AZ CPA November/December 2021 by ASCPA

AZ CPA November/December 2021

Cybersecurity Compliance for Tax Professionals for the Upcoming Tax Season The Arizona Society of Certified Public Accountants y www.ascpa.com

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of Certified Public Accountants (ASCPA) to provide information, news and trends to the accounting profession. It is distributed six 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

Volume 37 Number 6

AZ CPA

November/December 2021

Features Cybersecurity Compliance 9 for Tax Professionals for the

Upcoming Tax Season

Cybersecurity Compliance for Tax Professionals for the Upcoming Tax Season

By Kenny Kang

Malpractice Risks Increase 13 During Difficult Economic Times

By Suzanne M. Holl

Columns & Departments Chair’s Message by Thomas F. Duensing, CPA

Member News

Classifieds 30 Quick Quiz

Risk Assessment 16 5Challenges for Audits By Michael Caro, Jr.

rom Self-Sabotage to 18 FSuperpower: Harnessing Emotion with Self-Awareness By Jessica Hubbard

ips for Working With First-Time 21 TSingle Audit Clients

28 ASCPA 100 Percent Club

4801 E. Washington St., Suite 180 Phoenix, Arizona 85034-2040 www.ascpa.com

NOVEMBER/DECEMBER 2021 AZ CPA

ASCPA Chair’s Message Personal Improvement – Having a Growth Mindset Growing up, my parents did their best to instill the value of hard work and tenacity. Although I feel fortunate that these traits were expected, the approach did not mean issues were managed with thoughtfulness, creativity and confidence. Simply rolling up the sleeves and grinding through problems seemed to be my mantra, and that was good enough. Those were my abilities.

Thomas F. Duensing, CPA Chair, Arizona Society of CPAs Financial Services Director, City of Tempe

A growth mindset centers around improvement of your abilities through effort, learning from mistakes, changing your approach and embracing challenges.

Moving forward, it wasn’t until I had worked for 20 years or so that I understood the value of relationships in the business setting and getting things done. This was my next revelation in personal development that went beyond simple hard work. Whether it’s the teacher-student connections with staff or rapport with a business partner, I found relationships build trust and are integral in getting things done. Recently, thanks to the ASCPA staff, I was introduced to the concept of a “growth mindset.” While I wish I could have understood this concept early on, I find this approach fascinating and not just another step toward success. More importantly, a growth mindset brings value to personal development and satisfaction. Carol Dweck, a professor of psychology at Stanford University, is the pioneer in growth mindset research. Simply put, humans operate in both a fixed and a growth mindset. Merriam Webster defines mindset as “a mental attitude or inclination.” Personally, mindset translates into the ability, approach, attitude to solve problems and to get things done. Is that ability fixed, or can that ability be developed? As each of us strives to grow, develop our staff and be successful, abilities can be viewed in two ways. The first option is a fixed mindset, the self-belief that our abilities are fixed and cannot be improved. The second option, conversely, is a growth mindset, the self-belief that our abilities and intelligence can be improved. A growth mindset centers around improvement of your abilities through effort, learning from mistakes, changing your approach and embracing challenges. Feedback and criticism are welcomed as they are just another part of enhancing your abilities. The growth mindset also views success of others as inspirational and not a threat to your own success. This is not an “either/or” proposition. One cannot only have a fixed mindset or a growth mindset. Dr. Dweck concludes that “(1) we’re all a mixture of fixed and growth mindsets, (2) we will probably always be, and (3) if we want to move closer to a growth mindset in our thoughts and practices, we need to stay in touch with our fixed-mindset thoughts and deeds. If we ‘ban’ the fixed mindset, we will surely create false growth-mindsets.” 1 Although such a short column will not do this topic justice, I urge you to read about growth mindsets and the applicability to the profession and your specific organization. Whether it be hard work, fostering relationships or embracing a growth mindset, we can all agree individual and business success is a winning combination. l

Respectfully, Tom Duensing 1 Dweck, C. (2015) Carol Dweck Revisits the ‘Growth Mindset’. Education Week.

AZ CPA NOVEMBER/DECEMBER 2021

Member News Steve Roark, CPA (licensed in WA) is taking the reins of the newly revamped Research & Development Tax Credit niche as Director of Research and Development Tax Incentives at Henry+Horne.

Jill P. Foley, CPA, managing partner at Four Leaf Financial and Accounting, PLLC, has been elected to the Arizona Family Health Partnership board of directors and its executive committee. Foley will serve as secretary treasurer.

Stephen J. Rodis, CPA was appointed by Governor Ducey to the Board of the Arizona State Board of Accountancy for a fiveyear term.

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Cybersecurity Compliance for Tax Professionals for the Upcoming Tax Season By Kenny Kang, CPA, CGMA, CFE (CPA license in CA)

According to recent research done by Cybersecurity Ventures, by 2022, there will be an estimated 6 billion people who will be online, which represents 75% of the entire world’s population. Cyberattacks happen every 11 seconds, with 90% of hacks starting with phishing scams.1

CPAs and other tax professionals collect their clients’ crown jewels: sensitive financial data. This makes them prime targets for cybercriminals. For hackers looking to make a quick buck or engage in more sophisticated identity theft and tax fraud schemes, tax professionals are a treasure trove of social security numbers, tax ID numbers, bank account numbers, confidential agreements and other personally identifiable information. It is not surprising that professional services rank high as valued targets by ransomware in the second quarter of 2021.2 In July 2021, the IRS urged tax professionals to boost security immunity with their news release IR-2021-152.3 The release reads in part: “The 2021 campaign begins as the number of data thefts reported by tax professionals to the IRS continued to climb. Through June 30, 2021, there have been 222 data theft reports this year from tax professionals to the IRS, outpacing the rate of 211 in 2020 and 124 in 2019. Each report can impact hundreds of taxpayers and threaten the tax professional’s business. Identity thieves and fraudsters were especially active last year and this year as they used the COVID-19 pandemic, the nationwide teleworking practices and the economic downturn as fuel for a variety of scams and schemes to steal money and identities. Tax professionals are key targets of criminal syndicates that are tech-savvy, taxsavvy and well-funded. These scammers either trick or hack their way into tax professionals’ computer systems to access client data. They use stolen data to file fraudulent tax returns that make it more difficult for the IRS and the states to detect because the fraudulent returns use real financial information.”

