TheTHE NEWSPAPER Trusted OF THE NEW YORK STATE SOCIETY Professional OF CERTIFIED PUBLIC ACCOUNTANTS VOL. 18 NO. 8 | AUGUST 2015 | WWW.TRUSTEDPROFESSIONAL.COM | WWW.NYSSCPA.ORG Photo courtesy of the PCAOB PCAOB looks for middle ground in new plan to name audit partner BY CHRIS GAETANO release that considered requiring that engage- Trusted Professional Staff ment partners sign the audit report itself. Opinion on the original measure—as well he Public Company Accounting as subsequent efforts to tweak it—has been Oversight Board (PCAOB) is trying sharply divided. The practitioner community a new tack in its years-long effort to rejected some or all of the initial proposal, Tmake available the names of audit cautioning that it would confuse readers engagement partners, as well as information about the nature of the audit and might pos- about other accounting firms that participate sibly increase firms’ litigation exposure. But in the audits of public companies: It wants members of the investor community argued to create a special form solely for those dis- that it would enable them to better evaluate caption. closures that firms would file with the regu- the quality of individual engagement part- lator within a month after they file audit re- ners connected with an audit. ports with the U.S. Securities and Exchange With these two forces on opposing sides, PCAOB Chair James R. Doty (center), seen here with other board members, called the Form AP “a middle ground approach” Commission (SEC). the PCAOB has been in search of a middle that would provide disclosures to investors “in a manner that responds to auditors’ concerns about risk.” The PCAOB released a request for com- ground that would balance the concerns ex- ment about the proposal on June 30, though pressed by various commentators. It released audit report remained intact. that “it is highly unlikely that investors and it has openly discussed the idea of the latest a second proposal in 2011 that would require The NYSSCPA came out against each of other users of financial statements could be proposal since last October. the engagement partner’s name, without a those plans. Among other things, the So- sufficiently familiar with the capabilities, in- It marks the fourth time that the board has signature, and information about other audit ciety felt that disclosing the name of the tegrity and ethical values of a significant por- floated a plan for naming the audit engagement participants. The board then re-proposed the lead engagement partner would not provide tion of the hundreds, or perhaps thousands, of partner, which, it says will increase transparen- measure in 2013 to include some revisions any meaningful information. Indeed, in a engagement partners responsible for the au- cy and accountability by allowing the public to the disclosure requirements, though the comment letter published on Feb. 4, 2014, dit of public companies, or the quality control to link audit work to specific individuals. The overall mandate to identify the lead audit drafted by members of its Auditing Stan- See PCAOB, on page 3 PCAOB took its first stab in a 2009 concept engagement partner and outside firms in the dards and SEC committees, the Society said It’s time: Society urges IRS to make changes to 41-year-old Form 990-PF BY CHRIS GAETANO required to submit, remains unchanged; it’s if implemented, would provide a solution. said Joanne S. Barry, the Society’s executive Trusted Professional Staff the same form the IRS rolled out in 1974, the The Society detailed the changes in a director. year President Nixon resigned from office. July 17 letter to the IRS, drafted by members The recommendations reflect a desire in the orm 990, which tax-exempt organi- The incompatibility between the forms of its Exempt Organizations Committee. world of nonprofits to better align processes and zations are required to file annually, has been causing issues for tax practitioners “We hope the NYSSCPA’s suggestions simplify systems. With the governance changes was dramatically redesigned in 2008 who prepare them and confusion for are received as simple, but tangible, ways and increased oversight brought about by New Fto account for the changing needs of organizations that use them. Noting that to improve how the IRS collects the York state’s new Nonprofit Revitalization its users. However, the less-often filed Form Form 990-PF is “difficult to follow, even proper amount of tax revenue from private Act—a reform bill that completely overhauled 990-PF, which tax-exempt private founda- for sophisticated readers,” the NYSSCPA foundations, while also reducing the See Form 990-PF, on page 3 tions and nonexempt charitable trusts are also recently recommended several changes that, compliance burden on the organizations,” z INSIDE THIS EDITION RISK MANAGEMENT CPA ROUNDTABLE LIFETIME MEMBERS Opinion ...............................................................2 Chapter News ......................................................6 When a co-trustee Hiring managers on The Society thanks its Chapter Events and CPE .......................................9 comes up short unprofessional job candidates decades-long members Ethics ................................................................11 FAE Listings .......................................................12 PAGE 4 PAGE 10 PAGE 13 2 August 2015 | The Trusted Professional | www.trustedprofessional.com Opinion z PRESIDENT’S COMMENTARY PRESIDENT Joseph M. Falbo Jr., CPA PRESIDENT-ELECT Bringing young people to the profession F. Michael Zovistoski, CPA SECRETARY/TREASURER John J. Lauchert, CPA his summer, many of our chapters accounting professionals whenever he could. paired with a social event). The first ethics participated in an important Society Dave’s commitment to young people update takes place in Dave’s home chapter, VICE PRESIDENTS Christopher G. Cahill, CPA tradition: They gave high school ju- is one reason why our Society Syracuse, on Aug. 18, and will be Jennifer R. George, CPA niors throughout the state a glimpse chose to honor his memory by immediately followed by the Stephen T. Surace, CPA T Michael M. Todres, CPA into our profession through the NYSSCPA’s establishing The Moynihan chapter’s annual Summer Career Opportunities in the Accounting Fund, an educational Sizzler Clambake. And EXECUTIVE DIRECTOR Profession program (COAP). A free sum- trust that finances the here’s where The Moynihan Joanne S. Barry, CAE mer program held on 11 college campuses, NYSSCPA’s Excellence in Fund comes in: This year, DIRECTOR COAP is designed to teach students about Accounting Scholarships and the chapter will be accepting OF COMMUNICATIONS the breadth and depth of accounting as a COAP programs. When we donations for the fund during Colleen Lutolf career choice, through workshops, field trips launched both the fund and the event. Dave, as some of EDITOR and interaction with businesses and firms in our fund-raising drive Carry Joseph M. Falbo Jr. you may recall, was the ethics N. Sheree Saunders their own communities. Now in its 28th year, It Forward (read about at it section leader for several COAP is just one of the ways in which we in- www.gofundme.com/carryitforward) this chapters, and his memory looms large at these STAFF WRITER Chris Gaetano troduce the next generation to the opportu- past spring, personal tributes poured in from functions. Though Syracuse will be the first to nities afforded those who hold a CPA license, CPAs who were touched by Dave at some collect donations for The Moynihan Fund at SENIOR COPY EDITOR but it serves another key purpose. With a point in their careers and emerged as better the Annual Ethics Update, it won’t be the Gene Cioffi keen focus on underrepresented populations professionals—and even better people, as only one—check with your chapter’s officers COPY EDITOR in our professional community, it gives us an some have said—for it. about how you can support the fund at your Christopher Davis opportunity to ensure that as the face of the In the months ahead, we’ll have plenty of own ethics update. EDITORIAL ASSISTANT country changes—and as technology moves opportunities to do good in Dave’s name, and In addition, the NYSSCPA’s Open House, Jason Wong us toward being a true global village—the to support COAP and accounting education to be held at its 14 Wall Street office on GRAPHIC DESIGN CPA world keeps pace. initiatives at the same time. Dec. 7, will also include opportunities to donate Sara M. Gold There was, perhaps, no greater champion One such opportunity, suggested by an to the fund. If you’ve attended any of our Open of COAP than David J. Moynihan, the NYSSCPA member, coincides with the House functions in the past, you know they’re a The New York State Society of CPAs and Society’s 2009–2010 president, whom we lost Annual Ethics Update. These sessions, which great way to make new contacts, catch up with The Trusted Professional greatly value edito- rial contributions from our members, read- earlier this year. Dave was a founder of the many of our chapters hold in the fall, allow old friends and enjoy a glass of wine or two. ers and those affiliated with the accounting Syracuse Chapter’s COAP program and also CPAs to meet a portion of their New York I’ll keep you updated on other profession. Additionally, we are happy to served on its board. Moreover, he believed in state ethics CPE requirement while also opportunities to grow The Moynihan Fund publish pertinent ads and notices. taking time to encourage young and aspiring fitting in some fun (the updates are often as they arise. I also challenge you to send me ­­­For information on submitting an article, your own ideas about how we may further email [email protected]. honor Dave’s memory. I hope we can count on your support to carry forward not only To update subscription information, contact Member Services at 800-633-6320.