President's Message
By Marja Beltrami
March! The sun is back and everyone from industry to public should be in full swing now! This is the time of year when being an accountant and living in Alaska work well together, unless you are an avid skier, especially this year. When the tax work is done; the audits signed off on and we pick our heads up to look out the window again, spring will have sprung!
During this very busy time of year, don’t forget to take care of yourself, your staff and your family. What you eat, staying physically active (and no, twirling around in your desk chair does not constitute physical activity) giving yourself, and others, time to rest, recoup, reflect, meditate. The whole you, not just the accountant you,is important. If you attend to the whole self, the accountant in you will perform much stronger and efficiently.
Are you getting a deep sleep every night? A healthy body and a clear mind will take you a long way. This time of year is a good time to take stock of what you are putting into your body. Read the ingredients of the food you are buying. It shouldn’t have high fructose (corn) syrup in it, unless you are buying Karo Syrup. (Take the challenge; try to buy food without high fructose syrup or corn syrup in it. It is so pervasive it will shock you.) You should be able to read and pronounce the ingredients in what you are eating. Do you drink a lot of coffee (any caffeine drink) but still have trouble making it through the day, and you swear coffee has no affect on you? Try stopping. Stop drinking the coffee and get past the 2 days of headaches and see how good you’ll feel. See if you can eat food that contains one ingredient in it; the food you are eating. (For example, if you want a potato does the ingredient list say “potato” and end there.) Replace all the snack food in the office with nuts, fresh berries and fruit, and oooohhh, yummy 100% real chocolate chocolates, dark or light. Get rid of your artificial sweeteners and diet drinks. We don’t need and shouldn’t have all those chemicals in our diets. Try a “clean program” or a detoxification program. Busy season is a great time to try something like this. Don’t get caught up in one that only has lemon juice and chili pepper. It should be nutritionally complete and healthy, including proteins. And don’t forget to move! Take that lunch hour and with your lunch, take a walk, stretch, hit the club, move!
And the best part of taking care of yourself during tax season is twofold, a more productive you, and when its all over, you and your body will be ready for summer!!!
So enjoy the season and the return of the sun! Finally, I will leave you with a quote from Charles Dickens’ Great Expectations.
“It was one of those March days when the Sun burns hot and the wind blows cold; when its summer in the light and winter in the shade.”
Why am I a member of the AKCPA?
By John Rodgers, Past President
Often times when you are asked to write about why you like something, the answer may be difficult to articulate in a thoughtful way. You know you like it, but perhaps you never formally expressed it in words. This was not the case when I was asked why I became a member of the Alaska Society of Certified Public Accountants (AKCPA).
Without a doubt, it's the relationships. Over the years I have developed close personal relationships with many of my peers. Some of the people I would have never met without seeing them at Society events and seminars. I know, on a moment’s notice, if I need something, there are a group of people ready to stop what they're doing to lend a hand or offer an objective opinion.
There are other reasons; such as adhering to a higher set of professional standards, the CPE discounts, the networking, and staying connected to the national concerns of our industry. These and my close relationships are all valuable resources that improve my ability to provide the best service possible to my clients and the community.
The AKCPA has proven to be a key component to my success!
AKCPA 2012 Annual Meeting
Register by March 30th to be entered in a drawing to win a CPE Season Pass
Join us for this year’s Annual Meeting at Land’s End Resort in Homer, AK. It kicks off on Wednesday, May 30th with a welcoming reception at Bear Creek Winery. Thursday, May 31st starts with a full day of leadership training by Jennifer Wilson. Jennifer is a co-founder and partner of ConvergenceCoaching, LLC. Named as one of Accounting Today’s 100 Most Influential People in Accounting, INSIDE Public Accounting’s Top 10 Most Recommended Consultants, and CPA Technology Advisor’s Top Thought Leaders in public accounting. Thursday evening will conclude with the Awards Banquet.
