FICPA’s university conferences are offering four Schools of Thought this fall. Join us at these picturesque locations and explore the latest hot topics in the accounting and tax fields. Come expand your mind and oh yeah, get the CPE credits you need.
Florida State University Fall Accounting Conference (5 AA/3 TB) Oct. 25, 2012 Tallahassee
University of South Florida Accounting conference (10 AA/6 TB) Oct. 25-26, 2012 Tampa
Florida Gulf Coast University Accounting and Tax Conference (12 AA/4 TB) Oct. 25-26, 2012 Ft. Myers – Estero
University of Florida Accounting Conference (10 AA/ 6 TB) Nov. 8-9, 2012 Gainesville
For more information, visit www.ficpa.org/cpe, or call (800) 342-3197 (in Florida), or (850) 224-2727. 2
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florida C P A
TODAY
contents J U LY / A U G U S T 2 0 1 2
VOLUME 28, NUMBER 4
A P U B L I C AT I O N O F T H E F LO R I DA I N S T I T U T E O F C E R T I F I E D P U B L I C A C C O U N TA N T S
cover story
Photo by Kathleen Cabble
Gaining Altitude CPA Scott Price takes office as FICPA’s youngest Board Chair
features
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7 10 14
Meet the FICPA Executive Committee
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AICPA Expects Continued Demand for FVS
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To Use or Not to Use Another Auditor’s Work AICPA Clarified Auditing Standards Prepare Now for the Transition
departments 5
President’s message
28 DOR update 30 Staff reports 34 FICPA news briefs
24 FLORIDA CPA TODAY
36 Marketplace 38 On the move Cover photo by Kathleen Cabble www.ficpa.org
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F L O R I D A
PRESIDENT/CEO Deborah L. Curry, CGMA SR. DIRECTOR OF MARKETING & COMMUNICATIONS Jan Dobson, CAE EDITOR Suellen D. Wilkins GRAPHIC DESIGNER Loleta K. Bolden PUBLICATIONS COORDINATOR Dianne Dearduff EDITORIAL COMMITTEE Walter C. Copeland, CPA, chair Michael S. Kridel, CPA, vice chair Matthew P. Behnke, CPA • Douglas E. Day, CPA Lynda M. Dennis, CPA • David J. Hochsprung, CPA Troy Y. Manning, CPA • Vicki H. Meyer, CPA William C. Quilliam, CPA, Ph. D. All articles submitted to Florida CPA Today are subject to technical review, Editorial Committee review, space availability and editing requirements and restrictions. Please contact the editor before submitting unsolicited manuscripts. Florida CPA Today publishes letters to the editor in its Members’ Forum. For information about the guidelines, visit www.ficpa.org/letterstoeditor. Statements expressed herein are those of the identified authors and not necessarily those of the Florida Institute of Certified Public Accountants, Inc., nor should statements be considered endorsements of products, procedures or otherwise. The FICPA reserves the right to reject any editorial material or paid advertising that does not meet Florida CPA Today criteria or detracts from its ethical and professional standards. Florida CPA Today is published bimonthly by the Florida Institute of Certified Public Accountants, Inc., P.O. Box 5437, Tallahassee, FL 32314. Telephone: (850) 224-2727 or (800) 342-3197. (Street address: 325 West College Ave., Tallahassee, FL 32301.) Visit our website at www.ficpa.org. This magazine is provided to members of the FICPA. No specific amount of your dues, either expressed or implied, is for this publication. This magazine is not available for purchase by either FICPA members or nonmembers. For display advertising information, contact the FICPA Marketing Department at (850) 224-2727, Ext. 270. © 2012 by the Florida Institute of Certified Public Accountants, Inc. All rights reserved. Reproduction in whole or part is prohibited without the express written consent of the FICPA.
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president’s M E S S A G E
Strengthening the CPA Profession The FICPA at Work SubHead
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hat do you think of the new look of Florida CPA Today? We’ve redesigned, with you in mind – easier-to-read articles, bold art, more white space and a fresh cover design, all intended to represent the contemporary image of Florida CPAs and the accounting profession. Our magazine redesign is just one of many innovations your leaders, staff and volunteers have been working on during the last year. Our motto for 2011-12 was “streamlining,” and you will see the results of our hard work coming to fruition. Here are a few of the ways your membership-dues dollars are hard at work.
Governance In response to the changing needs of our profession and of our members, your Board of Governors (BOG) has just completed a year-long streamlining project. The FICPA Bylaws, as well as the composition of the Board and several key committees, will be changing. Effective July 1, title changes became effective. Mine now is President/CEO, while Scott Price is your Chair. More importantly, your BOG is becoming more nimble, transitioning from 36 members to 31. This will allow the BOG to focus on the strategic direction of the FICPA and provide guidance to the staff to achieve our goals. To further enhance our effectiveness and efficiency, your Executive Committee (EC) will have 10 members beginning with the 2013-2014 term, as two vice president seats are added. The change will give the Institute a broader decisionFLORIDA CPA TODAY
Deborah L. Curry, CGMA
making base. It also will provide a larger and more personalized EC presence at chapter meetings, firm visits and Institute events. In the meantime, we’ve focused on increasing the amount of “face time” I have with members throughout the state. We hope this will bring more external focus to the FICPA, and to the profession. Perhaps our most important streamlining change is the restructure of your Committee on Nominations. This committee of six will expand to nine members. Their charge of developing the BOG slate of officers and BOG membersat-large now includes responsibility for nominations to standing committees and AICPA Council appointments.
“Empowering the Committee on Nominations promotes
Empowering the Committee on Nominations to identify nominees to represent the Institute in so many leadership roles promotes transparency and, I hope, will encourage more FICPA members like you to get involved. Six members of the Committee on Nominations will be selected at-large, from the Institute’s full membership. In the past, just three people on the Committee on Nominations were at-large members.
transparency and, I hope, will encourage more FICPA members like you to get
The next call for at-large members will be in February 2013 (terms beginning July 1, 2013). We’ll publish the call for nominations in NewsFlash, on our website and in other communications. Please consider applying. Your participation is important.
involved.”
CPE Your world isn’t getting any smaller or slower. Acknowledging this, we’ve been working hard to better align our CPE offerings with your needs. A recent FICPA-
➡ www.ficpa.org
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first was simulcasting conference CPE presentations live between in Tampa and Orlando. Expect to see more technology at CPE events.
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Looking ahead
But that’s not all. Some of our best CPE content occurs at our in-person, Florida-specific conferences. You will be able to attend select conferences via webcasts – if you aren’t able to travel to the conference, you can still attend! Those who attend in person will receive bonus (yes, free of charge) additional hours of online content for select education courses. We want to provide quality education at a value you can appreciate.
Forgive the cliché – yes, we have many plates spinning, at every level of the organization. We are mindful that our members are the reason we exist. On behalf of your leadership and your staff, I pledge to always keep sight of our vision to be the premier professional organization representing Florida’s Certified Public Accountants; to serve our members’ diverse needs; to support professional standards that the value of our members (and your license); and advocate on behalf of the profession.
Even as we rolled out the all-new Mega CPE Conference, we already were hard at work re-tooling the event to be bigger, better and more fun next year. Stay tuned for more information – the Mega CPE Conference 2013 will be one big splash, not to be missed!
I hope to see you at one of our quality events sometime soon. Your support of the FICPA and our programs is what makes the institute strong. And I pledge to continue working toward a creative and innovative organization to represent you.
These are just a few of the ways we’re demonstrating an important commitment to part of our mission statement – enhancing our members’ competency and professionalism.
My motto for 2013-14? It’s “Bring One On.” A challenge for each of you to bring on one new member this year, or reach out to a former member to join you in the FICPA! FCT
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The FICPA’s seven-member Executive Committee (EC) is comprised of FICPA Board Chair Scott Price and six directors. FICPA President/CEO Deborah Curry serves as secretary-treasurer and non-voting EC member. Together, the Committee implements the Board of Governors’ policies and oversees the Institute’s activities. Each year, Florida CPA Today profiles the committee’s directors and asks them to share their thoughts on current issues and making a difference through FICPA volunteerism. Here is some information about each member of the 2012-2013 Executive Committee.
Jeffrey Barbacci Jeffrey E. “Jeff” Barbacci is a shareholder and director of audit with Thomas Howell Ferguson in Tallahassee. He has been with the firm for more than 17 years and specializes in not-for-profit and government auditing and consulting. Barbacci has been involved in FICPA leadership for more than 11 years, and is serving his ninth term on the FICPA Board of Governors. He is a past chair of the State Legislative Policy Committee; was the first chair of the Young CPAs Committee; and helped transition the State & Local Government Committee to its current Section structure. Barbacci also is a regular FICPA Barbacci speaker on topics such as internal controls; government accounting and auditing; and board responsibilities. Barbacci lives in Tallahassee with his wife, Emily, and their sons, Dominic and Anthony. FLORIDA CPA TODAY
How would you like to see the FICPA develop and grow during the next year, and in future years? I’d like to see the FICPA grow to become a primary resource for its members, in public practice and in private industry. Continuing education is one of our biggest member services. Hopefully, our members believe we’ve a done a good job matching delivery formats and course topics with current economic and business challenges. This year’s Mega Conference is our latest attempt to offer creative education opportunities, at great locations and affordable prices. I’d also like to see us think outside the box to provide new member services that make doing business as a CPA in Florida easier. During the last year, we’ve talked with many of our members and identified several potential ideas. I look forward to seeing some of those come to fruition.