NOVEMBER/DECEMBER 2021 AZ CPA

As early as 2008, the IRS released Publication 4557 “Safeguarding Taxpayer Data” under the federal security requirements of the Graham-Leach Bliley Act of 1999 (GLBA). In July 2021, the IRS updated Publication 4557 in recognition of the growing crisis of tax preparer data breaches, identity thefts and unemployment compensation fraud due to the COVID-19 pandemic. Furthermore, Publication 4557 reiterates that protecting taxpayer data is the law. Under the FTC Safeguards Rule, tax professionals must create and enact written information security plans to protect client data, with “written” edited into the July 2021 revision. Since October 2019, the IRS has added line 11 of Form W-12. This affirmative checkbox continues to apply to licensed tax attorneys, CPAs, enrolled agents, enrolled actuaries, enrolled retirement plan agents, state regulated tax return preparers and certifying acceptance agents, and it should not come as a surprise for tax professionals. By failing to enact security plans and violating the FTC Safeguards Rule (the implementing regulation for the GLBA), the IRS noted that this could result in a: • Violation of IRS Publication 3112: Safeguarding of IRS e-file from fraud and abuse is the shared responsibility of the IRS and Authorized IRS e-file Providers.

• Violation of IRC, Section 7216: Criminal penalties on any person engaged in the business of preparing or providing services in connection with the preparation of tax returns who knowingly or recklessly makes unauthorized disclosures.

• Violation of IRC, Section 6713: This provision imposes monetary penalties on the unauthorized disclosures or uses of taxpayer information by any person engaged in the business of

preparing or providing services in connection with the preparation of tax returns.

• Violation of Rev. Proc. 2007-40: This procedure specifies that violations of the GLB Act and the implementing rules and regulations put into effect by the FTC, as well as violations of non-disclosure rules addressed in IRC sections 6713 and 7216, are considered violations of Revenue Procedure 2007-40. These violations are subject to penalties or sanctions specified in the Revenue Procedure. (See 2007-26)

Furthermore, over the summer of 2021, the IRS underwent another summer campaign with a series of news releases: “IRS Security Summit announces summer campaign to raise awareness among tax pros about identity theft; urges practitioners to boost security immunity” [IR-2021152, 155, 158, 163, 166, 170] for tax practitioners highlighting certain recommendations: • Use multi-factor authentication to protect tax preparation software accounts.

• Sign clients up for Identity Protection PINs.

• Help clients fight unemployment compensation fraud. • Avoid spear phishing scams. • Know the signs of identity theft.

With the continuation of an affirmative checkbox, tax professionals cannot claim ignorance of the rules. Instead, they will now have to make a representation of their security compliance. Since Form W-12 is signed under penalty of perjury, making false or misleading information may result in criminal penalties and/or the denial or termination of a PTIN. So, where should tax professionals start if you have not already? First, the IRS has provided handy resources for tax preparers to understand the FTC Safeguards Rule and their obligations (see

AZ CPA NOVEMBER/DECEMBER 2021

below). Second, per these resources, tax professionals should conduct security risk assessments of their systems (potentially in conjunction with counsel for client-attorney privilege) to mitigate current risks. Third, stay alert! As hackers get more sophisticated, risks change, and it is up to the tax professionals to stay updated on the latest cyber risks or seek the assistance of third parties to manage these ongoing risks.

• Pub. 4557, Safeguarding Taxpayer Data • Pub. 5417, Basic Security Plan • IRS.gov/IdentityTheft

• IRS.gov, keyword: Protect Your Clients Protect Yourself

In addition to these resources, there are other common cybersecurity steps that tax professionals can take:

• Have a written information security plan, as required

• Set complex password with at least eight minimum characters

• Perform backups and test restoration of backups

• Patch or update all software and firmware

• Adopt a robust anti-virus/ anti-malware program

• Secure all end-point devices, including cell phones and printers that are connected to your network

• Educate your employees with phishing training • Conduct penetration testing

• Conduct tabletop exercises as guided by your Incident Response Plan

• Assess vendors and business partners’ cybersecurity posture.

• Perform a risk assessment on controls

• Adopt a heightened cybersecurity awareness culture within your organization

Tax professionals looking to boost their cyber defenses may find it daunting to consider the sheer amount of initiatives that they want to do. It is imperative to remember that organizations do not need to resolve every weakness at once – any progress, after all, is still progress. But, it is important to take the first step. l Kenny Kang is a CPA (licensed in CA), Chartered Global Management Accountant (CGMA) and Certified Fraud Examiner (CFE). He is the owner of Kenny Kang CPA. Kang has over 18 years of public and industry experience, specializing in forensic accounting, fraud examination and fraud prevention & detection. Kang provides consultation services in fraud risk assessment, cybersecurity policies and procedures documentation and firm-wide training. Contact him at kenny@kennykangcpa.com or www. kennykangcpa.com. Kang will be speaking at the 2022 Governmental Accounting Conference on cybercrime and fraud. Footnotes 1. https://cybersecurityventures.com/ cybercrime-infographic/ 2. https://www.coveware.com/blog/2021/7/23/ q2-ransom-payment-amounts-decline-as ransomware-becomes-a-national-security priority 3. https://www.irs.gov/newsroom/irs-security summit-announces-summer-campaign-to raise-awareness-among-tax-pros-about identity-theft-urges-practitioners-to-boost security-immunity Disclaimer- This article does not constitute any professional advice, and the content is intended for general informational purposes only. Circumstances may differ from situation to situation. Kenny Kang CPA is not liable for any errors or omissions in this article nor any losses, injuries, or damages from the consumption or use of this information.

Invest in the Future of the CPA Profession The Arizona CPA Foundation for Education & Innovation prepares and attracts individuals with high potential to the accounting profession. You can assist its mission by donating to support scholarships for accounting students. Learn more: www.ascpa.com/foundation

NOVEMBER/DECEMBER 2021 AZ CPA

Malpractice Risks Increase During Difficult Economic Times By Suzanne M. Holl, CPA (licensed in CA) Economic conditions have long had a significant impact on CPA professional liability claims. In light of the current economic challenges, CPAs will need to be prepared and vigilant to minimize the potential of additional liability exposures.

Why didn’t my CPA warn me about what was going to happen? I was relying on my CPA’s expertise for financial help.