Friday, June 1st begins with a hearty breakfast followed by the annual business meeting. What is ahead for AKCPA in 2012? What does the future of the Society look like? The Board wants to hear from you to help develop a strategic plan and goals for 2012 and beyond.
We encourage you to take advantage of this opportunity to contribute to your professional organization and let your voice be heard. All Society members are encouraged to attend including board members, committee chairs and members.
There will be plenty of time to meet and mingle throughout the meeting. We look forward to seeing you at these events and making this a successful and fun annual meeting.
Sincerely,
Marja Beltrami, AKCPA President
Schedule of Activities
Wednesday May 30, 2012 6:00 pm to 7:30 pm Welcoming Reception Wine Tasting and Appetizers at Bear Creek Winery
Thursday May 31, 2012 8:00 am to 4:00 pm CPE
5:30 pm Cocktail Reception 6:30 pm “Jay A. Ofsthun” Distinguished Service Award and Public Service Award Banquet
Friday June 1, 2012 8:00 am to 8:30 am Breakfast Buffet 8:45 am to 11:00 am Annual Business Meeting
11:45am Meet at the Homer Spit for theDanny J. Ferry tour to Halibut Cove Departs promptly at NOON Box Lunch provided
CPE Course Description
Striving To Be An Inspiring, Accountable and Difference Making Leader
Driving growth in your organization requires a willingness to change your own behaviors and lead by example.
¨ Enhance your leadership, accountability and conflict management skills
¨ Manage change within your firm and your life
¨ Understand the psychology and mechanics of change, how to adapt to continuous change, and methods for moving others along the change adoption curve
¨ 20 most important leadership attributes and your strengths and weaknesses within them
¨ Take ownership of your clients, projects, and initiatives
¨ Effectively delegate and assign ownership to others
¨ Strategies for being accountable and holding others accountable
¨ Conflict management styles
¨ Underlying causes of conflict situations
¨ Handle conflict situations more strategically and with more success
¨ A simple feedback methodology you can use with others
Leave this thought-provoking session with the tools you can implement in your work and home life, share with others and put into action right away!
Land’s End Resort Hotel Accommodations –Early reservations
1-800-478-0400 or 907 235-0400 (Identify yourself as part of the Alaska Society of CPAs for the group discount). The group rate is good for 1 day before and after the event.
Registration Fees
Full Registration
Includes: 8hrs CPE, Welcoming Reception, Annual meeting and all meals
$350 by May 1st – AKCPA Members Only
$400 after May 1st – AKCPA Members Only
Non Members…………….….….... $445
Thursday CPE (8 hrs), breakfast & lunch
Guest…………………………..……… $120
Includes Wednesday reception, Thursday all meals and Friday Breakfast
Friday Ferry to Halibut Cove ………. $70
(per person) Includes Box Lunch
Business meeting only ..…… no charge
Registration Form
Name___________________________________________________________
Guest _________________________________________________________
Address________________________________________________________
Phone ____________________________ Email ________________________
City_____________________________State_____________ Zip__________
Credit Card #______________________
Expiration Date______CVV code _______
Please charge my account for $__________ Check Enclosed $__________.
Please return to: AKCPA 341 West Tudor Rd. #105 Anchorage, AK 99503 or email akcpa@ak.net
Phone 907 562-4334 or fax 907 562-4025
Greetings fellow great State of Alaska Society members!
As most of you know, our society works diligently on professional development, whether it relates to maintaining, developing or honing our skills sets and practice areas; keeping on top of regulation, professional standards, or legislation; providing a voice of advocacy on a national level; or representing and promoting our profession and members to the public. In order to facilitate those activities our Society relies on its committees, task forces, and action groups and this is the time of year we are developing our rosters.
These groups are the backbone of organization and represent the society’s endeavors on many fronts but they also represent an opportunity for professional growth on several levels including networking, leadership development and team building, task management, and communication skills building. Speaking personally, they can also be a lot of fun!
