In the preceding issue of IMPACT (103), we asked readers to complete a brief survey to help CAMICO better understand the social media habits and practices of our policyholders. Here are highlights of the survey results:
CAMICO offers several hours of free CPE to policyholders each year through webcasts on the LearnLive platform (https://university.learnlive.com/camico). We provide education on risk management specifically for CPA firms, brought to you by our experts, many of whom are CPAs themselves. You won’t find this level of expertise and depth of risk management content anywhere else.
CAMICO webcasts are an outstanding way to fulfill CPE requirements, and they offer a number of advantages. For example, our webcasts:
The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 changes the due dates for partnership and corporate income tax returns as well as for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), among other items.
The marijuana industry is a prime example of a “current, emerging and future” risk area, given the number of perplexing difficulties CPAs face when trying to assess the special considerations pertaining to marijuana business clients and to the CPA firms that service such clients. At the heart of the difficulties is the split between federal law, under which marijuana is basically illegal, and the laws in states where voters or legislators have approved measures to allow the use of marijuana for medical and/or recreational purposes.
AICPA’s Accounting and Review Services Committee (ARSC) issued Statement on Standards for Accounting and Review Services (SSARS) No. 21 in October 2014. This Standard marked the conclusion of the ARSC’s Clarity Project, which clarified and modified existing standards covering the performance of review and compilation engagements for historic financial statements.
By Suzanne M. Holl, CPA
Clients will sometimes ask their CPA to assist them with human resources-related matters. A common scenario involves the CPA assisting in the recruitment of a new CFO, or assisting the client to “redesign an accounting department.”
Even when covered by insurance, claims can have a significant impact on your practice in terms of time, money, professional reputation, and peace of mind. By knowing the warning signs of a claim, and calling your risk advisor early on, you can help minimize the impact of lost billable hours, revenue and sleep. What are the red flags? Here are five general warning signs that trouble may be brewing.
CPAs often run into situations where they have been preparing tax returns for a married couple for several years, and the couple decides to get a divorce. Divorcing spouses who ask their CPA to provide advice and services to both spouses often present a potential conflict of interest. Friendly divorcing couples don’t always stay friendly, and who do they blame when things don’t work out the way they had hoped? The CPA.
CAMICO issued an updated Alert to our policyholders in response to the IRS February 13, 2015 release of Rev. Proc. 2015-20 offering tangible property regulations (TPR) relief to small businesses and rental real estate owners. Rev. Proc. 2015-20 provides a simplified procedure for small businesses to comply with the final tangible property regulations, although with some trade-offs.
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.
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.”
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)?
CAMICO War Story: Tax return preparation and non-filing of FBAR form. January 2015 – Tip of the Month
“War Stories,” drawn from CAMICO claims files, illustrate some of the dangers and pitfalls in the accounting profession. All names have been changed.
When James Clay, CPA, put together his clients’ tax organizers and questionnaires, he included the question regarding whether the client had “a financial interest in, or signature or other authority over, any financial accounts (including bank, securities, or other financial accounts) in a foreign country, exceeding $10,000 in the preceding calendar year.”
Client screening is excellent risk management as well as practice management. It’s the first step in an effective loss prevention program, and it can be used to identify less desirable clients that may be keeping your firm from developing the clients you want. Re-evaluate your relationships with clients on a regular basis—at least annually. The following checklist highlights some of the warning signs that it may be time to disengage from certain clients.
The Loss Prevention Specialists at CAMICO consult with policyholders on a variety of topics, providing practice and risk management advice. In his video, Duncan B. Will, Loss Prevention Manager, shares an example of how CAMICO helps CPAs via our Advice Hotlines. One of the topics he mentions is fee collections – CAMICO frequently receives calls from CPAs seeking advice on this problematic area. Here are some practical tips on dealing with some of the issues.