ASCPA Connections- Mar/Apr 2022 by Alabama Society of CPAs

MARCH

•

APRIL

2022

B U S I N E S S A N D I N D U ST RY

Annual Meeting June 14 | Birmingham

Auditing Standards Board New SASs: Are You Ready?

New & Improved

A Look Inside The CPA Evolution Updates

ALABAMA SOCIETY OF

CERTIFIED PUBLIC ACCOUNTANTS

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TA B L E O F C O N T E N T S

Inside THE NEW & the ASCPA The New SASs Are Here: Are You IMPROVED Ready?

FEATURES 6

Message from ASCPA CEO,

Jeannine Birmingham...................... 4

ASCPA CPE leader and ASCPA Connections Contributor Jim Martin, CPA, CGMA

Message from ASCPA Chair, James Moody................................... 5

Member News................................ 24

Membership Dues:

Restructure & Consolidate

Classifieds........................................ 26

A report from the ASCPA Dues Committee

ADVERTISERS in this issue:

Special Remembrance

Remembering Amy Murphy, CPA - a champion for accounting students

Accounting BizBrokers................... 23

A LOOK CPA EVOLUTIO

Accounting Practice Sales.............. 28

ASCPA 17Pennsylvania

Leadership

CPA Charge....................................... 2

Meet the Incoming Board Members

CPA JOURNAL

BMSS................................................. By Heather M. Demshock, CPA,9 CMA, and

Winter 2022 | Volume 92, Number 4

Classifieds........................................ 26

THE NEW & IMPROVED Belong. Grow. Achieve.

Reprinted with permission from Pennsylvania Institute of Ce Ten Penn Center, 1801 Market Street, Suite 2400, Philadelph

A LOOK INSIDE THE CPA EVOLUTION UPDATES By Heather M. Demshock, CPA, CMA, and Robert E. Duquette, CPA

10752/22

Belong. Grow. Achieve.

@ALsocietyofCPAs March /April

MESSAGE FROM JEANNINE

a table? Please make sure that you read our weekly digital newsletter. Here, we will show you how this year’s return to an in-person Annual Meeting will help you thrive, connect, learn, and grow.

The countdown is on, and we are SO EXCITED– in only four short months we will head to the Magic City for our 103rd Annual Meeting. We will be back in Birmingham, back with our comrades, and back in-person! Annual Meeting is certainly something we, ASCPA staff and leadership, look forward to. The agenda has a terrific line-up of speakers slated to cover many important topics. You won’t want to miss hearing from Dr. Steve Robbins, an inspirational speaker whose presentation style is (self-proclaimed) “a mix of Bill Nye the Science Guy, Saturday Night Live and The Big Bang Theory.” It’s sure to be a highlight of the day. And if you can join us the night before, we’ll be upping-the-ante with a Casino Night hosted by the YCPA. We’ll be at Dread River Distillery from 7-10 p.m. and all proceeds will benefit the ASCPA Educational Foundation. Annual Meeting registration is well underway – have you registered yet? Have you read about how you can register a group of eight, perhaps to include a student prospect or intern, by sponsoring

ASCPA Connections

The Legislative Session is in full swing. Again, this year, we published our Legislators’ Tax Guide and distributed copies to the Alabama House of Representatives and Alabama Senate. The electronic version available is available on the website by visiting: alabama.cpa/protect/regulatory-resources. We encourage you to use this resource if you work with an Alabama legislator on his or her annual tax compliance. This long-standing resource would not have been possible without the help of ASCPA Life Member Kee Ruland. Kee has been dedicated to updating the annual tax guide for many years and is ready retire from this role. First and foremost, the ASCPA staff extends our deep gratitude to Kee, for all he has done to make the ASCPA Legislators’ Tax Guide a successful resource for Alabama’s elected officials. We now seek a member who is willing to have the baton passed; Kee will thoroughly walk you through the process. Please reach out to Jeannine Birmingham, jbirmingham@alabama.cpa if you are interested in helping lead this effort. Yes, these are big shoes to fill! Lastly on the legislative front, again this year, we publish weekly legislative session updates in the digital newsletter. Everything from ASCPA sponsored legislation to general business bills are summarized. We also keep a log of the

weekly legislative summaries on the website, which you can view by visiting: alabama.cpa/protect/legislative-summary. Keep an eye on HB 82 by Representative Danny Garrett, HB 231 by Representative Jim Carns, and SB 152 by Senator Dan Roberts. These bills have ASCPA sponsored language related to a corporate 30-day extension and ARPA conformity. The ASCPA is constantly evaluating our processes – making sure our members are getting the most of their membership. We formed the 2022 dues committee who reviewed and compared state dues, a multi-year comparative dues report of ASCPA, and our current membership profile. Ultimately this research proved a restructure plan to simplify and streamline dues, such that there is one dues category that includes chapter dues within membership dues. You can take a deep dive into the committee’s report on page 8, but I want to assure you this restructure comes with many benefits for you – our members. In closing, I’d like to take a moment to introduce you to Megan Hughes, ASCPA Communications Director. We are thrilled to have new talent join ASCPA. Megan brings a wealth of experience, new ideas and statewide connections to the society. You can read more about her on page 9. My hope is that all members will have the opportunity to meet Megan and Annual Meeting and other ASCPA events. Please feel free to communicate and connect with Megan at mhughes@alabama.cpa.

MESSAGE FROM THE CHAIR

I’ve got a little bit of accounting humor to get things started. How can you tell the difference between an actuary and an accountant? You know you are talking to an accountant because they will stare at your shoes. An actuary stares at their own shoes. The early pioneers of our profession must have been some pretty unimpressive people (socially speaking) to be responsible for the stereotypes we have to live with. Surely we aren’t all cookie cutter accountants, are we? Starched white shirt with a pen in our front pocket and calculator on our wrist, and afraid to look at or talk to others. That’s not how most of the accountants I know act, and certainly not an accurate description of the next generation of young CPAs in our profession. We can have a fun discussion about the stereotypical accountant, but we all certainly have social routines that need to be challenged from time to time. I was talking to one of our ASCPA board members a few weeks ago about diversity within our profession (and more broadly, within our culture) and he made the following simple observation: Our natural inclination is to do what is comfortable to us. We tend to go places that are familiar. We socialize with people we already know, or groups of people within our typical circle of influence. We follow the path of least resistance. I eat certain foods because that’s what my parents and grandparents prepared for me to eat when I was young. I have attended the same church for 20 years with an excellent group of friends who I consider as

close as family. I live in my hometown, and actually on the same piece of land where my father, grandfather, his grandfather, and even his grandfather’s grandfather lived! I have made the exact same commute from Moody to Homewood every day since high school. I might be the most stereotypical “do what is familiar” person who has ever lived! We don’t wake up each day with a desire to alienate others who aren’t in our normal circles. We don’t look at the new family who moved in down the street and hope they feel unwelcome. Actually, I think most of us genuinely want others to feel welcomed, loved, and included in our social or professional circles. We want others to succeed in following their passions and career goals. Yet sometimes our own comforts, or possibly our stereotypical introverted behaviors, sends a different message to others, completely unintentionally.

folks in public accounting up to speed with the world around us and on our toes. Our association exists to serve you just as much as our members in public practice. I look forward to seeing you all soon. Please reach out to me or ASCPA staff if there is anything we can do to serve you.