I know now is the time of year when many of us are at our busiest but I urge you to take a glance at the many opportunities you have to participate and check a box or two on our website at http://www.akcpa.org/about/committees or fill in the card. Consider your staff and evaluate if anyone there would benefit and urge them to consider joining an area of interest. Like life, our society is what we will make of it. Don’t be a bystander- participate!
Sign- up starts today for the 2012- 2013 year. Please call Linda if you have questions. See you all at the annual meeting in Homer on May 31st!
Regards,
Bethe Davis, Your Pres.- Elect
Join the Action! Join a Committee or Task Force in 2012
“America Counts on CPAs”
Help build a better profession through active participation on a Committee and Task Force. Committees are concerned with issues affecting members in public practice, private industry, government and education. Task Forces will be formed as necessary to complete projects and work on issues as they arise.
The results of Committees and Task Force deliberations will have a direct impact on the decisions made by the Officers and Directors of the ASCPA, as they continue to serve the ever-growing membership and profession.
Your participation on a Society Committee or Task Force will bring you together with other professionals to accomplish tasks designed to increase technical knowledge of members, enhance the image of the profession or enhance the role of the CPA in the marketplace and community.
AKCPA action begins with you!
VOLUNTEER TODAY! STANDING COMMITTEES
To assist and enable Alaska CPA’s to maintain and improve the quality, competency, and practical application of performing attest services in the State by providing a forum to discuss existing and proposed attest standards and generally accepted accounting principles.
- Continuing Professional Education
To enable the members of the Alaska Society to develop and maintain high standards of competence by providing a variety of high quality, educational opportunities on a timely basis in convenient locations, and at a fair price.
To maintain high ethical standards for the profession and to interpret, publicize and enforce the Code of Ethics.
360 Degrees of Financial Literacy is a national effort of the CPA profession to improve the financial understanding of Americans. It provides a comprehensive approach to financial education, focusing on the information that people need to have for each stage of their lives from childhood to retirement.
To recommend legislative policies and goals to the Board of Directors and the State Board of Public Accountancy; take necessary actions to achieve programs approved by the Board; maintain constant liaison with members of the legislature.
- Management of An Accounting Practice
To aid members in improving their ability to deal with the management of their practice.
To insure the continued growth of the Society through the nomination of members for leadership positions within the AKCPA.
To improve and maintain regular channels of communication with administrators, teachers and students of local educational institutions. To stimulate interest in the accounting profession among elementary through high school, community college and college students. To promote the cooperation between educational institutions and the Society in training accounting professionals who are well equipped to meet the requirements of Alaska employers.
To assist members in maintaining and expanding their professional competence, to maintain liaison with Alaska members of Congress, the Alaska legislature, the Internal Revenue Service, appropriate state and local taxing authorities and the AICPA Federal Taxation Division to work for needed reforms in tax legislation, and to review existing and proposed legislation and regulations and initiate action as required.
Issues involving technology as it impacts the Society including computers, internet, web portals and actively search for new and innovative ways to integrate technology within the society.
TASK FORCE AREAS
Administrative Task Forces will include Bylaws changes, Membership, Awards, and other emerging areas pertaining to Administrative Issues.
Industry Task Forces will be formed for issues pertaining to Banking, Manufacturing, Service, and other Industry areas and government.
Membership Services Task Forces will include Emergency Assistance, Membership Involvement, Annual Meeting and Monthly Luncheon meetings.
To develop a program of public information and public relations; improve public acceptance of the CPA and the accounting profession; coordinate public service activities with other committees and the AKCPA membership.
Emerging issues which may arise pertaining to the Alaska CPA Statutes and Regulations; the Uniform Accountancy Act or other State Board of Accountancy issues.
To formulate suggested policies in order to implement the goals established to further strategic planning for the society, study and evaluate the AICPA’s Strategic Planning Model.
Other Task Forces will be formed as needed for issues pertaining to Society or the Accounting Profession in which members may wish to participate.
