The Washington CPA 2020 Spring

THE

WASHINGTON CPA

Volume 63, Number 4

Technology and the Future of Audit

SPRING 2020

Don’t Just Make the Connection, Maintain It How to Choose an Audit Analytics Tool Becoming a Better Advocate for Yourself and Other Women at Work

THE WASHINGTON CPA SPRING 2020

CONTENTS

On the Cover Don’t Just Make the Connection, Maintain It 18

www.wscpa.org • memberservices@wscpa.org Tel 425.644.4800 902 140th Ave NE Bellevue, WA 98005-3480

BOARD OF DIRECTORS Amanda V. O’Rourke Chair Jared M. Theis Vice Chair Kris L. Lambright Treasurer Moses Man Secretary Kirsten S. Duke Immediate Past Chair Kimberly D. Scott President & CEO

Sara E. Bailey Diane Pietrowski

Andrew Brajcich Bill Reed

Aaron R. Dawson Leslie A. Sesser

Christina J. Gehrke Thomas J. Sulewski

Lowel J. Krueger Susan L. Thomson

CHAPTER BOARD CHAIRS

Laurel Cohen Bellingham Area

Charles Meyerson Everett Area

Darin Johnson Olympia Area

Allison McClure Seattle/Bellevue Area

Kathryn Casbon Spokane Area

Fabian Benabente Tacoma Area

Anthony Adams Tri-Cities Area

Connie Olson Tri-Cities Area Veronica Raquel Martinez Yakima Area

Jeanette Kebede Kaitlin Brake

Editor Art Direction

Technology and the Future of Audit 20 How to Choose an Audit Analytics Tool 24 Becoming a Better Advocate for Yourself 38 and Other Women at Work

Spotlights Welcome to the New WSCPA.org 8 Meet the Nominees for the 10 2020-2021 WSCPA Board of Directors Nano Learning CPE Comes 27 to Washington State

Departments Membership News 5

The Washington CPA is published by the Washington Society of Certified Public Accountants for its members. Views and opinions appearing in this publication are not necessarily endorsed by the Washington Society of CPAs. The products and services advertised in The Washington CPA have not been reviewed or endorsed by the Washington Society of Certified Public Accountants, its board of directors, or staff.

The Washington CPA (USPS 009754) is published four times annually by the Washington Society of Certified Public Accountants, 902 140th Avenue NE, Bellevue, WA 98005-3480. $12 of members’ annual dues goes toward a subscription to The Washington CPA. Periodicals postage paid at Bellevue, Washington and additional mailing offices.

Cover Graphics Image © iStock/SDI Productions Image © iStock/phive 2015 Image © iStock/eternalcreative Image © iStock/berya 115 POSTMASTER: Send address changes to The Washington CPA, c/o WSCPA, 902 140th Avenue NE, Bellevue, WA 98005-3480.

www.wscpa.org

Washington CPA Foundation 14 Leadership Lens 16 Upcoming CPE 28 Advocacy 31 CPA PAC 32 Classified Ads 36

@WashingtonCPAs

The Washington CPA Spring 2020

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Letter from the President & CEO The world seems to be in chaos and is changing so rapidly. The current state of adapting to the coronavirus pandemic as I write this (early April) may not be reflective of where we are at the time you read this. Today, the WSCPA staff just finished week five of telecommuting. Our staff, maybe like yours, is adapting to change faster than ever.

We recognize that WSCPA members work in many different types of organizations, including public accounting firms, not-for-profit organizations, governmental entities, educational institutions, and all other types and sizes of businesses in our state. Every single one of you are experiencing new challenges. Very few are similar.

We realize that, in times like this, we may not be the first place you turn. However, if you do need to turn to us, we will be here for you.

To allow you still to access the education you need, we moved our CPE courses through May to online learning. We also are trying to bring you just-in-time education for new pronouncements and programs that have been implemented in response to the pandemic. We are rescheduling conferences to later dates whenever possible, so you can still connect in person with peers.

During the past few weeks, we advocated for changes and clarity with regard to tax deadlines and other issues on behalf of Washington CPAs. We launched a new website and Connect, a private online community. Connect allows you to communicate online around key subject areas. Currently, our COVID-19 Business Challenges Resource Group is where we are sharing the latest updates and resources from the Department of Labor, the IRS, AICPA and more.

We also understand the feeling of isolation our new reality is causing some people and are rolling out virtual trivia and networking events on Thursdays. These events will allow you to connect to peers outside of your office and people outside of your home, while having a little bit of fun and giving back to the community.

Each night our generous sponsors will give a contribution to a local charity of the trivia winner’s choice.

In hopes that we will be able to connect in person this summer, we have planned seven WSCPA members’ receptions in different cities across the state from the end of July through August. These events are simply for networking and reconnecting in person and will be free for members.

To ensure you continue to have access to the tools, learning opportunities, assistance from WSCPA staff, and personal connections, the WSCPA is extending everyone’s membership from May 31 until August 31.

Thank you for being a WSCPA member. We hope that you, your family, friends, clients, and co-workers are safe and healthy.

Kimberly Scott, CAE, WSCPA President & CEO

MEMBERSHIP NEWS

Connect is the new private community for WSCPA members. Here you can find and chat with members from across the state, collaborate within various groups, or quickly ask for advice from your peers.

HOW TO CONNECT Log into WSCPA Connect using your current WSCPA.org email and password. (Note: If this is your first time logging in to the WSCPA website since March 17, you will need to reset your password.) Update your profile and photo by clicking “My Profile”.

SEARCH OR JOIN GROUPS View groups you have joined or are already communicating with by clicking “My Groups,” or click “Find New Groups” to begin network with a new group. You may be missing out on relevant discussions and business tips from your peers in the Sole Practitioners Resource Group, the Firm Administrator Group, the Not-for-Profit Resource Group and many others.

ASK FOR FEEDBACK OR ADVICE Start a discussion or follow the recent discussions threads to weigh in. Please do see our etiquette page for guidelines, tips, and best practices on communicating within the platform.

CUSTOMIZE YOUR USER EXPERIENCE

EVOLVING TO YOUR NEEDS WSCPA is excited about all the ways we will be able to continue to develop this resource to find exciting new ways to connect members and information. During this time of increased isolation and social distancing, we hope this can be a resource to keep you connected to your professional network, receiving the timely information you need.

You are not alone as you’re navigating the business challenges of operating during the coronavirus pandemic. The COVID-19 Business Challenges Resource Group is an online forum where you can access the latest news and resources from the Department of Labor, the IRS, AICPA, and more.

As a member of the group you can share your questions and different approaches that you’re considering for tackling specific business challenges.

Join this group in Connect— the new online member community.

WSCPA.ORG/COVID-RESOURCE-GROUP

Explore Connect WSCPA.ORG/CONNECT

Graphics © iStock/geber86

Connect gives you lots of options for how you receive information.

You have control! You can set a daily or weekly email digest, and even tell Connect when you would prefer to receive emails. In multiple committees or resource groups? You can even set the email preferences differently for each group. At any time, you can unfollow a thread you’ve contributed to in the “Discussion” tab.

COVID-19 Business Challenges Resource Group

If you have any questions about Connect, contact us at memberservices@wscpa.org or 425.644.4800.

www.wscpa.org

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INTRODUCING WSCPA VIRTUAL TRIVIA! The WSCPA is happy to invite you to free virtual trivia nights while we’re under orders to stay at home. Grab your favorite beverage and compete for glory and bragging rights in a friendly contest of wits. Plus, our generous event sponsors will donate to a local charity of each winning team’s choice!

Interested? Attendance is limited to the first 100 registrants, so reserve your spot today!

Thursday, April 30

6:00pm - 7:30pm

Thursday, May 7

6:00pm - 7:30pm

SIGN UP AT WSCPA.ORG/STAYPLAY These events are free for WSCPA members.

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The Washington CPA Spring 2020

WANT TO GET A FEEL FOR HOW IT WORKS? Use the link below to take our five question mini round.

CROWD.LIVE/OWS6Y See how you compare to other WSCPA members!

MEMBERSHIP NEWS

Join us for the WSCPA Annual Meeting, June 4, 2020.

Professor Margaret O’Mara once said,

“If you’re building the future, history can be your most powerful weapon.”

O’Mara, Professor of history at the University of Washington and an expert on technology and politics, will address the membership of the Washington Society of CPAs during the 2020 Annual Meeting on June 4. During this time when we are experiencing history in the making, Dr. O’Mara’s presentation is guaranteed to be relevant and meaningful to all of us.

The WSCPA Annual Meeting will also feature appointment of the 2020-2021 Board of Directors. Join us as we consider and celebrate together the future of the CPA profession in Washington!

Register for the annual meeting at wscpa.org/meeting

Utilize your Passport Corporate Card to make the most of working from home!

• • • • • • •

Adidas - 20% off all full-priced items online Audiobooks.com - 10% off monthly rate BlueDolphin Magazine - 3 magazine subscriptions for $6 360training.com- 10% off all online courses Kohl’s - 15% off your order of $100 or more online MasterClass - 15% off first year annual all access plan The Economist - 15% off annual print, digital, or bundle subscription

Visit wscpa.org/passport for more discounts.

Get Confidential Feedback on Your Financial Statements The WSCPA Financial Statement Review Committee is now accepting financial statements, and is pleased to provide this confidential service free to members of the Society. The Financial Statement Review Committee will review redacted financial statements submitted by members, provide written comments and suggestions for changes or improvements.

Learn more and submit statements at wscpa.org/fsr

www.wscpa.org

The Washington CPA Spring 2020

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Welcome to the New WSCPA.org Paul Carboni

Does our website seem a bit … different? We’re so glad you noticed! During the past year, the WSCPA has been working to bring you a new and much improved web experience. We’ve implemented a host of new features and tools to help you get the most out of your membership with Washington’s premier professional association for CPAs. It is our pleasure to introduce you to a few of them, starting with…

A BETTER MY WSCPA EXPERIENCE One of the first big changes you’ll notice is your new member dashboard. The first time you access the new My WSCPA you’ll need to reset your password before you can login—an inconvenience we know, but a necessary one. After the reset, you’ll gain access to a completely redesigned screen full of information related to your membership. Your dashboard will include information about recent activity on our new, members-only social platform, an easy-to-read CPE progress bar to help you stay on top of your continuing education, reminders for events you’ve signed up for that are happening soon, and more.

Dig a little deeper in this section and you’ll find an easy-to-edit member profile, tools to manage your firm affiliation, a quick view of resource groups, committees and chapter you belong to, and a place to review past purchases. Take a few minutes to look around, and make sure your profile information is accurate.

FASTER AND EASIER CHECKOUT We’re excited to launch a sleek new cart and checkout process.