Jury research shows that the public, including clients, perceive that the CPA’s fundamental job is to “advise and warn” — to advise clients of opportunities and to warn them about risks. Juries believe the CPA’s “advising and warning” antennae should be hyper-sensitive during economic downturns. Some even believe “anyone can do a CPA’s job when times are good, but during difficult times — that’s when the CPA really needs to bear down.” In other words, expectations are elevated when economic times are challenging. For example, when something goes wrong with a business during difficult economic times, behaviors begin to change, sometimes to the point where clients will perceive the CPA as having failed to advise and warn. Clients may deflect blame and rationalize, “What occurred isn’t necessarily my fault … Is it possible someone else allowed this to happen? … Maybe I can blame someone else and possibly recover our loss … Yeah, I think it was their fault.”

NOVEMBER/DECEMBER 2021 AZ CPA

Also, looking at events in hindsight means history can be rewritten to benefit the client: “Why didn’t my CPA warn me about what was going to happen? I was relying on my CPA’s expertise for financial help.” Professional skepticism must increase, not just to protect yourself and your client, but to protect other key stakeholders (e.g., the readers of the financial statements, lenders). History has proven that desperate times will cause some clients to take desperate measures, leading to deceit. Loss prevention tip: Do not carry the burden of your clients’ problems and permit yourself to become a victim for your clients. Loyalty to a client doesn’t take precedence over maintaining your professional standards of integrity, independence and objectivity. It is not worth jeopardizing your reputation or your own financial security in an attempt to mitigate or minimize client dilemmas.

By advising and warning clients of their fraud/defalcation exposures and responsibilities, CPAs can minimize liability stemming from the expectation CPAs will detect fraud. Regardless of the services performed, CPAs cannot provide absolute assurance that fraud has not been committed. CAMICO recommends that CPA firms address difficult economic times by:

• identifying clients that may pose higher risk;

• increasing the level of professional skepticism; and

• prioritizing defensive documentation, including the engagement letter and written memorialization of significant client meetings and conversations.

Risk of Fraud

Social Engineering Scams/ Fraudulent Wire Transfers

Financial strain increases pressure and rationalization for fraudulent behavior (e.g., “My line of credit has been canceled.” “My retirement funds shrank.” “I need this money.”) Understanding the gravity of these pressures is crucial to effective fraud prevention and detection. For example, organizations in nearly every sector are cutting expenses and laying off workers. This can compromise existing internal controls and lead to fewer fraud prevention measures. CAMICO’s claims experience has shown that when people perceive an opportunity to commit fraud and get away with it, they are more inclined to defraud. Fraud can have a devastating impact on CPAs, as well, if firms don’t embrace due professional care in defining the scope of their services and properly responding when fraud is identified or suspected. The public expects CPAs to have a “nose for fraud,” regardless of the limitations of the engagement. The expectation that CPAs will detect fraud is extremely difficult to meet, but the expectation to advise and warn is much less difficult.

CPAs continue to be at high risk of social engineering attempts due to the type of information firms gather and store, and CAMICO has observed an uptick in the frequency of these attempts. “Phishing” is one of the more common social engineering scams. CAMICO has also observed a rise in fraudulent email requests for wire transfers. Fraudulent wire transfers frequently cause large dollar losses. If the fraudster controls the client’s and the firm’s email, commonly referred to as a “man in the middle” attack, and the fraudulent request mimics previous legitimate requests, it is very difficult for the firm to identify the request as illegitimate. When the fraud is discovered after the transfer, the funds are usually not recoverable. Use your professional skepticism to avoid being lulled into a false sense of security. Any requests for money to be transferred to a bank account unfamiliar to you should be a red flag, especially if the new account is in another country. If the firm’s protocol with clients is to permit requests for wire transfers to be made via email, then establish and follow procedures

AZ CPA NOVEMBER/DECEMBER 2021

to confirm requests using a mechanism other than email and proceed with the transfer only after confirming with the client (ideally by phone or in person) that the request is legitimate. This includes, but is not limited to, confirming the dollar amounts, the name of the financial institution and the bank account number. To validate the authenticity of the request, confirm information only known to the client (ask questions to which hackers would not know the answers). Practical loss prevention tips to minimize fraudulent wire transfer exposure:

• Slow down. Whether working in the office or remotely, take the time necessary to validate suspicious or unexpected email.

• Establish written protocols. The firm should establish written protocols with clients for handling client funds, especially as it relates to handling wire transfer requests. Consider establishing dollar thresholds above which verbal consent would be required if clients do not want to be “bothered” to approve each request. In addition, document who the authorized client representative(s) would be for providing such consent if/ when the client is not available.

• Proceed with caution. With the increased number of claims related to fraudulent wire transfers, best practice in the absence of any written protocols to the contrary would be to verbally confirm all wire transfer requests with these clients to minimize risk. l

Suzanne M. Holl, CPA (licensed in CA), is senior vice president of loss prevention services with CAMICO (www.camico.com). With almost 30 years of experience in accounting, she draws on her Big Four public accounting and private industry background to provide CAMICO’s policyholders with information on a wide variety of loss prevention and accounting issues. CAMICO is a preferred provider for the ASCPA.

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Scott Nugent, CIC, RPLU, SBCS Commercial Lines Producer 602.264.5533 x 123 scott.nugent@stuckeyinsurance.com

Accountants Professional Liability Insurance may be underwritten by CAMICO Mutual Insurance Company or through CAMICO Insurance Services by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. ©CAMICO Services, Inc., dba CAMICO Insurance Services. All Rights Reserved.

NOVEMBER/DECEMBER 2021 AZ CPA

Risk Assessment Challenges for Audits By Michael Caro, Jr., CPA (licensed in NJ), Bederson LLP

Risk assessments establish the audit approach and procedures that need to be performed on an audit. As auditors plan an audit, they assess the risk of material misstatement of a company or organization at the assertion level, so that they can determine the level of substantive audit testing that needs to be performed. The assessed risk of material misstatement is determined by assessing the inherent and control risk at the relevant assertion level of a company by its significant audit areas. These risk assessments and conclusions in audits can be challenging, but they are necessary and important to perform an efficient and effective audit. These risk assessments also need to be documented appropriately, and that is where auditors commonly run into some issues with the audits. Common pitfalls in the documenting of risk assessments include the following:

1. Not documenting the inherent risk assessment considerations

2. Assessing control risk at less than high without sufficiently testing controls

3. Not documenting risk at the relevant assertion level

4. Not assessing risk on all significant audit areas

5. Not properly documenting the linkage between risk assessment and procedures performed

1. Document Inherent Risk Inherent risk is the susceptibility of an assertion about a class of transaction, account balance or disclosure to a misstatement that could be material without considering any internal controls. Although auditors are always able to explain the reasons for the determination of the inherent risks assessed on a company or organization being audited, those considerations are not always documented appropriately. It is important to document the reasons for the inherent risk assessment determination for each significant audit area and relevant assertion. Some audit areas and assertions might have inherent risk assessment set at high, for example, due to transactions being difficult to audit or containing complex calculations. Others might be set at low or moderate because the calculations are simple, and the transactions are not difficult to audit. Documenting these considerations is important to determine an auditor’s reasons for their assessments, their audit approach and to properly design the audit procedures being performed.