AKCPA 2012-2013 Committee/Task Force Card
Complete and return to AKCPA: email akcpa@ak.net or fax 562-4025
Name ________________________________________________________
Firm _________________________________________________________
Phone _______________________ Fax _____________________________
Address ______________________________________________________
City ____________________________State ____________Zip___________
Email _________________________________________________________
Committee Preference ___________________________________________
Task Force area of Interest _______________________________________
2012 Season Pass
The Season Pass offered for $1,300 gives you up to six(6) eight hour seminars for a total of 48 continuing professional education hours. Joint members of both the AKCPA and the AICPA are entitled to a discount of $100 on the price of the Season Pass.
NO SHOW POLICY
Eight (8) credit hours will be deducted from the total hours purchased for all participants that do not show up for a seminar for which they have registered.
The Season Pass is nontransferable and the early registration does not apply.
Registration
Registering for courses may be done at the time you purchase the season pass. Or you may register for a class when you receive the email notification for an individual course. Email notifications are sent out 4 to 6 weeks prior to a class. The CPE Tracker will track the number of course you are allowed to sign up for online. Sign up on line at http://www.akcpa.org/cpe/season_pass.
Cancellation Policy
Cancellations for season pass registrations; received three weeks prior to the course date will not be assessed a cancellation fee. However, cancellations received after the three week cut-off will be billed the cost of the participant manual. Exceptions to the cancellation policy will be handled on an individual basis by the CPE Committee.
Alert: New Email Phishing Scam Uses AICPA Logo
Published February 17, 2012
On Thursday February 16, 2012, the AICPA became aware of a fraudulent email phishing scam using an AICPA banner and referencing the recipient’s possible involvement in an unlawful income tax refund activity that was sent to numerous individuals, CPAs, non-CPAs and members of the general public.
Messages may appear to come from senders such as the AICPA, Southwest Airlines, American Airlines or other well known sources including the Better Business Bureau.
This email is not from the AICPA nor from the AICPA database. Do not open any attachment or click on any link as the email may contain a virus. While the exact source has not yet been determined, we are actively investigating the situation.
On Friday, February 17, the
Better Business Bureau reported that a new round of phishing scams is using a BBB.org email address along with the American Institute of CPAs logo and name. The message informs recipients that their CPA license is being terminated due to tax fraud allegations and encourages them to click on a link and reply to the charges. The link leads to a third party website that downloads a virus on to the recipient’s computer.
If you wish to speak with an AICPA member service specialist, call 888.777.7077 and select option 1.
PCAOB Announces Settled Disciplinary Order for Audit Failures Against Ernst & Young and Four of its Partners
Ernst & Young to Pay $2 Million to Settle Charges
Washington, DC, Feb. 8, 2012 -- The Public Company Accounting Oversight Board today announced a settled disciplinary order censuring Ernst & Young LLP, imposing a $2 million civil money penalty against the firm, and sanctioning four of its current and former partners for violating PCAOB rules and standards.
The $2 million civil money penalty against the firm is the Board's largest civil money penalty to date.
The order related to three E&Y audits of Medicis Pharmaceutical Corporation, and a consultation stemming from an internal E&Y audit quality review of one of the audits. The respondents agreed to settle without admitting or denying the Board's findings.
"These audit partners and Ernst & Young — the company's outside auditor for more than 20 years — failed to fulfill their bedrock responsibility," said James R. Doty, PCAOB Chairman. "The auditor's job is to exercise professional skepticism in evaluating a public company's accounting and in conducting its audit to ensure that investors receive reliable information, which did not happen in this case."
In the audits of Medicis's Dec. 31, 2005, 2006 and 2007 financial statements, the Board found that E&Y and its partners failed to properly evaluate a material component of the company's financial statements — its sales returns reserve.
In connection with a 2008 inspection of E&Y's audits of Medicis, the PCAOB Division of Registration and Inspections staff questioned E&Y's acceptance of the company's accounting for its sales returns reserve. E&Y ultimately concluded that Medicis's reserving for its sales returns was not in conformity with U.S generally accepted accounting principles (GAAP).
