AZ CPA March/April 2020
ASCPA Life Member
Julie Klewer Technology & Taxes — The Accountant’s Responsibility
The Arizona Society of Certified Public Accountants y www.ascpa.com
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CPA The Arizona Society of Certified Public Accountants President & CEO Editor Advertising
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Board of Directors Chair Jared Van Arsdale Chair-Elect Ginny DeSanto Secretary/Treasurer Tom Duensing Directors Rachael Bertrandt Keith Cowan Kelly Damron Paul Evans Ross Grainger Tim Hansen Jessica Iennarella Andrea Levy Anthony Lorenzo Vanessa Makridis Karen McCloskey Sami Raynes-Houseknecht Immediate Past Chair Mike Allen AICPA Council Members Rob Dubberly
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Greg Nelson Chapter Presidents Southern Chapter Cathy Kinzer Northern Chapter James Shankland Southwest Chapter Helen Greenwell North-Central Chapter Gidget Schutte AZ CPA is published by the Arizona Society of Certified Public Accountants (ASCPA) to provide information, news and trends to the accounting profession. It is distributed 10 times a year as a regular service to ASCPA members. The ASCPA, its members, board of directors and administrative staff assume no responsibility for advertisements herein. The ASCPA and the above people also assume no liability for business decisions made by readers in reference to statements and/or claims in articles or advertisements within this publication. Opinions expressed by contributors are not necessarily those of the ASCPA.
Arizona Society of CPAs 4801 E. Washington St., Suite 180 Phoenix, AZ 85034-2040 Telephone (602) 252-4144 AZ Toll-Free (888) 237-0700 www.ascpa.com
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Volume 36 Number 3
AZ CPA
March/April 2020
Features Julie Klewer to be Honored as Life Member
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Julie Klewer talks about her service to the Arizona accounting profession. by Patty Gannon
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Recovering From Toxic Stress A CPA’s personal journey to managing stress during tax season. by Jay Allen Varco, CPA, MBA
Columns & Departments Chair’s Message by Jared Van Arsdale, CPA
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Member News
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Board of Directors’ Highlights
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Quick Quiz
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Classifieds 22
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Technology and Taxes: The Accountant’s Responsibility If you maintain personal data on behalf of your clients, keeping it safe is a real concern. The question is, are you following best practices to minimize your risk of a breach? by Gurjit Singh
4801 E. Washington St., Suite 180 Phoenix, Arizona 85034-2040 www.ascpa.com
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ASCPA Chair’s Message
Evolution of the Exam At its October 2019 fall council meeting, the AICPA proposed, in a joint effort with the National Association of State Boards of Accountancy (NASBA), to update the uniform CPA licensure exam in an effort to better adapt its knowledge base to the needs of industry that is increasingly complex and technologically heavy in practice. As such, I was not initially surprised by the underlying goals of the AICPA and NASBA; however, I was engrossed with the visual image representing the proposed model: a circle of core knowledge expanded by three disciplines. I was mentally racing to understand how it would alter the path set for future CPA candidates. What parts of the exam were now less valued? How would this change college curriculums? How would it encourage new and existing talent to sit for the exam? I had endless questions. by Jared Van Arsdale, CPA
Currently, on the AICPA’s website, you can review in detail an exposure draft of the proposed changes to the exam called the CPA Exam Practice Analysis. The AICPA is accepting comments on the proposed changes through April 30, 2020.
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A bit of background was helpful. As I understand it, following the efforts of an AICPA working group, the Institute requested and analyzed feedback from stakeholders in the profession about industry practice before concluding with the guiding principles it relied upon. Those principles were then engrained into the redevelopment of the current licensure model and its matrices of knowledge that we have come to love (in retrospect for most I suspect). Plainly speaking, the AICPA concluded that the exam was omitting highly valued and relevant information technology skills that are currently in use by the profession. Therefore, the joint effort proposed a new model of the exam to more align the skills of the candidates to the profession’s practice. You can find a visual of the proposed model at www.evolutionofcpa.org, as it is almost needed to comprehend the three disciplines and core CPA knowledge approach. Overall, candidates will have the ability to tailor their CPA exam to a discipline of their choosing (tax compliance and planning, business reporting and analysis, or information systems and controls) that goes beyond the core knowledge. More importantly, it should remain a four-part test regardless of the discipline chosen and will result in the current type of CPA licensure upon passage. As of now, you may have joined me in the seemingly endless questions and race for answers that are likely too early in the process to be appeased. Currently, on the AICPA’s website, you can review in detail an exposure draft of the proposed changes to the exam called the CPA Exam Practice Analysis. The AICPA is accepting comments on the proposed changes through April 30, 2020, and I feel it is imperative that we are fully aware of the skills and knowledge shaping the future of our profession and workforce. As a tax practitioner, I, of course, dove straight into the Regulatory section (REG) and started making notes. This proposal is a massive and incredibly complex engagement taken on by NASBA and the AICPA. Regardless of my own personal thoughts or opinions, I applaud their commitment to adaptation and change when they find it needed. Based on our feedback during the comment period, we should anticipate the proposed model being finely tuned in the coming years. As Robert Kennedy once said, “like it or not, we live in interesting times.” l
Member News Schutte & Hilgendorf, CPAs (Prescott) promoted Adam Robert Rutherford, CPA, to partner with the firm. Stephen J. Rodis, CPA, was appointed to a three-year term to the Arizona District Export Council by the U.S. Secretary of Commerce. As a member, Rodis will engage and support U.S. small- and medium-sized businesses that focus on U.S. exporting. Morrison, Clark & Company CPAs hired Jason C. Phillips, CPA, as the firm’s audit partner, focusing on the construction industry and Justin S. Jensen, CPA, MBA, as tax partner, with a focus on the real estate industry. Pamela S. Stelzer, CPA, an audit manager at Henry+Horne, has been appointed board secretary of Valleywise Health Foundation. Zachary Scott Snickles, of Grant Thornton LLP, was recognized by the AICPA through the Forensic and Valuation Services Standing Ovation Recognition program.