As you purchase CPE, renew your membership, or make charitable contributions you’ll experience a streamlined, cleaner, quicker interface. Creating a guest account for checkout and registering guests for events are also much easier to do in the new WSCPA. org. Plus, we’re excited to announce that we’ve implemented the ability for you to securely save your credit card for even faster checkouts in the future.

ROBUST TOOLS TO TRACK YOUR CPE The CPE Tracker on your member dashboard is just the tip of the iceberg. After you get a quick check on how close you are to meeting your CPE requirement from that feature, click the “View Full Transcript” button to gain access to our brand-new, online CPE management center, WSCPA LCVista CPE Suite. Here, you’ll be able to view and download a record of every CPE course you’ve taken with us, quickly search your transcript to find a specific course, and, of course, download your hard-earned CPE certificates.

But that’s not all! Click the “Compliance” tab on the sidebar to see a breakdown of the credits you’ve earned so far by type, and how close you are to fulfilling specific credit requirements. Click “Compliance Detail” and you’ll see a report showing you exactly which courses count towards which requirements.

Over the coming months, we’ll be rolling out additional features in LCVista to streamline the way you take online and on-demand CPE. Stay tuned!

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The Washington CPA Spring 2020

www.wscpa.org

TECHNOLOGY

MORE OPPORTUNITY TO “CONNECT” As a WSCPA member, you are part of a community. We’ve long known that one of our most important functions as an organization is to provide you with opportunities to collaborate, socialize, and celebrate with your fellow members. Now, we’re expanding your ability to do so online. Our new Connect platform gives you the ability to find and chat with members from across the state. You can join groups organized around your interests and participate in discussions on topics such as busy season survival tips.

We’ve also moved WSCPA committees and resource groups into Connect, which will allow you to harness the collaborative power of Connect to enhance the way your committee or resource group works together. See page 5 for more details on getting started with Connect.

STREAMLINED NAVIGATION This detail may seem like a small touch, but we think it will improve every interaction you have with our website. We’ve simplified our navigation structure, and made the most important parts of our website more prominent. We’ve also combed through our site structure and rearranged some things to make it easier for you to find useful information.

THAT’S THE TOUR. NOW, HOW ABOUT YOU TAKE IT FOR A SPIN? We’ve worked hard to improve your experience on the WSCPA website, and we think you’ll be much happier with this new experience. But you don’t need to take our word for it. Explore the new website. See what you think. As always, WSCPA staff will be available by phone, email, or live chat to help answer any questions you might have. If you have any feedback you want to provide, send it to webmaster@wscpa.org.

Paul Carboni is WSCPA Digital Marketing Manager.

You can contact him at pcarboni@wscpa.org

www.wscpa.org

The Washington CPA Spring 2020

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for the 2020-2021

WSCPA Board of Directors!

Tom Sulewski, CPA, is the Shareholder in charge of the Audit Department at Clark Nuber, PS and a member of the firm’s Board of Management.

A graduate of the University of Washington, Tom started his career with Clark Nuber in 1990. Tom’s clients cover a range of industries and include both private companies and not-for-profit organizations.

He now serves on multiple advisory boards for clients, community organizations, and university business school and accounting programs. In his spare time, he enjoys teaching for local universities, traveling with family, along with snow and water activities.

Andrew Brajcich, CPA, JD, LLM, is an Associate Professor of Accounting at Gonzaga University in Spokane. Andrew joined academia in 2012 and has since been recognized by students three times as the Masters Outstanding Faculty of the Year. He was named by the financial literacy and education website nerdscholar.com as one of the “2015 Top 40 Under 40 - Professors Who Inspire.� Andrew previously worked in the International Tax Services Group at Deloitte Tax LLP and served in the Peace Corps. He earned a Bachelor of Business Administration degree in accounting from Gonzaga, a Juris Doctor from the University of Florida, and a Master of Laws degree in Tax from the University of Washington. His research is focused on international, individual, and S corporation tax. He also teaches continuing professional education throughout the country.

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The Washington CPA Spring 2020

People are surprised to learn this about me: I have worked at Clark Nuber since the day I graduated college (30 years) and was the first college hire to make shareholder.

The app that I cannot live without: PASSPORT – Compliments of WSCPA for dining and purchasing discounts! đ&#x;˜Š

Term: 1 year, becomes Chair 2021-22 Board Service: since 2018

Vice Chair: Thomas Sulewski, CPA

People are surprised to learn this about me: I was a vegan for a year.

My favorite late night snack: Hawaiian Sweet Maui Onion Potato Chips

I never leave home without: A bowtie

Term: 1 year Board Service: since 2019

Secretary: Andrew Brajcich, CPA, JD, LLM www.wscpa.org

BOARD OF DIRECTORS

In accordance with Article VI of the bylaws, all nominees will be declared elected by the secretary at the annual meeting unless other nominations, supported by at least one percent of membership, are received by April 1, 2020. If a contest for one or more positions develops, an election for those positions will be held at the meeting.

Diane Pietrowski, CPA, is the Chief Financial Officer at Plymouth Housing Group, a not-for-profit in Seattle providing permanent supportive housing for the homeless.

A graduate of the University of Washington, Diane began her career at Loveridge Hunt CPAs, specializing in audits of affordable housing. After 13 years in public accounting, Diane served as Controller at Quantum Management Services, before joining Plymouth in 2007. Diane was a founding board member of the Affordable Housing Management Association of Washington, and currently serves on the finance committee of Path with Art. She was recognized by the Puget Sound Business Journal as a CFO of the Year award winner in 2020.

Jared Theis, CPA, is an Accounting Advisory Director in the Seattle office of KPMG LLP, working remotely out of Spokane.

He provides accounting change, technical accounting, SEC reporting, financial statement and internal control audit services to a variety of large, mid-size, and small public and non-public companies, primarily in the forest products, manufacturing, technology, and real estate industries. Jared maintains an in-depth understanding of requirements and standards of the PCAOB, FASB, SEC, and Private Company Council.

He frequently speaks at various professional events and local college campuses on various topics, including data and analytics as a member of KPMG’s D&A network. He currently serves as a member of the Accounting Advisory Boards for Washington State University and Eastern Washington University.

www.wscpa.org

The 2020 Annual Meeting is scheduled for June 4, 2020.

One of my goals for 2020: Visit Poland. I have some Polish ancestry (as you can tell by my last name) and I’ve always wanted to see some of that country.

The app that I cannot live without: Google Maps. I don’t know how we ever managed travel before GPS apps became widespread. They are amazing.

Term: 1 year Board Service: since 2019

Treasurer: Diane Pietrowski, CPA

I’m passionate about: In my professional life, helping others to better their professional careers, and providing a positive impact to the business community. In my personal life, being a great dad and husband

I never thought that I would: Have the opportunity to help and serve others through my responsibilities, including as it relates to the WSCPA board.

Term: 1 year Board Service: since 2017

Meet the Incoming Chair: Jared Theis, CPA

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BOARD OF DIRECTORS Susie Thomson, CPA, owns her own accounting firm, Thomson & Company, PLLC, in Bellingham, Washington. Susie has over 20 years of experience in accounting and auditing, preparation of income taxes, and small business consulting and is active in serving her community. Since joining the WSCPA in 1997, Susie has served on numerous boards and committees in different roles, including as secretary and chair of the Bellingham Chapter Board. She has served on the peer review committees of the WSCPA and as a trustee of the Washington CPA Foundation. She is a Western Washington University graduate, is an active member of the Bellingham Rotary Club, and serves as treasurer of the Bellingham Rotary Club Foundation.

People are surprised to learn this about me:

Lowel Krueger, CPA, MBA, is Executive Director of the Yakima Housing Authority, serving approximately 1,700 families with an annual budget in excess of $10 million. Lowel began his professional career in accounting with Moss Adams, LLP and became a CPA in 1999. He became interested in affordable housing while working as an Assistant State Auditor for the Washington State Auditor’s Office and was the lead auditor on a number of public housing authority audits. Prior to joining the Yakima Housing Authority in 2008, he was CFO for the Yakama Nation Housing Authority. A graduate of Central Washington University and Washington State University, Lowel serves on several boards associated with affordable housing, including the National Association of Housing and Redevelopment Officials, Association of Washington Housing Authorities and Impact Capital.

I’m passionate about:

Sarah Funk, CPA, CGMA, is Senior Director, Global Compliance & Internal Audit at Trilogy International Partners, Inc. Since joining Trilogy in 2006 she has gained extensive experience leading multinational initiatives throughout the audit life cycle including pre-filing IPO readiness, material weakness remediation and optimizing operations to strategically leverage efficiencies while training and managing cross-functional teams. Prior to joining Trilogy, Sarah spent three years in public accounting, followed by two years working with locally based publicly traded companies. Sarah received a Bachelor of Arts degree in business administration with a major in accounting from Washington State University.

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The Washington CPA Spring 2020

I once sat down next to a stranger on an airplane, and three hours later when we landed, I had a job offer.

My favorite late night snack: Chocolate, well, anytime. đ&#x;˜Š Term: 1 year Board Service: since 2018

Director: Susan Thomson, CPA

Running! I began running after turning 40 and have had the opportunity to time qualify for the Boston, New York and Chicago marathons. My fastest marathon was the Tunnel at three hours and four minutes.

I’m most proud of: Becoming a CPA! I never thought I would end up in the accounting profession when I began college. I would encourage anyone thinking through career choices to choose the accounting profession and join the WSCPA. Term: 3 years Board Service: since 2017

Director: Lowel Krueger, CPA, MBA

One of my goals for 2020: Spend more time outdoors and hiking.

The app I cannot live without: Spotify Premium for podcasts and music and Libby for free library ebooks and audiobooks.

Term: 3 years

Director: Sarah Funk, CPA, CGMA www.wscpa.org

BOARD OF DIRECTORS Bonnie Tse, CPA, CIA, CISA, PMP, is a Senior Internal Auditor at T-Mobile where she focuses on financial, regulatory compliance, and operational corporate audits.

Bonnie received a Master in Accounting (MaCC) for auditing and assurance from the University of Southern California and a Bachelor of Business Administration degree with a concentration in accounting from University of Washington. She is involved with the WSCPA Women’s Leadership Summit planning committee. Bonnie currently serves as the Membership Officer of the Institute of Internal Auditors (IIA) Seattle Chapter and launched a student mentoring program to encourage interest in the next generation of auditors.

One of my goals for 2020: Focus energy on things that are impactful and bring joy. I have a tendency to say “yes” to every opportunity and take on a lot of things at the same time. This has helped give clarity to prioritize my time on things that truly matter and let go of things that aren’t important.

The app that I cannot live without: Todoist. It has a simple, easy to use, checklist format and helps me keep track of all the things on my to-do list. I get the satisfaction of checking something off as soon as I complete it - like this bio questionnaire. Check. Done!