When you’re not practicing accounting, what do you enjoy doing? I’m very competitive, so most of what I do outside of work is sports related. Since our kids came along, I’ve narrowed my own sports activity to golf only. Wolf is my game of choice (with added rules awarded for birdies and greenies), and I’m continually striving to get my handicap down to the low single digits. As my sons have gotten older, I’ve really enjoyed teaching them a range of sports, and helping to coach their teams whenever I can. During the summer, our family will be working on our fishing skills and will relax a little on the beach. In the fall, we’ll be camping with the Boy Scouts and playing flag football. Bethany Carr Bethany B. Carr is a manager for Cavanaugh & Co., LLP in Sarasota. She began her career as an auditor for governmental, non-profit and small-business clients but has transitioned to taxation, providing tax services for individuals, corporations, partnerships and trusts. ➡ www.ficpa.org
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Carr began her FICPA service in 2004 as a member of the Young CPAs Committee and as a trustee for the FICPA Educational Foundation. Currently, Carr is serving her fifth term on the FICPA Board of Governors. Carr She also has served on various FICPA committees and has chaired the Audit Committee and Women’s Leadership Committee. In 2008, Carr was named one of CPA Technology Advisor’s 40 Under 40. She is the current treasurer of Rotary Club of Sarasota Bay and the Rotary Club of Sarasota Bay Foundation, and a graduate of Leadership Sarasota County. Carr lives in Parrish with her husband, Nathan, and their son, Austin. What have you found to be the most challenging aspects of being a Florida CPA in today’s business climate? One of the most challenging aspects of being a Florida CPA in today’s business climate is work-life balance. In this fast-paced, technology-driven society where we’re constantly connected, it can be difficult to leave work at work – especially when you get email at all hours of the day and night. It can be hard to unplug and create time for yourself and your family. As the mother of a young child, I find that I must be creative with my time to achieve a healthy balance between work and family. Why is protecting the CPA franchise a critical issue and what role does the FICPA play in that? The CPA license allows us to do what we do. It creates expertise and gives clients the confidence to trust us with their finances. If we don’t protect the CPA franchise, we open ourselves up to a second tier of licensure that would severely diminish the value of the CPA designation. The general public wouldn’t understand the difference – and obtaining services from someone who isn’t licensed, and may not have the expertise to provide the appropriate assistance, could be damaging. We must protect the CPA franchise to protect ourselves, our clients and the public. 8
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Joey Epstein As a director for McGladrey, Joey Epstein provides accounting, tax and consulting advice to law firms and other professional-service organizations, as well as other closelyheld entities. His other primary responsibility is business development for the firm in South Florida. He has handled income- and sales-tax audits Epstein and has assisted clients with exit strategies. He is certified in Florida sales and use tax and holds a Health and Life, including Variable Annuity Insurance License from the State of Florida. Epstein, an AICPA member, serves on the Florida CPA/PAC Board of Trustees and is serving his fifth term on the FICPA Board of Governors. He has served on the FICPA State Legislative Policy Committee for 20 years and has chaired it several times. Epstein is a Board member and treasurer of Business for the Arts of Broward. He also serves on the Audit Committee of the North Broward Hospital District; as treasurer and a Board member of ChildNet; as vice chair of the National Multiple Sclerosis Society of South Florida; and as co-chair of Broward Days. He also holds volunteer positions with several other philanthropic organizations. He and his wife, Kip, reside in Fort Lauderdale. Why is protecting the CPA franchise a critical issue and what role does the FICPA play in that? Our CPA license is what sets us apart from any other “accountant,” tax preparer, enrolled agent, bookkeeper Gunn and so on. We are the only ones who can provide assurance services. I believe the public still views us as the most trusted advisors, and that’s because our license separates us from everyone else. The FICPA plays the most critical role in the process. The Institute is our eyes and ears in Tallahassee, keeping tabs on any and all legislation that affects us. It also initiates legislation that is important and critical to us. Our members still don’t totally recognize what the FICPA is doing for them in this area, and we have to continue to educate them.
Why are you involved in the FICPA, and why do you think other members should be as well? FICPA involvement is a way to give back to the profession that has been very good to me. I’m involved in numerous charitable and civic activities, but through the FICPA, I can provide input into and facilitate our profession’s ongoing success in Florida. We need the participation of many more of our members, so we can continue to provide services and advocacy to them and on their behalf. Marshall Gunn Jr. Marshall D. Gunn Jr. is president of Gunn & Company, PA, CPAs and Gunn & Company Investment Management Inc. He provides consulting, financial and tax-planning services to individuals, businesses, retirement plans, foundations and trusts. CPA Magazine listed Gunn as one of the 100 most influential CPAs in America and one of the seven most influential CPA/Financial Planners in America. He is the author of The Money of Love and Take Charge of Your Financial Life! A frequent guest speaker for various CPA societies and professional associations, Gunn has been quoted on TV and radio and in print media. He also is a frequent guest of the television show First Coast Living, where he provides expert tax and financial advice. Gunn has served as chairman of the Florida Board of Accountancy and of the FICPA Investment Policy and Personal Financial Planning committees. He serves on numerous not-for-profit or charitable foundation boards, including FreshMinistries Inc. and Give Kids the World Village. Gunn frequently is called upon as an expert witness. His areas of testimony include business valuation, investment suitability, investment value and various business issues. Gunn and his wife, Kathy, live in Jacksonville.
What advice do you have for FICPA members who wish to attain a leadership position at the FICPA. How do they get started? Fortunately, there’s no secret to the formula – simply volunteer and be active. Everyone has some skill or expertise on which the Institute could capitalize. Start by letting people in leadership positions know about your interest. Sign up for a committee that would best use your skill or area of interest. Get involved with a committee or your local chapter and participate. The more other members get to know your passion for contributing, the faster they’ll call on you to help. There are never too many contributors to the Institute’s continued success! Tell us about a lesson you’ve learned and still keep with you today. When I was in high school, I asked my basketball coach why he kept me on the team (if you know me, you know it wasn’t for my athletic body or prowess!). He told me it was because I didn’t know how to quit. As a result, I owe much of my success in life to simply continuing to pursue my passions, and encouraging those around me to do the same. I’ve met many very successful people during my career, and perseverance and a passion for their endeavors is a very common trait. Kenneth “Ken” Strauss FICPA Chair-Elect Kenneth J. Strauss is director of taxation and personal financial strategies for Berkowitz Pollack Brant Advisors and Accountants in Fort Lauderdale. He is a member of the AICPA and a former president of the Financial Planning Association. He is serving his 12th term on the FICPA Board of Governors. Strauss is past chair of the FICPA’s Financial Literacy Committee and Finance and Office Advisory Committee. Currently, he serves on the FICPA Educational Foundation Board of Trustees, and on numerous other FICPA committees and sections. What are your thoughts about the AICPA’s new Chartered Global Management Accountant (CGMA) designation? Do you think it will change the CPA profession, and if so, how? FLORIDA CPA TODAY
Strauss
I’m excited about the CGMA designation. I believe it gives credibility to in-house accounting staff members who manage teams. Ultimately, it should help us increase membership. A broader membership base will give us better networking opportunities and create situations where we can learn from one another and work together. If you could go back in time, what advice would you give to yourself as a 20-year-old? Something I wish I knew when I was 20 is that risks are worth the effort. It took me a while to learn how important leadership is in a person’s career. So many of us spend our first few years with our heads down, learning technical skills. Like many others, I didn’t start looking broadly at my career Thielen until later. Soft skills matter. I would recommend Toastmasters and volunteering as ways to hone important skills and develop relationships while building a career. James “Jim” Thielen Jim Thielen is a Partner with Thielen + Tax and Business Consulting in Tallahassee. Thielen is a former chairman of the Florida Board of Accountancy, serving from 2003 to May 2007. Since 1999, Thielen has served several terms on the FICPA Executive Committee and Board of Governors, as well as a threeyear term on the Finance and Office Advisory Committee. He served as president of the Tallahassee Chapter from 1998 to 1999 and as regional vice president for two terms ending in 2001. Thielen is serving his fifth term on the FICPA Board of Governors. Thielen has served as a trustee for the Florida CPA/Political Action Committee (PAC)-North since 2001 and as president of the North PAC since 2009. He also is a member of AICPA Council, representing Florida for a three-year term. Thielen and his wife, Beth, live in Tallahassee with their sons, James and Patrick.
Why is protecting the CPA franchise a critical issue, and what role does the FICPA play in that? Our CPA license is the franchise from which we earn a living. It is what sets us apart from so many individuals and businesses that attempt to imitate our profession and the integrity that is inherent in being a CPA. They seek to capitalize on our brand by minimizing it. Equally important, our license constantly is under regulatory attack. These attacks may include sales tax on services; government streamlining efforts that could compromise our Board of Accountancy; or fellow CPAs who perform substandard service and wish to prohibit the progress of mandatory peer review. So many issues go before our advocacy team during each Florida legislative session. Moreover, our staff monitors the national and global impact of issues the profession faces. The most significant are the ongoing Big GAAP versus Little GAAP debate, the new CGMA certification, IFRS – and the list goes on. Our role as leadership, and the role of the FICPA, is to protect the CPA license as we navigate the local, federal and global environment.