Register today!
ASCPA 2020 Annual Meeting & Awards Luncheon May 12 Join us for the ASCPA 2020 Annual meeting & Awards Luncheon on May 12 from 11:30 a.m. to 1:30 p.m. Bill Reeb, current chair of the AICPA, will be our keynote speaker. We will honor Julie Klewer with ASCPA Life Membership.
ASCPA Files Amicus Brief In February, the Arizona Society of CPAs filed an amicus brief in a contract case. This is only the third time the Society has filed an amicus brief in the past 20 years. In a case involving the attempt by the sole owner of a privately held company to bring suit in his own name for the purpose of avoiding tort lawsuit limitations built into an audit engagement letter, the Society recently filed a “friend of the court” brief with the Arizona Supreme Court. The engagement letter included a private statute of limitations that has already been upheld as fair and enforceable against the company by a Maricopa County District Court, the Arizona Court of Appeals and the Arizona Supreme Court. But, after the Court of Appeals agreed with the Dis-
Bill Reeb
Julie Klewer
Register at www.ascpa.com/annual Thank you to our sponsors: Paychex, CPACharge, Catholic Education Arizona and Wallace, Plese & Dreher, LLP
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trict Court that the contractual limitation also barred the owner’s claim, the Supreme Court agreed to hear just the owner’s appeal. The Society decided to weigh in on the appeal in support of the right of CPAs to fully enforce such limitations as a matter of contract law — even against a business owner. Please note that the appeal only involves contract law and that it does not involve any
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consideration of the work performed by the CPA firm, as to which the Society does not take any position. We are pleased to support the legal rights of all members of the Society to fully and lawfully protect themselves from tort lawsuits in their engagement letters. (JTF, et al. v. CliftonLarsonAllen (Az. S. Ct. No. CV-19-0209-PR) l
Arizona State Board of Accountancy — New Rules Effective April 5, 2020 Effective April 5, 2020, the Arizona State Board of Accountancy (Board) will have new rules that affect CPAs; CPA firms; and applicants for Uniform CPA Exam (Exam), certification, and firm registration. In substance, the amended rules: 1. Reduces from $300 to $275 and from $150 to $137.50 the biennial registration renewal fee for active and inactive CPA registrations respectively due during the period from July 1, 2020 to June 30, 2022; 2. Allows an applicant to retake a test section of the Uniform CPA Exam once their grade for any previous attempt of the same test section during that window has been released once “continuous testing” is implemented by the AICPA/NASBA; 3. Streamlines certification by exam, grade transfer, and substantial equivalency requirements; 4. Simplifies the peer review rule to ensure a single peer review administration process that follows the Standards for Performing and Reporting on Peer Reviews; and 5. Enumerates what evidence is required during the application for a new or reinstated firm and provides licensing timeframes. The rulemaking also makes other changes like providing for appeal rights for Exam and reinstatement denials as well as other technical, clarifying, and conforming changes. For a summary of the rulemaking, please visit the Board website at https://www.azaccountancy.gov/General/News_And_Updates. aspx#Q39. l
Julie Klewer to be Honored as Life Member Julie S. Klewer, CPA, MBA, has been a respected leader serving the Arizona accounting profession for more than 30 years. The Arizona Society will honor Klewer in May at the ASCPA Annual Meeting. AZ CPA: Congratulations on your ASCPA Life Member honor, Julie. You were chair/president of both the Board of Directors of the Arizona Society of CPAs and of the Arizona State Board of Accountancy. How did those experiences compare?