Term: 3 years

Director: Bonnie Tse, CPA, CIA, CISA, PMP

Joyce Lee, CPA, CFP, is a strategic financial executive dedicated to helping foundations and nonprofit organizations. As the Chief Financial Officer of Marguerite Casey Foundation, a national grantmaking organization that supports low-income families advocating on their own behalf for change, Joyce is responsible for the development and implementation of the Foundation’s financial strategies. She oversees the Foundation’s investment management, budgeting, accounting and tax reporting, risk management, information technology, and administration. She also leads the Foundation’s efforts to align its investment capital with its mission and values through its mission related investment (MRI) and program related investment (PRI) portfolios. Before joining the Foundation, she was a principal at Clark Nuber, PS.

I’m currently reading: “When: The Scientific Secrets of Perfect Timing” by Daniel Pink. As someone who used to have to track billable hours in small increments, I find this book about timing/time in general to be fascinating.

The one piece of technology I cannot figure out: The universal TV remote at home that’s been programmed for all the

Term: 3 years

Director: Joyce Lee, CPA, CFP

REMAINING ON THE BOARD These members currently serve on the Board of Directors and will continue serving on the Board.

Chair:

Immediate Past Chair:

President & CEO:

Directors:

Jared Theis, CPA

Amanda O’Rourke, CPA

Kimberly Scott, CAE

Sara Bailey, CPA Aaron Dawson, CPA Kris Lambright, CPA, CGMA Bill Reed, CPA, CGMA Leslie Sesser, CPA

Thank You Contributors These contributors donated to the Washington CPA Foundation between March 2019 and February 2020.

NAMED SCHOLARSHIPS & ENDOWMENTS

$5,000+

Clark Nuber Accounting Scholarship

EY Accounting Scholarship

Roy J Polley Memorial Endowed Scholarship

CliftonLarsonAllen Accounting Scholarship

KPMG Accounting Scholarship

Sambataro Family Foundation

Shimer Family Foundation / Deloitte Accounting

Moss Adams Accounting Scholarship

TrueBlue Inc

Scholarship

PwC Accounting Scholarship

SENIOR EXECUTIVES CIRCLE

$1,000-$2,500

Christopher W. Hesse, CPA

EXECUTIVES CIRCLE

$500-$999

Pat L. Bohan, CPA, CGMA, CGFM

Robert L. Gerth

Kris Lambright, CPA, CGMA

Weldon T. Burton, CPA

Charles Nathan Ill, CPA

Daniel Allen Powers, CPA

Jacqueline L. Davidson, CPA, CGMA

Richard E. Jones, CPA, CGMA

Edward D. Thomas, CPA

Christina J. Gehrke, CPA, CIA, CrFA

James Roger Ladd, CPA, CGMA

LEADERS CIRCLE Wayne R. Borkowski, MBA

$250-$499 Lowel J. Krueger, CPA, MBA

Thomas J. Sulewski, CPA

Dr. Andrew Brajcich, CPA, JD

Glenn M. Light

Matthew A. Taggart, CPA

Robert L. Bunting

Gerhard G. Mueller, PhD

Jared M. Theis, CPA

Jolene G. Cox, CPA

Amanda V. O'Rourke, CPA

David E. Trujillo, CPA, CGMA

Aaron Robert Dawson, CPA

Diane Pietrowski, CPA

Edward C. Wartelle, CPA

Thomas G. Donaghy, CPA

Bill Reed, CPA, CGMA

Sarah Elizabeth Whitaker, CPA

Zenaida (Zeny) Fletcher, CPA, MBA, CFP

Leslie A. Sesser, CPA

Hayden B. Williams, CPA, CGMA

Dean A. Granholm, CPA, CGMA

William A. Simer, CPA

Glenn George Wisegarver, CPA, CGMA

Mark Alan Hugh, CPA

Kathleen K. Smith, CPA

SENIOR CONTRIBUTORS

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$100-$249

Robert W. Ash

Shyh-Ing Hong, CPA

John I. Payne, CPA, CTP

Kiyosha B. Baird, CPA

Stephen J. Hopps, CPA

John R. Price, CPA

Adele Brady Bolson, CPA

Michael D. Jones

Otto Friedrich Rabe, IV, CPA

Kai F. Bottomley, CPA

Richard E. Jones, CPA, CGMA

Jason Paul Smith, CPA

Robert M. Cole, Jr, CPA, CGMA, MA

Waylon P. Jones, CPA, CGMA, CFE

Julleen J. Snyder, CPA, CGMA

Michael Duane Cone, CPA

Gregg D. Jordshaugen

Michael D. Sweeney

Bonnie Lynn Curran, CPA

Michael J. Kander, CPA, CIA

Duy-Linh Ta, CPA

Leon F. Ficker, CPA

Donald W. Luby, CPA

Manu K. Talwar, CPA

Norman H. Frey

Thomas E. Melang, CPA, MBA

Harold G. Thompson, Jr.

Brian G. Gosline, CPA, JD

Sandra J. Moss, CPA

Ronald L. Tilden, CPA, CMA, MBA

Charles E. Hallett, IV, CPA, CGMA

Bea L. Nahon, CPA, CGMA

Martin L. Heimbigner, CPA

Kristine T. Nelson, CPA, MPAcc

The Washington CPA Spring 2020

www.wscpa.org

WASHINGTON CPA FOUNDATION

SUPPORTING CONTRIBUTORS Carmen J. Aguiar, CPA, PFS, CFP Jessica Rhyan Allen, CPA Michael R. Ammerman, CPA Alex T. Anderson, CPA Daren C. Anderson, CPA Laurie Jo Anderson, CPA Todd Stanley Arkley, CPA Stephanie Carol Artino, CPA Erica Marie Ash, CPA, MBA Mark A. Avitt, CPA Phillip C. Baber, CPA Christi Baird, CPA John P. Baker, CPA Rebecca Anne Benson, CPA Janice K. Berg, CPA Robert Charles Best, CPA, JD Bruce E. Bixler Gregg W. Blodgett Pat L. Bohan, CPA, CGMA, CGFM Sidney H. Boles, CPA Megan Yeung Brady, CPA Paul W. Brandstetter, CPA Brian Richard Bronk, CPA David A. Brown Christine B. Brunner, CPA Yasmin Lyn Caldwell, CPA Rebecca A. Cates, CPA Suzanne C. Chaille, CPA Tony Hai Chang, CPA Sylvia C. Chew, CPA Alton R. Cogert, CPA, CGMA, CFA, CAIA R Douglas Collier, CPA Daniel Clancy Collins Craig Stephen Connell, CPA Jeffrey M. Cordova, CPA Gordon Robert Craig, CPA, CFE, CIA, CISA Jay F. Cramer Ying Cui, CPA John E. Currie Tamara Wilson Czuleger, CPA Phuc V. Dang, CPA Stephen G. Dashiell, CPA Joseph P. Deacon, CPA Brenda Lee Dean, CPA, CIA Kevin E. Deremigio Matthew Ervin DesVoigne, CPA Billie Devore, CPA Carol Elaine Didier, CPA David L. Dierst, CPA Eugene Vernon Dodson, CPA Kirsten Simpson Duke, CPA, CGMA Jason Robert Durante, CPA, EA Charles J. Dyer, CPA, MBA Thomas J. Eby, MBA Robert J. Erickson, CPA, JD Clydene M. Evans-Wenzel, RDH Charlotte R. Fairfield, CPA Joan Catherine Faubion, CPA Frank S. Feeman, III Daniel W. Fisher, CGMA Joseph R. Forde, CPA Kimberly A. Fry, CPA, CGMA Maria-Elena Garcia-Zapata, CPA, CGMA, MBA Chris A. Gates, CPA David G. Geddes, CPA Janet Sian Gibb, CPA, MS Dr. Susan Gill

www.wscpa.org

Richard N. Ginnis, CPA Randolph Vincent Glein, CPA, PFS Bert R. Golla, CPA Alan L. Gray, CPA Richard D. Greaves, CPA Gerald L. Greer, CPA Michael W. Griffin, CPA Vaughn S. Hagen, CPA Michael McAndrew Harman, CPA Cheryl Harmon Michael Patrick Hart, CPA, MPAC Schatzie Anne Harvey Cecile E. Haw Mary Helen Hawkins, CPA, MSTax Suzanne M. Heidema, CPA Paula A. Henderson Patricia Anne Hernandez, CPA, CGMA, MBA, CBM Carola L. Hibbard, CPA, CMA, MBA Gary L. Hielkema James K. Hilger, CPA John R. Hodder, CPA William D. Hood Navzer Rustom Hormazdi, CPA, MSTax, MT Loren D. Hostek, CPA Michael James Howisey, CPA Michelle Hughes Charles D. Huibregtse, CPA Michael K. Hutchinson, CPA Hitoshi Inoue, CPA Mitchell D. Irwin, CPA Cindy L. Isaacson, CPA Justin Mark Jacobsen Kraig Andrew Jones, CPA Arthur Y. Kageyama Osamu Kasuya Raad T. Kattula, CPA Jo Ann Kelly, CPA Kristin L. Knopf, CPA, CGMA, MBA, MPAcc Danuta K. Koper, CPA Kahoua Modeste Koudou Marcella M. Kulland, CPA Stroud W. Kunkle, CPA Teresa Lynn LaBonte Irene R. Laible, CPA Carol M. LaMotte, CPA Neil E. Larson, CPA, MSTax, PFS Jennifer Anne Leary, CPA Steven Yong-Sik Lee, CPA, MBA, MPAcc Lucy L. Liu, CPA, CGMA Marla Dimand Lockhart, CPA, MAFM Luellen H. Lockwood, CPA, MBA, EA Deborah Michelle Loober, CPA Jessica J. Lustig, CPA Anthony Thanh Mai Elizabeth Ann Mance, CPA Michael John Mansfield, CPA Carrie Ann Martin, CPA Sam Martin, CPA, MBA, CFP Ronald A. Maus, CPA Donald W. McHargue James W. McKean, CPA Arthur D. Miles, CPA Bruce I. Mitchell, CPA, MBA Donald W. Mitchell Max Michael Monardez Ryan L. Munn, CPA Donald J. Murphy