I would make Florida the CPE destination of the country – and in so doing, bring revenue to our clients. How would you like to see the FICPA develop and grow during the next year, and in future years? I envision the Institute developing the Mega Conference into a three-conference scenario with events that capitalize on the strengths of our beautiful state and its beaches. Understanding that our CPE offerings subsidize our membership dues, I would make Florida the CPE destination of the country – and in so doing, bring revenue to our clients. Another major item is that our profession is aging. We must bring in our younger members and mentor them to lead our profession. I encourage all to reach out to your Board of Governors or FICPA staff and get involved in the Young CPAs Committee. FCT www.ficpa.org
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ith the issuance of Statement on Auditing Standards (SAS) No. 122, Clarification and Recodification, in October 2011, the Auditing Standards Board’s (ASB) Clarity Project reached a major milestone (see the article on page 14). SAS No. 122 contains 39 clarified auditing standards, some of which likely may have a significant effect on current practice, and some of which may not. An area that is expected to be considerably affected by the clarified standards is audits that involve one or more auditor and/or one or 10 JULY/AUGUST 2012
To Use or Not to Use Another Auditor’s Work By Lynda M. Dennis, CPA
more entities. This article provides a high-level summary of SAS No. 122, section 600, “Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors)” (AICPA, Professional Standards, AU-C sec. 600), which is likely to affect these types of audits. SAS No. 122, section 600 supersedes AU section 543, Part of Audit Performed by Other Independent Auditors (AICPA, Professional Standards), and paragraphs .12FLORIDA CPA TODAY
.13 of AU section 508, Reports on Audited Financial Statements (AICPA, Professional Standards). AU section 543, written in 1972, primarily provided guidance for the auditor to decide whether to serve as the principal auditor, and the form and content of the principal auditor’s report in those circumstances. The clarified standard is broader than AU section 543 and focuses on how to conduct an effective audit of group financial statements.1 Simply stated, a) group financial statements are financial statements that include the financial information of ➡ www.ficpa.org
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Requirements of AU-C section 600 that are expected to have the most impact on current practice include, but are not limited to, the following areas: • Engagement acceptance and continuance considerations. • The group engagement team’s process to assess the risk of material misstatement in the group financial statements. • Determination of materiality to be used to audit the group financial statements and for procedures related to components. • Selecting components and identifying significant components, account balances, or both; classes of transactions; or disclosures for testing. • Communication between the group engagement team and component auditors. • Assessing the adequacy and appropriateness of audit evidence by the group engagement team in forming an opinion on the group financial statements. 12 JULY/AUGUST 2012
one or more components (which essentially are entities or business activities), and b) a component auditor (CA) is one who performs work on a component’s financial information. In addition, the clarified standard replaces the term and concept of the principal auditor collectively with the terms group engagement partner (GEP) and group engagement team (GET) and the concept of the auditor of the group financial statements.2 CAs, as defined in the clarified standard, may be from the same firm, or network of firms, as the auditor of the group financial statements. This is notably different from current practice and may significantly affect how some firms plan and conduct audits of group financial statements. The clarified standard provides guidance for a) when the auditor of the group financial statements assumes responsibility for a CA’s work, and b) when the auditor does not assume responsibility for a CA’s work (that is, making reference to the audit of the CA in the auditor’s report on the group financial statements). Certain requirements of the clarified standard (AU-C section 600, paragraphs .50-.64) apply to all components, except when the auditor of the group financial statements makes reference to a CA’s work. All other requirements of the standard apply, regardless of whether or not the auditor of the group financial statements is assuming responsibility for the work of CAs.
Engagement acceptance and continuance Under the clarified standard, the GEP determines whether sufficient
appropriate audit evidence can be obtained regarding the consolidation process and the financial information of the components. Accordingly, the GEP evaluates whether the GET will be able to obtain such evidence, either through their own work or the work of CAs. Once this is determined, the GEP is responsible for deciding whether the auditor’s report on the group financial statements will make reference to the audit of a CA. These requirements are notably different from current practice. However, the auditor’s report on the group financial statements should not make reference to a CA unless these conditions are met: • The CA’s financial statements are prepared using the same financial reporting framework as the group financial statements.3 • The CA has performed an audit on the financial statements of the component in accordance with generally accepted auditing standards (GAAS), or when required by law or regulation, with auditing standards promulgated by the Public Company Accounting Oversight Board (PCAOB). • The CA has issued an auditor’s report that is not restricted as to use. When the GEP decides to reference a CA by name in the auditor’s report on the group financial statements, the clarified standard requires that a) the CA’s express permission be obtained and b) the CA’s report be presented with the auditor’s report on the group financial statements. If the GEP decides not to make reference to the CA, the clarified standard requires the GET to be involved in the CA’s work and specifies the level of that involvement.
Components and significant components
that are significant because of their specific nature or circumstances.
An audit of group financial statements involves identifying the components that are part of the group and considering the effect of the components on the group audit strategy and group audit plan (including the extent to which the GET will use the work of CAs). Identifying the components included in the group financial statements, and those that are significant components, is a critical aspect of the clarified standard that is notably different than current practice. Of particular note is that the clarified standard states that an investment accounted for under the equity method is considered a component.
When the auditor of the group financial statements is assuming responsibility for the CA’s work related to a significant component, the GET is required to be involved in the risk assessment of the component. Such involvement allows the GET to identify significant risks of material misstatement of the group financial statements. The clarified standard specifically identifies the minimum level of involvement the GET is required to have in this process.
Components may be significant because of their individual financial significance to the group, or because their specific nature or circumstances are likely to include significant risks of material misstatement of the group financial statements. For components that are significant because of their individual financial significance, the clarified standard requires the GET (or a CA on its behalf) to perform an audit, using component materiality, of the financial information of the component. The GET may adapt such an audit as necessary to meet its needs. That is, the GET may conclude that it is only necessary to obtain evidence about particular financial statement account balances, classes of transactions or disclosures. In addition, the clarified standard requires the GET (or a CA on its behalf) to perform certain specific procedures for components
The AICPA has published Understanding the Responsibilities of Auditors for Audits of Group Financial Statements – AICPA Audit Risk Alert to help auditors understand and implement AU-C section 600. This Audit Risk Alert is available at www. cpa2biz.com.
For components that are not significant components, the clarified standard requires the GET to perform analytical procedures at the group level. FCT To read this article in its entirety, visit www.ficpa.org/Content/Members/ Tools/Publications/FCT/Technical. aspx. Lynda M. Dennis, CPA, CGFO is a full-time lecturer in the School of Accounting at the University of Central Florida, as well as an author and CPE discussion leader for the AICPA. Her areas of expertise are accounting and auditing for governmental and not-for-profit organizations. She serves on the FICPA Accounting and Auditing Section and is a member and past chair of the FICPA Editorial Committee. Endnotes New terms that are defined in paragraph .11 of AU-C section 600, Special Considerations – Audits of Group Financial State1
ments (Including the Work of Component Auditors) (AICPA, Professional Standards), are italicized when first mentioned in this article. 2 SAS No. 122, section 600 uses “the auditor of the group financial statements” when it may be appropriate in the circumstances for the firm to fulfill a requirement. 3 A not-for-profit entity, using the Financial Accounting Standards Board (FASB) financial reporting framework, required by the Governmental Accounting Standards Board (GASB) financial reporting framework to be included in the basic financial statements of a primary government, would be deemed to be in accordance with the GASB financial reporting framework. Because the GASB requires the entity to be included as a component unit and specifies how such component unit is to be reported in the primary government’s basic financial statements, the not-for-profit entity is deemed to be in accordance with the same financial reporting framework as the primary government.
“An area that is expected to be considerably affected by the clarified standards is audits that involve one or more auditor and/or one or more entities.” FLORIDA CPA TODAY
www.ficpa.org
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Prepare IT’S NO SECRET–
the world economy has become increasingly globalized through international trading of goods and services. As a result, International Standards on Auditing (ISA) have gained worldwide acceptance as the standards for auditing many nonpublic companies. In 2002, the AICPA recognized the need to converge its Statements on Auditing Standards (SAS) with the ISA, and to format each standard to be easier to read, understand and apply. As a result, a strategy known as the Clarity Project developed. The AICPA substantially completed the Clarity Project with the recent issuance of Statements of Auditing Standards No. 122 to 125 (the Clarified Auditing Standards). The Clarity Project accomplished the following: • Clarification of the SASs with the use of drafting conventions that includes an introduction, objective, definitions (where relevant), requirements, application and other explanatory material. Special considerations also are included in the text of certain standards for audits of financial statements of small and less complex entities, and governmental entities. • Convergence and alignment of the SASs issued by the AICPA’s Auditing Standards Board (ASB) and the ISAs issued by the International Auditing and Assurance Standards Board (IAASB), while avoiding conflicts with auditing standards for public companies issued by the Public Company Accounting Oversight Board (PCAOB). • Recodification of the standards using “AU-C” section numbers that are based primarily on the codified equivalent of ISAs. The clarified auditing standards are effective for audits of financial statements for periods ending on or after Dec. 15, 2012. Therefore, audit firms should consider preparing for transition to the clarified auditing standards now. Auditors should understand how the clarified auditing standards will affect engagement acceptance and continuance; planning; performance of interim and year-end audit procedures; and reporting. This article explains certain substantive and clarifying changes and includes suggestions on preparing for transition to the clarified auditing standards.