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Klewer: They both were equally amazing experiences. During my time at the Society, I had a chance to get to know Cindie (Hubiak) and all of the staff there. Cindie is an incredible leader and a wonderful, warm human being. The Arizona State Board of Accountancy was a challenge, interesting and very educational. I got a chance to work with some really smart people there, as well. Getting to know Monica (Petersen, the Executive Director of the State Board) and learning her management style, was great. So, I’m humbled that I’m getting recognized for just doing the things that I like, and I’ve grown personally and professionally as a result. Both Boards provided such different experiences. It was cool to be at the decision-making leadership
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Julie S. Klewer, CPA, MBA, is the partner in charge of the audit and assurance practice with LUDWIG KLEWER & RUDNER CO PLLC in Tucson. She began her career with Coopers & Lybrand in 1988 and has worked in both national and local public accounting firms throughout her career. Her practice areas include a focus on assurance services with specific concentrations in nonprofit organizations, construction contractors and benefit plans. She
taught
undergraduate courses in marketing and business administration, as well as graduate courses in accounting, at the University of Arizona. Klewer is also active in the community having served as chair of the 2006 Tucson Heart Ball benefiting the American Heart Association, and is a past chair of the ASCPA Board of Directors, and immediate past president of the Arizona State Board of Accountancy.
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level for both sides, the association advocacy membership side and the regulatory rule-making side. Arizona CPAs are fortunate that we have such a good relationship between the Society and the State Board. Getting to know Cindie was one of the highlights for me. I learned a lot from her in terms of managing conflict. The Society has a big, diverse board every year, so getting to watch dynamics in a board room was educational. I saw how the chair made sure that everybody in the room gets a chance to talk. I also learned the nuances to group consensus building. It’s different at the Accountancy Board. I’m not saying that the stakes can be higher at the Accountancy Board, they’re just different. They can be more intense and more technical. At the Society, it’s a larger group of people, and what you’re dealing with relates to the profession as a whole. In terms of the decision making, we’re more focused on how the Society makes itself relevant going forward and what we need to do to fulfill our mission. On the Accountancy Board, it can be highly emotional and it’s a smaller group of people. The stakes are higher for a single participant. In terms of my impact at the State Board level, there were people at the table that had much deeper technical expertise than me, but I think I contributed in meeting management and being able to make sure everybody was heard, being able to navigate difficult conversations and keep everyone on point. AZ CPA: What was the most challenging thing about those opportunities? Klewer: Honestly, the distance (working and living in Tucson) was a challenge. Also, keeping the boards focused on structural strategic goals and steering people away from the personal and operational side of things. If people get very passionate about something, especially when they’ve been involved for a long time, it can get challenging. My time on the Society board prepared me for the Accountancy Board.
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“It takes different skills to lead the ASCPA and the Accountancy Board. Julie’s leadership effectively adapted to these different environments, providing significant value to both organizations. Her wise counsel continues to provide me insights on ways to support the CPA profession,” —Cindie Hubiak, CPA, ASCPA President & CEO
AZ CPA: Have you experienced a shift in your career being a woman in accounting? Has the profession changed for you? Klewer: Yes, and no. I see more women in leadership, just because more women should be in leadership. There are so many great, qualified women, and they shouldn’t have blockades to being leaders. Diversity for diversity’s sake is not okay with me, but breaking down barriers so that people who have the qualifications to do the work and be effective leaders — that’s what it should be about. In the profession itself, I see more women partners and more women in leadership roles. I can’t say that I’ve experienced the same degree of progressiveness in the business community at large. I still find myself, on occasion in a meeting with one of my partners where I ask a question of a client and the answer is directed back to one of my male partners. There are very clearly still times where I feel that being female puts you five steps behind the same person who is a man. AZ CPA: Do you like being a role model? Klewer: I have a hard time seeing myself in that light. You know there’s a part of me that says, “How did I get here?” Even with being a partner in a firm and being able to run the show a little bit. I get to work with great people, mentor
young people coming up and work with students. I have a hard time owning that whole “role model” role, but I’ve been told that and yes, I’m grateful. I’m grateful that there are young women out there who aspire to be in a position of leadership, whether it’s in public accounting or other areas where they might have an impact. I’m thrilled. My favorite part of the job is hands-on training with the younger staff and interviewing students.
sure everyone else is okay. You tend to put everybody else first when you’re in that space. I’m learning later in my life that it’s okay to put me first. So, I think I’m trying to figure out how to do that and feel good about it. That’s my big challenge. This profession has been so incredibly good to me. I decided to be a stay-athome mom at one time, went back to school to get my MBA and started a whole other career in the marketing
consulting arena. During that time, I never let my CPA license lapse, and the CPA profession was waiting for me when I came back.It has been a great career and I wouldn’t have had it any other way. — Patty Gannon. l
Join the ASCPA at the 2020 Annual Meeting on May 12 when we honor Julie Klewer for her commitment to the profession. Go to www.ascpa.com/annual.