$1-$99 Alisa S. Na, CPA Kenshi Nagayoshi, CPA Thomas G. Neill, CPA, CGMA James R. Newhouse, CPA Mark Richard Newton, CPA, ABV Thomas P. Nicholas, CPA Kanwar Nijher, CPA Terence V. O'Keefe Joanne Lynn Ort, CPA, MPAcc Norman D. Paulson, CPA Ronald J. Perkins, CPA Hwan Ja Choi Perreault, CPA Jack B. Person, CPA Scott Thomas Petersen, CPA Carole Lee Petricek Michael Charles Plato, CPA Michael J. Plymale, CPA Margo D. Reich, CPA Stephen D. Reichenbach Lonnie Lee Rich, CPA, CFE, FCPA Christopher J. Rieke, CPA James J. Rigos, CPA, JD, LLM, CMA Donald L. Rodman, CPA, MBA Lenore D. Romney, CPA, CFE, CVA Harvey J. Rothschild, III, CPA, MBA Richard H. Russell Craig S. Ruthford, CPA Claire E. Sadlier, CPA Susan J. Sanders, CPA Corey Alan Saunders, CPA Martin F. Seiler, CPA Harold G. Shapiro Jay T. Shilhanek, CPA Dona Mae Shimer, CPA Ralph Siegel Janis Harkins Simpson, CPA Russell Joseph Smith, CPA Walter R. Smith William J. Smith, CPA, CFE, CIA Terry D. Sodders, CPA Stanley William Spavold, CPA Cathy L. St John, CPA Donald W. Stetson, CPA Rebecca Beryl Stevens, CPA Peter J. Stirling, CPA Linda M. Teachout, CPA Lenin Thomas, CPA Terry M. Thompson, CPA Susan Lynn Thomson, CPA Mark E. Ulloa, CPA Robert A. Underhill, CPA, JD John M. Urrutia, CPA, MSTax Jeffrey M. Van Burkleo, MSTax Susanne Wendy Vickerman, CPA, MSTax Richard A. Volk, CPA Franz Von Bradsky, MBA Dorothy R. Wagsholm, CPA Wayne F. Walther Catherine B. Wandell, CPA Dennis O. Webb, CPA, MA Valerie J. Weller Nikole A. Wells, CPA William Lloyd Wells Natalie Wittrock Shari A. Wood-Richardson, CPA Stephen J. Zevenbergen, CPA Danielle Renée Zlatich, CPA

The Washington CPA Spring 2020

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WE ARE NOT YOUR MAMA’S MEMBERSHIP ORGANIZATION:

Amanda O’Rourke

How many of your friends/family/colleagues have recently left the state of Washington for somewhere with less traffic and less growing pains? Personally, there have been so many within my personal circle that I have lost count.

The change our state has experienced in the last decade has been significant.

Despite the number of goodbye parties I have attended in recent years, (according to the US Census Bureau) the population of Washington has grown 13.2 percent during the last decade. Nationwide, the growth rates slowed across the country, but our state was the exception. Nine hundred thousand residents moved here in the last 10 years.

As our state population grows, so does our profession. I, like everyone, dislike traffic, but I love the new energy, talent, and opportunities that the growth brings. CPAs are making a difference at big firms, small firms, tech firms or no firms, and we are thriving.

Just as the CPA profession is rapidly changing, the WSCPA is adapting to meet the needs of our state. This is not your mama’s membership organization any longer.

Are you tapping in to all the WSCPA offers? Here are some ways to get the most of your WSCPA membership:

Amanda O’Rourke, CPA, is Partner with Greenwood Ohlund LLP CPAs in Seattle and chair of the WSCPA Board of Directors. You can contact her at amanda@greenwoodcpa.com.

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LEADERSHIP LENS

Once we are able to move beyond the current coronavirus crisis, how do you get out and meet one of the 900,000 new faces in Washington? Try attending a chapter event. Chapters across the state host day of service volunteer activities and various networking events. Seattle will be hosting a group at a Seattle Sounders FC game in the fall. Find all chapter and networking events on the WSCPA’s brand new website and click on ”CPE & Events”, then go to the “Chapter & Special Events” tab.

In addition to meeting new faces at chapter events, you can also join a WSCPA resource group and be matched with like-minded Washingtonians that like to talk GAAC, AARS, NFP or PFP. Only a group of CPAs could create this many acronym groups. Find a resource group to join on Connect, the new private community for WSCPA members, at wscpa.org/connect. If you’re already a member of a resource group, you will still want to go to wscpa.org/connect to join in on the conversations that are happening there.

Now that the Washington State Board of Accountancy has approved nano learning CPE, you can learn something new in only 10 minutes with WSCPA nano CPE. See page 27 for details on nano CPE and how to find the WSCPA’s new nano learning courses.

The WSCPA advocacy team is working hard to monitor proposals that impact our profession, our clients and our futures. During the 2020 legislative session, we monitored various proposals including taxes, consumer privacy, contractor transparency, certification and occupational licensing, and changes to the Workforce Education Investment Act (E2SHB 2158). Read the latest advocacy news on the All Things Advocacy blog at wscpa.org/advocacy-blog.

As this will be my final column as chair of the WSCPA Board of Directors, I want to wrap up by imploring you to talk about being a WSCPA member with others. Share why you are a member with your colleagues and friends. Invite them to attend an event with you as a guest and experience what it’s like to be a member.

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Don’t Just Make the Connection, Maintain It Monette Anderson If you have never spent an afternoon pondering the return on investment of your last business trip, Oxford Economics USA did the math for us. For every $1 spent on business travel, companies see an ROI of $12.50. As we embark on the year 2020, we have a lot of expectations around where technology will take us. Technology makes it easier than ever to connect across boardrooms and continents, share and translate information, and promote your organization. Weren’t cubicles and sitting in commuter traffic supposed to be distant memories by 2020? While technology has given us flexibility in our schedules and changed work-life integration tremendously, not too many of us—before the coronavirus pandemic and the resulting telecommuting necessity anyway—were living the dream of fuzzy slippers, pj pants, and only having to dress from the waist up to teleconference into meetings.

Reviewing the above ROI stat, it’s easy to see why. Face-to-face interactions still matter tremendously. We have fewer distractions to manage, can better read non-verbal cues, and gauge trust and likeability more readily through in-person interaction.

Whatever your goals might be—finding a new job, gaining new clients, finding referral sources—networking can further your aim. The more people who know about you and your goals, the more you can leverage a posse of people working and connecting on your behalf. Not convinced? Here are some other stats to chew on: • Only 11 percent of LinkedIn users have more than 100 people in their network.

However, the average CEO has 930 LinkedIn connections.

• Forty percent of new customers are converted through face-to-face meetings.

• In-person meetings generate not only more ideas than virtual (13.36 versus 10.43), but also show that ideas generated are both more original and have a greater mean level of flexibility.

Despite all the reasons it is important, one in four people say they don’t spend time networking. Here are a few tips for increasing both your in-person and online social networking presence.

Graphics © iStock/miaklevy

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Put Yourself Out There I know, the word networking launches you into imagery of being in a windowless room wearing a cheesy “Hi My Name Is” sticker.

However, networking can be, dare I say, fun. Once the current health crisis passes, find events, conferences or volunteer work that support speakers, ideas, or causes you are generally interested in, and be sure to take time to ease into a few conversations while there. The good news is your shared mutual interest will make a great starting point for launching into meaningful conversations with fellow attendees or volunteers. Remember though that networking is an ongoing process, not a discrete event.

We’re all taking a break from in-person networking at the moment, but you can still work on growing your list of connections.

Find someone you would like to connect with and schedule an informational interview. Sending a message like “Hi, X (mutual contact) recommended I connect with you. I’d love to learn more about your organization/specialty.

Would you have 20 minutes or so available to chat with me by phone/ video conference?” Using alma mater ties or shared organizational memberships may help break the ice, i.e., “I noticed we are both WSCPA members; would you have time to chat with me in the next two weeks about x?” If you nail an informational interview, do not leave that conversation without asking if there is anyone else they would recommend you talk to. Then reach out to that person to keep the conversation going. Be sure to fill in your original contact with any progress or success you have with your new connections!

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NETWORKING

Monette Anderson is WSCPA Director of Membership.

You can contact her at manderson@wscpa.org.

Quality Over Quantity

Follow-up Within 48 Hours

Stay Connected

Reframe your end goal and think of networking as creating lifelong friends you can assist. Show sincere interest in others and treat everyone as if they are the “right person” to talk to. Avoid booking coffee meetings with several people, as you’ll only burn yourself out. Try to find one or two meaningful contacts to connect with and invest in.

Get in touch or take action right away following your meeting if you made promises (such as meeting for coffee or setting up a discovery call). Following through on your commitments within 48 hours is key, as your memory and recall will still be fresh (you’ll remember them and specifics of your previous discussion more clearly and vice versa).

Luckily, social media and LinkedIn help facilitate ongoing interaction and make it easy to stay in touch with those you may only see occasionally. A simple way to ease in to building more genuine connections via these platforms is to customize auto invites and go beyond “likes”. Actually taking a minute to customize a response to a career event or post goes a long way toward building an authentic relationship.

Better yet, popping a short, handwritten note in the mail when you hear about a contact’s promotion, work anniversary, or job change is a memorable gesture.

Many networking events now integrate ways to connect directly to other attendees’ LinkedIn profiles, and you can always connect on LinkedIn while you are at the event. Just let the person know you’re looking them up on LinkedIn to connect immediately, so they will know you weren’t distracted by a text from a friend. This eliminates the need to add a message to the LinkedIn request since you’re capitalizing on the in-person moment!

If connecting later, avoid sending a connection request without any message attached. Try something as simple as, “I enjoyed meeting you at yesterday’s conference and learning about your interest in expanding your business’ role in financial consulting. I’d love to stay in touch to see how it’s going/offer support/ share ideas.”

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WSCPA is also continuing to develop new ways for you to connect with your professional community. Our new Connect platform is a member-only portal that will allow you to easily collaborate with fellow members, share information within a resource group, or quickly ask for advice or recommendations from our community of more than 7,000 members. Visit us at wscpa.org/connect to see what’s trending and join the conversation!

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Jared Theis Zettabyte. No, it’s not a made up word or hyperbolic number. It’s a trillion gigabytes or as Cisco’s Taru Khurana1 put it: “If each gigabyte in a zettabyte were a brick, 258 Great Walls of China could be built.” And that’s just one zettabyte.

Research firm IDC predicts total data in the world will be 175 zettabytes by 2025, compared to just half a zettabyte in 2009. There is an abundance of data and companies have access to similar, if not identical, data on consumers, businesses, and economies. But the value comes not from having access to the data, but actually collecting, transforming and analyzing it to deliver insights that bring real value.

For auditors, it’s a similar story. There is a potential advantage for auditors who are able to harness technology to collect, transform and analyze data, while enhancing audit quality.

• • •

How can technology enable a data-centric understanding of companies, industries and macroeconomic risks?

How can technology drive sharper data analysis for more thoughtful risk assessment?

Can information be analyzed and vouched more easily and quickly in testing?

Additionally, firms want new hires to come equipped with strong technology skills and a global perspective. They understand the Future of Audit is all about humans enabled by technology to maintain the public trust.