The company corrected its accounting for its sales returns reserve and filed restated financial statements with the Securities and Exchange Commission as a result.
The Board found that during the audit periods in question, E&Y and its responsible partners failed to comply with PCAOB standards in evaluating Medicis's practice of reserving for most of its estimated product returns at the cost of replacing the product, instead of at gross sales price.
The Board also found that, in auditing the company's Dec. 31, 2005 financial statements, E&Y and its responsible partners violated PCAOB standards by accepting the company's basis for reserving at replacement cost when the auditors knew, or should have known, that it was not supported by the audit evidence.
The Board further found that, two months later, during an internal audit quality review of the Dec. 31, 2005 audit, E&Y personnel who were not associated with the audit identified the rationale as conflicting with both GAAP and E&Y's internal accounting guidance that specifically addressed revenue recognition for sales with rights of return. Rather than appropriately addressing this material departure from GAAP, E&Y and its personnel wrongly decided in an internal consultation that another flawed accounting rationale supported the company's existing practice of reserving for most of its product returns at replacement cost.
The Board also found that E&Y and its responsible partners violated PCAOB standards in auditing the company's new methodology for calculating its year-end product returns reserve estimates for 2006 and 2007. The Board found that they failed to sufficiently audit key assumptions and placed undue reliance on management's representation that those assumptions were reasonable.
"Accounting firms and their personnel must continually evaluate their clients' accounting and related disclosures, putting themselves in investors' shoes. The audit standard violations outlined in the Board's order are particularly troubling because, when the firm identified the problem itself in 2006, through its internal inspection program, it failed appropriately to address a material departure from GAAP regarding the company sales returns reserve," said Claudius B. Modesti, Director of the PCAOB Division of Enforcement and Investigations.
The Board initiated this proceeding on March 8, 2011, and, as required by the Sarbanes-Oxley Act, the proceeding was nonpublic. Although the Board found good cause to make the hearing in the proceeding public, and the Division of Enforcement and Investigations consented to a public proceeding, none of the respondents provided their consent. Consistent with the requirements of the Act,the proceeding therefore remained nonpublic.
In addition to the censure and fine of E&Y, the Board barred E&Y partner Jeffrey S. Anderson from associating with a PCAOB-registered accounting firm, with the right to petition to remove the bar after two years, and imposed a $50,000 civil money penalty against him. Anderson was the lead partner for the Dec. 31, 2005 and 2007 audits, and participated in the audit quality review and the consultation.
The Board barred former E&Y partner Robert H. Thibault from associating with a PCAOB-registered accounting firm, with the right to petition to remove the bar after one year, and imposed a $25,000 civil money penalty against him. Thibault was the independent review partner for the Dec. 31, 2005 and 2006 audits, and participated in the consultation in a National Office role as a member of E&Y's Professional Practice Group.
The Board censured E&Y partner Ronald Butler, Jr., and imposed a $25,000 civil money penalty against him. Butler was the second partner, supervised by Anderson, on the Dec. 31, 2005 audit, he led the Dec. 31, 2006 audit, and concurred with the consultation conclusion.
The Board also censured E&Y partner Thomas A. Christie, who was the second partner, supervised by Anderson, on the Dec. 31, 2007 audit.
The PCAOB investigation and litigation were conducted by PCAOB Enforcement staff members Mark Adler, Richard Jacobus, John Abell, Raphael Larson, Bernard McDonough, Michael Plotnick, Pamela Woodward, and Tima Hawes.
Today’s Order: In the matter of Ernst & Young LLP, Jeffrey S. Anderson, CPA, Ronald Butler, Jr., CPA, Thomas A. Christie, CPA, and Robert H. Thibault, CPA (Feb. 8, 2012)
The PCAOB is a nonprofit corporation established by Congress. Its mission is to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports. The PCAOB also oversees the audits of broker-dealers, including compliance reports filed pursuant to federal securities laws, to promote investor protection.