AZ CPA: So what does the future look like for you now that you are “board-less”? Klewer: My kids are grown up, and I recently became a grandma. We’re done paying for school/grad school. My husband and I, ironically enough, are both finding ourselves working harder than we have worked in a long time right now. And I don’t understand how we got here. Why is that? I mean, for me personally, it has to do with the fact that the firm has grown, and retaining people in our industry is tough. We’ve had great success, and I’m so grateful for that. People at the higher levels are under pressure because the higher up you get in this profession, the more stress there is. I have been honestly so blessed to have been in a partnership with Chris Ludwig and Eric Rudner. We’ve always functioned as a team and there’s no silo mentality. Ultimately, in a perfect world, I’d love to spend more time on doing nonprofit consulting, and that’s where my area of expertise is. I love being able to work with the boards and management. I would also like to go back to the University of Arizona to teach. I taught in the master’s program there a couple of times and I loved it. My husband and I want to travel more as well. We took a few great trips this year, but it was either travel or work 60 hours a week, there was no in-between. I’ll always be connected to the profession. I think some of the stress and commitment comes back to being a woman. It’s a mom thing. I’m used to taking care of other people and making
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Recovering From Toxic Stress A CPA’s Personal Journey to Managing Tax Season by Jay Allen Varcoe, CPA, MBA This is the “busy” time of year for most CPAs and for most of us it is really the “too busy” season. I’ve been through 26 “too busy” seasons and for me “too busy” also means too much stress in my life. Add on top of that, the additional pressure of setting high standards and trying to provide perfection for each and every client. Nobody wants to let a client down by missing something or making an error, and I think most CPAs want to prove their worth with each engagement despite occasional self-doubt. Eventually I began to joke with my wife that one day during a tax season she might find me dead at my desk as I struggled with never-ending stress that I always felt at that time of year. It was not a good joke, and I soon realized that the joke was hitting too close to home.
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Everyone handles the stress of busy season a little bit differently, but if you are feeling constantly stressed from early in January through April 15, be careful.
Everyone handles the stress of busy season a little bit differently, but if you are feeling constantly stressed from early in January through April 15, be careful. Stressful situations are a part of life, but long-term stress becomes toxic. Chronic stress will take a mental and physical toll on your body. The American Institute of Stress reports that chronic stress can certainly affect emotions, mood and behavior, but it also takes a toll on your physical body (www.stress.org). They illustrate that stress can trigger and intensify headaches and lead to back aches. Stress can cause heartburn, leave you short of breath, increase the risk of heart attack and can lead to depression. Stress can weaken your immune system, influence high blood pressure, cause nausea, and even increase your risk for Type 2 Diabetes. With all of these risks related to stress, who would have thought that public accounting would be such a dangerous profession? My mother, Marilyn J. Varcoe, Ph.D. wrote and published a book in 2004 entitled, Toxic Stress: 7 Steps to Recovery, which details examples of the effects
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that toxic stress had on many of her patients over her career as a psychologist and provides insights into some of the methods you can use to recover from toxic stress. Her book helped me to realize that I needed to be proactive and try to reduce my stress levels during tax seasons or else my joke with my wife could become closer to reality than I would like. Before reading my mother’s book, I had been letting my tax season evolve on its own without proactive management. I just let the work flow in, and then I would exert all of my effort to get the work finished in order to endure the next wave of work without drowning. I barely kept my head above water. With so much work and so little time, how could I take those precious moments and waste them on exercise? Sleep was for the weak. I did not have time to sit down for a good meal; it was fast food at my desk for me in order to plow through the work. When clients were surprised by how much tax they owed, a quick ice cream or cookie break would ease the stress for the moment but led to gaining at
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least 10 pounds each tax season. I finally realized that I had been doing everything wrong. With my new understanding and perhaps some fear motivating me, the next tax season I began to make some changes:
(1) I started tax season early. I began to actively manage the flow of client work including offering free tax projections in November. This gave me a head start at looking at my clients’ tax situations. Providing tax planning added tremendous value to my clients because we were able to investigate and implement tax saving strategies and more importantly to me, they were not surprised by any tax liabilities that they owed when it was time to file their returns in March or April. As a result, the stressful confrontations of clients during tax season dropped significantly and I was able to be more effective as a tax advisor.
(2) I contacted clients early to set up tax appointments. Sometimes my clients were not ready to commit to a date yet, but the call put me on their radar so this led to them providing me their documents earlier than in the past. I proactively used my calendar to control the flow of information into my firm, and I left cushions of time without appointments in order to keep a steady and even flow of work. I managed expectations for my clients by projecting workflow and as a result, work flowed smoother and returns were generally finished earlier than in the past.
(3) I got more sleep. With my new calendar approach, I set aside time for eight hours of sleep each night and a full hour for a real dinner and time with my family. To be honest, I did not always stick to the plan, but it was a definite improvement and my family appreciated seeing me. It made me acknowledge that “too busy” season was tough on my
family too.
(4) I took more breaks.
Throughout the day, I would take periodic breaks to walk outside of my office. It got my blood flowing and it also helped me to reset my mind. The benefits of being able to refocus made up for the lost time. It is tempting to plow through work, but I found the breaks did more to help my productivity over the course of the day.
