

November 15, 2016U.S. GAAP Review for Business and Industry**Event Code: 11046 | Central Georgia Technical College, Macon

December 12, 2016Don Farmer’s 2016 Federal Tax Update (CFP)Event Code: 11045UGA Tifton Campus Conference Center, Tifton

December 15, 2016Don Farmer’s 2016 Pre-Tax Season Review for Individual Returns (CFP)Event Code: 12064 | Cobb Galleria Centre, Atlanta

December 16, 2016Don Farmer’s 2016 Pre-Tax Season Review for Corporate Returns (CFP)Event Code: 12065 | Cobb Galleria Centre, Atlanta

Many of these events are offered in multiple locations. For the full list of education events in your area, please visit the Online Event Catalog at www.gscpa.org.

**Qualifies for $30 AICPA discount

Essential Updates for 2016

May/June 2016 33

The self-study tests in the back of every issue of Current

Accounts are a quick and easy way to earn two hours of

CPE, and each test is available for two years.

The January/February 2016 self-study test will be

available until February 28, 2018. Take each test as you

receive the issue or wait and take them all at one time.

For more information on how to take a test, see page 36.

March/April 2015 - Self-Study Test # CA50304

May/June 2015 - Self-Study Test # CA50506

July/August 2015 - Self-Study Test # CA50708

September/October 2015 - Self-Study Test # CA50910

November/December 2015 Issue - Self-Study Test # CA51112

January/February 2016 Issue - Self-Study Test # CA60102

< March/April 2016 Issue

Self-Study Test # CA60304

May/June 2016 Issue >

Self-Study Test # CA60506

REGISTER ATCASELFSTUDY.GSCPA.ORG

Current Accounts Self-Study

SOCIETY NEWS

March/April 2016 | Volume V, Issue 2

The Georgia Societyof CPAs

Should YouOutsource Your IT?PAGE 16

Forensic Interviewand InterrogationPAGE 24

PAGE 8

T h e G e o r g i a S o c i e t y o f C PA s

T h e G e o r g i a S o c i e t y o f C PA s

Surprise!You’re a GlobalOrganization

Frequent Frauds Found in Governmentsand Not-for-ProfitsJune 3, 2016 | Event Code: LS06001

Advanced Topics in a Single AuditJune 13, 2016 | Event Code: LS06004

AICPA’s Annual Update: Top 12 Governmentaland Not-for-Profit Accounting and Auditing Issues Facing CPAsJune 14, 2016 | Event Code: LS06005

Advanced Controller and CFO SkillsJune 29, 2016 | Event Code: LS06017

Analytics and Big Data for AccountantsJune 30, 2016 | Event Code: LS06018

Taxation of Individuals Living Abroad and Foreign Nationals Living in the U.S.July 19, 2016 | Event Code: LS07008

Condos & HOAs: Advanced Accounting, Auditingand Other IssuesJuly 20, 2016 | Event Code: LS07013

S Corporations: Key Issues, Compliance,and Tax StrategiesJuly 20, 2016 | Event Code: LS07014

The New Leasing Standard: It’s Here and It’s HugeJuly 21, 2016 | Event Code: LS07015

Postmortem Estate PlanningJuly 26, 2016 | Event Code: LS07020

Live stream allows you to attend the conference or seminar from your home, office, or anywhere you can access the Internet. You view the sessions in real-time as part of the audience and have interaction with other attendees via chat areas.

Available Live Streams

REGISTER ATOLC.GSCPA.ORG

May/June 2016 | Volume V, Issue 3

2016 Legislative Session:Bills Important to the CPA ProfessionPAGE 14

PAGE 8

T h e G e o r g i a S o c i e t y o f C PA s

T h e G e o r g i a S o c i e t y o f C PA s

WORKS FOR Y UYour GSCPA Membership

RENEW YOUR M

EMBERSHIP TODAY!

To

renew your

membership,

please visit

www.gscpa.org.

