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GAO SAYS IRS NEEDS TO IMPROVE INTERNAL CONTROLS

INDEPENDENCE RULES BEEFED UPNew York — An international accounting standard-setter has issued a revised set of proposals designed to strengthen the independence requirements for accountants.

While in India with an accountant and his client, I observed a classic “trusted advisor” moment. The client is the chief executive of one of the largest family-owned businesses in India. As an aside during our meeting, the CEO mentioned to his accountant that he would be going to Tokyo on a Thursday for some negotiations with the company’s most important potential business partner. The CEO would then be returning on Friday morning, little more than 24 hours after his arrival. The accountant listened carefully to the plan and said simply: “No. You will not come home Friday. You will instead spend the weekend in Tokyo with the executives of the other business.”Without hesitation, the CEO lifted his cell phone and said to his secretary: “Please change my return flight to Monday morning.”

It seems that there always has to be a “killer” application to justify our interest and efforts in using PCs. Spreadsheets were the first of these, and have been followed over the years by word processing, desktop publishing, customer relationship management and, most recently, document management.Some of the fascination with document management comes about because many users think that it’s effectively the “paperless office.”

MICROSOFT SHIPS LATEST DYNAMICS AXMicrosoft has released Dynamics AX 2009, with upgraded features for compliance and multi-site organizations. The latest version of the enterprise resource planning software can run multiple legal entities from a central location and provide a single view of financial and supply chain information around the world.

What a firm knows today may not be relevant in the future, and many risk a significant loss of knowledge when partners retire. Fostering a culture that efficiently transfers knowledge is crucial. Is your firm’s knowledge centered mostly in its partner group? If so, it may be unable to remain competitive in the future.To many partners, knowledge is tantamount to power. But if a firm’s intelligence is locked away within its partner group, it cannot grow much beyond its current profit levels. Systems, processes and culture will inevitably require an overhaul to remain competitive in the future. Why? A firm’s intelligence revolves around information, experience and wisdom. The speed, leverage and scale at which a firm can transfer this block of knowledge are determined by the quality of its training program and willingness to share information.

Going it alone is tough in the accounting profession. Better connections, improved ability to handle inter-regional and international business, better employee recruiting, and greater operating efficiencies are just a few of the elements needed to continue a healthy upward curve. Gaining these advantages, however, isn’t always easy. That is why many firms make the choice to join either an accounting network or an accounting association.No matter where a business is located or what niches and industries it serves, becoming part of a network or reaching out for an association affiliation can provide the tools to build a stronger business.

Software & EquipmentMAS 90/200 AND 500

CALIFORNIASan Diego State University has received a $10 million gift to name the university’s school of accountancy the Charles W. Lamden School of Accountancy. The gift was made by Gertrude Lamden in honor of her late husband, Dr. Charles Lamden, who was instrumental in launching SDSU’s College of Business Administration, and had served as professor, chair of the Management and Accounting Departments, and as the college’s first dean. ... Burr, Pilger & Mayer LLP, San Jose, has moved to new offices at 60 S. Market Street, Suite 800.

JULY21-25: Public Seminars, Institute of Internal Auditors. Las Vegas. Contact: www.theiia.org/iia-training.