Substantive and Clarifying Changes The clarified auditing standards include substantive changes that are additional auditor requirements, and clarifying changes that are explicit requirements that previously were implicit. Requirements define what the auditor is required to 14 JULY/AUGUST 2012
Clarified Auditing Standards Now for the Transition By Troy Manning, CPA
do to achieve the objective of the auditing standard. Overall, clarifying changes that are explicit requirements should not result in a change to current practice unless the auditor was not already meeting the requirements that are expressed implicitly in the extant standards (preclarified auditing standards). ■ AU-C section 250, Consideration of Laws and Regulations in An Audit of Financial Statements, defines two categories of laws and regulations and distinguishes the auditor’s responsibilities relating to each category. • Laws and regulations that have a direct effect on determination of material amounts and disclosures in the financial statements, such as statutorily-mandated requirements on the form and content of the financial statement. • “Other laws and regulations” that may have a material effect on the financial statements, such as operating license(s), regulatory solvency requirements or environmental regulations. AU-C 250.14 states that the auditor should perform specific procedures to identify instances of noncompliance with “other laws and regulations” that may have a material effect on the financial statements. The audit procedures include inspection of correspondence (if any) with relevant licensing or regulatory authorities. This additional auditor requirement was not in the extant standards. ■ AU-C section 265, Communicating Internal Control Related Matters, addresses the auditor’s responsibility to report any deficiencies in internal control identified in an audit of the financial statement to those charged with governance and management. This clarified auditing standard adds two requirements and makes explicit other requirements that were not in the extant standards. The additional auditor requirements are the following: • AU-C 265.12b states that the auditor should communicate to management, in writing or orally, other deficiencies in internal control (other than a material weakness or a significant deficiency) identified during the audit that have not been communicated to management. In addition, the other deficiencies should be of sufficient importance to merit management’s attention based on the auditor’s professional judgment. The extant standards did not preclude the auditor from using professional judgment to FLORIDA CPA TODAY
determine if other deficiencies in internal control should be communicated to management. However, the clarified auditing standards add a presumptively mandatory requirement expressed using the words, “the auditor should.” • AU-C 265.14b states that the auditor should include in the written communication of significant deficiencies and material weaknesses an explanation of their potential effect. The explanation need not quantify those effects, but may describe the potential effect in terms of control objectives and the types of errors the control was designed to prevent, or detect and correct, or in terms of the risk(s) of misstatement that the control was designed to address. The explicit requirements added are the following: • AU-C 265.08 states that the auditor should determine whether, based on the audit work performed, the auditor has identified one or more deficiencies in internal control. • AU-C 265.15 defines the specific matters to be included in the optional written communication that states no material weaknesses were identified during the audit. ■ AU-C section 505, External Confirmations, addresses the auditor’s use of external confirmation procedures to obtain audit evidence. The explicit requirements added are the following: • AU-C 505.08 and .09 define auditor requirements if management refuses to allow the auditor to perform external confirmation procedures. These requirements include communicating with those charged with governance if the auditor concludes that management’s refusal is unreasonable or if the auditor is unable to obtain relevant and reliable audit evidence from alternative audit procedures. • AU-C 505, paragraph .A28, states that an oral response to a confirmation request does not meet the definition of an external confirmation. Other procedures the auditor may perform to address the reliability of the oral response are provided. ■ AU-C section 510, Opening Balances on Initial and Reaudit Engagements, addresses the auditor’s responsibilities relating to obtaining sufficient appropriate audit evidence regarding opening balances in an initial audit engagement, including a reaudit enwww.ficpa.org
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Resources on Clarified Auditing Standards FICPA ■
“Major Changes Ahead for the Auditor’s Report,” by William Quilliam and Terry Engle, Florida CPA Today, May/June 2012. This article explains the prominent changes to the form and content of the standard unqualified auditor’s report.
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“To Use or Not to Use Another Auditor’s Work,” by Lynda M. Dennis, Florida CPA Today, July/August 2012. This article explains certain substantive changes for audits of group financial statement.
AICPA ■
Improving the Clarity of Auditing Standards is available at www.aicpa. org/sasclarity. This page provides guidance that can help audit firms implement the clarified auditing standards. It includes a video library and other publications, such as Clarified Auditing Standards – Learning and Implementation Plan.
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Audit Risk Alert, Understanding the Clarified Auditing Standards – 2012. This alert provides a summary of changes in the requirements and guidance to help auditors prepare for the transition.
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Audit Risk Alert, Understanding the Responsibilities of Auditors for Audits of Group Financial Statements – 2012. This alert provides guidance to help auditors implement the requirements of AU-C section 600, Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors).
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The AICPA plans to update the 2012 editions of all audit guides using a “dual guidance” approach. The guides will include the existing auditing standards and the clarified auditing standards, including highlights of the areas where auditors may need to change their current practice or audit methodology.
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gagement. The explicit requirement added is the following: • AU-C 510.08 clarifies that reviewing a predecessor auditor’s audit documentation cannot be the only procedure performed to obtain sufficient appropriate audit evidence regarding opening balances. The auditor should obtain sufficient appropriate audit evidence about whether the opening balances contain misstatements that materially affect the current period’s financial statements. The procedures include, among other things, determining whether the prior period’s closing balances were correctly brought forward (consistently applied) and determining whether changes in accounting policies are appropriately presented and disclosed. ■ AU-C section 708, Consistency of Financial Statements, addresses the auditor’s evaluation of the consistency of the financial statements between periods. The explicit requirement added is the following: • AU-C 708.05 requires the auditor to evaluate whether the comparability of the financial statements between periods was materially affected by a change in accounting principle or by adjustments to correct a material misstatement in previously issued financial statements. ■ Other Substantive and Clarifying Changes – The sidebar at left provides additional resources on the clarified auditing standards. Included are two Florida CPA Today articles on the clarified standards that explain substantive and clarifying changes regarding the auditor’s reports and group audits.
To get ready, take these steps The auditor’s first step to prepare for the transition to the clarified auditing standards is to become familiar with the new standards. The familiarization process should include understanding the drafting conventions, the recodification structure and the additional auditor requirements and explicit requirements that were previously implicit. Training is essential, since there is no substitute for reading and understanding the entire text of the clarified auditing standards Many audit firms subscribe to audit guides (i.e. PPC’s Guide to Audits of Nonpublic Companies) that have updated the content, including suggested audit programs, for the clarified auditing standards. These guides may be used, customized and adopted as a firm’s audit methodology manual. However, it is important for auditors to understand that these guides are non-authoritative audit tools. Relying on non-authoritative audit tools is no substitute for using sound professional judgment, and (again) for reading and understanding the entire text of the clarified auditing standards. The next step to prepare for the transition is to assign an individual or establish a team to assume the leadership of the transition process. This includes client acceptance and continuance; determining the effect of the substantive changes on audit procedures and on the firm’s audit methodology; defining the training needs of the professional audit staff; and considering the effect on the firm’s quality-control standards. Because the effective date of the clarified standards is approaching quickly, the time to prepare is now. FCT
Troy Manning, CPA, specializes in governmental and not-for-profit entities as a practitioner, consultant, instructor, speaker and author. Manning teaches throughout the U.S. for Thomson Reuters. She serves on the FICPA State and Local Government Section and is a member and past chair of the FICPA Editorial Committee.
FLORIDA CPA TODAY
www.ficpa.org
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COVER
story
Chair of the Board Scott G. Price was a member of the inaugural class of the Tampa Bay Business Journal’s Top 30 business leaders under age 30. He has been named as one of the Journal’s Top 40 business leaders under age 40, and as one of CPA Technology Advisor’s 40 Under 40 influential CPAs in information technology. Price began his career with the Tampa office of Arthur Andersen LLP (Arthur Andersen), where he quickly became a firm-wide resource regarding SAS 70 audits. He drafted the Arthur Andersen SAS 70 audit methodology for the Southeast United States and released it firm wide in October 2001. He has performed more than 800 SAS 70/SSAE 16 audits, and he is widely recognized as the most experienced SAS 70/SSAE 16 auditor in the world.
By Suellen Wilkins, FICPA Editor
He is 36 years old. ➡ Photo by Kathleen Cabble 18 JULY/AUGUST 2012
FICPA Board Chair Scott Price and his father, William E. Price, CPA, prepare for a flight in Price’s Piper Saratoga PA-32. William Price is a founding partner of PDR CPAs in Clearwater.
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his own CPA firm early in his career, and I saw it as an opportunity to try it on my own. I figured no one would fault me for doing so, and if I failed, I’d just hop back into a firm. “I remember when the St. Petersburg Times published an article about my firm beginning,” he said. “I didn’t want them to publish my age. I was 26 at the time.” Price was president of the firm, which served almost 300 clients and garnered annual revenue in excess of $10 million, until he sold it in 2009. Currently, he is the managing director of A-lign CPAs, a worldwide provider of risk-advisory and regulatorycompliance services. Price says being a business owner has taught him to respect and reward his employees.
When he’s not working, Price enjoys spending time with his son, Brooks, and daughter, Adriana. “I just dig down and make every day count with them,” he said.
In 2002, Price left Arthur Andersen to form SAS 70 Solutions Inc., the first CPA firm to focus solely on performing SAS 70 audits. He says he was thrown into the decision to go out on his own. “I started my career at Arthur Andersen and built a SAS 70 audit practice within the firm. As the Enron scandal broke, our group was being sold to Robert Half and rebranded as Protiviti,” he said. “I wanted to continue to work for a CPA firm. I had a tremendous amount of loyalty to Andersen, like many at the firm. My father had 20 JULY/AUGUST 2012
“At a CPA firm, our people are our assets,” he said. “We need to ensure that we solicit their feedback and provide them with an opportunity for input. Also, we should always look to improve our skills and our work product. Sometimes, CPAs get too comfortable in the way they operate. We always should challenge ourselves.”
Giving back through volunteer service On July 1, Price took office as the youngest member ever to serve as the Institute’s Board Chair (formerly the position of president). He is the 85th FICPA member to serve in this role. Price joined the FICPA in 1998 and is serving his eighth term on the Board of Governors and his sixth term on the Executive Committee. He is immediate past chair of the FICPA Finance and Office Advisory Committee and has held chair and vice-chair positions on several other committees. He also has served on numerous sections and task forces.
Nationally, Price is an elected member of the AICPA Council, representing Florida for a three-year term. Locally, he has served several terms on the Hillsborough County and West Central Florida Board for Junior Achievement. “Scott is a professional’s professional,” said FICPA Past President Richard Berkowitz. “He’s an entrepreneur. He’s committed to giving back to his community and to the FICPA. Florida CPAs are fortunate that he’s dedicating his time and effort to represent our interests in Tallahassee, and throughout our great state. “The profession is in good hands – and at the end of Scott’s term, the FICPA and its members will be in a better place as a result of his chairmanship,” Berkowitz said. “Serving as the FICPA’s board chair is a tremendously humbling opportunity, and it comes with significant responsibilities,” Price said. “The position requires a person who can listen, be a cheerleader for the profession and connect with the members.
Price says the best thing about his FICPA involvement is meeting other FICPA members, and working with his counterparts in leadership. He says the same about his colleagues and clients. “We all say we enjoy the people we work with at our firms, and that rings true with the members in FICPA leadership. Also, the staff at the FICPA really is top notch. It’s been a pleasure getting to know them.”
Photo provided by AICPA
Pictured left to right: AICPA Vice Chair Rich Caturano; FICPA Board Chair Scott Price; FICPA President/CEO Deborah Curry; and AICPA President Barry Melancon attended the 2011 AICPA/CPA-SEA Leadership Conference in Phoenix, Ariz.