When I think about diversity and inclusion, that’s what I think about, and that’s one of the reasons why I’m excited about hearing from Dr. Steve Robbins at our annual meeting in June. We’ve got an incredible lineup of speakers for this event and I hope to see you all there in person on June 14th at The Club in Birmingham. See page 14 for more information about annual meeting. To all of our members in Business and Industry, Thank You for what you do each and every day to keep our economy moving and our families and friends employed. You are innovative and resilient more than ever before, and you keep us

March /April

THE NEW SAS SASs s ARE HERE ARE YOU READY? JAMES (JIM) MARTIN, CPA, CGMA

The Auditing Standards Board (“ASB”) is just full of holiday cheer for auditors for audits of periods ending on or after December 15, 2021! They were nice enough to extend the provisions of SAS 134-140 for a year (SAS 141 accomplished this) but, alas, that year is coming to an end. So, it’s time to explore how these standards change our world. The SAS’s 134, 136, 139 and 140 revolve around the biggest change in the standards and one we cannot forget during the upcoming reporting season. That is, the complete reconstruction, together with lots of new wording, of our auditor’s report. Every single type of audit we perform has a newly minted audit report to go with it. The major changes from the extant GAAP basis audit report are as follows: 1.

The opinion is now the first section of the report. In order to make the report look similar to those required by the PCAOB and to place the most anticipated part of the report first, the current introduction paragraph (“We have audited all your stuff….”) and the current opinion paragraph (“In our opinion, it’s all good…”) now lead off the report. I personally think this new placement will dissuade the

ASCPA Connections

users of non-public company financial statements (what I refer to as “normal human entities”) from reading the remainder of the report which contains some really good new commentary (especially the auditor’s responsibilities). 2.

The management’s responsibilities section of the new report adds a paragraph to indicate that management is responsible for evaluating if there is substantial doubt about the entity’s ability to continue as a going concern. While this has been a responsibility of management since 2017, it is now part of the auditor’s report. The accountant’s responsibilities section of the new report features great changes (in my opinion). It starts with telling users what are responsibilities are in an audit, namely to provide reasonable assurance that there are no materials misstatements caused by error or fraud in the financial statements. It then goes on to define reasonable assurance as a high, although not absolute, level of assurance and, therefore is not (and I’m paraphrasing) a “good housekeeping seal of approval that all material misstatements will be detected in an audit.” The report

then describes that, in fact, it is really difficult to detect fraud. These are important facts that should be stated directly to users who, at times, believe that our report is proof positive that a material misstatement CAN’T exist if the financial statements are audited in accordance with generally accepted auditing standards. Finally, the accountant’s responsibilities section includes a statement that the auditor is responsible for concluding on whether substantial doubt exists. 4.

Then there is a new requirement that if the client’s financial statements and the auditor’s report thereon are included in, or even referenced in, the client’s annual report, that paragraphs of disclosure are required in the auditor’s report. This new requirement is perfectly suited to publicly traded companies as they usually issue the annual report and financial statements simultaneously but think about all those times when our clients of normal human size don’t necessarily know what is going in the annual report at the time the auditor’s report is available for issuance. The time line and management representation nightmares this brings with it are

significant! If you are one of the lucky ones who faces this challenge, I highly recommend two things: A) read SAS 137 in its entirety as it covers this new requirement, and; B) put your client on notice that if they issue an annual report, there is likely to be significant additional charges depending on the amount and type of other information included in the annual report. 5.

The accountant and client can now agree to include a discussion key of audit matters (KAMS’s) in the accountant’s report. Of the thousands of practitioners I have done presentations for during 2021, I have yet to find one that has indicated that their client has expressed a desire to do this.

The most important takeaway from these new SAS’s that change the audit report is DO NOT FORGET to alter your reports to be in compliance with them. Personally, I have acquired a guide to auditor’s reports due to the fact that every report on every type of engagement has changed! SAS 135 addresses the AICPA’s fears that clients do not always disclose all their related parties or all their significant unusual transactions to the auditor. I believe it’s based on one of the forms of auditor bias, namely that we always believe what our client tells us and don’t create any “alternative hypotheses” to their representations. That is, we set out to prove our clients representations are correct and not that they may be incorrect. For example, if a client lists three related parties, the types of transactions and the dollar amount of transactions for the year under audit, we set out to audit those three sets of transactions to see if they are accounted for and disclosed properly, never contemplating there may be others that weren’t disclosed. The same goes for significant unusual transactions (transactions outside the normal course of business). To combat this issue, the standard requires that we ask significantly more questions

of management and governance and do additional procedures related to searching for undisclosed related party transactions and undisclosed significant unusual transactions. Another fun addition to the work-in-process of an audit! SAS 138 is the only one of the set not mentioned yet and it really has no impact on professional practice as it was used to merely align the description of materiality in AICPA literature to how it is utilized by the FASB, the SEC and the court system. It should not go unnoticed that the ASB has also issued SAS’s 142-145 as this article is being written. SAS 142 addresses the different methods auditors utilize to obtain audit evidence by stressing that it’s the quality of audit evidence that matters, not its quality or method of acquisition. For example, which results in better inventory audit evidence: a drone video or a human presence? Or, does a video of an interview result in better evidence than an in–person interview? SASA 142 goes into effect for audits of periods ending on or after December 15, 2022. SAS 143 and 144 are concerned with expanding procedures and disclosures related to auditing client estimates and work to be done when third parties have done work to estimate client amounts (say, a third party inventory counter). The amount of estimates used increases linearly as the speed of financial statement issuance increases and there really isn’t a significant amount of disclosures or audit procedures required currently. This statement takes care of that issue! SAS 143 and 144 go into effect for audits of periods ending on or after December 15, 2023. And then there is brand new SAS 145 with a whopping 211 pages of new stuff! It is a redraft of the risk assessment rules (everybody’s favorite part of audit planning and performance). The ASB says it does not fundamentally change the key concepts underpinning audit risk. Rather, SAS 145

clarifies and enhances certain aspects of the identification and assessment of the risks of material misstatement to drive better risk assessments and, therefore, enhance audit quality. However, I’ll let you decide if something that’s 211 pages long will not create substantial additional work for auditors. SAS 145 goes into effect for audits of periods ending on or after December 15, 2023. So, there you have it. A whole laundry list of new reasons why we LOVE to audit! Stay tuned for the revised draft of the new Quality Management Standards due out soon from our friendly ASB! Blessings in 2022 for you and yours!

JAMES (JIM) MARTIN, CPA, CGMA is a true “general practitioner”

who, for 35 years, has specialized in both income tax and accounting and audit areas. In addition to serving the accounting and tax needs of his clients, Jim performs almost 100 continuing education seminars per year for CPAs and attorneys throughout the United States. To date, he has prepared and presented more than 2250 full and half-day seminars on accounting and taxation topics. Jim’s philosophy of CPE is simple: spend the class time on topics of applicability and relevance to all and present the topics in an entertaining and fast-moving manner. Jim also regularly consults with CPA firms throughout the United States on a variety of accounting and auditing technical issues and serves as expert counsel in litigation matters.

March /April

RESTRUCTURE & CONSOLIDATE: A Report from the Dues Committee

The Alabama Society of CPAs Dues Committee met in January to discuss annual membership dues for the upcoming fiscal year (May 1, 2022 – April 30, 2023). The committee took this responsibility very seriously and utilized comparative data for several other state societies before making a recommendation to the ASCPA governing board. Following a discussion of how to best offer additional member benefits and to increase the comprehensive value, the decision was made to present a recommendation of restructuring and consolidating ASCPA dues. For the 2022-23 year, dues are consolidated into one fee, and members will be offered 12 free hours of CPE. The ASCPA board unanimously voted to approve the restructuring.