2. Sufficiently Test the Controls To be able to assess control risk at less than high, an auditor must have performed a test of controls on the audit areas and relevant assertions. Preparing a narrative or memorandum on the internal controls that are in place in the respective

AZ CPA NOVEMBER/DECEMBER 2021

audit areas without performing any test of controls on the audit areas is not sufficient to assess control risk at less than high. Testing of the actual controls that are in place must be performed, and the details of those tests must be documented to support the control risk assessment.

3. Use the Relevant Assertion Level There are six categories of assertions when an auditor makes their risk assessments: – Existence or occurrence – Completeness – Rights or obligations – Accuracy or classification – Valuation or allocation – Cutoff When documenting risk assessments, an auditor needs to make an assessment for each relevant assertion, regardless of whether an auditor has identified any specific risks related to that assertion. Risk assessment can no longer be performed by the audit area and must be performed by the assertion level.

4. Assess All Significant Audit Areas An audit area is considered significant if it contains significant transaction class, material account balance, fraud risk or other significant risk, or if it requires significant

disclosures. It is important to perform a risk assessment on all the audit areas considered significant in order to be able to develop an appropriate audit approach and procedures for that area. If a significant area is missed, the audit can be ineffective. Additionally, assessing risk on a nonsignificant audit area can cause the audit to be inefficient.

5. Provide Proper Documentation The risk assessed should link to the nature, timing and extent of audit procedures performed. The risk assessment documentation should reference – or comments should be made – linking the assessments to the audit work performed. Audit procedures might need to be tailored to do the risk assessments, or the risk assessments might need to be revised due to changes needed in the audit procedures being performed. The risk assessments are developed at planning but can change throughout the audit process. These changes should be documented, and the risk assessments should be updated during the audit. Explaining the reasons why a certain audit approach and certain audit procedures were taken in an audit is not enough without any documentation for those decisions. Documentation of the risk assessments that lead to those approaches and procedures are necessary for an audit to be in compliance with the risk assessment standards. l Michael Caro, Jr., CPA, CFE, PSA, is a partner at Bederson LLP. He can be reached at mcaro@ bederson.com. Reprinted with permission of the New Jersey Society of CPAs, njcpa.org.

How do you handle these risk assessment challenges for audits? The conversation continues online. Join your industry colleagues on our member-exclusive forums to share your expertise. Visit connect.ascpa.com to get started.

NOVEMBER/DECEMBER 2021 AZ CPA

From Self-Sabotage to Superpower: Harnessing Emotion with Self-Awareness By Jessica Hubbard

With digitization replacing many of the traditional accounting tasks, finance professionals must demonstrate their value and provide impact in new ways. Increasingly, finance leaders are looking for candidates who can work effectively within diverse teams, tackle uncertainty and ambiguity with confidence, and communicate with clarity in a hybrid workplace. These demands all require a high level of emotional intelligence – the ability to perceive, use, understand and manage emotions. According to Sharon King Gabrielides, Ph.D., chief executive of Key Steps Corporate Training, a leadership coaching and development consultancy based in South Africa, the first step toward increasing emotional intelligence is the development of greater self-awareness – which can be defined as a conscious awareness of your internal states and feelings, as well as the ability to perceive your own personality traits, behavioral patterns and motivations. Yet for finance professionals, developing emotional intelligence, or EQ, and “soft skills” can appear to be a vague and intangible task – and one that is difficult to prioritize amidst the rigorous demands of the modern workplace. According to King Gabrielides, the first step is to acknowledge that EQ is no longer a “soft skill,” but an essential hard skill – something that needs to be assessed, measured and taught at every level within organizations. “The starting point is to develop self-awareness, which is the foundation of emotional intelligence and the gateway to personal and professional development,” King Gabrielides said. Scott Dust, Ph.D., Raymond E. Glos Professor of Management in the Farmer School of Business at Miami University in Oxford, Ohio, explained that the past year has exposed vulnerabilities and emotional blind spots – prompting many leaders to begin to explore the link between self-awareness and high performance at work. “You cannot support and contribute to teams in ways that you’re really capable of unless you’re developing this skill,” he said. FM spoke to King Gabrielides and Dust to find out how finance professionals can build and sustain self-awareness and bring a more empathetic and perceptive approach to the workplace.

AZ CPA NOVEMBER/DECEMBER 2021

The starting point is to develop self-awareness, which is the foundation of emotional intelligence and the gateway to personal and professional development.

Identify your blind spots. By learning to identify the signs that your self-awareness could be lacking, you are more likely to rally yourself into action and recognize where you need to improve. “One of the most common signs or red flags is a sense of stagnation, unfulfillment or dissatisfaction … along with the feeling of being constantly misunderstood,” Dust explained. “Another telltale sign is a distinct lack of motivation and constant indecision,” King Gabrielides added. “Research has demonstrated that people with self-awareness have the confidence to be proactive and decisive – harnessing their emotions to move into action.” At work, begin to notice if you become defensive in certain scenarios, look to blame others or frequently feel the need to justify your actions, she advised. Between meetings and interactions with colleagues, give yourself a few minutes of quiet time to reflect and to note any challenging and unexpected emotions or behaviors that were evoked. Explore and confront limiting beliefs. To deepen self-awareness, professionals not only have to examine their way of relating to others, but they also have to explore their way of relating to themselves, King Gabrielides said. For instance, everyone has deeply ingrained beliefs and inner dialogues that limit and even sabotage potential. A core component of self-awareness is identifying these beliefs or “ mistaken certainties” and learning to challenge them. According to King Gabrielides, limiting beliefs often come in clusters. For example, believing you need to regularly respond to emails after hours could be coupled with the belief that you need to work extra hard to be successful — and that you have to achieve success in this way to be valued by others. “The next step is to challenge your limiting belief or assumption in a calm, thoughtful, and nonjudgmental way,” she explained. “By doing this thoroughly, you will educate and