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AUDIT

They also know that technology-driven disruption places every business on a digital journey to better engage with customers, suppliers, and employees.

Audit’s future leaders will be the ones that meet clients on their journey, and bring them new tools and services to expedite that transformation.

ready profession for a technologically driven marketplace.” They developed a set of guiding principles to inform a new licensure model, along with specific concepts on flexibility in education requirements and an exam that tests a core knowledge of accounting and technology to support these principles.

Industry and regulatory organizations that have studied the future of auditing and how advanced technologies can be incorporated include the American Institute of Certified Public Accountants (AICPA), the world’s largest member association representing the accounting profession; the Center for Audit Quality (CAQ), a public policy group supported

by U.S. accounting firms; and the Public Company Accounting Oversight Board (PCAOB), which sets accounting standards and oversees public accounting firms.

The CAQ is working with firms to identify and build a roadmap of skills the next generation of auditors will need. The ability to use new technology is one characteristic, along with an innovative mindset, a global perspective, and strong communication and critical thinking skills. KPMG is addressing this challenge through its Master of Accounting with Data and Analytics Program, which develops accountants for the data age by integrating data and analytics skills into traditional accounting courses.

The AICPA is working with the National Association of State Boards of Accountancy (NASBA) on “CPA Evolution,” a joint project for “evolving initial CPA licensure requirements to build a future-

The PCAOB established a Data and Technology Task Force to focus on emerging technologies impacting the audit. The task force will focus on audit data analytics and artificial intelligence to determine if there is enough information to prompt board action. Areas for research include blockchain, cryptocurrency, cloud computing, the use of drones, internal controls over financial reporting, continuous monitoring, and robotic process automation (RPA).

As larger volumes and new types of information can be

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analyzed, auditors need critical thinking skills to determine how that data could be best used to identify and evaluate risks. The tools we use to evaluate data to perform quality audit services and also derive meaningful insights that impact our audit need to adapt to this environment.

That is where digital solutions are critical to success.

Prerequisites for success Tapping into technology’s potential requires a technology platform that works with humans. It must also recognize clients’ challenges. For example, bots that extract the specific data eliminate the need to transfer larger, potentially unnecessary, datasets.

Additionally, firms are developing smart audit platforms, such as KPMG Clara, and are exploring the full spectrum of available advanced technologies — including RPA, artificial intelligence, cognitive capabilities, blockchain and others to enhance those platforms in the future. The AICPA is also working on a Dynamic Audit Solutions platform that embraces these technologies and is scalable for firms. These platforms simplify interactions with clients and empower professionals to work smarter. They will drive enhanced audit quality through a rich workflow experience that consistently applies auditing standards, leverages data, and facilitates real-time learning. These platforms will also significantly enhance productivity and provide insights to make better decisions and judgments.

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Technology enables auditors.

Natural language processing

Cognitive technology

Advanced technologies make it possible for auditors to analyze larger volumes of both structured data, which exists neatly in rows and columns, and unstructured data such as emails, free-text documents and presentations. The ability to analyze both types of data enhances auditors’ ability to identify anomalies, while providing deeper insights into risks.

—a form of cognitive technology that can read and analyze text or speech.

It is being used to mine information from emails and other documents. For example, natural language processing can pull mortgage information—property address, appraised value, sale price, and more—from appraisals, memos, emails, and other documents and put it neatly into a data table.

—enables the analysis of larger volumes of unstructured data. As one example, cognitive technology can be used to process lease documentation and extract relevant information to assist in assessing the classification, recognition, and measurement of leases. It also can be used to grade commercial loans by absorbing loan documentation to generate a grade indicating the loan’s creditworthiness.

Digital automation tools —including workflow automation, RPA, and other data and analytics tools can analyze up to 100% of populations to facilitate more robust audit analysis. Instead of traditional sampling methods, this may lead to the identification of specific outliers or anomalies that should be reviewed. The tools augment professional judgment and enhance decision-making.

Machine learning is a vital step beyond RPA because the technology can capture data and identify correlations and patterns. It is also more intelligent than robotics. For example, machine learning can locate specific line items by currency symbol or other keywords, even if the placement varies from invoice to invoice—something robotics alone can’t achieve. The technology could be used to scan huge volumes of information.

This predictive analytic is a step toward deep learning.

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Analytical technology can better assess risk.

Deep learning —full-fledged artificial intelligence, where a machine continuously integrates new information, draws conclusions, and absorbs the learnings to enhance its cognitive abilities. It is seen as one of the greatest potential prizes of emerging technology, though certain considerations should be addressed. For example, it will be critical to demonstrate how the algorithms and technology behind deep learning are valid and robust to understand and document the outcomes derived and not lead to “false positives.”

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AUDIT

Physical technology can empower professionals, while reducing hassle for clients.

Drones —have been proposed as having potential value in audits, though up to this point, drones have been applied selectively.

Drones are well-suited to observe and count assets in certain sectors, such as mining, manufacturing and agriculture, where the client has large physical assets that need to be verified. Drones can also be outfitted with scanners to observe physical assets and inventory items inside facilities that may be challenging or time-consuming for humans.

Smart glasses —or wearable technology, collect and send images seen through the glasses.

Rather than an 11th hour flight and a day walking through inventory, teams can go through inventory remotely, while client wears the glasses.

Companies are also implementing new technologies that generate more data, which could be incorporated into an audit analysis, or change the audit itself.

Internet of Things (IoT) —the connected world of data-collecting devices play a significant role, as they may contribute significantly to the amount of data available for auditors to evaluate.

For example, in the automobile industry, automobiles may produce data on performance, maintenance requirements, and repairs that also may be analyzed to better assess the risk of a company’s warranty obligations.

Blockchain —when deployed in a company’s infrastructure, can help reduce the time needed to track inventory; allow timely retrieval of reliable distribution information; increase accuracy of data shared among stakeholders; and help determine the integrity of products in the distribution chain. The U.S. Food and Drug Administration led a pilot with IBM, KPMG, Merck and Walmart to use blockchain to identify and track prescription medicines and vaccines distributed within the United States. Blockchain adoption — and the many iterations of blockchain technologies — may change the audit itself, elevating and changing the nature of control testing.

What is the impact on audit quality?

There is a clear consensus among audit professionals that the array of new and emerging technologies can enhance audit quality. Additionally, a clear understanding between companies, standard setters, and regulators is essential. The technology can enable auditors to focus efforts on the outliers and anomalies, devote greater time to areas of higher risk and have meaningful conversations, resulting in enhanced audit quality. Even with these new technologies, the need for human judgment and professional skepticism will always be necessary.

1.

Barnett, Thomas. “The Zettabyte Era Officially Begins (How Much Is That?).” Cisco Blogs, Cisco, 11 Oct. 2016, blogs.cisco.com/sp/the-zettabyteera-officially-begins-how-much-is-that.

Image © iStock/berya 115

Jared Theis, CPA, is Director, Accounting Advisory with KPMG LLP and Vice Chair of the WSCPA Board of Directors. You can contact him at jtheis@kpmg.com.

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How to Choose an Audit Analytics Tool Donny C. Shimamoto With clients continuing to put downward fee pressures on auditors, firms need to look for additional ways to gain efficiency on their audits. One of the easier ways to do this is to look at data analytic tools that are designed to help automate the auditor’s work or audit analytics tools.

What are audit analytics tools?

Audit analytics tools are designed to help automate some of the procedures originally performed manually by an auditor. These tools can be used when an auditor can get the underlying data for a report and also potentially access to the transactions that the report needs to be tied to. For example, getting beginning and ending trial balances and all of the underlying journal entries in between, or an AR aging reporting and the underlying outstanding invoices.

The basic functionality that you’ll see in audit analytics tools is the ability to import the data, and then perform tests on the data. Additionally, audit analytics tools can help with sampling (e.g., random or monetary unit sampling) and other data-related tasks. Some tools also provide you with the ability to clean up or segment data as part of the import. An example of segmenting data is taking an account number and splitting it between natural classification and department—taking 6100-10 and splitting that into 6100 (Advertising expenses) and 10 (Department A) in two separate fields so that you can do further analysis.

Examples of audit analytics tools Some of the common audit analytics tools used by firms today, as well as some of their common features or differentiators are shown to the right (in alphabetical order).

There are two additional audit analytics tools that are also available, ACL (acl.com) and IDEA (audimation.com/products/caseware-idea-data-analysis-software/). These are not included to the right, as they are more complex to use and require extensive training and some programming knowledge to use effectively. They also are generally more costly than the tools listed, so they are usually provided to “specialists” within an audit department, rather than to every auditor. (The rest of the tools mentioned to the right would usually be provided to every auditor.)

Image © iStock/Olha Khorimarko

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AUDIT

How to evaluate audit analytics tools ActiveData

www.informationactive.com (Use Donny’s link to save 15% off: Informationactive.com/intraprise)

• •

•

Excel Add-In, familiar feel and minimal learning curve Provides both data preparation functions and preprogrammed tests Low cost enables you to put this in the hands of every auditor

Inflo

www.inflosoftware.com

• • • •

•

Web-based application, requires Internet connection Variety of pre-programmed tests available Test results can be exported to Excel or PDF formats Native integration with Thomson Reuters AdvanceFlow for workpapers Includes benchmarking capabilities

MindBridge AI

www.mindbridge.ai/solutions/ai-auditingaccounting-firms-cpas/

• •

•

Web-based application, requires Internet connection Enables auditors to focus on higher-risk transactions by automatically running many common audit tests and using the results of these to provide risk scoring Beneficial for fraud detection and audit planning

I’ve found that there is no right or wrong tool for a given firm, and just because you’re using a particular vendor doesn’t mean that you should by default select their audit analytics tool. Before you begin to consider these tools, look at your audit engagements and determine which types of tests are performed most often. Then look at which tools perform those tests and whether those tests would be easy for your staff to learn. Then you can consider which types of tests you could begin doing if you were using a tool. For example, while many firms use sampling when looking at a dataset, could you instead switch to use risk scoring to have greater insights on the entire data population and focus your testing on higher risk transactions? Sometimes this means running more tests, which while technically less efficient, could also reduce your detection risk and thereby make your audit more effective.

Find out whether your staff have experience with any of the tools. This is a good approach if you have experienced hires. If several of your staff already know how to use a particular tool, it may make sense for you to more heavily consider using that tool. Having “power users” for a new tool can help the rest of your staff get up to speed more quickly.

Request a trial from the vendors The next step is to talk to the vendors and request a trial of their software. Set aside time to run real client data through the software. Consider re-performing selected audit procedures that you have already completed so that you can see the difference between how you did the audit manually and how you used the tool.