ASCPA Connections

The new ASCPA dues structure encompasses and takes into consideration the following: •

Twelve (12) free hours of CPE as marketed by ASCPA

•

COLA of 6% was a factor in the overall adjustment

•

Chapter dues and membership dues are now one amount, allowing all members to be included in local activities and CPE. Chapter dues and member dues help support impactful university accounting scholarships, donations to local not-for-profits, participation in service projects and professional networking events.

•

ASCPA is investing in a new, comprehensive member portal, website and CPE delivery platform expected to launch May 1, 2022. Members will learn much more about the capacity of the new portal once released.

FY 2022-2023 membership dues are as follows: Public Accounting

$235

Industry

$235

Government

$235

Educator

$200

Associate members

$150

Out-of-state members

$150

Retired

$30

Chapter Dues

For more information, or for questions about membership dues, contact Zack Camerio at (334) 386-5763 or zcamerio@alabama.cpa.

meet

Megan Megan G. Hughes, APR

Communications Director Auburn University (BA) & University of Southern Mississippi (MS) Megan is responsible for internal and external communications, serves as editor of CONNECTIONS, creates weekly digital newsletter, maintains ASCPA brand, to include website content and all digital assets. She has nearly 20 years of professional experience in the field of public relations, more than a decade of that time in higher education. Megan is married to Joel, and they have two young children - Seth (4) and Reed (10 months). Joined ASCPA staff January 2022 mhughes@alabama.cpa | (334) 386-5755

March /April

PROTECT

2021 LEGISL A TAX GU TORS’ IDE

A copy of the latest edition of the 2021 Legislators’ Tax Guide can be found online by visiting alabama.cpa/protect/regulatory-resources.

THE AL

ABAMA

SOCIET

The Legislators’ Tax Guide is provided on a complimentary basis by the ASCPA to help answer our Alabama Legislators tax questions and those of you who assist legislators with their tax preparation. The purpose of this tax guide is to examine federal and Alabama tax aspects of payments received from the state by Alabama legislators. Conclusions reached for federal taxation purposes usually will apply for State of Alabama taxes on income. By virtue of the provisions of Sec. 29-1-8.1, Code of Alabama 1975, the State Department of Revenue must accept and follow the travel expense provisions of the U.S. Internal Revenue Code as amended by the Economic Recovery Tax Act of 1981 for state legislators. This guide is intended to deal only with the tax consequences under federal and Alabama tax laws of legislators’ per diem, expense, and mileage receipts as elected officials, and does not cover any personal tax matters (such as capital gains or losses, rental income and expenses, salary from private employment, or business income and expenses).

ASCPA Connections

Y OF C

SERVIN

G THE

ERTIFIE

PUBLIC

D PUBL

SINCE

1919

IC ACC OUNTA

NTS

Unreimbursed legislative expenses are no longer deductible for Federal Income Tax purposes after 2017. The 2017 Tax Cuts and Jobs Act suspends the deduction for these and other miscellaneous itemized deductions until after 2025. For Alabama state tax purposes all unreimbursed allowable legislative expenses are treated as miscellaneous itemized deductions and are deductible to the extent that the legislator’s total miscellaneous itemized deductions exceed 2% of the Alabama adjusted gross income. In January 2022, the state comptroller furnished each legislator with a form W-2, which reports salary and expense reimbursement in Box 1 “Wages, Tips, Other Compensation.” Starting January 1, 2015, legislators’ compensation was covered for Social Security and Medicare withholdings.

PROTECT

Alabama CPA PAC PAC Trustee Darren Hipps makes a PAC contribution to candidate Marcus Paramore.

The Alabama CPA PAC is a non-partisan political action committee (PAC) comprised of CPAs who uphold the political voice of the CPA profession. Formed in 1990, the CPA/PAC pools members contributions and contributes funds to friendly state legislators and candidates who support CPA and business interests and encourages and supports our own CPAs as political candidates.

ASCPA’s Jeannine Birmingham delivers an Alabama PAC check to Greg White, CPA.

By combining financial resources, the PAC is able to leverage its impact for positive results. Your contribution to the PAC benefits the future of the profession: •

It ensures that your profession’s best interest are represented

•

It supports state legislators and candidates who support CPAs and business interests

•

It allows us direct access to decision makers

To make a contribution visit www.alabama.cpa/protect/pac/donate.

Rep. Parker Moore receives PAC contribution from Drei Marthaler, CPA.

March /April

REMEMBERING AMY MURPHY, CPA, A likable Southern girl from North Alabama, you’ll be hard pressed to find anyone who doesn’t have fond memories of Amy Murphy. “To know Amy was to love her,” said Colby Lakas, Director of Recruiting and Professional Development for Auburn University’s School of Accountancy. “And she never met a stranger! It became a fun game to see how many people Amy would know at a restaurant, CPE event, or AU function. Her personality was magnetic, and she made a friend for life everywhere she went.

where she would shape graduate accounting programs at Auburn University and touch the lives of countless students. After receiving a bachelor’s and master’s from Auburn University, she eventually took the position of director for graduate programs in the School of Accountancy in 1994, where she stayed until she retired in July 2019.

hard conversations; she educated and connected; she loved Auburn and it loved her back.” Murphy was responsible for many of the SOA’s initiatives and programs that make it what it is today – highly awarded and nationally respected. A woman who always had her finger on the pulse of SOA graduates, she established the SOA Connection alumni magazine, and served as editor for 18 years. She said once that although she did not have biological children of her own, that God bless her with the best and the brightest at Auburn University. Her commitment to Auburn University

She made an indescribable impact on my career, and I will always carry a piece of her with me.

Murphy’s destiny was a role 12

ASCPA Connections

“Amy gained the trust of her students and guided them to their desired career outcomes,” said Lakas. “She gave pep talks and had

a champion for accounting students and the School of Accountancy was undeniable, and her legacy and contribution will live on for future generations of proud SOA alumni. “Amy was such a joy,” said Jeannine Birmingham, CEO and President of the Alabama Society of Certified Public Accountants. “I will remember forever all our happy times together - many at our annual summer CPE conference.” “Amy was 110% committed to student programs,” said Birmingham. “There was never an ASCPA committee or task force ask where Amy said no. I always knew that ASCPA could count on Amy. I will miss her very much.”

“I’m thankful I had Amy in my life for 20 years as a student turned working professional,” said Lakas. “She made an indescribable impact on my career, and I will always carry a piece of her with me. She was one-of-a-kind and a true Auburn woman.” Murphy passed away January 18, 2022, at her home on Lake Martin. She was 62. She is survived by a special loved one, Jeff Black; brother Charles Kent Murphy (Debbie); sister Viva Ellen Murphy; beloved niece Mary Beth Baird; nephew William Lowery Baird II; her extended family, friends, and her Auburn family, including countless former students and mentees, all of whom she “loved dearly.”

In lieu of flowers, friends were asked to make contributions to the Amy B. Murphy Memorial Endowed Scholarship in the School of Accountancy at the Harbert College of Business or your local animal shelter. Checks payable to the “Auburn University Foundation” can be mailed to 317 S. College St. Auburn, AL 36849.

Online gifts can be made at: https://alumniq.auburn.edu/ giving/to/amymurphy

March /April

Join us June 14!