empower your thinking, cast doubt on the limiting belief, and displace thoughts that don’t serve you.” While this sounds simple, beliefs are slippery and people are more inclined to look for evidence to support them rather than cast doubt on them, King Gabrielides cautioned. By confronting and displacing limiting beliefs, you can mitigate the anxieties and fears that they induce – and that distort an authentic relationship with yourself and with others. This authentic relationship is what allows self-awareness to deepen on a day-to-day basis. Take stock of your needs. According to Dust, many professionals lack real insight into what motivates them at work and what their core needs are. By taking the time to assess and pinpoint these needs, professionals deepen their self-awareness and understanding of themselves in the work environment. “Too often, we don’t define which part of our work scenario is the true source of our frustration or stress – and we risk moving onto the next role or task without addressing the underlying issue,” he said. Dust pointed to research that has shown that autonomy, competence and relatedness are the key factors that determine motivation and engagement. “Every individual has some need for these three buckets to be fulfilled, although at varying degrees for each,” he added. By taking time to pinpoint and assess each factor as it relates to your current work scenario (and being honest about your needs), you can begin to understand where the gaps lie in how your job or role is structured. For instance, “relatedness” refers to your sense of connection with your colleagues and organization – and you may uncover that you need more highquality interactions and a deeper sense of connection. Similarly, you may discover that too much autonomy (particularly in the context of remote work) is prompting lower levels of motivation. With regard to competence, how much growth and learning are you pursuing in your current role – and is this enough?

As part of this self-audit process, Dust recommended making use of human capital assessments. Build in decompression time. Once you have identified emotional blind spots and the circumstances, thoughts or scenarios that throw you off balance, Dust said the next step is to learn to “self-regulate.” “This is the ability to engage in behavioral modifications, in the moment, that bring you back to a place of awareness and control,” he said. One of the most accessible ways of self-regulating emotions at work is to practice the 4-7-8 breathing technique. Also known as “relaxing breath,” this involves breathing in for four seconds, holding the breath for seven seconds, and exhaling for eight seconds. “By practicing this technique, we teach our body that we can become aware and regulate our emotional state very quickly. The trick is to use this technique on an ongoing basis, as frequently as once every hour,” King Gabrielides said. In the context of remote work, when many people are booked into back-to-back meetings, she reiterated the importance of building in a few minutes of breathing and “decompression” time before the next meeting as an essential selfcare and self-regulation practice. By continuously reconnecting with themselves in this way, professionals can maintain a high level of selfawareness throughout the workday. Practice daily reflection. “One of the core pillars of high self-awareness is regular and disciplined selfreflection,” Dust said. “While taking assessments is one form of reflection, journaling is another powerful tool for uncovering and understanding what’s really going on.” When journaling, make it intentional by employing certain techniques such as labeling your feelings and building up a wider emotional vocabulary. “A daily self-reflection practice will help you to recognize patterns and become familiar with your internal dialogue,” King Gabrielides said. If you prefer to use voice notes or recordings as a form Continued on next page.

NOVEMBER/DECEMBER 2021 AZ CPA

of reflection, she suggested using a transcription tool so that you’re able to “see your thoughts” in front of you. “Many of us have not been taught to identify and discuss our feelings, but it’s a healthy and powerful practice that builds self-awareness – often by helping us to recognize the irrational thoughts and internal stories that corrode our confidence.” Creating time for activities that promote mindfulness such as meditation and solitary walks are also valuable ways to practice selfreflection. With all of these practices, the key aspect is to quiet one’s internal chatter through observation and by maintaining present moment awareness. l Jessica Hubbard is a freelance writer based in France. This is article was originally shared in Financial Management magazine.

AZ CPA NOVEMBER/DECEMBER 2021

Tips for Working With FirstTime Single Audit Clients The U.S. has seen historic levels of federal funding in response to the COVID-19 pandemic. Various laws, including the CARES Act and the American Rescue Plan Act of 2021, have provided billions of dollars to American businesses, state and local governments and not-for-profits. While this funding has provided relief, especially for nonprofits, it may cause complications for many recipients.

Does your client need a single audit? Much of the new pandemic funding is subject to single audit rules. Not all recipients of this funding will need a single audit. However, when a non-federal entity spends $750,000 or more of federal awards in a fiscal year, a single audit is required. Many recipients of pandemic funding have never had a single audit before and may not know what

is required. Your existing clients may need a single audit for the first time, or you may begin working with new clients who have never even had a financial statement audit before. Here are some tips for you to help your clients through the evolving single audit process.

Ask clients what funding they have received. Talk to your clients about what type of funding they have received from the beginning of the pandemic

in 2020 to the present. In some cases, you may consider helping them review their grant agreements to identify what is needed on their end and your end as the auditor. Additionally, you could email clients with news related to the funding they’ve received or update your website with the most current information. The sooner your clients know about important and relevant information, the better prepared they are and the better audit you can perform — so it is a win-win.

NOVEMBER/DECEMBER 2021 AZ CPA

Encourage your clients to be proactive and ask questions about funding they have received. For example, one controller contacted her CPA as soon as she knew her organization would receive funding. She knew this funding had stipulations but didn’t know yet that a single audit would be required. Finding out early in the process was a huge benefit. But many organizations may be unaware of all the requirements in the funding they have received.

Communicate openly with your clients. This is a time when having open lines of communication with your clients is especially important. Learning whether your clients have reviewed and truly understand the guidelines for the type of funding they received is key, as well as that they have procedures in place to comply. Also, clients need to know — even if they are under the $750,000 threshold — that administrative and other requirements of federal funding apply even if a single audit is not needed. For example, the funds may only be spent for certain purposes. This is an important concept for clients to understand.