Be sure to try the tools out on a variety of clients: simple and complex, different industries, and different accounting systems. It’s important to figure out which types of clients you can or can’t use the tool on, and which types of tests or procedures you can perform with the tool. Both of these will help you to determine what the benefits of the tool may be across your portfolio of clients, and you can use that to determine how much benefit you may see from the tool versus the cost of the tool.

Audit analytics tools are ready for your firm Audit analytics tools are a mature set of software that automate existing audit procedures—they are ready for your firm to adopt today. Take the summer to check out some of the tools and figure out which tool is right for your firm. You’ll want to have it figured out before you go into engagement planning in the fall so that you can incorporate the use of the tools into your engagement budgets and updated workplans.

TeamMate Analytics

www.teammatesolutions.com/analytics/ summary-of-tools.aspx

• • •

Excel Add-In, familiar feel and minimal learning curve Pre-programmed tests or create your own custom tests Tests result in selfdocumenting Excel workpapers that document what was done

Donny Shimamoto, CPA.CITP, CGMA, is Managing Director of IntrapriseTechKnowlogies LLC. You can contact him at donny@intraprise.us.

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As a WSCPA member, you are part of a community.

One of the WSCPA's most important functions as an organization is to provide you with opportunities to collaborate, socialize, and celebrate with your fellow members. The Connect platform is your interactive member directory. Find and chat with members from across the state. You can join groups organized around your interests and participate in discussions on a variety of topics that are important to you.

Connect is your gateway to join resource groups and committees. Find groups you are already a part of and find others to join. Then, let the collaboration begin!

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Check it out: wscpa.org/connect

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NANO LEARNING

Nano Learning CPE Comes to Washington State Nick Rial Are you confused about nano learning? Wondering if it means you have new CPE requirements to follow? Read on, and I’ll walk you through what nano learning is (and isn’t), and what it means for your continuing professional education (CPE) moving forward.

The Washington State Board of Accountancy (WBOA) approved changes to a number of CPE rules that went into effect January 1. One of the changes was to recognize nano learning as an option for qualifying CPE.

As now defined in WAC 4-30-010, there are four main qualities that make a CPE program a nano learning course:

So what would not count as a nano course that qualifies as CPE in Washington State?

1.

1.

2.

3.

4.

The course is a minimum of 10 minutes and less than 50 minutes long (and is worth at least 0.2 and less than 1 full CPE credit).

2. The course is electronic self-study.

3. The course has at least one stated learning objective.

4. The course has two questions to test the course-taker’s understanding at the conclusion of the course.

Any live course or CPE qualifying activity Any written (paper) self-study course Any course without learning objective(s) Any course without the two final questions

During the course of your CPE reporting period, you may earn up to 12 credits total (which translates to 60 ten-minute nano courses).

You may be wondering whether short webinars—such as our one-hour Prix Fixe series or Member Exclusive webinars—are nano events. These webinars are not nano courses, as they are live, at least 50 minutes long, and do not include a twoquestion quiz at the end.

Image © iStock/demaerre

Some CPAs have been confused by the requirement for nano courses to conclude with two questions. While many long form self-study courses require participants to answer five questions per CPE hour, or about one question for every 10 minutes, nano courses require double this amount.

And that’s everything you need to know about nano learning.

Curious about what a nano course is like? Want to give it a try? The WSCPA has partnered with ACPEN to produce some nano courses.

“We’re excited to offer this new on-demand CPE format,” said Hayden Williams, CFO of the WSCPA. “Our nano learning programs, taught by some of WSCPA’s very best and brightest tax experts and trainers, are each designed to teach you a very focused concept in 10 minutes.”

Take a look at wscpa.org/nano and give nano CPE a try. It’ll only take about 10 minutes of your time.

www.wscpa.org

Nick Rial is WSCPA Education Content Coordinator.

You can contact him at nrial@wscpa.org.

The Washington CPA Spring 2020

27

Upcoming CPE A selection of WSCPA CPE events scheduled April - July are listed.

To view the hundreds of course listings and complete details, please visit the CPE & Event Catalog at wscpa.org/cpe.

Conferences DATE

COURSE TITLE

4/29-30 Governmental Accounting & Auditing Virtual Conference

LOCATION

CREDITS

Webcast

16

6/9

Washington State Tax Conference

W

Seattle

8

6/10

International Tax Conference

W

Seattle

8

9/8

Women’s Leadership Summit

Lynnwood

8

The Washington Society of CPAs is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of group live and group-internet-based continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org For more information regarding refunds, complaints, program cancellations or other policies visit www.wscpa. org/cpe/cpe-policies or call 425.644.4800

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The Washington CPA Spring 2020

www.wscpa.org

Register at www.wscpa.org/cpe

Live CPE DATE

COURSE TITLE

6/23

Audits of 401(k) Plans

6/24

EDUCATION AND EVENTS

W

Indicates a livestream webcast in addition to in-person attendance.

LOCATION

CREDITS

W

WSCPA

8

Audits of Employee Benefit Plans Subject to ERISA

W

WSCPA

8

7/21

Social Security and Medicare: Planning for You and Your Clients

W

WSCPA

8

7/22

Securing a Comfortable Retirement in the Age of Spending

W

WSCPA

8

Online CPE DATE

COURSE TITLE

5/1

Advanced Cost Accounting - Assigning Overhead WEBCAST

2

5/2

Bribery and Corruption: It CAN Happen in Your Organization WEBCAST

2

5/4

Becoming a Great Predictor: Create Better Forecasts WEBCAST

2

5/5

Reimbursing Expenses Under Accountable Reimbursement Plans - These Days, It’s the Only Game in Town WEBCAST

2

5/7

Blockchain and Cryptocurrency Fundamentals WEBCAST

2

5/8

Clear, Confident, Compelling - Communication Strategies fo the Empowered Leader WEBCAST

2

5/12

Working Smarter, Not Harder: the New Science of Getting on Top of it All - Part 1 WEBCAST

4

5/12

IRAs and Roth IRAs - Pots of Gold at the End of the Rainbow WEBCAST

8

5/13

Understanding Inventory Accounting: GAAP, Software and Variance Recognition Basics WEBCAST

2

5/14

Beyond Small Business Accounting WEBCAST

2

5/15

Uniform Guidance 201 - Federal Grants Selected Intermediate Level Topics WEBCAST

4

5/16

What Happens to Federal Grants and Contracts During a Lapse in Funding Due to a Government Shut-Down WEBCAST

1

5/18

The CFO’s Role in Developing Competitive Advantage WEBCAST

2

5/18

Navigating the Tax Cuts and Jobs Act with Art Werner

8

5/19

Fringe Benefit Planning for 2020 and Beyond

8

5/20

Creative Strategies for Buying, Selling, and Gifting a Business

8

5/21

Advanced Controller and CFO Skills

8

5/21

Everything you Need to Know about the New Pass-Through Entity Rules: IRC Section 199A - The Code and Regulations

8

5/21

Windows 10 Tips and Tricks WEBCAST

2

5/27

Business Consulting for CPAs WEBCAST

4

5/29

Performance Auditing Made Easy WEBCAST

2

www.wscpa.org

CREDITS

The Washington CPA Spring 2020

29

ADVOCACY

2020 HILL DAY Wintery weather could not stop members from traveling to Olympia on January 15 for WSCPA’s annual Hill Day. Members spent the day together going office to office to meet with their representatives and discuss professional issues. In addition to sharing their background and areas of professional expertise, members also shared concerns of occupational licensing proposals that potentially affect the CPA license and the need for clarification and simplification of the Workforce Education Investment Act. Thanks to these important conversations, the WSCPA was able to work with legislators on proposals related to occupational licensing, and the Legislature passed Engrossed Substitute Senate Bill 6492 “Addressing workforce education investment funding through business and occupation tax reform.”

Photography by Shanna Paxton

If you were not able to attend Hill Day, you can make a difference by contributing to the Certified Public Accountant Public Action Committee (CPAPAC), or meeting with a legislator this summer to deliver a contribution. Contact Ashley Kittrell at akittrell@ wscpa.org for more information.

www.wscpa.org

The Washington CPA Spring 2020

31

Thank You Contributors Thank you for helping build a strong voice and create a successful future for the CPA profession with your generous contribution to the Certified Public Accountants PAC! As the only professional association advocating for CPAs in Olympia, your contribution ensures that the profession maintains a strong presence and increases legislators’ understanding of the critical role CPAs play in preserving the state’s business climate.

These contributors donated to the CPAPAC between March 2019 and February 2020.

FIRMS

ADVOCATES CLUB ($100-$499)

BDO USA LLP (formerly Peterson Sullivan) Clark Nuber PS CliftonLarsonAllen LLP Deloitte LLP Hagen Kurth Perman & Co PS Hellam Varon & Co Inc PS Johnson & Shute PS KPMG LLP Moss Adams LLP Sweeney Conrad PS VWC PS

Sara Ellen Bailey, CPA Kiyosha B. Baird, CPA Kai F. Bottomley, CPA Kevin Brintanll Jonathan Burks, CPA Michael John Bursiek, CPA Terry R. Caffey, Jr, CPA, CGMA, MSF Arthur Edwin Campbell, CPA, CMA, CGMA Amanda Y. Chang, CPA, MSTax Will Chen, CPA Jennifer Catherine Civitts, CPA Jolene G. Cox, CPA Aaron Robert Dawson, CPA Wesley L. Delaney, CPA Leon F. Ficker, CPA Dean A. Granholm, CPA, CGMA David Green, CPA, PFS, AEP, CFP Suzanne Greer David Cyril Heselton, CPA Mark Alan Hugh, CPA Nicole Marie Hughes, CPA Richard E. Jones, CPA, CGMA Waylon P. Jones, CPA, CGMA, CFE Lowel J. Krueger, CPA, MBA Oren Mitchell Lang-Furr, CPA Carl A. Mackleit, CPA Chad Christian Miller, CPA

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The Washington CPA Spring 2020