The Club | Birmingham

Meeting Agenda 7:35 - 8:35

Networking Breakfast and Exhibit Hall Open

8:35 - 8:45

Opening Remarks

8:45 - 10:00

Your Brain is Good at Inclusion.. Except When It’s Not Dr. Steve Robbins, S.L. Robbins + Associates

10:00 - 10:15

Networking Break

10:15 - 11:30

Professional Issues Update Bill Pirolli, CPA, CFF, PFS, CGMA Chair, AICPA, DiSanto Priest & Co., CPA

11:30 - 12:30

Lunch Break

12:00 - 12:25

2022 World Games Nick Sellers, CEO World Games

12:30 - 1:20 ESG: Supporting the Move Towards Social Responsiveness Paul Perry, FHFMA, CDPSE, CISM, CITP, CPA Warren Averett Bruce Fryer, Regional Finance Manager, East Lime Lhoist North America 1:20 - 2:10

Inclusive Leadership Dr. Florence Holland, The Diversity Movement, Raleigh, N.C.

2:10 - 2:25

Networking Break

2:25 - 3:15

Update on the Economy Fran Smitherman, CFA, SVP, Director of Equity Research Regions Investment Management

Meet The Speakers

Dr. Steve Robbins S.L Robbins + Associates Robbins is an inspirational speaker who engages and captivates audiences all over the world with his compelling stories and keen insight into human behavior. For him, issues of inclusion and diversity are fundamentally issues of human behavior in a world filled with human differences. His life experiences and academic background in communication science, social psychology and cognitive neuroscience create the foundation from which he crafts his talks and workshops.

Bill Pirolli, CPA, CFF, PFS, CGMA Chair, the American Institute of CPAs (AICPA)

Nick Sellers World Games

Pirolli is a partner at DiSanto Priest & Co, CPAs, a multi-disciplinary accounting and financial services organization in Warwick, R.I. He maintains an active client base and focuses on trusted advisor services such as estate and succession planning, mergers and acquisitions, financing and litigation support, as well as traditional tax, accounting and advisory services.

Sellers has deep roots in sports and service to the State of Alabama. He brings that experience and passion to his position on loan from Alabama Power as CEO of The World Games 2022. As former Chairman of the Alabama Sports Council, he led a board that oversaw the growth of several regional and national sporting events including the SEC Baseball Tournament, the Magic City Classic, and the Davis Cup Birmingham.

Paul Perry, FHFMA, CISM, CITP, CPA, CDPSE Warren Averett

Bruce Fryer Lhoist North America

Perry has been with Warren Averett since 2004 and is a Member and the practice leader of the Security, Risk and Controls Group. Paul and his team focus on cybersecurity, information technology related projects, risk assessments, internal controls, internal audit and control-related projects, including System and Organization Control engagements.

Serving as a plant or regional controller since 1997, Fryer has helped his organizations navigate through two SAP implementations, and multiple other project initiatives. He is currently the manager of FPA for an international leader in lime products.

Dr. Florence Holland The Diversity Movement, Raleigh, N.C.

Fran Smitherman, CFA Regions Investment Management

Florence (she/her) is a visionary leader, bridge builder, dedicated and hardworking professional with more than 15 years of strategic planning and hands-on expertise. She has worked with businesses and led strategic planning around talent development. She also has extensive education experience working with secondary and post-secondary students, securing resources, and implementing effective programs.

Smitherman is the Director of Equity Research for Regions Investment Management. She manages a team of sector-specific equity analysts and oversees the management of multiple large cap equity portfolios, and is responsible for written publications for client distribution regarding equity strategy and performance.

ASCPA Connections

MEET THE NEW CLASS OF ASCPA BOARD MEMBERS Each year members of the Nominating Committee select individuals nominated by their peers from across the state and various segments of the CPA profession to join the ASCPA Board of Directors. We are excited to work with the newest incoming board members to gain their insights on how to make the Society stronger and stay relevant for our members.

Jon Heath, CPA is the director of professional services and director of SEC services in Carr, Riggs, & Ingram’s corporate office in Enterprise. He brings more than 20 years of accounting, auditing, and consulting experience—including audit services to large, multi-national companies and smaller SEC registrants in a variety of industries, including utilities and telecommunications. He is responsible for his firm’s quality control (and the associated professional education) initiatives, including initial public offerings (IPOs), secondary public offerings, SOX implementation, periodic filings reviews, and regulatory accounting issues. Jon experience includes serving as partner on dozens of employee benefit plan audit engagements – including both defined benefit and defined contribution plans. He has authored and presented various courses in internal controls for various accounting firms and the Alabama Society of CPAs while also serving as an instructor for both CRI’s CPE Week and The CRI Leadership Academy. He also currently serves as the AICPA Council Representative for the ASCPA Board of Directors. James C. White, Jr., CPA serves as Managing Partner of Banks, Finley, White & Co. As Managing Partner, he leads the Firm’s efforts in Quality Control and coordinates its steady growth in the markets where the Firm has practice offices. White holds a Bachelor’s degree in Accounting from the University of Maryland, College Park. He has coordinated audits for several multinational, publicly-traded corporations

in various industry sectors. James has extensive experience in providing services to publicly-traded companies, including Securities and Exchange Commission (SEC) reporting requirements, compliance with the Sarbanes-Oxley Act and other Public Company Accounting Oversight Board (PCAOB) standards and related rules. Additionally, he has managed accounting and reporting for public equity and debt offerings, business combinations and dispositions, advised internal audit departments on plans and strategies to enhance corporate governance, and has extensive experience in SEC filings and related accounting services. He has considerable experience in audits of state and local governments, not-for-profit organizations, including school districts, colleges and universities. James holds CPA certificates in five states. Amanda Paul, CPA been an Assistant Professor of Accountancy in the Sorrell College of Business of Troy University since the Fall of 2007. Her primary teaching focus is financial and governmental accounting and auditing. Amanda also serves as the Internship Coordinator for the School of Accountancy. Her passion is helping students find opportunities as they start their accounting careers. Prior to joining the Troy faculty, she worked as the Attestation Engagement manager for Gibson and Carden, LLC in Troy, Alabama. In November 2000, she joined the ranks of Certified Public Accountants by earning her CPA credential in the State of Alabama. Amanda is heavily involved with the Alabama Society of CPAs, serving in many different capacities over the years. These include membership on the Young CPA Board, the Educational Foundation, the

Nominating Committee, and the Board of Directors. She has served for many years as the President of the ASCPA South Central Chapter. Amanda is also a member of the American Institute of Certified Public Accountants. Sarah Propper, CPA Sarah is a member of the Board of Directors of Pearce, Bevill, Leesburg, Moore P.C. She is a native of Huntsville, Alabama and a 1998 graduate of Birmingham Southern College with a Bachelor of Science in Accounting. She has over 15 years of experience in public accounting and joined the firm in 1999. Sarah focuses her practice on tax planning for businesses and individuals. Her concentration is in business consulting, including the preparation of financial statements, business tax preparation, and other business consulting for a variety of industries including real estate, retail, manufacturing, and professional services including both legal and medical practices. Joseph Wynn, CPA joined Wear, Howell, Strickland, Quinn & Law, CPAs in 2003 and has spent more than 28 years in public accounting. He provides accounting, auditing, and tax services to businesses, nonprofits, and individuals. Wynn’s primary focus is in the manufacturing, wholesale and retail distribution, commercial construction, professional, governmental, and nonprofit industries. He also has extensive experience in Business Advisory, cash flow analysis, merger and acquisition due diligence, and tax planning and compliance. March /April

Pennsylvania

Winter 2022 | Volume 92, Number 4

CPA JOURNAL Winter 2022 | Volume 92, Number 4

THE NEW & IMPROVED

A LOOK INSIDE THE A LOOK INSIDE THE CPACPA EVOLUTION UPDATES EVOLUTION UPDATES

By Heather M. Demshock, CPA, CMA, and Robert E. Duquette, CPA

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Reprinted with permission Pennsylvania Institute Institute of Certified Public Public Accountants Reprinted with from permission from Pennsylvania of Certified Accountants Ten Penn Center, 1801 Market Street, Suite 2400, Philadelphia, PA 19103. (215) 496-9272 ©2022. Ten Penn Center, 1801 Market Street, Suite 2400, Philadelphia, PA 19103. (215) 496-9272 ©2022.