Be aware of audit quality concerns. Some first-time single audit clients may be concerned with audit costs because they are required to undergo an additional audit. While cost is always one consideration, in this situation, it is also important to focus on the experience of the firm to make sure they are getting the highest-quality audit possible. Also, as auditors, you have a duty to the public to perform high-quality audits. Single audits have a significant public interest component, as they involve taxpayer dollars and federal agencies rely on them as part of their administrative responsibilities for determining compliance with the requirements

of federal awards. Because of this, audit quality should always be at the forefront of every auditor’s mind. Because of the complexity of single audits and the necessity of specialized knowledge of their rules and compliance requirements, you should consider whether you should accept a single audit engagement if you do not have experience performing them. Perhaps you could consider performing the financial statement audit, but other options for the single audit might be to refer your clients to someone else in your organization with the appropriate experience or to another firm that specializes in single audits. Alternatively, if you have some experience but not much, you could consider engaging another firm to perform a pre-issuance review or other types of consultative assistance to help ensure a high-quality audit. You can use the AICPA’s Peer Reviewer Search tool (https://peerreview.aicpa. org) to find an auditor to refer your clients to, or to look for consultative assistance. Additionally, the AICPA’s Governmental Audit Quality Center (GAQC) has a listing of its member firms with contact information on its Find A Member page. Learn more at https://www.aicpa.org/ FindGAQCMember.

Make time for continuing education and pay attention to developments. Firms should ensure auditors receive the required training for all specialization areas. For example, generally accepted government auditing standards (referred to as the Yellow Book) require auditors who perform single audits to maintain their competency through CPE hours and topics listed in the 2018 Yellow Book. If you take on a single audit, there is single audit learning available through the ASCPA and the AICPA, among other sources, to help you gain the fundamental knowledge you need. Regarding the new COVID-19

AZ CPA NOVEMBER/DECEMBER 2021

funding, you may want to pay close attention to any training provided by federal agencies. Additionally, you can access the AICPA’s GAQC website at https:// www.aicpa.org/GAQC, in particular its COVID-19 Resource page, which outlines many resources. You may also want to contact other firms on their single audit and pandemicrelated resources. It’s useful to speak to your peers about what they’re doing and learn from their experiences. Keeping on top of things is important.

Look Ahead. The pandemic has drastically changed work in many industries, and the accounting profession is no different. The next few years will see many more single audits being performed by more public accounting firms across the country. Keeping up with all these changes while continuously striving to be that trusted adviser for your clients is tough. In these times, in addition to all the other tips above, it is especially important to be mindful of staff well-being. Organizations need to provide support to staff so they can remain engaged and avoid burnout. Focusing on well-being can enable staff to do their jobs better, which allows them to better serve their clients and, ultimately, contributes to enhancing audit quality. These are challenging times in the single audit arena for sure. But the tips above should help provide a pathway to success. l Attend the ASCPA Governmental Accounting Conference on Feb. 4, 2022, to learn more about single audits (www.ascpa.com/gac22) or register for one of our classes on single audits at www.ascpa.com/ singleaudit. This article was originally shared by the AICPA.

Celebrate International Accountants Day. Every year, Nov. 10 is recognized as International Accountants Day. It’s an opportunity to remember the important work our members do in their field to help businesses navigate the complexities of finance and support the economy. On this date in the 15th century, Venetian

shout out to your clients that a tax credit donation to a new leaf helps families

mathematician Luca Bartolomeo de Pacioli published a work on analytics and documentation on

e ! n m i e lik

bookkeeping practices. The author would go on to be the father of accounting.

Thank you for your contributions to the business world!

TurnaNewLeaf.org QCO 20075

serving families in the valley for 50 years through: housing & shelter health & wellness

financial empowerment educational services

family support

foster care

sexual & domestic violence

NOVEMBER/DECEMBER 2021 AZ CPA

AZ CPA NOVEMBER/DECEMBER 2021

Business Writing Webcast Series Bundle and Save 10%

Take your business writing skills to the next level. These courses touch on grammar, punctuation, writing organization and writing for maximum impact. We will review syntax rules and cover essential writing tips that improve efficiency and communication. Learn more and register at www.ascpa.com/bndl4. Members who register for the full series save an additional $40. 10 Principles of Effective Email December 8 | Noon – 2 p.m. | 2 CPE Regular Price: Member $75, Nonmember $101

Planning and Organizing Your Writing December 16 | Noon – 2 p.m. | 2 CPE Regular Price: Member $75, Nonmember $101

Writing and Revising for Maximum Impact December 9 | Noon – 2 p.m. | 2 CPE Regular Price: Member $75, Nonmember $101

Persuasive Writing January 6 | Noon – 2 p.m. | 2 CPE Regular Price: Member $75, Nonmember $101

Highlights of Grammar and Punctuation December 15 | Noon – 2 p.m. | 2 CPE Regular Price: Member $75, Nonmember $101

How to Respond to an Upsetting or Critical Email January 13 | Noon – 1 p.m. | 1 CPE Regular Price: Member $37, Nonmember $50

Form 1041 Webcast Series Learn more and register at www.ascpa.com/1041 Fiduciary accounting and taxation have been in transition for several years. Changes in the income tax rate structure have pulled tax planning forward as a prime objective for estate planners. We will explore many of these issues in this workshop series. Webcast: Form 1041 Advanced Workshop Part 1 of 4 December 7 | 9 – 10:50 a.m. | 2 CPE Member $75, Nonmember $101

Webcast: Form 1041 Advanced Workshop Part 3 of 4 December 9 | 9 – 10:50 a.m. | 2 CPE Member $75, Nonmember $101

Webcast: Form 1041 Advanced Workshop Part 2 of 4 December 7 | 11 a.m. – 12:50 p.m. | 2 CPE Member $75, Nonmember $101

Webcast: Form 1041 Advanced Workshop Part 4 of 4 December 9 | 11 a.m. – 12:50 p.m. | 2 CPE Member $75, Nonmember $101 NOVEMBER/DECEMBER 2021 AZ CPA

Leases Webcast Series Learn more and register at www.ascpa.com/leases Leasing is a popular form of capital investment for corporations, including everything from office space to equipment. The FASB has released Topic 842, Leases, a major rewrite of the leasing topic. ASC 842, Leases, is effective for most publicly traded entities. Private companies and nonprofit entities should also prepare, as the effective date for nonpublic entities is annual reporting periods beginning after December 15, 2022. Early application is also permitted. Prepare your clients and companies for adoption. Webcast: Leases: Is it a Lease? – Topic 842-10 January 4 | Noon – 2 p.m. | 2 CPE Member $75, Nonmember $101 Webcast: Leases: Lessee – Topic 842-20 January 11 | Noon – 2 p.m. | 2 CPE Member $75, Nonmember $101

AZ CPA NOVEMBER/DECEMBER 2021

Webcast: Leases: Miscellaneous Topics January 18 | Noon – 2 p.m. | 2 CPE Member $75, Nonmember $101

CHEERS! ASCPA members celebrated the end of summer during the member happy hour at Fate Brewing. Members had a chance to reconnect with their peers to share professional wins and challenges. Thank you for making this happy hour a success.