(5) I used mindfulness to become more efficient. I focused upon one task at a time without trying to multitask. I researched and implemented breathing and centering techniques to help me stay on track.
(6) I ate for energy I replaced my ice cream and cookies with healthier snacks like carrot sticks and apples. Sugar provides that quick boost but then be ready for the crash. I
was not able to resist stress eating sugary snacks entirely, but I could tell that just making the effort made a difference in my energy.
(7) I started training my mind. Most importantly, I worked upon my own thoughts in my mind to realize that not every situation is life threatening, and there was no reason for me not to be confident in my abilities. I realized that I might not remember all of the tax rules like my favorite CPE instructors, Ed Zollars or Pat Garverick, but I knew what I was doing. A funny thing happened once I relaxed about being perfect. By realizing that a mistake would not put me out of business, I made less of them. In a sense, I had prepared for the game; I had a game plan and now it was time to execute and do what I was meant to do. It had become my time to shine and not my time to drown. Once I implemented these changes, it was easier to live through each tax
season because although I still felt stress at times, I no longer felt like I was under the weight of constant stress. Not to mention, I could always look forward to my vacation that was planned for in May! l Jay Allen Varcoe, CPA, MBA, ELI-MP, is a member of the ASCPA and a business coach. Before Jay graduated from the coaching school iPEC and obtained his Energy Leadership credential, he ran his own certified public accounting firm, Varcoe CPA, PC, for 20 years. Varcoe is also currently an adjunct accounting professor at Grand Canyon University. More information about him can be found at www.jayvarcoe.com. Contact him at (602) 524-5275 or jay@varcoecpa.com.
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Technology and Taxes: The Accountant’s Responsibility by Gurjit Singh In the world we live in today, the only way to avoid becoming a victim to malware and/or identity theft is to disconnect yourself and your workstation from the internet. Unfortunately, in today’s business environment, that is not an option. Accounting firms maintain a significant amount of personal data on behalf of their clients, ranging from financial records to personally identifiable information. Keeping this data safe is a real concern for every single organization that houses it; the question is, are you following best practices to minimize your risk of a breach?
perimeter, hardening the endpoints with application whitelisting policies and subscribing to advanced threat protection services, is still at risk through the human end-user. People are the first line of defense against cybersecurity attacks. Hackers are smart; they will start where the path to success does not require penetrating through layers of security. Instead, they rely on an attachment or a hyperlink that will grant them the level of access they need without breaking a sweat. One way hackers accomplish their goals is by engaging their target in a phishing expedition. Phishing scams are a popular way for hackers to try to get your personal information, and, if successful, hackers don’t have to do anything to get into your account other than send you an email.
Email Vigilance The Risk There is no way to be completely sure that a system is impenetrable and safe from a cybersecurity threat; however, exercising best practices can turn the difficult task into a manageable event. Threats will continue to emerge and impact those that do not establish a strategy with best practices. First and foremost, the highest risk is posed by the human end-user. Even a firm with the most wellplanned and well-funded technology investment, including safeguarding your
Email is another means of information transfer where one needs to be vigilant. Did you know that if you or a member of your organization receive emails that contain sensitive information and ignore the email, neither deleting nor reporting the incident, the entire
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If your corporate applications are not secured using Mobile Device Management solutions, you’re introducing a huge risk to your clients’ personal data.
company is held liable for irresponsible data handling? While we’re on the subject of emails, note that the IRS does not initiate contact with taxpayers by email or social media channels to request personal or financial information. During tax season, there will be numerous attempts to scam both the accountants and taxpayers, so it’s important to not open any attachments or click on any links contained in the emails. Instead, forward the email to phishing@irs.gov.
The Rise of Mobile The workforce of today has become increasingly mobile, and with mobility comes challenges with securing devices that fall outside of your domain. For example, let’s look at smart phones. Most firms do not issue firm-owned devices to all employees, opting instead for a “bring your own device” policy. These personal devices store corporate data, including emails, contacts and documents which reside locally. This leaves personal devices open to increased security risks — it only takes one breached or malwareinfected mobile application to comb through your personal device and read/move any data on your device without your knowledge. If your corporate applications are not secured using Mobile Device Management solutions, you’re introducing a huge risk to your clients’ personal data. To mitigate some of the risks, all smart phones should have a screen lock and password protection for corporate data applications. It is also important
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to remember that you should never connect to public WiFi networks. Why? Because the moment your mobile device sends data to a website or service over these public networks, it can be intercepted and will no longer remain private.
What About Flash Drives Flash drives are another way that hackers can trick you into giving access to personal information. While it may not be the easiest solution, putting an end to flash drives, unless they’re encrypted, will mitigate some of that risk. Encryption is one of the most effective methods to protect your data because without the key, any data stored on the device will not be decrypted.