“I enjoy giving back to my profession, and serving my colleagues is one way I can do that,” Price said. “As a younger chair, I can impact the profession while bringing a unique view to the FICPA.” From the beginning, Price says, volunteering with the FICPA has been important to him. “It was a priority for me to make time for FICPA service,” he said. “The most difficult task to juggle is the travel, and time away from the office and home. FICPA meetings require an exceptional amount of preparation, and focus during the meetings is extremely important. We are stewards for our members. “Many young CPAs can’t set their own schedule for volunteer time. As the owner of my firm, I was able to,” he said. “I’ve spent numerous hours and days away from the office and home, and I’m glad I did that when FLORIDA CPA TODAY
my children were younger. Now that they’re older, I can attend the increasing number of activities in which they’re involved.”
“My favorite thing about the profession is the people. I’m grateful for the people I work with, and for our clients. They make this job enjoyable,” Price said. “CPAs sometimes aren’t as valued as other professionals for what they do. We’re an essential part of the business community, and we hope our clients see that.”
Price cites relevancy as substantial FICPA task As an FICPA member with an entrepreneurial background, Price has several priority projects that he hopes to help the FICPA accomplish during his year as Board Chair. He says remaining relevant to the increasingly diverse membership base continues to be one of the FICPA’s biggest challenges. He believes one solution is to offer products and services that are tailored to members’ specific needs. “I’d like the FICPA to provide a personalized experience to each member, and to each member’s firm. To do that, we can’t just rely on technology. We have to shake their hands and learn how we can help,” Price said. “I hope the FICPA uses local resources to accomplish this throughout the state. “We can identify members’ needs as FICPA representatives meet with them one on one,” Price said. “We have to be nimble and anticipate changing our service offerings to meet needs, and not just react to the changing environment.” ➡ www.ficpa.org
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“We have to be nimble and anticipate changing our service offerings to meet needs, and not just react to the
Price says the biggest benefits of FICPA membership are networking, CPE opportunities and legislative advocacy. “The Institute provides highquality, relevant CPE, which is essential to our license. And nobody does a better job watching out for CPAs in our state capitol than the FICPA. Those benefits are immeasurable,” Price said.
changing
“CPAs need a forum for sharing ideas that are specific to our state, and sometimes to our environment.” particular regions,” Price said. “The FICPA gives CPAs that ability. And just as the Institute facilitates networking in different geographic areas, it helps connect members who work in various practice
PERSONALLY SPEAKING Where are you from originally? I grew up in Clearwater. My parents were born in St. Petersburg, so I guess I can say I’m a true native. Where and when did you earn your accounting degree? I earned my bachelor’s degree in accounting and my master’s in taxation at Florida State University (FSU) in 1997. Why did you decide to pursue accounting as a career? Both of my parents earned accounting degrees from FSU, and my uncle was a CPA as well. Growing up, it was all I really knew. I always served as treasurer of clubs, and I liked the responsibility CPAs had. I thought I wanted to go to law school, but I was tired of being a poor college student and law school required two more years than obtaining my master’s degree. Tell us about your children. My son, Brooks, is 8 and my daughter, Adriana, is 6. They attend Carrollwood Day School in Tampa. Brooks enjoys all sports, especially football and soccer. Adriana loves 22 JULY/AUGUST 2012
areas. For example, the FICPA provides a forum for members in industry to exchange industry-specific ideas. “We’ve heard from many members that networking is a big reason they belong to the Institute,” Price said. “I’d like to offer them opportunities not just to network with other CPAs, but with attorneys and bankers through FICPA-organized events.” When asked if he’d like to go back and change any of his career decisions, Price says he wouldn’t do anything differently. “Being a CPA has offered me extraordinary skills and opportunities to see various types of businesses,” he said. “It’s an experience that money can’t buy.” FCT Suellen Wilkins is the FICPA’s editor. She can be reached at (850) 224-2727, Ext. 383, or wilkinss@ficpa.org.
drawing, building and gymnastics. I’m chair of the Board of Trustees at their school, and I read to their classes several times during the year. I also teach Junior Achievement to Brooks’ class and coach his flag-football team. The best thing about having kids is unconditional love. Brooks and Adriana make every day a learning experience. They’re full of energy, and I find it hard sometimes to keep up after a long day at work. I just dig down and make every day count with them. How do you like to spend your free time? Although I travel extensively, I enjoy traveling for pleasure as well. In Florida, we can get to so many great destinations quickly. The Keys are a favorite getaway spot because you have great water, beautiful beaches, good fishing and fabulous restaurants. If I’m home, I’m doing activities with my kids, fishing or attending FSU games. I stay active working out and usually race three to four triathlons annually. My desire not to drown during the swims ensures that I train for them! I also own an airplane – a Piper Saratoga PA-32 – and I should have my pilot’s license by the end of the summer. Flying is chal-
lenging and takes a significant amount of concentration, but I like it because I can go most anywhere on a whim. One evening my girlfriend and I had dinner with friends in St. Pete, and then we all hopped on the plane and flew to Key West for dessert! I also fly to FSU games and fishing trips for relaxation. With working so much, these are my releases in life. How much vacation time do you take every year? I usually take three weeks a year, three to four days at a time. If I’m away any more than that, I wind up with more email than my in-box can handle! We’ve taken several mini-vacations so far this year. We spend a great deal of time in the Keys and also have visited the Dry Tortugas. It’s a quick trip and makes you feel like you’re in another country, without the hassle of customs! My most exciting vacation was my snow skiing trip to Utah. It was the first time my children had skied, and only the second time I’d skied, so we spent the week learning. It was the most amazing vacation, watching the kids have such a great time. Do you have any pets? I have two dogs – Gracie, a beagle-shep-
herd mix, and Gilmore, a hound dog. We adopted them from the Humane Society and both are 70-pound balls of energy! Gracie is queen of the house and is 8 years old, and Gilmore is 5. Do you prefer to eat out or at home? What’s your favorite restaurant? More than 75 percent of my meals are cooked in a kitchen other than mine – so if I’ve been on the road for a while, I like to eat at home. If I’ve been home for a while, I like to get out. My favorite restaurant in Tampa is Seasons 52. All the meals are less than 475 calories, which makes me feel better about what I’m eating. The wine selection is good and the desserts are amazing. My favorite restaurant outside Tampa is Blue Heaven in Key West. Eating outdoors, with the sun shining down on you and your feet in the sand, is fantastic. They also have great screwdrivers in the morning. You’ve said that your accounting practice requires extensive travel. How do you juggle the responsibilities of family, a career and FICPA/AICPA leadership? Whether a job requires travel or long hours during tax season, work/life balance is a challenge for anyone in our profession. I have great employees who support me in FLORIDA CPA TODAY
my FICPA/AICPA activities, and who step up and perform additional tasks when I’m out of the office. I live in Tampa near my parents, who are tremendously helpful with my kids if I need a hand. I’ve been fortunate to have great family and friends to support me in my professional obligations. Have you had role models? If so, what have you learned from them? I’ve had many role models in my life. People have various skill sets that we can emulate during our careers. I think I’m able to find strengths in different people who provide me with guidance. One of the biggest lessons I’ve learned is to listen to people, and to exercise patience. I often like to talk more than listen, and my roles with the FICPA have taught me to listen to committee members. They’ll ensure we come up with the best idea, and not just the first idea. As CPAs, I think we want to solve problems immediately. I’ve learned that sometimes, I should be more patient. As a problem further develops, the best solution often becomes apparent. I never stop learning from my role models, and I know I have many more skills to learn.
Price and his family frequently travel to the Florida Keys.
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AICPA Expects Continued Demand for FVS
From AICPA reports
T
he AICPA Forensic and Valuation Services (FVS) Section recently conducted a study of professionals working in this niche and found a strong demand for their services. Most survey participants expected the demand to remain robust during the next two to five years, along with an increase in litigation and regulatory enforcement. The study also identified challenges this niche faces in the near future and provided insight into trends in different segments of the practice area. CPAs who provide forensic-accounting services collect and analyze evidence, then interpret findings and communicate them in courtrooms, boardrooms or other venues. Clients typically are attorneys and businesses in a range of industries.
Survey identifies developments in FVS segments Forensic accounting is a multifaceted field that encompasses many kinds of engagements. The survey offered insight on trends in various segments of this niche, including: •C omputer forensic investigations were a robust area. Eighty-three percent expect greater demand in the next two to five years, with a mean anticipated increase of 20 percent. •A mong those who handled divorce cases, roughly half had seen a spike in demand in the past year. • F ifty-three percent expected more pre-packaged bankruptcies in the next two to five years. 24 JULY/AUGUST 2012
•A mong economic-damages engagements, the greatest demand was expected in cases involving breaches of contract, business torts and intellectual property. •R egarding financial-statement misrepresentation, respondents expected a strong focus in engagements on revenue recognition and valuation of assets carried at fair value. • S lightly more than half foresaw rising demand for outside consultants versus in-house staff, in the next two to five years, from companies looking to prevent or detect fraud. The most commonly reported frauds included false payment requests; check and credit-card fraud; and employee theft. They occurred in operations, accounts payable, sales and marketing, among others. • F or valuation professionals, the areas with greatest peaks in demand during the past year included shareholder/ partner disputes, contractual disputes, family law and
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gift and estate issues. In the next two to five years, respondents expected higher demand for a variety of services, including shareholder/partner disputes, family law, contractual disputes and bankruptcy, insolvency and reorganization.
Demand will create scramble for talent
Technology to present challenges Another top issue was technology. Practitioners may have problems staying current with technology advances that can significantly improve the way they conduct research or approach other areas of practice.
Staffing – the top challenge that survey participants identified – will remain a key issue. Roughly onequarter of survey participants said they had hired more professionals recently, and many planned to do more hiring in a variety of areas during the next two to five years. About one-half of study participants said they devoted more time to forensic work during the past year, with an average increase of 20 percent. Most business and industry professionals studied in a companion survey said they used outside valuation experts, underscoring the demand for these services.