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Reprinted with permission from Pennsylvania Institute of Certified Public Accountants

he CPA Evolution initiative, a joint project between the

National Association of State Boards of Accountancy (NASBA) and the AICPA, was created to transform the CPA licensure model. It was undertaken to embrace the changing skills and competencies required of CPAs, today and into the future.1

Entry-level CPAs are handling tasks that require more critical thinking, professional judgment, and problem-solving skills because many of the basic tasks that had been done by new CPAs have been automated or offshored. At the same time, though, the body of knowledge that new CPAs need to know has grown immensely since the last major changes were made to the CPA Exam. According to the AICPA and NASBA, compared with 1980, there are three times as many pages in the Internal Revenue Code, four times as many accounting standards, and five times as many auditing standards. So, ready or not, a new model of the Uniform CPA Exam is launching in January 2024 to cover it all. The current model of the CPA Exam includes four parts: Regulation (REG), Business Environment and Concepts (BEC), Audit and Attestation (AUD), and Financial Accounting and Reporting (FAR). REG covers ethics and professional responsibilities related to tax, business law, and taxation of property transactions, individuals, and entities. The BEC exam includes a wide range of topics, including enterprise risk management (ERM), internal controls and business processes, economics, financial management, information technology, and operations management. AUD includes all audit-related topics, and FAR consists of the conceptual framework, standard-setting, and financial reporting (including what is required for state and local governments). The new CPA Exam being introduced will include three core exam sections: Accounting and Data Analytics, Auditing and Accounting Information Systems, and Taxation (see the chart titled Proposed CPA Exam Content - Core Exams). In addition to the core, CPA candidates will have to choose one additional discipline exam from a selection of three: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), or Tax Compliance and Planning (TCP), as summarized in the chart titled Proposed CPA Exam Content - Discipline Exams. Regardless of which one of the three disciplinary exams a candidate chooses to take, the CPA formula will be the same: 3 Core Exams + 1 Discipline Exam = CPA.

To properly evaluate the new model, a comparison to the old model is necessary. Note that a blueprint has not yet been released by the AICPA for the new model, so this comparison is being completed using the CPA Evolution Model Curriculum released by NASBA and the AICPA in the summer of 2021. The proposed core and discipline exams are summarized in the charts below. We’ll also look at each content area and provide an overview of where the old exam material (based on the CPA Exam blueprint effective July 20, 2021) will be included in the new structure, evaluate new material being added, and consider what is being deleted. We believe, especially for academia, that it is critical to get an understanding now of the exam (i.e., a core or optional discipline exam) in which content will be tested because that framework impacts which course offerings will include “required” knowledge as opposed to “elective” knowledge; what additional topics and skills will be assessed and need to be integrated into the curriculum; and which topics are being dropped, thus freeing curriculum capacity to handle some of the new content. These changes will probably necessitate curriculum changes in many, if not most, schools, beginning with sophomore-level courses, to prepare students for the 2024 launch of the new exam. In academia, the curriculum adjustment process is timeconsuming and requires considerable effort to identify changes

Proposed CPA Exam Content – Core Exams Accounting and Data Analytics • Financial statements

• Financial statements and select transactions for state and local • Select financial statement accounts governments • Select financial statement • Critical thinking accounts and events • Financial statements and select transactions for not-for-profit entities

• Financial data analytics

• Digital acumen • Financial statement analysis and metrics

Auditing and Accounting Information Systems • Audit environment

• Audit evidence

• Engagement planning and considerations

• Audit procedures

• Understanding an entity and its environment

• Audit conclusion

• Information technology • Risk assessment of fraud and noncompliance • Assessing risk of material misstatement • Materiality

• Special considerations • Audit reports • Other engagements • Subsequent events and subsequently discovered facts • Digital acumen

Taxation • Responsibilities in tax practice

• C corporations

• Methods of taxation

• S corporations

• Federal tax procedures

• Partnerships

• Legal duties and responsibilities

• Limited liability companies

• Acquisition and disposition of assets

• Tax-exempt organizations

• Federal taxation of individuals

• Technology and digital acumen

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Reprinted with permission from Pennsylvania Institute of Certified Public Accountants

Proposed CPA Exam Content – Discipline Exams Business Analysis and Reporting (BAR) • Accounting research

• State and local governments

• For-profit entity financial statements • Employee benefit plan accounting • Select financial statement accounts • Planning techniques • Select transactions

• Financial statement analysis

• Cost accounting

• Advanced data analytics

Information Systems and Controls (ISC) • IT governance and risk assessment • Use and management of data • Performing procedures, tests of internal controls

• Information security and protection of information assets

• SOC engagements

Tax Compliance and Planning (TCP) • Individual tax fundamentals and tax planning

• Trusts

• Acquisition, use, and disposition of assets

• Multijurisdictional tax basics

• Tax accounting methods • Federal taxation of entities • C corporations • S corporations

• Tax-exempt organizations • Technology • Tax research • Personal financial advisory services

• Partnerships • Tax planning for entities

and obtain necessary department and college approvals. Outside of academia, understanding the new exam content and structure will help practitioners guide new staff toward completion of the CPA Exam. It should also help with the employment outlook for new CPAs once employers realize the additional relevant skills their new recruits will bring to the marketplace. The charts on this page and on page 23 provide an overview of how the content in the old structure will be redistributed in the new exams. AUD Restructuring – A large portion of the old AUD will be included in the Auditing and AIS core exam. However, a few key items will move to the Information Systems and Controls and the Business Analysis and Reporting discipline exams. BEC Restructuring – The content of the BEC test will shift around significantly. Some content will appear in two core sections while other areas will shift to optional discipline sections. The understanding is that the content shifted to a discipline exam will be tested at a higher level with more complexity. FAR Restructuring – The current FAR exam content has been split between the Accounting and Data Analytics core exam and the Business Analysis and Reporting discipline exam. REG Restructuring – The tax portion of the current REG exam has mostly been split between the Tax core exam and the Tax Compliance and Planning discipline exam. Some topics may appear in a core section as well as in a discipline section. The content in the discipline exam will be tested at a higher level, with more scope and additional considerations. 20

