Audit & Accounting

CPAs spend many hours studying accounting and tax rules and become very knowledgeable, with CPE insuring that they are fully conversant with any changes. In the very large firms, the training and education offered has a very interesting mix, as a good deal of it doesn’t deal with technical knowledge but on the softer skills that can actually contribute more to the success of the individual and the firm. This is readily apparent in the structured way mentoring is conducted in these larger firms. Mentors are trained, mentoring processes and procedures are established, the details of the mentoring program are communicated, and staff members participate in a prescribed manner. And why do larger firms spend so much time and money on mentoring? They see the success in the performance of those who complete the program, and are very happy with the ROI. Because of the limited resources of small firms, ROI on spending is extremely important and gets very close scrutiny. The problem is, in new areas like mentoring small firms, because of their lack of familiarity, often overspend and don’t get a good ROI. Small firms therefore need to be creative. I recently came across Mentoring Process for CPA/CAs--Third Edition, by Rex Gatto, that can be helpful in that regard. There is a roadmap to creating structured processes quickly, tools and tips for mentors, and advice for mentees on getting the most from mentoring. The book doesn’t pull any punches, such as when it is pointed out that the mentees’ best role is that of the listener, and warns mentors not to be sidetracked by the mentee who is an analyzer (overanalyzes facts), a whiner (complainer), a rejecter (not me!), a victim (poor me!) or a controller (talks too much). Equally important, the book tells mentees what they should look for when selecting a mentor. “When choosing a mentor, a mentor should be someone:

KPMG is donating $250,000 to the nonprofit organization First Book to distribute more than 200,000 books this year to needy children.

The American Institute of CPAs passed a resolution at its Spring Council meeting voting to recognize the International Accounting Standards Board in London as the international accounting and financial reporting standards-setter.

The preliminary report of the U.S. Treasury Committee on the Auditing Profession was released in March.It’s a well-prepared wish list of how to improve the auditing profession. Unfortunately, the report envisions solutions that have little or no chance of being instituted any time soon.

AICPA REVISES PEER REVIEWThe American Institute of CPAs has issued revised standards for performing and reporting on peer reviews, along with interpretations of those standards.

We’re not sure if we’re having another epiphany, or merely looking at the world a little bit differently, but we have some thoughts on an area of accounting practice and theory that we’d like to share with you.Specifically, we’re looking deeper at the worthiness of comparability as a goal for financial reporting information. As we described in a recent column questioning the wisdom of merging all standard-setting authority in one body, it has been traditionally assumed that useful information helps users compare competing investment opportunities. Think of this notion of comparability as Company A and Company B balanced on a seesaw, suggesting that the investor’s decision is between buying one company’s stock or the other’s.

In recent months, captives have come to the forefront of the insurance industry.As a result, there has been increased interest in what they are, the benefits that they provide, and if they are a viable option for companies.

The Securities and Exchange Commission has charged the former CEO and CFO of Broadcom with stock options backdating, along with the chip maker’s chairman and general counsel.

Ernst & Young is developing a curriculum to help accounting students learn about International Financial Reporting Standards.

A White House memo directing agencies to finalize their rules before the fall election could have an impact on plans for the use of Extensible Business Reporting Language and International Financial Reporting Standards in filings with the Securities and Exchange Commission.