Your Profession, Your Voice

Current Accounts34

BUSINESS SERVICESPrivate Money Investment Goldmine

Atlanta Commercial Loans Inc. represents Direct Lenders

& Private Investor’s with minimal loan document

requirements. We provide funding for commercial and

residential real estate projects with starting rate

of 6.25%. Contact Tony Amini 800-706-1321

tony@atlantacommercialloans.com.

http://www.atlantacommercialloans.com/

International Tax Services. Expert cross-border tax

planning, structuring and tax return compliance review

services for your firm’s international business and

expatriate-individual clients. We also provide professional

opinions for complex international business and financial

transactions. To discuss more today, contact Anthony

Malik, Point Square Consulting; (770) 845-9289;

tony@pointsquaretax.com.

Firm-on-firm reviews: Fowler, Holley, Rambo and Stalvey,

PC is interested in performing your firm’s peer review.

Personnel have 35 years review experience. Contact Richard

Stalvey for qualifications, references, and a proposal. P.O.

Box 1887 Valdosta, Ga. 31603; 229-244-1559.

Peer reviews for sole practitioners and small firms. We have

the client base, technical skills, plus the understanding, to

help your firm. Fifteen years of peer review experience with

150 firms ensures efficient work on engagement reviews.

Contact Jennifer Cherry or Steven Rea, Crescent Centre,

Tucker. 770-455-8706, jennifer@kilpatrickcpa.com or

steve@kilpatrickcpa.com. www.kilpatrickcpa.com.

Business Valuations: Formal valuations, consulting services

for CPAs/clients. Areas: Estate & Gift Taxes, Family Limited

Partnerships, S Corp conversions: built-in tax gains, SBA

7(a) Valuations, Acquisition/Sale/Merger of Business.

Contact Marvin T. Brown, CPA/ABV, CVA, Brown Valuation

Group, for qualifications, references, and a proposal.

706-254-3134 or 770-447-1300.

IRS and State Representation. Attorney & CPA available

to consult with your firm or your clients on IRS and state

matters. Audit, appeal, collection or criminal matters

including offers in compromise, foreign bank accounts,

bankruptcy discharge of tax and non-filers. Practicing in

Atlanta since 1982. Call Jeffrey S. Gartzman, The Gartzman

Law Firm, PC; 770-939-7710; jeff@gartzmantaxlaw.com.

POSITIONS AVAILABLECome join us at Roberts DeWitt LLC. We are seeking

to expand our team of CPAs, accountants and business

advisors with experienced tax professionals committed

to client service and team work. We offer a pleasant, fun

and dynamic work environment. Interesting, high-level,

complex clients. Very competitive compensation package.

Opportunities for advancement. Emphasis on professional

education, training and self improvement. Flexible work

schedules. An environment that fosters professional growth

and technical expertise. And, we are centrally located near

historic downtown Roswell. Positions currently available:

Tax Senior; Tax Manager; Senior Tax Manager; We can be

reached at 678-352-8258 (contact Marc Fialdini) or www.

robertsdewitt.com. Resumes can be emailed to marc@

robertsdewitt.com or faxed to Marc Fialdini at

678-278-1223

CLASSIFIEDS

May/June 2016 35

MAIL FILE BOX RESPONSES TO:GSCPA File Box ____

Six Concourse Parkway, Suite 800

Atlanta, GA 30328

CLASSIFIEDS

North Atlanta/Perimeter Area CPA firm looking for an

established audit manager/partner to take over and

grow our audit practice. The firm currently performs

approximately 25 audits. Need to have audit experience at

the partner or manager level and preferably a client base

which can be brought into the firm. Please respond to: lori@

frickecpa.com or 770-216-2226.

OFFICE SPACE/ACQUISITIONSNW Metro CPA firm with unique practice model seeking

small practitioner to include in practice. Excellent

opportunity for the small practitioner to reduce expenses,

add service capability, and retain ownership of clients.

Call Tom Tripp, (770) 565-2422 or email

tom.tripp@tcc-cpa.com.