Changing Regulations Laws around data protection are rapidly changing, and compliance with these laws will continue to impact modern society. For example, the California Consumer Privacy Act (CCPA) was recently introduced to enhance privacy rights and consumer protection for residents of California. CCPA is the beginning of “America’s General Data Protection Regulation (GDPR).” Similar to GDPR, CCPA will require organizations to focus on user data and provide transparency in how they are collecting, sharing and using such data. GDPR is also very much in favor of encryption as a security measure. Article 34, Section 3(a), frees data controllers from having to notify affected individuals about a personal
AZ CPA MARCH/APRIL 2020
data breach if the controller has implemented protection measures, “in particular those that render the personal data unintelligible to any person who is not authorized to access it, such as encryption.”
The Role of the Accountant as Security Advisor The need for robust security changes the responsibility of every individual both inside and outside of an organization. This means that as an accountant, you must carry out your usual duties: preparing tax returns, payments, necessary paperwork and reporting, while also becoming a security advisor to your clients. For example, there is a good chance that your clients are not running the most sophisticated security solutions and yet insist on using their current tools to send you sensitive data. It is imperative that you stress firm policies and procedures around the transfer of information as often as possible to continue creating awareness for your clients. In addition, firms must adopt policies for receiving data through portals, which are essentially a gateway for clients to share information securely via the internet. Many portals offer virus scans and usually block attachments before they’re eligible for download. Clients trust their accountants with their most prized possession: data. But as long as there are Internet-enabled devices, there will be those who exploit them to harm the uninformed. With education around best practices relating to security, you’re taking monumental steps to reduce these threats and keep your data from being compromised. l
Gurjit Singh is the chief information officer at Prager Metis CPAs LLC. He can be reached at gsingh@pragermetis. com. Reprinted with permission from the New Jersey CPA magazine (njcpa.org/ newjerseycpa).
Phoenix Tax Workshop Series 24 Hours of Live CPE for $375 * Added Bonus for purchasing 2020-21 Phoenix Tax Workshop Series! You will gain access to all 2020-21 recorded sessions for later viewing.
Who’s on the agenda? Presentation topics are selected and then matched with the expertise of speakers drawn from the Advisory Committee, members of the Legislature and Arizona government.
The Phoenix Tax Workshop was established in 1961 to educate professionals in all areas of taxation—federal, state and local. We invite you to join this elite group of tax professionals at their Saturday CPE/CLE sessions (eight times per year). This series is also offered as a webcast.
What is the Advisory Committee? The Advisory Committee is comprised of the Valley’s top legal and tax accounting professionals who have agreed to volunteer their time.
What does it cost? The annual fee of $375 (due by the first meeting in May) includes the opportunity to earn 24 hours of CPE/CLE credit per year, which includes eight, three-hour meetings. You may attend individual meetings for $70. (Payment can be applied toward annual fee if you decide to enroll in the series). To enroll in the Phoenix Tax Workshop Series, complete the registration form below or register online at www.ascpa.com/ptw21.
Meeting dates and times The following Saturday meetings are held at the ASCPA offices in Phoenix from 9 a.m. to noon. A full breakfast is included with each meeting. You may also participate by webcast from your home or office.
What’s on the agenda? Topics are drawn from current tax issues, court cases and current legislation on both federal and state arenas. You will have the opportunity to take part in question and answer sessions to ensure you leave with a complete understanding of the material. Updated agendas will be sent prior to each meeting and will be available in the online CPE catalog. Check periodically for updated information.
Name ___________________________________________ Company ________________________________________ Address ________________________________________ City ___________________State _____ Zip ___________ Phone __________________ Fax ____________________ Email ___________________________________________ Check all that apply: r ASCPA Member r Nonmember r CPA r Not a CPA r Attorney r Other I will be attending: r In-person r On Webcast
May 16, 2020
Nov. 21, 2020
June 20, 2020
Jan. 16, 2021
Sept. 26, 2020
Feb. 20, 2021
Oct. 24, 2020
April 24, 2021
Method of Payment: r Check r VISA r MasterCard r American Express Name on Card _______________________________ Card Number ________________________________ Exp. Date ____________ Amount $ Signature of Card Holderr______________________ Please return this form and payment to: Arizona Society of CPAs 4801 E. Washington St., Ste. 180 Phoenix, AZ 85034 Fax credit card orders to: (602) 252-1511 or register online at www.ascpa.com/ptw21. MARCH/APRIL 2020 AZ CPA 19
Highlights of Board of Directors’ January Meeting
Arizona CPA Foundation for Education & Innovation Donors Thank you to our members for your generous contributions to the Arizona CPA Foundation for Education & Innovation in 2019. Your donations support accounting students on their path to becoming CPAs. $10,000 Deloitte $1,500 Vanessa R. Makridis $1,000 Karen K. Abraham Cindie Hubiak $500 Michael T. Allen Virginia E. DeSanto Mark & Sue Landy Bruce J. Nordstrom Leslie B. Stackpole $100-$400 Sandra A. Abalos Brenda A. Blunt George M. Cohen Keith R. Cowan Kelly K. Damron Patricia J. Elder Rufus Glasper Elizabeth A. Goff Alan Gold Ross M. Grainger R. Dale Hensley Lynn R. Hoffman
Adela E. Jiménez Noemi Lopez Anthony Lorenzo Karen K. McCloskey Allen L. Nahrwold W. Gregory Nelson Tess L. Ridgway Maria Elena P. Rivas Layne R. Simmons Anna Y. So Nancy Thomas Lynette R. Wachterhauser $50-$99 Charles J. Aton Monica Barcelo Gilbert B. Blumenthal Thomas F. Duensing Frank F. Espino Vincent R. Gosz Lisa G. Johnston Andrea B. Levy Michael J. Liebman James Marmel Susan M. Mortenson Carolyn S. Sechler Monica J. Stern Linda S. Tansik Peggy H. Ullmann Robert Wyndelts
Thank you also to our members who donated other amounts throughout the year and with their annual dues renewal.