“CPAs who can match the Certified in Financial Forensics (CFF) credential with the Certified Information Technology Professional (CITP) credential, and understand data mining and analytics, will find they’re in great demand in the marketplace,” said AICPA Past Chairman Robert R. Harris, CPA, CFF, CGMA. Eighty-one percent of respondents thought computerbased controls would bring significant improvements in fraud detection. Respondents believed the greatest technology-related threats to organizations in the next two to five years included:
It’s fair to assume that the recruitment, retention and continuing education of FVS professionals will be an ongoing priority. Although this scramble for talent may pose challenges for firms in this field, it also attests to the likelihood of strong employment.
• Use of mobile devices (28 percent). • Malicious insiders (19 percent) and remote access (19 percent). • Social networking (18 percent). • Malware (10 percent).
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FVS Section looks at B&I The AICPA FVS Section also surveyed professionals in business and industry (B&I) to gather feedback on working with forensic accountants. In this study, 54 percent said their companies’ efforts to prevent or detect fraud would increase their use of outside consultants, versus in-house personnel, in the next two to five years. The B&I survey results provide FVs members with valuable information about trends affecting their clients, the way they are responding and services they may need from outside experts. These may include approaches to preventing and detecting fraud; experiences with economic damages and financial-statement representations cases; and shareholder disputes. FCT AICPA members may read the full AICPA FVS Trend Survey Whitepaper on the AICPA’s website. For more information, look into resources available through the AICPA Forensic and Valuation Services Section. Copyright ©2012, The American Institute of CPAs
FICPA offers forensic and valuation resources Whether you’re an experienced professional or just contemplating offering forensic and/or valuation services, the FICPA offers two practice-boosting resources. The Valuation, Forensic Accounting and Litigation Services (VFALS) Section is a free, online community exclusively for FICPA members. One of eight FICPA online communities, the VFALS Section boasts more than 950 members who discuss a myriad of perplexing VFALS topics and dilemmas via a proprietary listserv. The private Section-member directory is a convenient way to locate fellow practitioners. Also, Section web pages host an array of practice tools, including sample engagement letters. To join or learn more about the VFALS Section, visit www.ficpa.org/sections. The VFALS Conference, a must-attend gathering of Florida practitioners, will take place Jan. 10-11, 2013 in Fort Lauderdale. State and national experts will give presentations on topics from divorcelaw case studies and direct testimony to economic damages and lost-profit updates. Last year, more than 150 CPAs attended the conference and complementary evening reception. For more information, visit www.ficpa.org/cpe.
“Staffing – the top challenge that survey participants identified – will remain a key issue.”
FLORIDA CPA TODAY
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DOR
update
By Ellen Wolfgang, assistant general counsel Florida Department of Revenue
ment processes. Supporters of Internet sales-tax legislation say the current situation puts local retailers at a competitive disadvantage, compared to online retailers who often don’t pay state sales or use tax. Critics say revising the process for Internet sales and use tax enforcement and collection would unfairly burden businesses, and would hinder economic development. The U.S. Constitution restricts states’ ability to impose a tax-collection obligation on businesses that are not physically located in a state. A state can require a seller to collect tax when local representatives in the taxing state arrange sales, or when a seller maintains a local retail store.1 In those instances, the courts clearly view the out-of-state seller as receiving the taxing state’s protection and services. However, a state may not “impose the duty of use tax collection and payment on a seller whose only connection with customers in the state is by common carrier or the U.S. mail.”2
Sales-tax Requirements Vary for Online Retailers
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nternet sales have become a major form of commerce. However, unless sellers have a physical presence in a particular state, they rarely collect state taxes on these sales. Economic times are tough and online sales are increasing. Consequently, the issue of whether state and local governments should be allowed to collect tax on Internet sales has become an area of great interest. Businesses argue that it’s challenging to comply with multiple states’ sales tax, because states have different tax rates; exemptions; and collection and enforce28 JULY/AUGUST 2012
Quill v. North Dakota, 504 U.S. 298 (1992), is the most recent Supreme Court case that stands for the principle that retailers cannot be required to collect taxes in states where they have no physical presence. This case made it clear that the U.S. Constitution restricts states’ taxing authority in two ways. First, the concept of due process prohibits individuals from being subject to tax in a state unless they have certain minimum contacts, creating a “nexus” with the state. “[I]f a foreign corporation purposefully avails itself of the benefits of an economic market in the forum state, it may subject itself to the state’s in personam jurisdiction even if it has no physical presence in the state.”3 In Quill, the mail-order company’s advertising in the state, along with substantial revenue generated in the state, were enough to satisfy the “minimum contacts” requirement of the due-process clause.4
Second, and more importantly for Internet sales, the commerce clause has its own substantial nexus requirement. Under the clause, Congress has the right to regulate commerce among the states.5 The courts interpret this to mean that, by negative implication, the states have a limited ability to burden interstate commerce.6 A state tax will be sustained against a commerceclause challenge if the “tax is applied to an activity with a substantial nexus with the taxing state, is fairly apportioned, does not discriminate against interstate commerce and is fairly related to the services provided by the state.”7 In Quill, the Court reaffirmed the principle that the commerce clause requires a physical presence in the taxing state.8 Since Quill, Internet sales have far outstripped mail-order sales as the leading situation where out-of-state retailers can engage in a significant amount of business in a state without having a physical presence in the state. In Quill and its predecessor cases, the Supreme Court expressly stated that Congress is in the best position to address the issue of when states may require a remote vendor to collect tax.9 The Supreme Court noted that overruling the Court’s prior cases “might raise thorny questions concerning the retroactive application of those taxes and might trigger substantial unanticipated liability for mail-order houses” or, analogously, remote sellers.10 Congress has proposed legislation, but to date, none of the proposed bills have passed.
states that have adopted SSUTA to require sellers to pay state sales and use taxes.12 States have adopted other strategies for dealing with this issue. States such as New York and North Carolina have implemented an approach that has been called “click-through nexus.” It allows the state to gain nexus with out-of-state retailers who pay in-state residents to place links on their websites to the retailers’ websites. Florida has not passed a click-through nexus bill. It also has not passed other legislation, such as SSUTA, that would address the interstate sales and use tax issue. And when Florida cannot require a seller to collect and remit sales and use tax, the purchaser must pay the tax. However, taxpayers may not realize they owe the use tax.13 With the growth of Internet sales since Quill v. North Dakota was decided, the limitations on states’ ability to enforce and collect sales and use taxes on sellers with no physical presence in a state are dramatically more pronounced.14 Billions in commerce take place online and almost every state and local taxing jurisdiction are impacted. Consequently, the Internet sales-tax discussion likely will continue at the state and national levels. FCT
“The U.S. Constitution restricts states’ ability to impose a tax-collection obligation on businesses that are not physically located in a state.”
Ellen Wolfgang is assistant general counsel with the Florida Department of Revenue Office of the General Counsel. She may be reached at wolfgane@dor.state.fl.us. Endnotes 1
Many states have adopted the Streamlined Sales and Use Tax Agreement (SSUTA). SSUTA focuses on improving sales and use tax-administration systems by making them simpler and more uniform for sellers’ benefit.11 Twenty-four states have adopted SSUTA. However, it is voluntary for sellers – meaning it encourages, but cannot require, sellers to collect and remit sales and use taxes. Some businesses have agreed to remit taxes under SSUTA because it removes some of the burdens and complexities associated with being taxed in multiple jurisdictions. The legislation currently before Congress would allow FLORIDA CPA TODAY
See Nat’l Bellas Hess, Inc. v. Dep’t of Rev., 386 U.S. 753 (1967) (reviewing the case law on taxation for out of state goods). 2 Id. 3 Id. 4 Id. 5 U.S. Const. art. I, § 8, cl. 3. 6 Quill v. North Dakota, 504 U.S. 298, 309 (1992). 7 Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977). 8 Quill, 504 U.S. at 309-16. 9 Id. at 318. 10 Id. 11 Streamlined Sales Tax Governing Board, Inc., available at http://www.streamlinedsalestax.org/index. php?page=About-Us. 12 The Main Street Fairness Act (S. 1452 and H.R. 2701), The Marketplace Equity Act (H.R. 3179), and the Marketplace Fairness Act (S. 1832). 13 Florida Senate Committee on Finance and Taxation, Interim Report 2012-107 (Aug. 2011). 14 504 U.S. 298 (1992). www.ficpa.org
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STAFF
reports
Educational Foundation By Jason Zaborske, FICPA educational foundation development director, and Brittany Butler, event coordinator
The 1040K Run/Walk Board of Directors thanks all the runners, walkers and sponsors who contributed to the future of the CPA profession by taking part in the 2012 1040K. FCT The 2013 1040K Run/Walk will take place Saturday, April 20. To
view photos from this year’s event, or to join our team of runners and sponsors, visit www.ficpa. org/1040K. Or, contact Jason Zaborske, FICPA educational foundation development director, at (800) 342-3197, Ext. 417, or zaborskej@ficpa.org
Fastest CPAs in Florida The CPAs had their own race category and more than 100 registered to run. These CPAs now have bragging rights as the fastest in the state! Congratulations to all our winners. Richard Puerto, CPA Bonnie Phillips, CPA
Each year, the Foundation awards $3,000 scholarships to three South Florida students during the 1040K Run/Walk. Pictured left to right: Shawnda Davis Perry, daughter of CPA Lewis Davis; Ricot Jeanty of Florida International University; Foundation Board Chair Ken Strauss; Ed C. Stokes of Nova Southeastern University; and Kristen Peter Deane of Florida Atlantic University.
