Economy

The American Institute of CPAs sent a letter to the Senate Finance Committee prior to its March 12 hearing on estate tax reform urging lawmakers to make permanent changes to the estate tax prior to the current law expiring in 2010.In a letter, the institute reiterated a prioritized series of reforms -- a list that the AICPA had previously sent to Congress in 2005 and again in 2006.

The Center for Audit Quality has weighed in on the Securities and Exchange Commission's proposal to delay certain internal control reporting requirements for smaller companies, in a letter suggesting that the commission use the postponement to better assess the costs and benefits of implementing new standards and guidance. The SEC has proposed pushing back by one year the Sarbanes-Oxley Section 404 deadline for non-accelerated filers to provide auditors' attestation reports on internal controls over financial reporting in annual reports, to fiscal years ending on or after Dec. 15, 2009. While stating that, "The benefits of complete 404 reporting ... should be available to investors in smaller companies," the comment letter from CAQ executive director Cindy Fornelli acknowledged the potential benefits of the delay in allowing the integration of forthcoming guidance from the Public Company Accounting Oversight Board and the Committee of Sponsoring Organizations into auditor assessments. The letter also urged the SEC to broaden its effort to evaluate the cost effectiveness of new regulations and guidance, particularly the PCAOB's Auditing Standard No. 5, by including input not only from reporting companies, but from investors, audit committee members, auditors and others. An affiliate of the American Institute of CPAs, the CAQ is dedicated to fostering investor and market confidence in the audit process.

The American Institute of CPAs has ramped up its mobility efforts to allow CPAs to practice in other states, with mobility bills enacted now in 12 states and legislation pending in 22 other states.

The Center for Audit Quality marked its first anniversary with a report on its progress in improving public confidence in the audit process.

The many Boomers partners of firms who are planning to retire or slow down is being viewed as generating firm succession and staffing issues. Similarly, another expressed concern is the declining number of Ph.Ds. in accounting, which hurts the pipeline of incoming accounting graduates to the profession. A partner in a national firm also commented that he was alarmed by the many college professors teaching accounting who don’t have a familiarity with U.S. businesses.

With Democrats running both Houses of Congress, the normally Republican-leaning political fundraisers for the accounting profession are starting to tilt to the left.A new Accounting Today analysis of campaign contributions to congressional candidates by the industry's political action committee fundraising groups confirmed a distinct shift toward Democrats amid the 2008 primary election season.

The American Institute of CPAs and Fiduciary360 have published the U.S. edition of a handbook for investment advisors.

The American Institute of CPAs has written to the Treasury Department and the Internal Revenue Service about proposed regulations for automatic contributions to 401(k) plans, as well as cafeteria plans.

The American Institute of CPAs has introduced ABMonline, the Web version of the Accountant's Business Manual.

The American Institute of CPAs told the Internal Revenue Service and the Treasury Department of its strong opposition to tax patents in a letter commenting on proposed regulations.

A survey by the American Institute of CPAs predicted that information security management would become the most important initiative affecting IT strategy, investment and implementation over the next 12 to 18 months.

The Mortgage Bankers Association has written to the Financial Accounting Standards Board asking for more flexibility in accounting for troubled mortgages to help prevent foreclosures.

The American Institute of CPAs has written to the Internal Revenue Service and the Treasury Department requesting them to revise their proposed regulations on foreign tax credits.

The American Institute of CPAs has issued guidance defining terms for describing the professional requirements of accountants who perform a compilation or review.

The American Institute of CPAs received 24 marketing awards, mostly for its "Feed the Pig" campaign aimed at encouraging Americans to prepare better for long-term financial security.

The real meat of Proposed Interpretation 501-8, “Failure to Follow Requirements of Governmental Bodies, Commissions, or Other Regulatory Agencies on Indemnification and Limitation of Liability Agreements with a Client,” by the AICPA Professional Ethics Division isn’t in the text of the proposed interpretation, but rather in what was specifically avoided.

The House has introduced legislation to amend the Tax Code to modify the penalty on the understatement of taxpayer's liability by preparers.

The American Institute of CPAs’ Professional Ethics Executive Committee has issued an exposure draft of a proposed new interpretation that warns CPAs they should follow the requirements of governmental bodies, commissions or other regulatory agencies on indemnification and limitation of liability agreements with a client, or run the risk of discrediting the accounting profession.

YellowPages Corp. has launched an online directory listing of accountants at AccountantYellowPages.com.

The International Accounting Standards Board has decided to postpone the effective date of its new accounting standard for business combinations until July 1, 2009.