To learn more and donate, go to www.ascpa.com/foundation
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AZ CPA MARCH/APRIL 2020
Among other actions at its January 22, 2020 meeting, the ASCPA Board of Directors reviewed the following: Consent Agenda The consent agenda, which included the board minutes, financial statements and the Foundation’s 2020-21 budget was approved. Nominating Committee Report Ginny DeSanto, chair of the nominating committee, thanked committee members and shared the names of members nominated to the board who would take office on May 1, 2020. Legislative/Advocacy Dialogue John Baumer reviewed upcoming 2020 legislation. Ryan and Kevin DeMenna thanked the board for their support of PAC activities, shared how favorably the Society is viewed by legislators and talked with the board about the current legislative session. Strategic Plan Update Cindie provided an update on the ASCPA’s strategic measurements. 2020-2022 Strategic Plan & 2020-2021 Strategic Measurements Approval The strategic plan and measurements for the next fiscal year were reviewed and approved. A Day in the Life Keith Cowan shared a view of the challenges and joys he experiences in his life and job. Other Business The board approved the executive committee to work with Cindie to have an amicus brief filed on a contract law matter, if specific guidelines were met. Cindie Hubiak announced her retirement as President & CEO of the Society on or before April 30, 2021. If you have questions, please contact Cindie Hubiak at (602) 324-2888; AZ toll free at (888) 237-0700, ext. 203; or chubiak@ascpa.com
AZ CPA Quick Quiz
6. According to Jay Varcoe, CPA, stress can be: m Invigorating m Toxic m Motivating
You’ve Read It, Now Get Credit Take this quiz on AZ CPA content online or submit this hard copy. Receive a score of 70 percent or more and earn one hour of CPE credit in specialized knowledge. It’s that easy! Fees: Members: $25 Nonmembers: $40 Online Access Go to www.ascpa.com/quickquiz to access links to all active quizzes. Once a quiz is purchased, a link and password will be emailed to you. Your results will be sent immediately after completion, and certificates are emailed within two business days. Hard Copy Please select one answer for each question. Fill out registration/payment information below and mail or fax to the Society office. Quiz results and certificates will be emailed to the address provided on the registration form. *This quiz will be available until April 2021. Please note that users have three attempts to pass the quiz with at least a 70 percent score.
March/April 2020 Issue of AZ CPA* 1. In this month’s Chair’s message, Van Arsdale talks about the AICPA revamping the CPA exam due to what missing skills? m Tax m Auditing m Technology 2. You can comment on an exposure draft of the proposed changes to the CPA exam on the AICPA website through: m April 1, 2020 m April 30, 2020 m May 30, 2020 3. How many times has the ASCPA filed an amicus brief in the past 20 years? m 3 m 5 m 11 4. Julie Klewer will receive the ASCPA Life Member honor at what event? m The ASCPA Annual Meeting m The Accountancy Board Meeting in May m The Accounting Academy Awards Dinner
5. Julie Klewer led what two accounting entities? m The Boards of the AICPA & the ASCPA m The Arizona State Board of Accountancy & the ASCPA Board of Directors m The Association of Women Accountants & the ASCPA Foundation for Education
7. What one thing did Varcoe NOT do to alleviate his stress? m Planned his client meetings m Started to eat less sugar m Began training for a marathon 8. What should you do if you believe you’ve received a scam email claiming it’s from the IRS? m Repond and send the money owed. m Run a virus scan on your computer m Forward the email to phishing@irs.gov 9. What type of flash drives should you use to ensure they are secure? m Microsoft m Only your own m Encrypted 10. The ASCPA Board approved the executive committee to do what? m File an amicus brief on a contract law matter m File an amicus brief on a voting dispute m File an amicus brief on a constitutional matter
Quick Quiz Registration Name: ____________________________________________________ Email:_____________________________________________________ Telephone: _________________________________________________
Payment
m Member: $25 m Nonmember: $40 Checks: Please make payable to: The Arizona Society of CPAs Credit Card:
m Visa m MasterCard m American Express
Credit Card #: _______________________________________________ Expiration Date: _____________________________________________ Name on Card. _____________________________________________ Mail to: ASCPA, 4801 E. Washington St. Suite 180, Phoenix, AZ 85034-2040; fax to (602) 252-1511 scan and send to ASCPACPE@ascpa.com.
