IMPACT’s fourth interactive War Story covers a case involving a large embezzlement, how it happened, and how the CPA firm could have avoided it.
Jeffrey C. Hohman, CPA
Our tax engagement letters are updated for the 2014/2015 tax year and are available in the Engagement Letters Resource Center on the CAMICO Members-Only Site. Some letters have both “standard” and “expanded” versions. The expanded versions are generally intended for more complicated engagements, but please use your professional judgment as to which version is suitable for each client.
During the past 28 years that CAMICO Claims and Loss Prevention specialists have helped CPAs with fraud exposures and damages, many lessons have been learned. For instance, CAMICO claims experience consistently shows that fraud and defalcation are major contributors to significant professional liability claims for CPAs, as illustrated by the following chart on “What Causes the Big Claims.”
CAMICO policyholders now have a members-only website that is responsive to the latest browser technology, including mobile and desktop devices.
The new site offers an enhanced and more efficient experience for users with the newest browsers, and few functional changes. The user experience should be seamless and remain as secure as always. The website will also further enhance the ease of doing business with CAMICO, including our e-business functions.
Impact #103 - Consequences of Not Filing the Required Tangible Property Regulation 3115s by Tax Year 2014
What are the issues or consequences to the taxpayer and the tax return preparer if a taxpayer does not comply with the new tangible property regulations (TPRs), i.e., file the required 3115(s)?
The Internal Revenue Service (IRS) has issued guidance indicating that health reimbursement arrangements (HRAs) that do not comply with the Affordable Care Act (ACA) are subject to severe penalties.
Alert - Final Tangible Property Regulations Require Filing Application for Change in Accounting Method for 2014 Tax Year
Since the time this Alert was written, the AICPA has announced that the IRS and Treasury are considering the AICPA’s recommendations to provide relief from the reporting requirements related to the repair regulations. The AICPA stated that it is “hopeful” that the IRS and Treasury “will release some form of relief for small businesses in the next couple of weeks."
Cybersecurity issues continue to ramp up and are now being discussed by Congressional leaders and President Obama with an eye toward encouraging more cooperation between private sector companies and public sector agencies.
As you may know, SSARS No. 21 is effective for engagements on financial statements for periods ending on or after December 15, 2015, but early implementation is permitted. CAMICO offers its policyholders SSARS No. 21-compliant engagement letters that are available on the Members-Only Site under the Engagement Letter Resource Center. In addition, CAMICO has made available a short 23-minute, information-only webcast (no CPE) providing an overview of some of the changes brought about by SSARS No.
Be Among the 25 Respondents to Receive a $10 e-Gift Card
This is the third interactive War Story to be offered in IMPACT, the first two appearing in IMPACT 100 and 101. Due to a high approval rating from our readers (see article on “Interactive War Stories Receive High Approval Rating”), the interactive War Stories will continue, with improvements being made as we go forward.
The revised AICPA Code of Professional Conduct (AICPA Code) will be effective December 15, 2014 (early implementation permitted). The new conceptual frameworks and related interpretations will be effective December 15, 2015.
The primary goal of the Ethics Codification Project was to restructure the AICPA Code so that members and other users of the AICPA Code can apply the rules and reach correct conclusions more easily and intuitively. The revised Code was adopted by Professional Ethics Executive Committee (PEEC) on January 28, 2014.
If you have not done so already, please update the payment address for CAMICO, which is now:
CAMICO Mutual Insurance Company
P.O. Box 45853
San Francisco, CA 94145-0853
If you use a bill-paying service, please notify the service of the new payment address. Thank you!
CAMICO’s first interactive War Stories, published in IMPACTs 100 and 101, have drawn largely positive responses from readers who provided feedback on the quizzes. Thank you for responding. We encourage you to continue to give us feedback about how we’re doing.