Rain or shine, FICPA Foundation raises scholarship funds
O
n April 21, 652 CPAs, runners and walkers participated in the 23rd Annual 1040K Run/Walk at its new venue – Bill Baggs State Park in Key Biscayne. Shawnda Davis Perry, daughter of CPA Lewis Davis, and FICPA CEO- Executive Director Deborah Curry helped the 1040K Board of Directors provide $9,000 in scholarships to AfricanAmerican accounting students in South Florida. “We thank the sponsors and the Board, and big thanks to Bill Baggs for allowing us to bring the 1040K to Key Biscayne,” said 1040K Board of Directors Chair Ken Strauss. “Without the hard work of these people and the CPA community, this event wouldn’t be as successful as it is.” Through the generous support of our sponsors, the Foundation provides 30 JULY/AUGUST 2012
about $200,000 each year to Florida accounting students. In spite of rainy weather, hundreds of CPAs, sponsors, runners and walkers came out to support the Foundation. Runners stuck around afterward for South Florida’s best post-race celebration and Tax Season Raffle. Among the raffle items was a football autographed by Don Shula. At the race, the Foundation awarded $3,000 scholarships to three African-American accounting students – Kristin Deane, Ricot Jeanty and Ed Stokes. Becker CPA Review provided two students with $1,350 scholarships. The Foundation also contributed $1,000 to the James Wilcox Minority Summer Residency Program, designed to attract minority high-school students to the accounting profession.
5K CPA Division/Male 5K CPA Division/Female
Perez-Abreu, Aguerrebere, Corporate Team Award Sueiro & Torres, PL Liam Fidler Guadalupe Merlo
20:24 28:17 32 Race entries
Overall 5K Winner /Male 16:09 Overall 5K Winner/Female 20:41
From FICPA staff reports
Dress (down) for success The Foundation’s Jeans for Scholarships event is fun and easy. Visit www.ficpa.org/ jeans to schedule a casual jeans day in your office on or before Oct. 26, 2012. Firms that sign up become official Scholarship Wranglers and receive company-name recognition to CPAs statewide, including a company website link on www.ficpa.org/jeans.
2012 1040K Run/Walk Sponsors Platinum Sponsors Becker Professional Education Dosal Tobacco Corporation U-Pull-It of Broward Inc.
Gold Sponsors Berkowitz Dick Pollack & Brant Certified Public Accountants and Consultants, LLP Florida Institute of CPAs
Silver Sponsors CCH, a Wolters Kluwer business Global Insurance Services Inc. Heineken Light Kane & Company, PA Kaufman, Rossin & Co., PA Robert Half International
Bronze Sponsors Bergeron Land Development, Inc. Binstock, Rubin, Adler, Aldecoa & Ellzey, PA CBIZ MHM, LLC Deloitte & Touche LLP FLORIDA CPA TODAY
Energy Tax Savers, Inc. Gerson, Preston, Robinson & Company, PA Grant Thornton LLP KPMG LLP Marcum LLP Mercedes-Benz of Coral Gables Miami Marlins National Association of Black Accountants Inc. Perez-Abreu, Aguerrebere, Sueiro & Torres, PL PricewaterhouseCoopers, LLP TCBA Watson Rice, LLP The Continental Group The Miami Beach Group at Morgan Stanley Smith Barney Urbieta Oil
Many firms ask for $5 donations from employees or staff and $10 from partners and managers, but your firm can decide the best way to support the Foundation. We enjoy seeing our CPAs in action, so make it a fun day at the office and send us pictures to share in our online
Scholarship Wranglers photo gallery. Last year, the Jeans for Scholarships campaign raised $8,000 – and we can raise even more this year. Wear your jeans and help the future of the CPA profession! FCT
➡
Thank you to our 2012 Scholarship Wranglers! Ahearn, Jasco + Company, PA Appelrouth, Farah & Co., PA BKHM, PA Davidson & Nick, CPAs Ferlita, Walsh & Gonzalez, PA GAG Consulting, Inc. Glickstein Laval Carris, PA Goldstein Schechter Koch Ira M Herschbein, CPA, PA KPMG, LLP Mia A Thomas, PA
Chapters
Moore Stephans Lovelace, PA
Atlantic Chapter Broward County Chapter Gold Coast Chapter Miami-Dade Chapter Miami Downtown Chapter Palm Beach Chapter South Dade Chapter
Ocariz, Garrastacho, Hevia & Mercer, LLP OwenWise & Company Saltmarsh, Cleaveland & Gund Sharff, Wittmer, Kurtz & Jackson, PA Thomas Howell Ferguson PA
www.ficpa.org
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Student Outreach The FICPA MoneyWi$e Week planning team, pictured left to right, included Brenda Hubbard, Marshall Gunn, Joey Bryan, Kitty Jordan, Terry Seaton, Mamie Davis and Bettie Adams.
FICPA participates in MoneyWi$e Week
T
he first Jacksonville MoneyWi$e Week, held May 7-11, offered several financial-education sessions on a variety of topics for residents of Greater Jacksonville. The FICPA, one of 40
partners, conducted 26 sessions with volunteers from the St. Johns and Jacksonville chapters. Topics ranged from individual income tax, small-business income tax, social security, estate planning, investment management and personal finance for young adults.
Governmental Affairs
FCT
New Members
Gov. Scott signs CPA legislation, speaks at Mega CPE Conference In April, Gov. Rick Scott signed into law legislation that minimizes some of the burdensome licensure regulations for Florida CPAs. The bill signing took Gov. Rick Scott place just six weeks before the Governor spoke to several hundred FICPA members at the Mega CPE Conference in Tampa and Orlando. Gov. Scott updated attendees on Florida’s business and economic climate. FICPA President/CEO Deborah Curry introduced the Governor and presented him with a plaque featuring the cover of the May/ June issue of Florida CPA Today. The cover included a photo of Gov. Scott; Florida Board of Accountancy Chair Cynthia Borders-Byrd; and Curry. FCT 32 JULY/AUGUST 2012
The FICPA happily welcomes many new members throughout the year. To see a list of members who have recently joined, visit the FICPA website at www.ficpa.org/ meetnewmembers.
FICPA
news briefs
Kaufman debuts play at New Theatre’s Miami Stories
Jim Kaufman, CPA of Kaufman, Rossin & Co. recently debuted his own short play at New Theatre’s Sixth Annual Miami Stories. The event was held at The Roxy Performing Arts Center in Miami.
Shifting from his daytime role as managing principal of Kaufman, Rossin & Co., Jim Kaufman recently debuted his own short play at New Theatre’s 6th Annual Miami Stories. The event was held at The Roxy Performing Arts Center in Miami. Kaufman’s play, Pilgrimage on Rye, is about three college guys who
34 JULY/AUGUST 2012
make a pilgrimage to the Rascal House. The play was inspired by Kaufman’s college years. Miami Stories is New Theatre’s annual fundraising event. The evening included the premier of other short plays by local business executives. FCT
DOR promotes staff members In May 2012, the Florida Department of Revenue (DOR) General Tax Administration Program welcomed two new staff members. Maria Johnson became program director and Louis Panebianco is serving as deputy program director focused on technology initiatives. Johnson had served as deputy program director since 2004. She assisted with oversight of the General Tax Administration Program and managed regional staff in Florida and in six other states. She came to DOR as a tax auditor in 1993 and eventually became the process manager of operational and financial services for the former Administrative Services Program. In 2000, she became process manager of the refunds and distribution process. Louis Panebianco has been at DOR for 31 years. He served in several roles in the General Tax Administration Program and in DOR’s budget and tax research offices. He also was project manager for the SUNTAX/SAP project for 11 years. Panebianco currently is the process manager responsible for the multi-year effort to develop and implement the child-support enforcement automated management system. In his new role, his primary focus will be Florida’s one-stop business registration portal. FCT
Tallahassee Chamber awards FICPA insurance provider The Tallahassee Chamber of Commerce recently named Rogers, Gunter, Vaughn Insurance Inc. (RGVI) as 2012 Chamber Business of the Year and as the 2012 Service Industry Business of the Year. The Chamber presented the award during its Annual Small Business Awards Luncheon. RGVI, North Florida’s largest independent, multipleline insurance agency, provides insurance and risk-management advice to families, businesses and professionals through many major insurance carriers. The agency administers the health, term-life, employment-practices liability and professional liability insurance programs available to FICPA members. FCT For more information about FICPA insurance programs, call RGVI at (800) 227-9476, or contact FICPA Marketing Manager Drew Miller at (800) 342-3197, Ext. 270 (in Florida); (850) 224-2727, Ext. 270; or millerd@ficpa. org.
From FICPA staff reports
In Memoriam Melvin Jonathan “Jon” Gouthro
FICPA member-firms honored as best work places The Tampa Bay Business Journal recently recognized four FICPA-member firms as finalists in its Best Places to Work competition. The Journal recognized CliftonLarsonAllen; CS&L CPAs; and PDR Certified Public Accountants in the Big category (2650 employees). In the Bigger category (51-100 employees), the Journal recognized CBIZ Kirkland, Russ, Murphy & Tapp for the seventh consecutive year. Employees of nominated companies completed a 37-question online survey conducted by Quantum Workplace. The survey measures 10 key engagement categories, focusing on items including team effectiveness, trust in senior leaders, feeling valued, manager effectiveness, compensation and benefits. The Tampa Bay Times named FICPA-member firms CBIZ Kirkland, Russ Murphy & Tapp; Gregory, Sharer & Stuart; and Pender Newkirk & Company among Tampa Bay’s Top Work Places 2012. All three firms were included in the smallemployer category (50-149 employees). In a Partnership with Workplace Dynamics, the Times determined the top 75 places to work in
FLORIDA CPA TODAY
the Tampa Bay area. The project involved surveying 132 Bay-area companies and their 33,838 employees. The survey company then ranked employers within their size categories, based solely on employee responses to the survey. The American Society of Women Accountants and American Woman’s Society of Certified Public Accountants recently named Kerkering, Barberio & Co. among their 2012 Best Public Accounting Firms for Women. The Best Firms were chosen from 29 that participated in the 2012 Accounting MOVE Project. Firms were ranked on the range, depth and success of programs and workplace culture proven to remove barriers to women’s success, especially at midlevel and above, and scored using the trademarked MOVE parity scale. The MOVE methodology pivots on four factors – money, opportunity, vital supports for work/life and entrepreneurship – proven to advance women in the workplace. The project’s research partner is WilsonTaylor Associates Inc., which has been measuring and supporting the advancement of women since 1998. FCT
It is with great sadness that we report the recent passing of a dedicated FICPA leader. Melvin Jonathan “Jon” Gouthro, 41, of Lighthouse Point passed away Tuesday, May 8, 2012 at Broward General Medical Center in Fort Lauderdale. He died of traumatic injuries suffered in a hit-and-run accident 10 days earlier. Gouthro was a partner at Walton & Company CPAs in Boca Raton. He had served on the FICPA Chapter Operations Committee and was a past president of the FICPA’s Atlantic Chapter. He was a current member of various FICPA sections and of the FICPA Board of Governors.