We are an established North Atlanta CPA firm growing

through the merger or acquisition of accounting/audit/tax

practices. Owner of the acquired firm may continue to work

during and after a transition period. We are also interested

in acquiring practice segments. Please respond to GSCPA

File Box 456.

PRACTICES FOR SALEFulton County, GA: 65% tax with balance consisting of non-

audit accounting services. Estimated revenues $700,000.

Visit our website at www.akinsprofessionalbrokerage.com to

track new listings. Call David Akins, CPA at (877) 277-0272.

Email: david@akinsprofessionalbrokerage.com

ABA Advisors, LLC represents a 110K Tax Practice for Sale

in the Dunwoody, GA area. High average fees. Contact

Chuck Hayes at 317-546-7720 or ch@AcctSales.com.

Website: www.AcctSales.com

Snellville area CPA $150,000 ... Atlanta-Tucker CPA

$190,000 ... Peachtree City area CPA $300,000 ...

Dunwoody-North Perimeter CPA $550,000 ... Marietta CPA

$175,000 ... North GA-Chattanooga area CPA $500,000 ...

Blairsville area CPA $185,000 ... Canton CPA $600,000 ...

Greenville SC CPA $380,000 ... Jonesboro Tax $300,000+

... Many others throughout the Southeast. Contact Leon

Faris, CPA at Professional Accounting Sales. Telephone

770-859-0859 or 800-729-9031, or visit our website at:

www.cpasales.com. Let our 33+ years of experience work

for you.

CONTACT US:To place a classified ad, please contact

Andrew Lloyd, assistant manager, strategic

relationships at alloyd@gscpa.org.

Current Accounts36

How do you earn a quick two hours of CPE? Take the self-study test provided in each issue of Current Accounts. Simply answer the 10 questions based on content in Current Accounts and submit your answers to GSCPA. Receive a grade of 70% or better and earn two hours of CPE credit.

*Please Note: All Current Accounts self-study tests are available for two years from the issue date.

PRICING Online PrintMembers $25 $30Nonmembers $50 $60

ONLINE INSTRUCTIONS1. Go to caselfstudy.gscpa.org.2. Click on “Register Here” for the appropriate issue.3. After registering, you will receive an email

confirmation with a link to the self-study test. Look for “CURRENT ACCOUNTS SELF-STUDY TEST” in the body of the email.

4. Complete the test and click “Submit” when you are finished.

5. Print the confirmation page for your records.

PRINT INSTRUCTIONS1. Detach the test insert from Current Accounts.2. Take the test, recording your answers on the answer

sheet by filling in the appropriate circle.3. Complete the registration and payment information.

Payment must be submitted with the test. Print clearly.

4. Mail this page, along with your payment, in an envelope to: The Georgia Society of CPAs Current Accounts Self-Study Test Six Concourse Parkway, Suite 800 Atlanta, GA 30328 OR Fax to the CPE Department at 404-237-1291.

ANSWER SHEET

1.

2.

3.

4.

5.

a b c d

a b c d

a b c d

a b c d

a b c d

6.

7.

8.

9.

10.

a b c d

a b c d

a b c d

a b c d

a b c d

REGISTRATION INFORMATION

PAYMENT INFORMATION

Full Name Member #

Company/Firm Name

Address

City State Zip

Phone Fax Email

q Check for $_______ made payable to

The Georgia Society of CPAs

q Amount to charge to credit card $_____________

q Discover q MC q AmEx q Visa q Personal OR q Company Card

Card Number Exp. Date (required)

Name as it appears on card

Signature

QUESTIONSIf you have any questions about this test, please contact the CPE Department at 404-504-2985.

TEST RESULTSUpon completion of the test, your answers will be graded and within two business days you will either receive an Event Acknowledgement stating you passed the test along with certificate of attendance or an email stating you did not pass along with a link to retake the test.