ASCPA at

On September 30, the ASCPA attended the Grand Canyon University Meet the Firms event, where the ASCPA staff shared many opportunities available to students in accounting careers and the benefits of becoming a CPA. In addition, students received scholarship information and resources to support their road to becoming CPAs.

NOVEMBER/DECEMBER 2021 AZ CPA

ASCPA 100 Percent Club It is an honor to feature the following organizations who have demonstrated their commitment to the CPA profession, community and to maximize their CPAs’ growth by ensuring that all eligible CPAs are members of the Arizona Society of CPAs. Thank you for your continued support and contributions.

100 Percent Club Members A F and P CPAs PLLC

David Lipinski, CPA, PC

Henry+Horne

Abbott Company, Ltd.

DeBenedetti & Co., PLLC

Herb Anderson CPA, LLC

Adam T. Cary, CPA PC

Debra L. Zarbock, CPA

Hopkins Tameron Hostal PLLC

Addington & Associates, PLLC

Delores I. Nance CPA, PC

Horne & Company, LLC

Allen L. Nahrwold CPA PC

Dickman & Company CPAs PC

Howard S. Simon, CPA, P.C.

Alyx Cohan CPA, PC

Dobridge & Company, P.C.

Hunter Hagan & Company, Ltd.

Andersen & Sarnowski

Jaffa Simmons, PLLC

Anthony Choi, CPA

Douglas J Kingston CPA /International & Accounting

Arevon Energy

Eaton & Kasprzyk CPAs, PC

Joanne M. Elsen CPA, PC

ATLAS CPAs & Advisors PLLC

Eaton – Cambridge CPA P.C.

Johnson Goff, PLLC

Baldwin Moffitt PLLC

Edward M. Osinski, Jr., CPA, PC

Judith M Meduna, CPA

Ball & McGraw, PC

Edwards, Largay, Mihaylo & Co., PLC

Bashas’

Eide Bailly LLP

kAKB PLLC Koivisto Adams Kvittem-Barr CPAs

BeachFleischman PC

Elliott CPA LLC

Karpinski, Bernstein & Adler, P.L.C.

Benjamin H. Field CPA, PC

Emelia Mensa, CPA

KeatsConnelly

Black & Soli, P.C., CPA

Epstein Schneider, PLC

Keegan Linscott & Associates, PC

Boudreau Consulting LLC

Evers Robinson Ltd.

Kent O. Utter, CPA

Busby Sanford Brady, CPAs, PLC

KML CPA LLC

Butler Hansen, PLC

Fenix Financial Forensics LLC

Koeller Thompson CPAs PLLC

CBIZ & MHM

Fester & Chapman, PLLC

Landmark PLC CPAs

Chaffee Traasdahl Crockett, PC

Flowers Rieger & Associates, PLLC

Laura S. Leopardi, CPA, PLLC

Charles Hummel, CPA PC

Four Leaf Financial & Accounting

Leonard F. Baker, CPA PC

CHS Tax & Business Services, PLLC

Frost, PLLC

Lisa M. Smith, CPA

CliftonLarsonAllen LLP

Fulcrum LLC

Lohman Company, PLLC

Colby & Powell, PLC

Gary L Williams, CPA, CGMA

Ludwig Klewer & Rudner, PLLC

Concierge Consulting and Accounting, PLLC

Ginsburg & Dwaileebe CPAs, LLP

Lumbard Consulting, LLC

Gosney & Company, P.C.

Mansperger, Patterson & McMullin, PLC

Conover Asay CPAs, PLLC

Hammond Travers & Tuttle, PC

Marley Management Company

Cordova & Jones, PC

Hanagan CPA, PLLC

Martinez & Shanken, PLLC

CPA Financial Advantage, PC

Haynie & Company

Mary Beth Wifler, CPA

Daniel A. Calabro, CPA, PLLC

HBL CPAs PC

McGrath Nothman, PC

Darin Guthrie, CPA, PLLC

Heinfeld, Meech & Co., P.C.

Mesquite Tax LLC

AZ CPA NOVEMBER/DECEMBER 2021

Jansen & Company CPAs, PLLC

Michael S. Patinella, PLLC

Regier Carr & Monroe LLP

Stocking and Heard, CPAs, LLC

Minniti CPA LLC

Roger T. Bollard, CPA

StreamLine Accounting

Monica J. Stern, CPA, PLLC

RSM US LLP

Tess L. Ridgway, CPA

Morrison, Clark & Company CPAs, PLLC

Safari Club International

The Royce CPA Firm PLLC

Moss Adams LLP

Schmidt Westergard & Company, PLLC

The Ruboyianes Tax Company, PLLC

Ng Accounting, P.L.L.C.

Seby & Associates, Ltd., CPAs

Tracy Decker CPA, PLLC

Nordstrom & Associates, P.C.

Sechler Morgan CPAs PLLC

Tull, Forsberg & Olson, PLC

O’Malley & Berberich CPAs PC

Secore & Niedzialek, P.C.

Ullmann & Company, P.C.

On-Call Controller

Semple, Marchal & Cooper, LLP

Upworth, PLLC

Osiris CPA, PLLC

Shaffer & Danker, CPA PC

Urke & Stoller, LLP

Pace & Company, P.C.

Sherri A. Fieber, CPA

Valerie A. Lubken PLLC

Patel + Co. PLLC

Shippen, Pope & Associates PLLC

Vearle M. Jones CPA

Pescatore-Cooper, PLC

Simmons Tax & Accounting Services LLP

Vincent J. Harder, CPA, PC

Pioneer Title Agency, Inc.

Singer Tax & Accounting, P.C.

Walker & Armstrong, LLP

Preston CPA, P.C.

Skinner Clouse Group PLLC

Wallace, Plese + Dreher, LLP

Price Kong & Co., CPAs, P.A.

Slater & Rutherford, PLLC

Weech Financial, PLLC

R & A CPAs R. Michael Beltran, CPA

Southwest Autism Research & Resource Center

West, Christensen, DeGomez & Ignace, PLLC

R.C. Thornton & Associates, LLC

Splaver & Splaver, CPA, PLC

William J. Curosh, CPA, PLLC

Ralph Willett CPA, PLC

Sportiqe Apparel Co.