New Content The content included within the new exam model should reflect the increased knowledge demands graduates face entering the workforce. According to a member of the AICPA board of examiners, the board is “trying to embrace what’s changing in the profession and the business environment and the skills a newly licensed CPA will need to possess for licensure.”2 The additions to the exam are considered essential to continue to protect the public interest. On page 24, the chart titled New Content in the New Core Exams lists supposedly previously untested material that now will be included in the core exams, according to the proposed Model Curriculum. Note, this list may include topics that are, in fact, already included in the current exam but are not specifically identified that way in its blueprint. The new discipline exams will include a considerable amount of new content. The intention behind these exams is that candidates would select one of the three exams based on interest, employer recommendations, or the accounting curriculum they have completed. If a topic is in the current exam model and is listed as content being proposed for a new discipline exam, it is because additional issues and considerations on that topic have been added. Deletions The amount of new content in the proposed CPA Exam model is significant. Only a few major deletions, however, have been identified. The most notable are as follows: • Process management • Journal entries for income tax provisions • Capital structure • Drafting audit reports • Base erosion and anti-abuse tax • Foreign-derived intangible income • Built-in gains tax for S corporations • All nontax (i.e., business law topics) currently included in REG. One could easily argue this list must be an oversight given their relevance and significance. It is, therefore, possible that these topics will be added back later as the new exam blueprint is developed and updated with stakeholder input. Considerations There are quite a few considerations to evaluate going forward. The most basic is how do colleges and universities prepare for these substantial changes? Smaller colleges with limited faculty and funds could have a tougher time adapting their curriculum to accommodate the changes. Potential solutions, subject to internal budget constraints, could be rehauling the curriculum, training current faculty, or creating partnerships with larger universities to provide courses outside the scope of expertise of the small departments. Hopefully, textbook publishers and CPA Exam review providers will assist with a quick release of revised textbooks or addendums to current material to give faculty a guide to what content they believe should be covered, in what order, and for which piece of the exam. Because so much content is being added and very little is being removed from the exams, faculty may have to make tough decisions on topics currently being taught: some may have to be eliminated or de-emphasized to cover the breadth of the material being tested. This has the potential consequence of less depth for more breadth, at

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Current AUD Redistribution

Current FAR Redistribution

Audit & AIS Core

Accounting & Data Analytics Core

• Majority of old exam

• Financial statements • Select financial statement accounts

ISC Discipline • Business processes and the design of IT internal controls • IT change management

• Select financial statement transactions and events • Financial statements and select transactions for NFP entities • Financial statements and select transactions for state and local governments

BAR Discipline

• Public company reporting topics

• Consolidated financial statements

Current BEC Redistribution

• Goodwill and other indefinite-lived intangible assets

Accounting & Data Analytics Core

• Stock compensation

• Capital structure and working capital

• Business combinations

• Budgeting/financial and nonfinancial measures of performance management

• Derivatives and hedge accounting • Foreign currency translation

• Data visualization techniques

• Leases

• Revenue recognition

• Research and development costs

Audit & AIS Core

• Software (commercial off-the-shelf)

• Sarbanes-Oxley Act • Understanding the entity and its environment: external factors • Understanding the entity and its environment: internal factors • Business processes and controls

• Governmentwide financial statements • Other types of government financial statements • Annual comprehensive financial report elements

• Enterprise risk management

• Financial reporting entity, including blended and discrete component units

• COSO

• Select governmental concepts

• Understanding IT

• Employee benefit plan accounting

• Risks associated with IT • Use of data analytics in audit

Current REG Redistribution

ISC Discipline • IT governance, strategy, and standards

Tax Core

• IT risk identification and assessment

• Responsibilities in tax practice

• IT general controls

• Federal tax procedures

• IT change management

• Legal duties and responsibilities

• Cybersecurity risk management

• Acquisition and disposition of assets

• System interfaces/flow of data

• Cost recovery

• Logical access controls

• Federal taxation of individuals

• Data governance

• C corporations

• Data preparation/manipulation

• S corporations

• Information security and privacy frameworks and standards

• Partnerships

• Business resiliency

• Limited liability companies • Tax-exempt organizations

BAR Discipline • Cost measurement concepts, methods, and techniques

TCP Discipline

• Variance analysis

• Federal taxation of individuals

• Forecasting and projection

• Acquisition, use, and disposition of assets

• Financial valuation methods and decisions

• C corporations

• Financial risk management

• S corporations

• Working capital

• Partnerships • Gift taxation • Trusts • Tax-exempt organizations • Multijurisdictional tax basics

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least to be able to fulfill the accounting major requirement for most students and allow them to be successful in the core exams. Another possibility is that colleges will design their curricula to adequately prepare students for the core exams, but vary in their coverage of discipline exam topics. It remains unclear where the line will be drawn when content is included on a core exam and a discipline exam. For example, critical thinking and logical thinking will be included on the Accounting and Data Analytics core, while advanced critical thinking and advanced logical thinking will be included on the Business Analysis and Reporting exam. Where is the ceiling for one and the floor for the other? Another example of content included on both a core exam and a discipline exam is tax related to partnerships and S corporations, specifically the tax issues related to computing basis, transactions between owners and their entities, and understanding the implications of the separately flowing items from K-1s. There are many other topics throughout the new model with this same dual-coverage ambiguity. What makes a topic advanced versus not advanced? Will there be something tangible that can be used to determine the distinction (e.g., the future blueprint or a set of criteria)? Without clear guidelines, there will be difficulties in designing an effective curriculum and efficiently preparing students.

New Content in the New Discipline Exams

What’s Next In the coming months, the AICPA and NASBA are expected to share details on the development of the exams as they continue to solicit stakeholder feedback. In July 2021, a content survey was released to help guide the development of the exam. Data was gathered from stakeholders using that survey from July to September 2021. The next step in the timeline is a Practice Analysis Exposure Draft expected in July

• Application controls

New Content in the New Core Exams Accounting and Data Analytics • Critical thinking

• Visualization

• Logical thinking

• Communicating accounting data results

• Financial data • Data mining of structured financial data

• Data ethics • Digital acumen

• Analysis of financial data

Audit & AIS • Audit research

• Digital acumen

• State reciprocity considerations

• Application of digital technologies

• Tests of controls

Taxation

• Accounting research

• Advanced data mining

• Notes to financial statements

• Advanced data analysis

• Emerging reporting frameworks

• Advanced data visualization

• Private Company Council (PCC) alternative for goodwill measurement

• Communicating results on advanced data analytics

• PCC alternative hedge accounting

• Advanced data ethics

• Journal entries for hedge accounting and derivatives

• Advanced data management and relationships

• Entity strategies and impact on financial reporting (i.e., sensitivity analysis)

• Financial statements and select transactions for state and local governments

• Financial statement analysis

• Critical thinking

• Advanced critical thinking

• Financial data analytics

• Advanced logical thinking

• Digital acumen

• Advanced data concepts

ISC • Design of IT controls • IT control frameworks • Tests of internal controls related to business processes

• Tax planning for gross income, inclusions, exclusions, adjustments, deductions, and passive activities • Tax research skills • Tax planning for computation of tax, estimated taxes, and tax credits and tax attributes • Deeper understanding of nontaxable and deferred gain dispositions

• Business continuity • Assurance-related research

• Qualified joint ventures • Consolidated tax returns • Basis of shareholder’s and partner’s interest, including at-risk • All separately stated items on a K-1 • Partnership elections • Earnings and profit and accumulated earnings tax • Changes in partner ownership and partnership terminations

• Deeper understanding of depreciation • Tax planning for C corps, S corps, recapture rules, Sec. 195 expenses and partnerships and Sec. 248/709 costs • Impact of compliance filings on • Related-party property basis, loss financial statement reporting disallowance, and holding period • Basic parameters of credits and • Tax accounting methods – incentives Secs. 448 and 481(a) • Tax planning strategies for entities, including check the box and choice of entity

• Taxpayer vs. tax preparer responsibilities, including related technology usage

• Dividends-received deduction and net-operating-loss deduction

• Distinguish between different types of taxes

• Form 990 reporting requirements

• Equity compensation

• Technology, data analysis, and digital acumen

• NOLs, all loss limitation, and interest expense tracing rules, tracking, and expirations

• State tax apportionment • Foreign tax credit, child tax credit, vs. allocation dependent care credit, earned income • Tax authority and hierarchy research credit, education credits, and net investment income tax

• SOC engagements – Basic concepts, planning, performing procedures, and reporting