ATTRIBUTIONThe Self-Study Test is developed and written by Lowell Mooney, Ph.D., CPA, professor of accounting at Georgia Southern University.

May/June 2016 | Test No. CA60506

Current Accounts Self-Study Test

SELF-STUDY

May/June 2016 37

Current Accounts Self-Study Test

SELF-STUDY

Your GSCPA Membership Works for Youi1. Which of the following is not a GSCPA publication designed to help you stay on top of professional news?

A. Current Accounts

B. GSCPA.ORG

C. The Voice

D. Your Connection

2. Advocacy is one of the GSCPA’s core purposes. Select the non-advocacy related response.

A. Key person program

B. Political action committee

C. Bribes and kickbacks

D. CPA Day at the Gold Dome

3. Which of the following is not a way that you can team up with fellow GSCPA members to give back?

A. Educational Foundation

B. Millennial Money

C. Accounting Food Fight

D. All of the above

2016 Legislative Session: Bills Important to the CPA Profession4. Which of the following 2016 bills had been vetoed by the Georgia governor as of the publication of this issue of Current Accounts?

A. The Conformity Bill

B. The Free Exercise Protection Act

C. The Unmanned Aircraft Systems (Drones) Bill

D. The Professional Regulation Reform Act

5. This bill could potentially provide significantly greater oversight of the State Board of Accountancy:

A. The Professional Regulation Reform Act

B. The Conformity Bill

C. The Free Exercise Protection Act

D. The Unmanned Aircraft Systems (Drones) Bill

E. The Georgia Professional Regulation Reform Act

While You Were Away: Tax Updates from the 2016 Filing Season 6. Updated provisions emphasizing issue-based examinations, the preservation of penalties, and mandatory IDR enforcement procedures are associated with

A. Form 3115

B. Form 5500

C. Publication 5125

D. Form 8971

Employee Benefit Plan Audit Quality Issues7. Department of Labor research indicates that auditors need to improve employee benefit plan audits. Which of the following was not recommended?

A. Customize audit procedures to the specific risks in the plan’s

provisions.

B. Document who did what, what they found, and what they did

about it.

C. Test participant accounts thoroughly to ensure participant

eligibility, contributions, investment elections, account

income, distributions and forfeitures are handled properly.

D. Do not attempt to audit employee benefit plans that have

fewer than 99 participants.

Taking an Innovative Approach to Communication in the Corporate World8. Which of the following actions was not advised?

A. Use corporate jargon as often as possible because it sparks

creative thinking.

B. Choose buzz words carefully.

C. Replace the words, “No” and “Yes, but …” with “Yes, and …”.

D. Use improv to promote active listening.

Tablets, Accounting, and Technology Changes9. Which of the following is not a disadvantage of tablets?

A. Limited features due to small footprint

B. Weight

C. Number of available models

D. The number of ports or connectors

Identifying Probable Deception Through Observation and Behavior 10. Which of the following is true when conducting interviews designed to spot deception:

A. Calibrate the interviewee for truthfulness early in the

interview

B. Ask about sensitive and key areas from the very start of the

interview

C. Concentrate and focus on just one area of the interviewee’s

body for signs of deception

D. Make it clear that you and the interviewee are adversaries

Current Accounts38

MEMBER VIEW

Please Note: The views and interpretations reflected below are those of the author and do not necessarily reflect an expression of opinion on the part

of The Georgia Society of CPAs.

I have two children who are

seven years apart in age and

eons apart in their approach

to learning. My son, who by his own admission is not

responsible, floated through school without a care. On

the other hand, my daughter looks for things to worry

about and take ownership of. Early on, my husband and I

established the requirement that they both do their best.

But in order for them to accomplish their best we couldn’t

just leave it at that, we had to equip them. With my son, we

had to be very active in the learning process and stay on

top of things. My daughter didn’t require as much active

help on our part, but we did find a reliable tutor to help in a

weak area.

All of that being said, my husband and I felt that it was

our responsibility as parents to encourage and equip our

children to meet our requirement that they do their best.