MARCH/APRIL 2020 AZ CPA
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Classifieds Business Opportunities TAX AND ACCOUNTING PRACTICE FOR SALE — Tax and Accounting Practice for sale in North Phoenix. Gross revenue $160,000. Owner will help in transition. Good opportunity for young CPA to start or expand a practice. Please contact: llemmon@q.com. Employment PARTRIDGE & ASSOCIATES, CPAS PLC — North Scottsdale CPA firm is seeking a part-time (retired) Senior Tax reviewer during peak season. Must have seasoned tax review experience with updated knowledge of tax law and paperless systems.Larry@partridgecpas. com. PRESCOTT CPA, PLLC — Prescott, AZ CPA firm looking for part-time bookkeeper. Schedule is flexible and ideal for retired CPA or Controller. Candidate will work with several clients reviewing,
reconciling, adjusting and performing payroll on books on a monthly and quarterly basis. Please email resume to nick@prescottcpa.com.
Services
EXECUTIVE OFFICE SPACES FOR LEASE — Beautiful garden-style office complex in a great office environment located in north Phoenix. Easy access to SR 51 and SR 101 just north of NWC of Tatum and Shea Blvd. Executive office $800, interior office $650. Ample parking, beautiful conference rooms and seminar room. Copier, telephone and internet ready. Includes Receptionist to greet your clients. Contact Julie at (602) 953-5000.
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EAST VALLEY OFFICE FOR LEASE — Share office building in East Valley with other professionals. $500 per month includes 130 sq. ft room with wi-fi and kitchen access. Contact jdhcpapc@ gmail.com.
For more information on classified advertising, go to www.ascpa.com and go to classifieds.
Office Space
New Job? New Address?
YOUR CLIENTS CAN HELP CATHOLIC CHARITIES MAKE MIRACLES! If you’d like more information on how your clients can benefit from a dollar-for-dollar tax credit on their AZ State Taxes AND help foster families at the same time, contact us at 602-650-4808 or CatholicCharitiesAZ.org/taxcredit. QFCO: 10000
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AZ CPA MARCH/APRIL 2020
Update your contact information on your ASCPA profile. Don’t miss out on important legislative information, upcoming events and member benefits. Login and update your organization or make changes to your professional profile.
www.ascpa.com/my_ account
2020 CPE CALENDAR March/April March 16 Gaining a Competitive Advantage: Critical Skills for CFOs and Controllers (8-11:30 a.m.) Ronald Kral CPE: 4 Field of Study: MG
FMLA, HIPPA, COBRA and ADA (8-11:30 a.m.) Robert Minnti CPE: 4 Field of Study: AA
27 A Complete Guide to the New Yellow Book Michael Morgan CPE: 8 Field of Study: AA
Member $160/Nonmember $210
Member $300/Nonmember $400
18 Employment Law Update: Reducing Employer Liability
APRIL
Member $160/Nonmember $210
(12:30-4 p.m.)
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Robert Minnti CPE: 4 Field of Study:BL
Latest Developments in Government and Nonprofit Accounting and Auditing
Controller/CFO Update: Hot Topics Facing Today’s Financial Professional (12:30-4 p.m.) Ronald Kral CPE: 4 Field of Study: MG Member $160/Nonmember $210
17 Five Critical Issues That CPAs in Industry Will Need to Face This Year (8-11:30 a.m.) Ronald Kral CPE: 4 Field of Study: AA Member $160/Nonmember $210
17 Innovative Forecasting and Budgeting: Moving Beyond the Traditional Techniques (12:30-4 p.m.) Ronald Kral CPE: 4 Field of Study: MG Member $160/Nonmember $210
18 Employment Law Update: Examining Critical Issues With
Member $160/Nonmember $210
Marty Van Wagoner CPE: 8 Field of Study: AA
19 Real-World Fraud Found in Governments and Not-for-Profits
Member $300/Nonmember $400
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Robert Minnti CPE: 8 Field of Study: AA
Accounting, Audit and Attest Update
Member $300/Nonmember $400
25 Professional Ethics Update for CPAs in Business – Including Revised AICPA Code (8-11:30 a.m.) Gilbert B. Blumenthal CPE: 4 Field of Study: ET Member $160/Nonmember $210
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Marty Van Wagoner CPE: 8 Field of Study: AA Member $300/Nonmember $400
23 Business Law Essentials for Practitioners and Controllers Curtis Quickel CPE: 8 Field of Study: BL Member $300/Nonmember $400
The Essential Course for Preparing Not-for-Profit Financial Statements Under ASU No. 2016-14 Michael Morgan CPE: 8 Field of Study: AA Member $300/Nonmember $400
www.ascpa.com MARCH/APRIL 2020 AZ CPA
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AZ CPA MARCH/APRIL 2020
