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Jofa, Special Digital Edition | April 24, 2020 A Publication of the American Institute of CPAs Special Digital Edition | April 24, 2020 COVID-19 Pandemic triggers tax changes 16 Coronavirus places accounting, auditing rules in flux 22 An expert’s thoughts on moving forward 30 How auditors can test inventory without a site visit 36 POWERING PAYMENTS FOR ACCOUNTING PROFESSIONALS THE WAY CPAs GET PAID CPACharge is specifically designed to help CPAs, enrolled agents, and accountants accept credit, debit, and eCheck payments from their clients. Affordable and easy-to-use, CPACharge exceeds standards for internet security and PCI Level 1 compliance. In addition, there are no long-term contracts or setup fees to get started. Your firm benefits from simplified reporting and PAYMENT DETAIL reconciliation created specifically for how financial professionals run their offices. 1,000 Client Name Invoice AICPA MEMBERS CAN VISIT: Roy Smith 1214 cpacharge.com/aicpa POWERED BY 866-235-9577 Pay CPA CPACharge is a registered agent of Wells Fargo Bank, N.A., Concord, CA and Citizens Bank, N.A., Providence, RI. TOP STORIES April 24, 2020 16 I COVID-19 pandemic prompts many tax changes Here are legislative and IRS responses to the coronavirus outbreak. 22 | Pandemic places 30 | Strategic disruption: 36 | How auditors can test accounting, auditing rules An expert’s thoughts on inventory without a site visit in flux moving forward A few methods are available for pro- As the coronavirus gripped the world, Rita McGrath, a professor of man- viding sufficient appropriate evidence regulators, standard setters, and others agement at Columbia University’s of inventory even if an auditor can’t moved to adjust rules and effective Graduate School of Business who make a site visit because of the coro- dates that are important to businesses, has written extensively on disruption, navirus pandemic. CPAs, and their clients. Meanwhile, foresees changes in business strat- CPA Exam candidates will have addi- egy in the wake of the COVID-19 tional opportunities for testing during pandemic. an emergency testing period. NEWS DIGEST COLUMNS 4 | Accounting profession leaders call for 10 | Checklist 42 | Tax Matters action against climate change When hard times hit staff Supreme Court overturns SEC exempts certain companies from Supporting valued staff experienc- consolidated group tax refund ICFR attestation requirement ing losses and hardships can help allocation rule FASB proposes gift reporting update, organizations respond in compas- Sec. 6662(a) penalties require issues narrow changes sionate ways, while still meeting written supervisor approval AU-C 800 series amended to the needs of the business. Failure to file FBAR is not conform with auditor reporting due to reasonable cause standard Reconsideration of estate’s GASB addresses lease accounting, 12 | Professional Liability penalty abatement yields OPEB, financial statement Spotlight same result disclosures The indirect impacts of COVID-19 In-game currency not taxable, IRS Survey shows how on CPA firms clarifies firms can advance When money is lost, those who IRS to step up high-income taxpayer women in the are damaged will seek recourse visits workplace from wherever they can find it, AICPA launches SOC and CPAs can be high on that list 46 | Inside AICPA for supply chain of targets. Where to Turn CPE DIRECT Another major benefit for JofA readers articles with supplementary materials and exams. Stay current through the JofA and earn CPE credit based on JofA articles An annual subscription is $189 for AICPA members. For more — with the CPE Direct self-study subscription program. You can earn up information or to order, visit aicpastore.com/cpe, or call 888-777-7077. TOP: PHOTO BY BLOOMBERG/GETTY IMAGES; BOTTOM LEFT: IMAGE BY GEORGEMANGA/ISTOCK; GEORGEMANGA/ISTOCK; BY IMAGE LEFT: BOTTOM BLOOMBERG/GETTY IMAGES; BY PHOTO TOP: RAKDEE/ISTOCK BY IMAGE RIGHT: BOTTOM to 48 CPE credits a year. Quarterly CPE Direct study guides combine JofA This symbol identifies articles in the CPE Direct self-study program. journalofaccountancy.com Special Digital Edition | April 24, 2020 | 1 Journal of Accountancy Publisher HOW TO REACH US Kim Nilsen [email protected] Managing Editor Editor-in-Chief, Tax Associate Publisher Editorial Rocky S. Rosen Alistair M. Nevius Karin DeMarco 919-402-4449 or [email protected] [email protected] [email protected] [email protected] Assistant Managing Editor Oliver Rowe Associate Director, Business Advertising Jeffrey Gilman [email protected] Development For display ads (media kits, Shreyas Mecheri [email protected] Sally P. Schreiber mailings, editorial calendars, [email protected] [email protected] Tax Technical Content Manager rates): Geoff Jones, Ad Sales Dave Strausfeld Advertising Representatives James A. Beavers Marketing, 800-873-1677 or [email protected] Jennifer Flye [email protected] [email protected] Courtney L. 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Kress Christopher Allan Parker David Zweighaft 888-777-7077 President and CEO Barry Melancon, CPA, CGMA, FCMA Executive Vice President–Communications, PR & Brand Janice Maiman, CAE Vice President–Professional Media, Academic & Student Engagement Joanne E. Fiore Journal of Accountancy (ISSN 0021-8448), Special Digital Edition, April 24, 2020. Published monthly by the American Institute of Certified Public Accountants, Inc. Volume 229, Number 4. Subscription rates: United States, $75 a year ($69 for renewals); outside U.S., $100 ($94 for renewals); single copy, $12. Publication, editorial and business office: 220 Leigh Farm Road, Durham, NC 27707-8110. Editorial: 919-402-4449, email: [email protected]; Advertising: 800-873-1677; Circulation: 888-777-7077. The contents of the Journal of Accountancy, P.O. publication identification no. ISSN 0021-8448, are indexed in the Accounting & Tax Database, distributed by Bell & Howell Information & Learning, in print subscription and online through DIALOG (file 485). Opinions expressed in the Journal of Accountancy are those of editors or contributors. They may differ from policies of the American Institute of CPAs and its committees. © 2020 Association of International Certified Professional Accountants. All rights reserved. 2 | Journal of Accountancy Special Digital Edition | April 24, 2020 < Table of Contents Don’t worry; you can pick them all. As an AICPA member, save on products and services with leading providers in insurance, travel, office supplies, shipping, technology and more, for personal and professional use. It’s just one more benefit of membership, brought to you by the AICPA. Start your savings at aicpa.org/discounts. © 2017 Association of International Certified Professional Accountants. All rights reserved. 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