Amanda A. Miller Josh Edward Mock, CPA Bea L. Nahon, CPA, CGMA Kristine T. Nelson, CPA, MPAcc Konstantine Orfanos Amanda V. O'Rourke, CPA Diane Pietrowski, CPA John R. Prescott Robert J. Rebar, CPA Matthew Allen Rundorff, CPA Leslie A. Sesser, CPA Scot A. Studebaker, CPA Paul C. Sutphen, CPA, CFE Duy-Linh Ta, CPA Manu K. Talwar, CPA Timothy William Tasker, CPA Jared M. Theis, CPA Edward D. Thomas, CPA Harold G. Thompson, Jr Ronald L. Tilden, CPA, CMA, MBA Christian Tinder David E. Trujillo, CPA, CGMA Michael Van Maren Hayden B. Williams, CPA, CGMA Robert Francis Woods, CPA Cheryl K. Woods, CPA, CGMA

www.wscpa.org

CPA PAC

CPAPAC MEMBER ($50-$99) Carmen J. Aguiar, CPA, PFS, CFP Laurie Jo Anderson, CPA Gordon P. Asheim, CPA Nicki L. H. Bailey, CPA Christi Baird, CPA John P. Baker, CPA Janice K. Berg, CPA Robert Charles Best, CPA, JD Bruce E. Bixler Pat L. Bohan, CPA, CGMA, CGFM Adele Brady Bolson, CPA Brady William Borel Dr. Andrew Brajcich, CPA, JD Paul W. Brandstetter, CPA David A. Brown Deanne Marie Butler, CPA, CGMA David I. Calvo, CPA Rebecca A. Cates, CPA Tony Hai Chang, CPA Barbara R. Charbonneaux, CPA Sylvia C. Chew, CPA Robert M. Cole, Jr, CPA, CGMA, MA Daniel Clancy Collins Michael Duane Cone, CPA Craig Stephen Connell, CPA Gordon Robert Craig, CPA, CFE, CIA, CISA Jay F. Cramer John E. Currie Vicky M. Dalton, CPA, CGFM Phuc V. Dang, CPA Stephen G. Dashiell, CPA Joseph P. Deacon, CPA Billie Devore, CPA Carol Elaine Didier, CPA David L. Dierst, CPA Eugene Vernon Dodson, CPA Thomas G. Donaghy, CPA Jason Robert Durante, CPA, EA Joan Catherine Faubion, CPA Frank S. Feeman, III Joseph R. Forde, CPA Maria-Elena Garcia-Zapata, CPA, CGMA, MBA Chris A. Gates, CPA David G. Geddes, CPA Christina J. Gehrke, CPA, CIA, CrFA Richard N. Ginnis, CPA Randolph Vincent Glein, CPA, PFS Brian G. Gosline, CPA, JD William J. Graham, CPA Rick H. Graham, CPA Alan L. Gray, CPA Richard D. Greaves, CPA Michael W. Griffin, CPA Vaughn S. Hagen, CPA Michael Patrick Hart, CPA, MPAC Schatzie Anne Harvey Mary Helen Hawkins, CPA, MSTax Suzanne M. Heidema, CPA Teresa A. Herrin, CPA Gary L. Hielkema James K. Hilger, CPA John R. Hodder, CPA William D. Hood Stephen J. Hopps, CPA Michael James Howisey, CPA Michelle Hughes Michael K. Hutchinson, CPA

www.wscpa.org

CONTRIBUTORS ($1-$49) Brett James Jordan, CPA, CGMA, CIA, CFSA Arthur Y. Kageyama Ryan Nelson Kidd, CPA James D. Kim, CPA Stroud W. Kunkle, CPA Irene R. Laible, CPA Kris Lambright, CPA, CGMA Neil E. Larson, CPA, MSTax, PFS Jeff E. Leary, CPA, CFP Kwang Mok Lee, CPA Lucy L. Liu, CPA, CGMA Jessica J. Lustig, CPA Elizabeth Ann Mance, CPA Sam Sam Martin, CPA, MBA, CFP Ronald A. Maus, CPA Arthur D. Miles, CPA Bruce I. Mitchell, CPA, MBA Donald W. Mitchell Mark J. Morrissette, CPA David S. Nelson, CPA, CTRS James R. Newhouse, CPA Mark Richard Newton, CPA, ABV Thomas P. Nicholas, CPA Terence V. O'Keefe Patty Oliveria Linda M. Perry, CPA, MT Jack B. Person, CPA Scott Thomas Petersen, CPA Michael Charles Plato, CPA Michael J. Plymale, CPA Daniel Allen Powers, CPA Leslie Harrison Redd, III, CPA Bill Reed, CGMA Margo D. Reich, CPA Christopher J. Rieke, CPA James J. Rigos, CPA, JD, LLM ,CMA Scott David Rodgers, CPA, MSTax Donald L. Rodman, CPA, MBA Lenore D. Romney, CPA, CFE, CVA Richard H. Russell Susan J. Sanders, CPA Corey Alan Saunders, CPA Daniel J. Schroeder, CPA Harold G. Shapiro Jay T. Shilhanek, CPA Dona Mae Shimer, CPA Ralph Siegel William J. Smith, CPA, CFE, CIA Walter R. Smith Douglas D. Springer, CPA, PFS Sidney J. Starr, CPA, CGMA, CFF Donald W. Stetson, CPA Rebecca Beryl Stevens, CPA Thomas J. Sulewski, CPA Linda M. Teachout, CPA Lenin Thomas, CPA Terry M. Thompson, CPA Susan Lynn Thomson, CPA Mark E. Ulloa, CPA Robert A. Underhill, CPA, JD Susanne Wendy Vickerman, CPA, MSTax Dennis O. Webb, CPA, MA Natalie Wittrock Carol Ann Woo, CPA Shari A. Wood-Richardson, CPA Aileen G. Zacarias, CPA Stephen J. Zevenbergen, CPA

Mark A. Avitt, CPA Kelly Douglas Barber, CPA, MSTax Dennis Wade Chenault, CPA Barry Kingston Cross Brenda Lee Dean, CPA, CIA Robert J. Erickson, CPA, JD Eleanor Ewing Gittelman, CPA Bert R. Golla, CPA Justin Mark Jacobsen Kristin L. Knopf, CPA, CGMA, MBA, MPAcc Steven Yong-Sik Lee, CPA, MBA, MPAcc Max Michael Monardez Thomas G. Neill, CPA, CGMA Carole Lee Petricek Wakeya Smith John M. Urrutia, CPA, MSTax Dorothy R. Wagsholm, CPA William Lloyd Wells Azucena A. Wingard

The Washington CPA Spring 2020

33

WE START BY LENDING AN EAR. We take time to understand your business needs, so we can help solve them.

No two businesses are alike. So cookie cutter loans won’t cut it. At Columbia Bank, we work closely with you from the beginning of the loan process to make sure we’re setting you up with the right loan to reach your unique business goals. Which means we do something other banks don’t always do—listen. Visit ColumbiaBank.com.

Member FDIC

Equal Housing Lender

CLASSIFIED ADS

Detailed advertising information is available online at www.wscpa.org under Resources.

Contact Sharon Olene-Marander at smarander@wscpa.org for more information.

Mergers & Sales Seeking Senior Manager in Spokane. Spokane audit and tax firm seeking Big 10 trained senior manager to lead the firm into the future. Substantial GAAP/SEC experience a must to serve our public and private company clients, with an emphasis in manufacturing and natural resource industries.

Opportunity for ownership and a great career in rapidly growing Spokane, WA. Majority shareholder is retiring, providing the right candidate a rare, short path to becoming an owner. Qualified inquiries only, please reply to Spokanecpa@hotmail.com Considering Selling Your Practice? Consider all your options. We do the work. Confidential. We have buyers actively seeking practices. Call Mark Hause at (877) 345-7722 or visit our website at www.accountingpracticesales.com Accounting Practice Sales. We make dreams happen!

Pierce County Client List. Puyallup CPA firm seeks buyer to take over part of established practice.

Owner looking to scale back existing practice.

Great opportunity for a professional seeking to venture out on their own or for an existing firm to expand their practice. Contact cpataxes1120S@ gmail.com with inquiries.

Situations Wanted CPA/Accountant To Share Office Space (Redmond) Older CPA looking for person with their own clients to share office space in exchange for assisting me in my tax practice. Experience with Pro/Fx CCh tax software needed. Convenient downtown location with ample parking. Opportunity for practice succession in the future. Contact Van Deming at van@demingandassociates.com or 425.883.2441.

Office Space Office Space for Rent - Downtown Kirkland Prime Location - New Build. Large office available for sublease with separate staff office, if needed.

Available March 1. Easy access to 405, Kirkland Urban, and Transit Center. Parking available. Rent and duration to be negotiated. Call Annette Sager at (425) 495-2514.

Office space for Rent - S King/N Pierce Counties.

Well located south King/north Pierce counties, Attractive and Reasonable. Contact Mark Freitax at markfccim@gmail.com or 206.947.3313.

IBA Sells Privately Held Companies. Do you represent a client who is ready to retire or has taken a company as far as they want to or can? IBA is the Pacific Northwest’s oldest business brokerage (M&A) firm. We are professional negotiators with over 4000 completed transactions. Please contact us if we can be of assistance at (800) 218-4422 or www.ibainc.com info@privatepracticetransitions.com or call 253.509.9224.

Highly Profitable Seattle-Based Tax & Audit Practice: Private Practice Transitions is assisting a client in the Seattle area with the sale of a highly profitable, turn-key, private tax and audit practice. The service breakdown by revenue is 43% Tax Planning and Preparation, 35% Audit, 14% Accounting, Bookkeeping and Consulting, and 8% Other. The owners of the Practice also own their building and are open to selling it as part of the transaction, if desired. With last year’s gross revenues of over 2.4M, 10.7% year-overyear growth as compared to the previous year, and approximately 800 active clients, you don’t want to miss out on this exciting opportunity.

Email info@privatepracticetransitions.com or call 253.509.9224.

Reception Details Coming Soon!

36

The Washington CPA Spring 2020

Profitable West Seattle Tax Practice: Private Practice Transitions is assisting a client, located in West Seattle, with the sale of a busy tax and bookkeeping firm. The firm’s service by revenue breakdown is 95% Tax Preparation, 4% Bookkeeping and Ancillary Services, and 1% Other. The firm has over 1,400 active clients and is completely turn-key and ready for new ownership.

The firm is centrally located in a well-established, thriving market, and is poised for explosive growth.

With average gross revenues over $350,000 in 2018, you don’t want to miss out on this great opportunity. Email info@privatepracticetransitions.

Established Pierce County Tax & Accounting com or call 253.509.9224.

Practice: Private Practice Transitions is assisting a client in Pierce County, WA with the sale of a Profitable Seattle Tax & Bookkeeping Practice: profitable, turn-key, private tax and accounting Private Practice Transitions is assisting a client, practice. The service breakdown by revenue is located in Seattle, with the sale of a busy tax and approximately 57% Personal Tax Services, 32% bookkeeping practice. While Tax preparation Business Tax Services, 7% U.S. Tax Services, 3% accounts for about 42% of the firm’s business, Trusts & Estates, and 1% Other. The Practice is 58% comes from Bookkeeping and other services. located in a ~1,900 square foot office building The firm is centrally located in a well-established, that is also available for sale, if desired. With thriving market, and is poised for explosive growth average gross revenues of around $600,000 under new ownership. The firm employs four each year, you don’t want to miss out on this staff, including the owner, in a fully furnished fantastic opportunity. Email “Listing #1036 – office and has just under 400 active clients. Established Pierce County Tax & Accounting With average gross revenues over $520,000 Practice” to info@privatepracticetransitions.com the last two years (2017-2018), you don’t want or call 253.509.9224. to miss out on this amazing opportunity. Email

www.wscpa.org

CLASSIFIED ADS (WA 1143) Centralia/Chehalis/Olympia Area: This CPA tax practice is for sale. The firm revenues are 100% income tax preparation providing the opportunity to grow by either adding write up services or continuing the rapid growth experienced in tax services. The profit pf the practice is excellent with approx. 75% pf fees being realized by the owner. In addition, the fees are excellent and allow for this firm to fit nicely into any practice regardless of the size of the firm. The practice is an ideal opportunity for any individual or firm looking to start or expand a firm with little to no changes.