William M. Perius, CPA

Randy C. Kiesel, CPA, PC

Springsteel Investment Advisors

WS Weiss CPA PC

RC Acosta & Associates, CPAs

Sprowls and Company, PC

YB Company LLC

REDW LLC

Your organization may qualify for the ASCPA 100% Club. To learn more, visit www.ascpa.com/100_club or contact membership@ascpa.com to opt in and gain immediate access to exclusive 100% Club benefits. We make every effort to ensure the accuracy of this list. If your organization’s name does not appear in this list or is incorrect, please contact membership@ ascpa.com.

We Appreciate You! November is member appreciation month at the ASCPA. This month, we celebrate our members’ support and their many contributions to the CPA profession. Thank you for continuing to strengthen the CPA community. To celebrate and show our appreciation, the Society will raffle off prizes every Monday in November. Winners will be announced every Monday on the Connect site: https://connect.ascpa.com You can show your appreciation for a colleague by sending your nominee’s name and sharing how they impacted your career. Include a photo of your nominee, and we will add the post on the ASCPA’s social media. Send your submissions to membership@ascpa.com.

NOVEMBER/DECEMBER 2021 AZ CPA

Classifieds Employment LEAD TAX PREPARER & LEAD ACCOUNTANT (CHANDLER) Lead Tax Preparer: Responsible for preparation of tax returns, meeting w/ clients, training staff.

• Compensation: $50-$70/hour. Several weeks vacation. May-Dec 30-40/hour weeks w/ Fridays off.

• Requirements: CPA license; must be able to prepare Individual, S-Corp, Partnership tax returns from start-to-finish error-free. Lacerte experience a plus.

Business Opportunities organization clients and public radio clients. Proposals must be postmarked by 5 p.m. on November 19, 2021. Contact Monica Nuvamsa at (928) 734-2380 or see full ad at www.hopifoundation. org. Learn more about the opportunity for The Hopi Foundation at http://www. hopifoundation.org.

Lead Accountant: Responsible for preparation of monthly financial statements, payroll processing, meeting w/ clients, training staff.

• Compensation: $40-$50/hour. Several weeks vacation. May-Dec 30-40/hour weeks w/ Fridays off.

• Requirements: CPA license; must be able to prepare financial statements using QuickBooks; payroll processing; thorough understanding of Balance Sheets, Profit & Loss Statements, GAAP. Reach out to Steve at steve@stevevogtcpa.com if interested.

REQUEST FOR PROPOSAL FOR FINANCIAL AUDIT SERVICE The Hopi Foundation seeks a multiyear engagement from qualified and independent Certified Public Accountants to perform annual financial and compliance audits for 2021-2023. The scope of the audit shall include A) Nonprofit 501(c)3 financial audit and 990 statements and B) Public Radio financial audit. Please include a proposal letter, a quote of all costs associated with Parts A & B separately, and credentials and references from tax-exempt charitable

AZ CPA NOVEMBER/DECEMBER 2021

BUSINESS OPPORTUNITY I am closing up my 13-year-old tax preparation/planning business to focus on bookkeeping and business consulting. Are you looking to start or grow a tax firm and open to a referral partnership? Email taxfirm2021@gmail.com

m Not assessing risk on all significant audit areas

AZ CPA Quick Quiz 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!

7. Why may some audit areas and assertions have the inherent risk assessment set at high? m Transactions are easy to audit. m Transactions contain complex calculations. m Transactions are supplemented with a content management system.

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 December 2022. Please note that users have three attempts to pass the quiz with at least a 70 percent score.

8. What is emotional intelligence?

November/December 2021 Issue of AZ CPA* 1. It is possible to have both a growth mindset and a fixed mindset. Why is it important to be aware of both mindsets in our thought processes? m If we ban a fixed mindset, this will create a false growth-mindset. m To move closer to a growth mindset, we need to stay in touch with actions of our fixed-mindset. m All of the above. 2. By 2022, __ % of the world population will be online. m 82 m 93 m 75 3. Which of the following did the IRS note could occur when failing to enact security plans and violating the FTC Safeguards rule? m Violation of TS-1989 m Violation of IRS Publication 3112 m A verbal warning

m True m False

9. What is a good example of an activity to do during personal decompression time?

5. CPA firms can address difficult economic times by: m Prioritizing defensive documentation m Creating sabbatical opportunities for employees m identifying clients who align with the adagio principles. 6. Which of these options is not a common pitfall in the documenting of risk assessments?

m Practicing the 4-7-8 Breathing Technique m Finding the password to your next virtual meeting m Review emails from clients 10. When a non-federal entity spends $750,000 or more of federal awards in a fiscal year, what is required of the entity?

m Missing the establishment of Work Breakdown Structure (WBS) m Not documenting risk at the relevant assertion level

m A single audit m Notification to customers m None of the above

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:

4. True or False: Loyalty to a client takes precedence over maintaining your professional standards of integrity, independence and objectivity.

m The ability to acquire and apply knowledge and skills. m The ability to perceive, use, understand and manage emotions. m Compelling attractiveness or charm that can inspire others.

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.

NOVEMBER/DECEMBER 2021 AZ CPA

PRSRT STD U.S. Postage PAID Phoenix, Arizona Permit No. 952 4801 E. Washington St., Suite 180 Phoenix, AZ 85034-2040

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Arizona Tax Guide

Pre-order your Arizona Tax Guide – the only comprehensive guide on Arizona taxes. Learn more and purchase the guide at: www.ascpa.com/taxguide Authored by: Pat Derdenger, Steve Rodis and Ed Zollars The Arizona Tax Guide includes the following guides: The Arizona Income Tax Guide is a comprehensive reference that highlights the differences between Arizona and Federal income tax law and provides references to the Arizona Revised Statutes for a more in-depth analysis. It highlights the differences between individual, corporate, partnership and trust taxes, includes tax tables, and is arranged in a way that facilitates research on any topic. The Arizona Sales and Use Tax Guide is a resource for anyone preparing or filing city sales and use tax returns. The guide details the various sales tax classifications, exemptions, deductions and rates as well as compliance, audits, refund claims and administrative appeals. The Arizona Personal Property Tax Guide provides an overview of Arizona’s personal property tax system, including exemptions, the classification structure and assessment rates, reporting, valuation and appeals. The Arizona Unclaimed Property Guide explains what unclaimed property is, reporting requirements for holders of unclaimed property, how owners of unclaimed property can claim their property and audits.