We had to provide the tools needed in order for them to

succeed.

As GSCPA members and experienced CPAs, shouldn’t we

take that same approach to the up and coming accounting

students in Georgia? Shouldn’t we be willing and eager to

provide them with the tools and encouragement that they

need in order to succeed?

Beverly Smith, CPA, CFE, CGMA, MBA is a partner at WJR CPAs. With 10 years’ experience, Beverly’s focus is on audits of small businesses and non-profits, as well as tax analysis and preparation; working with limited liability companies and partnerships and individuals; and compilations and reviews. She is a licensed CPA, CFE and CGMA in Georgia, and an active member of the American Institute of Certified Public Accountants (AICPA) and The Georgia Society of Certified Public Accountants (GSCPA) where she serves on the Leadership Council and the Educational Foundation Executive Board.

That is exactly what The Educational Foundation of

GSCPA does in so many ways. Among other programs

and initiatives, the Foundation provides scholarships and

awards, funds for professional awareness events, matching

funds for local chapter scholarships and support for our

accounting educators.

The mission of The Educational Foundation of The

Georgia Society of CPAs is to encourage the best and the

brightest individuals in Georgia to become certified public

accountants.

The Educational Foundation can only accomplish its

mission through the continued support and donations of

the members of GSCPA. The most convenient way for each

of you to make a donation is through the check box on the

annual dues statement. What could be easier than simply

checking a box and including a donation to the Foundation

when you pay your annual dues? The check box donation

to the Educational Foundation is available online or on

your paper statement, whichever you prefer. The suggested

donation is $25 but it can be amended to any amount, lower

or higher.

Just like parents, we have a responsibility to encourage and

equip the students who are the future of our profession.

We want the best and brightest, we expect the best and

brightest, so we need to provide them with the tools they

need to become the best and brightest.

Encouraging the Best and the BrightestBeverly Smith, CPA, CFE, CGMA, MBA

T h e G e o r g i a S o c i e t y o f C PA s

May/June 2016 39

To register, visit the event catalog at www.gscpa.org or call GSCPA’s CPE Department at 404-504-2985.a

2016 GEORGIA FEDERALTAX CONFERENCEJune 9-10, 2016 | Cobb Galleria Centre, Atlanta, Georgia

Event Code: 13075 | LS13075

Credit: 16 hours CPE Credit

12.3 hours CLE Credit at $5 per hour (applied for)

16 hours CLU Credit (applied for)

16 hours CFP® Credit (applied for)

The Georgia Federal Tax Conference is designed for

experienced tax professionals and features up-to-date

changes in tax law and the latest from Washington,

D.C. in anticipation of future developments.

The Conference focuses on one specific area of

knowledge each day. Day one will discuss trending

topics related to estate planning. Day two will delve

into income tax issues.

Six Concourse ParkwaySuite 800Atlanta, GA 30328

The Georgia Societyof CPAs

PRE-SORTEDSTANDARD

U.S. POSTAGE PAIDATLANTA, GA

PERMIT NO. 6495

To register visit www.gscpa.org or call 404-504-2985 or 800-330-8889, Opt. 3

August 25-26, 2016 | Cobb Galleria Centre, Atlanta | Event Code: 13085

KEYNOTE SPEAKERSChip Moore

SunTrust Park and the Battery

Mr. Moore was named the Braves’

Chief Financial Officer after

spending the previous 12 seasons

as Senior Vice President and Controller. Moore was

instrumental in the Braves’ efforts to secure SunTrust

Park, which is currently under construction and is

scheduled to open in Cobb County in 2017.

Denise Ryan

Leadership from the Kings of

Chocolate

Denise Ryan is an author, an MBA

and a CSP (Certified Speaking

Professional), a designation of excellence that is held by

less than 10% of professional speakers. She has worked

with IBM, Wells Fargo, even the Department of Homeland

Security. She recently made Meeting & Convention

Magazine’s list of planners’ favorite speakers.