(WA 1142) Southwest Washington: This full service CPA practice with a small audit practice is for sale. The firm has focused on client service in all its years. As a result, all of the firm’s clients are the result of client referrals who make up a solid group of clients with little if any turnover.

In addition, the firm has a balanced work load through the year to avoid the frantic pace some firms have during tax season. This management approach makes the work year and summertime enjoyable for all concerned. The profitability of this firm is excellent easily being in the highest percentile of comparable sized firms with fee averages well above the norm. This practice fits any number of potential buyers regardless of size and client composition who are looking for a solid and stable firm for a spring board to future growth.

(WA 1141) Seattle: This CPA practice is unique in that it provides a wide variety of governmental accounting and attestation services. These services include performance audits, attestation services, and internal control assignments. The firm is filled with many loyal clients with long term relationship who consistently utilize the professional services of the firm. Reflecting the commitment and desire to provide the best transition possible, the Seller’s are insistent on providing a hands-on transition for the Buyer of this excellent practice. This firm offers a unique opportunity for any practitioner or firm to immediately be a force in the arena of governmental accounting services. Any firm with experience working in this field of professional services will have an advantage in acquiring this practice.

(WA 1139) Bellingham/Ferndale Area: This EA firm located in a convenient location is for sale. The practice is composed of a broad range of clients whose returns contain a number of small businesses and rental activities. These clients require accounting services, tax planning, consulting, write up services, and tax preparation.

The number of small business and rental activities also present any number of entity consulting opportunities which are vitally important in today’s tax environment. All these clients provide a continuous workload for all the year. This practice presents multiple opportunities for any business minded accountant or firm looking to grow their firm or an opportunity to move into ownership.

SOLD

(WA 1138) Seattle-Financial District: This EA practice is 100% tax services with per return averages of approx. $1,500 per return for all professional services rendered. With the growth of the Seattle metro area, a high percentage of clients have opted to mail in their returns. As a result, the practice uses a home office and an

www.wscpa.org

that return year after year. All this in a firm with an excellent cash flow and a great opportunity for a variety of buyers.

office time share for its facilities. The result is a very reasonable charge for office facility expense.

If desired, the office arrangements could be a more traditional in nature with an accompanying increase in monthly obligation for the increased office square footage. All of these qualities in this practice make for an excellent addition to any firm’s client base with excellent average fees that make this an easy decision.

(WA 1126) Island County: This well-established enrolled agent practice is for sale. The firm is well balanced with a tax practice that produces 75% of revenue and a write-up practice that generates the balance. The practice is well positioned for future growth due to having a solid staff serving long-term clients. The Seller is retiring but will be available to assist in transition. For any firm looking for a satellite office, an existing practice wishing to branch out, or an individual who has aspirations of getting out on their own, this practice is an excellent choice. The Seller, to assist in the sale, will consider financing the purchase of the practice provided the Buyer makes a substantial down payment and has excellent credit and collateral.

(WA 1134) Port Orchard/Bremerton Area: This CPA practice has a nice balance of tax and write up services on an annual basis. The revenue breaks out 75% income tax and the balance being write up services. The firm has very good fee averages and a solid cash flow to the owner on a yearly basis. The practice, reflecting the desires of the owner, has a work life balance that many seek in the practice of accounting. Tax season is busy, but after the extensions are filed, the office can be handled with a 4 day work week that allows for family time or weekend excursions. The work life balance is reflective of the excellent staff that allows for worry free time out of the office. This practice with solid clients and an ever increasing book of business is a one of a kind opportunity for any professional or firm looking to add a quality branch to a thriving firm.

(WA 1133) North East Washington/ Stevens County: This CPA firm located in North East Washington is a tax and accounting practice with a small amount of write up during the year. The practice revenues consist of income tax preparation and consulting 97% and write up 3%. The firm’s fee structure is excellent with realization rates that are the equal of any firm regardless of size. The strength of the firm is found in the cash flow to the owner that is well above the norm reflecting the excellent management practices of the Seller. This firm is the perfect fit for a professional looking for an excellent opportunity coupled with a pace and style of life that is not big city. When combined with a Seller who seeks to provide a good transition, this firm provides opportunity that many seek but few find in moving to ownership.

Annual Meeting June 4, 2020

(WA 1127) Vancouver: This CPA practice that focuses on the preparation of income tax returns is for sale. The firm’s revenue stream is almost all from the preparation of income tax returns with the exact percentage equaling 90%. The balance of the annual fees are earned from write up and payroll services which are approx. 10% of revenues. Reflecting a service commitment, the Seller is a very hands on in assisting clients in conducting their business affairs to minimize their tax burdens. The bulk of these clients are small business clients who require these services and consist of professionals of all types. With the elements of trust and accountability of the owner, this firm is a very solid practice with clients

SOLD

The Washington CPA Spring 2020

37

Becoming a Better Advocate for Yourself and Other Women at Work

So many things that happen at work can catch women off guard, making us question our confidence and capability. Women experience microaggressions, receive intangible feedback, and are interrupted more often than men. Worst of all, it’s not uncommon for women to internalize these experiences and blame themselves. Women believe if they had just worked harder, performed better, or chosen a different company then this wouldn’t be happening. Unfortunately, gender bias is deeply rooted in our society. The good news is, it’s not your fault. Still, these experiences are all too common.

ASK & AMPLIFY I have yet to meet a woman who doesn’t want to get better at asking for what she deserves. Often it’s even easier to ask on behalf of a colleague.

•

A ● sk for what you want and need — if not for yourself, then for the sake of women who will follow. Many women find it difficult to negotiate salary, ask for a raise, or request a promotion. But it’s often easier to ask on behalf of others.

•

A ● mplify other women by lending your voice to their ideas.

Develop a buddy system with your female colleagues to reinforce each other's comments and suggestions in meetings. Many voices are hard to ignore.

How do you prepare for the unexpected, like hearing an inappropriate joke or receiving gendered feedback?

Too often, women have been discouraged from speaking up for themselves. They’ve been socialized to create harmony, and play down their strengths to avoid seeming pushy or bossy. The confidence and swagger that we admire in male leaders have been seen as aggressive and inappropriate when displayed by women leaders.

But now more than ever, women are asking what they can do to become better advocates, how they can stand up for themselves and their female colleagues. Here are some proven strategies that you can use to help all women rise.

• •

One day, sexual harassment and inappropriate comments at work won’t be inevitable. Until then, it’s better to be ready for them. It’s common to freeze in difficult situations, and you can avoid that by planning ahead.

• • •

•

The Washington CPA Spring 2020

●Fight back against interruptions. If you notice a woman being interrupted in a meeting, simply say “Hold on, I’d like to hear Jennifer finish her thought.”

REHEARSE FOR #METOO MOMENTS

•

38

Mikaela Kiner

Trust yourself. If something makes you feel uncomfortable, don’t write it off. Talk to someone you trust to validate your experience.

Confide in a friend, mentor, coach, or therapist. Sharing your story can be cathartic and give you a much-needed sounding board. Brainstorm options for addressing the situation. ●It’s an unfortunate reality, but you should be prepared to speak up for yourself. Having a ready response like “I didn’t find that funny,” or “I’ll give you 20 seconds to take that back” helps you avoid going into flight, fight or freeze mode when someone says or does something shocking.

www.wscpa.org

PERSONAL DEVELOPMENT

SEND THE ELEVATOR BACK DOWN

#MOMTOO: PREGNANCY & PARENTHOOD AT WORK

Women are stronger together so do all you can to stop perpetuating the “one seat at the table” myth and beware of female rivalry. Use your strength, position, and power to help the women around you.

It can be hard and lonely to be a working mom, and mom guilt is all too real. Women sacrifice for their jobs and for their families. Setting firm boundaries can give you a sense of control and agency as you think about how you want to balance these two very important roles.

•

• •

• •

J● oin forces with other women to ask for what you collectively need at work. Grassroots efforts against harassment or pay inequity have been used recently to influence leaders and effect change.

H ● elp women through mentorship, advocacy, and creating opportunities. You can redefine how women interact at work by showing that there’s room for many women at the table, not just one.

U ● pdate your own expectations: Stop expecting more from female versus male bosses, peers, and direct reports. Stop judging women, including yourself, on personal choices including appearance and parenting choices.

•

• •

• •

M ● oms - know and embrace your limits. Think through what sacrifices you are and are not willing to make as a parent.

Will you travel? What if you occasionally miss dinner or bedtime; is that okay? Share your preferences with your manager and ask for their support.

Encourage men to take advantage of flexible work schedules and parental leave. When men use these benefits, it destigmatizes them for everyone.

U ● se suggestion boxes and company meetings to request more modern, family-friendly policies and benefits that reflect today’s reality. Ask your colleagues to do the same.

More voices result in attention and action.

These are tough topics, but here’s the good news. Young women today have more tools, information and vocabulary than ever before. They’ve grown up in the ear of movements like #TimesUp, #MeToo, and #BlackLivesMatter. We’ve reached a tipping point, where future generations of women will finally get the respect they deserve. Until then, strategies to advocate for yourself and other women will continue to be a necessary part of creating more healthy, inclusive cultures.

Mikaela Kiner is Founder | CEO of Reverb. You can contact her at mikaela@reverbpeople.com. Join Mikaela at the Women’s Leadership Summit where she will share more about how today’s women can navigate the workplace while staying motivated and strong.

Register today for the Women’s Leadership Summit at wscpa.org/empower.

www.wscpa.org

The Washington CPA Spring 2020

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Periodicals postage paid at Bellevue WA and additional mailing offices 902 140th Ave NE Bellevue WA 98005-3480

CLEAR

AREA

GET THE WHOLE EXPERIENCE AT WSCPA CONFERENCES! Register Today wscpa.org/whole Governmental Accounting & Auditing Virtual Conference Explore a Whole New Depth April 29-30

Washington State Tax Conference Discover the Whole Story June 9

International Tax Conference Navigate a Whole New Landscape June 10

Women’s Leadership Summit Empower the Whole Leader September 8