A memorial service was held May 12 at Assumption Catholic Church in Lauderdale-by-the Sea. Kalis-McIntee Funeral Home handled funeral arrangements, and a guest book is available at kalismcintee.com. A second memorial service was held May 26 at Mary Star of the Sea in Freeport, Grand Bahama. Gouthro was laid to rest in Freeport. Expressions of sympathy may be made to the Rotary Foundation c/o the Rotary Club of Pompano Beach, or of Grand Bahama Sunrise; or to the Bahamas National Trust. FCT
The AICPA Women’s Initiatives Executive Committee (WIEC) met recently at FICPA headquarters in Tallahassee. Pictured left to right are (front row) Michael Maksymiw and Wendy Lewis; (middle row) Yasmine El-Ramly and Cindy Frey; and (back row) Melissa Hooley and Louise Single. Attendees not pictured are Mary Bennett, WIEC chair; Mary Cheaney; Beth Leonard; Todd Mitchell; Shannon Stith; and Stefanie Yurus.
www.ficpa.org
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MARKET
place
Access Florida CPA Today Archives Online For your convenience, Florida CPA Today articles from 1997-present are posted on the FICPA’s website at www. ficpa.org/ficpa/Members/Tools/Publications/ FCT/Archives. The archives provide a variety of previously published information, including
Positions available
Ahearn Jasco + Company, one of Broward’s oldest & most recognized public accounting firms, is seeking tax accountants w/2-4 yrs of exp in public accounting. Compiled F/S through the tax preparation of individual, corporate, partnership & S-corp returns will be required. We offer motivated graduates a competitive salary & benefits & a friendly, team-oriented environment to start achieving their accounting goals. Please email your resume to HR@ahearncpa.com. CFO at governmental nonprofit in Tallahassee; CPA required, 5-7 yrs exp w/all aspects of financial mgmt. Exp w/federal grants, budgeting, GASB reporting preferred. Email resume to stokesp@healthykids.org.
technical articles written
Office space
by member CPAs, legis-
Coral Springs CPA firm located in a Class A Office Complex has available fully furnished offices. Offices include Internet, fax machine, conference room and kitchen-area access. Call Marty at (954) 755-3305.
lative updates, DOR and IRS updates and much more.
Quality Weston CPA firm seeking third partner w/established practice or CPA w/growing practice w/eye toward future affiliation. Email inquiries to p.salver@psccpas.com.
Practices wanted for purchase or merger Growing South Florida CPA firm looking to purchase a practice from a retirement-minded CPA in Dade County. Favorable purchase terms offered w/ continuing employment opportunities available. Please contact Jeffrey Taraboulos at info@ksdt-cpa.com or (305) 670-3370. I am looking to purchase an accounting practice grossing $75,000-$400,000 in South Florida. I have owned my own practice for 30 yrs & I am well versed in all aspects of running a practice. I am looking for the owner to stay on if they would like to. I am very flexible & understanding. FLCPA2012@aol.com. Tampa sole practitioner seeks CPA partner for three-yr exit strategy. Practice includes audit/write-up/taxes/ and consultation. Three-yr average fees = $287,500. Please email CV & interest to 658427@gmail.com. Quality Weston CPA firm seeking third partner w/established practice or CPA w/growing practice w/eye toward future affiliation. Email inquiries to p.salver@psccpas.com. Boca Raton two-partner CPA firm looking for a practitioner with $100250K in revenue to join us and eventually replace one near-retiring partner. Please email victor@vcpa.com.
For complete classified policies, visit www.ficpa.org/Content/CPAResources/ ClassifiedsJobs/Classifieds.aspx.
36 JULY/AUGUST 2012
For sale
Successful transitions require experienced, confidential, professional services you can trust. This is what Akins Professional Brokerage provides. Specializing exclusively in the brokerage of CPA firms, we have no upfront fees. List your firm w/a professional. Call David Akins, CPA, at (877) 277-0272. Visit our website at www. ProfessionalCPAbroker.com. Buy-Sell-Merge-Finance your practice w/U.S.A.’s No. 1 Accounting Brokerage Firm. A Florida-licensed real estate broker w/29 yrs of CPA firm mergeracquisition experience. Practices available include: North Tampa-Lutz $250,000; Crystal River area $250,000; Fort Walton Beach area $380,000; East of Orlando $1,500,000; St. Pete $135,000+; Jacksonville-Gainesville area $800,000; Boca Raton $200,000; Fort Lauderdale $175,000. Many others! Contact Leon Faris, CPA, (800) 7299031 or Erwin Rosenblatt, (772) 6928746 at Professional Accounting Sales. Visit our website at www.cpasales.com. Retirement minded practitioner wishes to sell Citrus County CPA firm w/$100,000+ revenue, 70%+ tax, remainder accounting/bookkeeping, no reviews or audits. Reply to cpaincitrus@gmail.com.
Miscellaneous Millions of life insurance can be bought without ever paying a premium. World-class banks pay all costs for your high net-worth clients. Call Morris D. Loskove, CLU, member Boca Raton Estate Planning Council – (561) 235-3035.
FLORIDA CPA TODAY
www.ficpa.org
37
ON THE
move Transitions
Christina Greenstein
Jacksonville: The LBA Group announces the expansion of the firm’s Forensic, Litigation & Valuation Services Group. Scott Lanigan will serve as partner-incharge of LBA’s FLV team, which includes Richard Brock, Billy Morrow, Ed Grenadier, John Reynolds, Curt Castetter, Scott Steadman and Jason Lafser. Miami: Berkowitz Pollack Brant announces a new name, logo and corporate brand. The firm now is Berkowitz Pollack Brant Advisors and Accountants. Miami: Kabat, Schertzer, De La Torre, Taraboulous & Co. announces the hiring of Jill Morton as a senior accountant.
Alison Gutek
Dan Harris
Miami: Kaufman, Rossin & Co. welcomes Friedman, Cohen, Taubman and Company to the firm family. Pensacola: Brown, Thornton, Pacenta & Co. PA announces that Paul C. Barrett, Catherine Thornton Bond, and Kathy Nelson have been promoted to senior manager. Stacie L. Court has been promoted to manager. Sanibel: Michael P. Miller CPA, PL announces that he has opened his firm on Sanibel Island, located at 2340 Periwinkle Way, Suite J2. Sarasota: Kerkering, Barberio & Co. announces that Christina Greenstein
Scott Lanigan
38 JULY/AUGUST 2012
has joined the firm as a tax manager. The firm also announces these promotions: Alison Gutek, Dan Harris and Matt Reynell to supervisor; Katie Pogorelskaya to senior accountant; and Erin Prasnjak to in-charge accountant. St. Petersburg: Raymond James Financial Services announces that Patrick L. Jinks has been named director of practice planning & acquisitions.
Linda Suzzanne Griffin of Linda Suzzanne Griffin, PA in Clearwater has been appointed vice chair of the Tax Certification Committee of The Florida Bar for 2012-13. Michael Miller of Michael P. Miller, CPA, PL in Sanibel has been elected as chair of the Board of Directors of the Sanibel/Captiva Chamber of Chamber for 2012-13. Myers, Brettholtz & Company PA in Fort Myers signed on as a Gold Sponsor of the 2012 American Resort Development Association’s Awards Gala, held in Las Vegas in April.
Jennifer Coleman
Who’s News Steve Brettholtz of Myers, Brettholtz & Company, PA in Fort Myers has been appointed as treasurer of the Board of Directors of the Southwest Florida Museum of History Foundation. Jennifer Coleman of Myers, Brettholtz & Company, PA in Fort Myers has received the Certified Fraud Examiner designation from the Association of Certified Fraud Examiners. Keith Faust of Keith Faust, CPA, LLC in Jacksonville was a recipient of the 2011 AICPA Outstanding Discussion Leader Award.
Kevin Riley of Cross, Fernandez & Riley, LLP in Orlando has been named the 2011 Association Producer of the Year by the American Resort Development Association. Michael Rosenberg of Packman, Neuwahl & Rosenberg in Coral Gables has accepted his invitation to join the inaugural J.P. Morgan Wealth Advisory Council. Wiltshire, Whitley, Richardson & English, PA in Fort Myers recently supported StarStruck, a dance competition and gala to benefit the Lee County Chapter of the American Red Cross.
For more news about members and other Florida CPAs, visit CPAs in the Spotlight at www.ficpa.org/Content/News/Spotlight.aspx. The space for Who’s News, Transitions and other announcements published on this page is limited to news focusing on promotions and new hires for FICPA members; speeches by members at professional conferences; and other firm news, such as recognition of business achievements. We do not publish FICPA committee appointments as a part of this feature because of space limitations. Submissions for On the Move can be emailed to communications@ficpa.org.
FLORIDA CPA TODAY
www.ficpa.org
39
F L O R I D A
Florida Institute of Certified Public Accountants P.O. Box 5437 Tallahassee, FL 32314-5437