TCP

• Mergers, acquisitions, divestitures tax planning, including stock vs. assets

• LLC check-the-box rules

BAR

• Estate, gift, and trust filing requirements • Tax-exempt status and unrelated business income concepts • Multijurisdictional tax issues, including consideration of local, state, and international issues, sourcing and allocating income, and compliance reporting, including foreign bank account reports

• Technology and data security • Transactions between owners and their businesses, including loans, • Data analytics dividends, contributions, • Personal financial advisory and liquidations services, including retirement

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Reprinted with permission from Pennsylvania Institute of Certified Public Accountants

2022. This will contain content task statements identifying the skills that will be assessed on the new exam. Finally, the AICPA and NASBA are expected to announce new exam details to candidates and publish new blueprints in January 2023, with an expected exam launch date of Jan. 1, 2024. To stay up to date, faculty can get the latest updates on the CPA Evolution initiative by joining AICPA’s faculty hour webcast series.3 www.evolutionofcpa.org 2 Ken Tysiac, “Content for Redesigned CPA Exam Takes Shape,” Journal of Accountancy ( July 7, 2021). www.journalofaccountancy.com/news/2021/jul/redesigned-cpa-examcontent.html 3 www.thiswaytocpa.com/faculty 1

Heather M. Demshock, CPA, CMA, is an associate professor of accounting and chair of the accounting department for Lycoming College in Williamsport, and a member of the Pennsylvania CPA Journal Editorial Board. She can be reached at demshock@lycoming.edu. Robert E. Duquette, CPA, is professor of practice in the College of Business at Lehigh University, a retired EY senior tax partner, and a member of the Pennsylvania CPA Journal Editorial Board. He can be reached at red209@lehigh.edu.

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Belong. Grow. Achieve.

Heather M. Demshock, CPA, CMA

Robert E. Duquette, CPA

MEMBER NEWS WHAT’S HAPPENING OUT THERE Kathy Brents

CPA CBI Broker, Managing Member

Christy Hudson CBI

Broker

Forbes partnered with market research company Statista to create a list of the most recommended firms for tax and accounting services in the U.S. Of the 223 firms identified, 200 were recommended for tax services, and 200 were recommended for accounting services. Machen McChesney was recognized in both categories.

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Machen McChesney, one of the region’s leading CPA and business advisory firms, is pleased to announce that Forbes named Machen McChesney to its 3rd annual list of America’s Best Tax and Accounting Firms 2022.

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Marty Williams, the firm’s managing partner, stated, “It is an honor to be chosen again as a Forbes top tax and accounting firm and we are grateful to be recognized alongside some of the best firms in the nation. This really helps to solidify the hard work, dedication, and commitment of our entire team. It is exciting to know we were recognized by not only our clients but our peers as well.”

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Reprinted with permission from Pennsylvania Institute of Certified Public Accountants

MEMBER NEWS BMSS Advisors & CPAs welcomed 2022 with the promotion of two long-time employees, Joyce Rinaldi, CPA and Amy Stapler, CPA to Member. Rinaldi joined the Huntsville team in 2013 and is currently a Member in Client Accounting & Advisory Services (CAAS). Her specific expertise lies in providing virtual CFO solutions as well as assisting clients in areas such as process improvement, accounting systems conversions and implementations, financial accounting, and business operations. She is a member of the Alabama Society of Certified Public Accountants (ASCPA) as well as the American Institute of Certified Public Accountants (AICPA). She frequently presents at various conferences, both nationally and locally, and conducts trainings for the BMSS CAAS team and clients. As part of the BDO Alliance USA, Joyce serves as a leader of the CAAS Roundtable and is also involved with a local chapter of Toastmasters International, a public speaking and leadership organization. Over the past year and a half, she has been instrumental in leading the firm’s ERC team to help clients who have been impacted by COVID retain their employees during the pandemic. “Joyce is a dynamic leader who is passionate about providing exceptional client care and expertise,” said BMSS Member Tom Albright. “She has proven herself to be a top-notch professional as well an instrumental member of our firm for many years. This promotion recognizes her firm contributions as well as her steadfast commitment to serving our clients well.” Stapler joined BMSS in 2004 and currently serves as the Huntsville tax department leader while also providing her expertise and knowledge to clients within the consumer business and professional services industries. She is a member of the Alabama Society of Certified Public Accountants (ASCPA) as well as the American Institute of Certified Public Accountants (AICPA). A public servant dedicated to the community in which she lives and works, Stapler has served in a variety of capacities for numerous nonprofit and community organizations including the Huntsville Chapter of the Alabama Society of CPAs, Mayfair Child Development Center, United Soccer Club, Huntsville Basketball Booster Club, the James A. Lane Boys and Girls Club, and Huntsville City Schools 24

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“Amy is a rare gem in the accounting world. She is passionate about serving her clients with their tax service needs while, at the same time, being an avid business developer, firm cheerleader, community champion and familyminded individual,” said BMSS Managing Member Don Murphy. “We are fortunate to have Amy on our team and proud of her achievements as she is promoted to this greatly deserved position.” In other news, BMSS Senior Manager Kate Fluker, CPA, CCIFP is now among the most highly qualified construction financial professionals in the industry, having recently earned the Certified Construction Industry Financial Professional (CCIFP) designation. According to the Certification Division of the Construction Financial Management Association (CFMA), the CCIFP designation is “the only construction financial management certification accredited by the ANSI National Accreditation Board (ANAB).” Fluker joins an exclusive group of over 1,150 professionals nationwide who have met the rigorous standards of the CCIFP designation in the practice of construction financial management. She has a proven record of accomplishment, experience, and success, and is now counted among the most highly qualified construction financial professionals in the industry. The CCIFP is the only standard to recognize those financial professionals with a superior understanding of the construction industry’s financial opportunities and challenges. To earn the designation, candidates must serve in a professional financial role for a construction contractor or an accounting and/ or financial service provider to the industry and pass a comprehensive exam. To maintain their Certification, CCIFPs are required to adhere to a Code of Ethics and complete ongoing continuing education in the field of construction financial management. Borland Benefield would like to congratulate Blake Gruber, CPA on receiving his CPA license and on his promotion to Senior. Gruber earned his bachelor’s degree from the University of Alabama in accounting with a specialization in Professional Accounting and a minor in computer technology and applications. He joined the Firm in May of 2018 and his concentration is in individual, partnership, corporate, and trust taxation. He is a member of the Alabama Society of Certified Public Accountants and the American Institute of Certified Public Accountants. When not at the Firm, Blake enjoys woodworking/carpentry,

metal fabrication/welding, riding motorcycles, watch sports, hunting, video games, and spending time with his family. Carr, Riggs & Ingram welcomed 25 new partners in February 2022. “This new class of partners truly embodies CRI’s foundational principles of tailored client service, respect for all, and unyielding integrity, which to us, are assets as valuable as their extensive subject matter expertise, leadership capabilities, and dedication to the profession,” stated Bill Carr, CRI chairman and managing partner. “I think I speak for all leadership when I say that we are incredibly proud of each of these new partners for reaching this major career milestone. They are a much-appreciated addition to the future-focused and results-driven firm we are continuously building, and our clients of tomorrow, as well as our profession, are in good hands with this group.” Tyler Dunaway, CPA, CITP provides audit and consulting services to local governments, including municipalities, education agencies, and counties. He also services the employee benefit plans industry by providing external audit services to a variety of plans. With his high level of communication and focus on building personal relationships, it’s no secret that his clients love working with him. Tyler strives to provide timely and relevant information to help clients during audits and in their day-to-day operations. Katie McKenzie, CPA, CVA works with small- to mediumsized businesses in numerous industries. However, her primary focus tends to lean towards real estate and construction. She also provides tax preparation, financial statement preparation, and audit services to her clients. Katie’s high level of organization and communication enables her to build strong relationships with her clients. Patty McGill, CPA is best known for providing tax compliance, planning, and attest services for various industries. Her focus, however, lends itself to mainly serving construction and professional service entities. Patty’s clients enjoy working alongside her because of her high level of commitment and desire to go above and beyond their expectations with a positive attitude.

MEMBER NEWS Brian Rauch, CPA works closely with each of CRI’s family of companies providing financial and accounting management, including budgeting, periodic internal and external reporting, compliance, and day-to-day financial management. He prides himself on his years of previous accounting experience as well as his prior industry experience. While he does not serve any external clients of his own, Brian’s organizational skills and ability to provide thorough financial assistance has allowed him to successfully meet the wide range of needs that are required by the firm’s eight portfolio companies. Crows Shields Bailey is pleased to announce the following promotions: Sherri Deighton, CPA was promoted to Principal. She specializes in individual, partnership, and corporate tax returns with specialty in trust and estate tax returns. Hope Hickman, CPA was promoted to Principal. Hope specializes in auditing with expertise in QuickBooks, employee benefit plans, construction contractors, retail, wholesale, and condominium associations. John Gafford, CPA was promoted to Manager. He is one of the heads of CSB’s CAAS department, with extensive experience in multi-state corporate, partnership, and individual taxation; tax planning for businesses and high net worth individuals; and consulting for small businesses. He is also a certified Sage Intacct Accounting Specialist and Sage Intacct Implementation Specialist. Caitlyn Grimme, CPA, CFE was promoted to Manager. Caitlyn specializes in audits of non-profit organizations, governmental entities, non-public service organizations, and construction. Allie Parker, CPA was promoted to Supervisor. She specializes in audit services including construction, manufacturing and distribution, and employee benefit services industries.

Taelor Keefe was promoted to Senior Accountant. Taelor’s specialties include preparing individual and business tax returns, with a focus on estate and trust tax returns. Forensic Strategic Solutions, LLC is proud to announce that managing member Kelly J. Todd has been elected President. She began her role in January 2022. Ms. Todd brings her breadth of technical, analytical and investigation skills to the position and her leadership skills to propel the company in achieving its long-term goals. Over the next 10 years FSS plans to triple its employee size by continuing working with the best experts regardless of location.

advisory services to healthcare organizations. “These individuals have continued to grow and develop during some of the toughest tax seasons we’ve experienced, brought on by the pandemic. We are grateful for their hard work and all they contribute to the firm,” said Kassouf Director and Shareholder Jonathan Kassouf. After 61 years in the accounting profession, Mac F. Carpenter, CPA has announced his retirement. Carpenter joined the firm of McDaniel & Associates in 1960. After passing the CPA examination in May of 1961, he was admitted as a partner. Except for a period of time when he was a partner with his brother, Jack Carpenter, and others, he has been a partner of McDaniel & Associates, PPC.

Kassouf promoted 10 team members in January, naming two employees managers. Kassouf’s vision of upward mobility and continuous improvement drove these promotions.

From 1973 –77, he served as Vice President, President-Elect and President of the Alabama Society of CPAs. He was also a member of the Council of the American Institute of CPAs, a member of the Federal Tax Clinic Committee, Chairman and Secretary of the Southeast Alabama Chapter of CPAs, and served on various other ASCPA committees including Long-Term Planning and Alabama State Taxation. In 1982, Governor Fob James appointed Mac to the Alabama State Board of Public Accountants, where he served as Chairman during the 1985-86 year. Carpenter was then Regional Director of the National Association of State Boards of Accountancy.

2022 Promotions: Julie Parker, CPA – Manager Kami West, CPA – Manager Ashley Burns, CPA – Supervising Senior Levi Blalock, CPA – Senior Jeremy Green, CPA – Senior Matthew Jardell, CPA – Senior Phil Johnston, CPA – Senior Kerry Jones – Senior Sarah Oaks, CPA – Senior Cheryl Wisner – Senior

Wilkins Miller LLC, an accounting and advisory firm with offices in Mobile and Fairhope, is pleased to announce that Lyndsey M. Dixon, CPA, CVA, became a partner effective January 1, 2022. “We are extremely excited about Lyndsey joining our partner group.” said Wilkins Miller Partner, Allen Carroll. “She has great business experience and is an integral part of our leadership team and we look forward to her playing an even greater role in leading our firm forward.”

“We are incredibly proud of these team members and their accomplishments. They exemplify our firm’s principles around leadership, client care, and accountability,” said Kassouf Director and Shareholder Gerry Kassouf. Kassouf’s new managers include Julie Parker and Kami West. A graduate of UAB, Parker is part of the firm’s Assurance Services Group, performing audits and other assurance services for an array of industries. A University of Alabama alumna, West works in Kassouf’s Healthcare Group, providing accounting and

Dixon joined Wilkins Miller in 2012 after starting her career in public accounting in 2005. She brings more than 16 years of experience in public accounting and specializes in assisting a variety of clients with their outsourced accounting needs, including special projects such as outsourced controller/ CFO services. She also works in the forensic accounting area and has extensive business valuation experience.

March /April

REMEMBERING LARRY DON “DONNIE” SMITH May 6, 1948 – November 16, 2021 Tuscaloosa, AL | Certificate #1170 Donnie Smith attended Tuscaloosa County schools and was a graduate of Holt High School, where he was active in student government and played football, basketball and baseball. He earned his bachelor’s degree at the University of Alabama in 1971 and became a CPA in 1973. Smith opened his own accounting firm in 1976, L. Donnie Smith and Associates and it was a true family business. His later wife Anne was office manager for 40 years and daughter Holly joined the firm as a CPA in 2002. He served as president of the Exchange Club of Greater Tuscaloosa and was president of the ASCPA’s Tuscaloosa Chapter. Smith enjoyed pick-up basketball games, UA football and basketball and visits from his granddaughters and granddogs. Memorial gifts may be made to the Culverhouse School of Accountancy Benefactor Scholarship Award or to the YMCA of Tuscaloosa. *This is announcement is being run to correct an error printed in the last issue of Connections. We have corrected the date of birth information here.

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Northwest of Birmingham CPA grossing $315,000 * Available *

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_ outh of Birmingham (Shelby County) CPA grossing $150,000 * S Available after 4/15 *

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Cullman County CPA grossing $340,000 * Sold *

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Baldwin County CPA grossing $245,000 * Sold *

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Fort Walton Beach, FL area CPA firm grossing $480,000 * New *

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Chattanooga CPA book of business grossing $25,000 * New *

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Nashville area accounting and tax practice grossing $180,000 * Available *

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Nashville area audit and review practice grossing $30,000 *Available *

For more information on these listings or to sell your practice, contact Lori Newcomer, CPA and Tim Price, CPA at (888) 553-1040 or PNgroup@APS. net, or visit www.APS.net. 26

ASCPA Connections

June 13, 2022 7-10 PM Dread River Distillery Birmingham $100/ticket All proceeds will benefit the ASCPA Educational Foundation.

www.alabama.cpa/CasinoNight

March /April

Presort Std US Postage PAID Permit No 131 Montgomery, AL

The Alabama Society of Certified Public Accountants 1041 Longfield Court P.O. Box 242987 Montgomery, AL 36124

Experiencing

March Madness? Make This Your FINAL SEASON!

Lori Newcomer, CPA & Tim Price, CPA

(888) 553-1040

PNgroup@APS.net www.APS.net

Delivering Results -One Practice At a time