IowaCPA - January 2013

IowaIn this issue…

January 2013

Iowa Society of CPAs www.iacpa.org

CPA2233458

Board activities

Council Corner

FRF for SMEs

MAP survey

IAEB chair

News & Views

CPE spotlight

Iowa Society of CPAs... Advancing the professional success of our members

Continued on page 6

Forensic accounting: All that jazzBy Joni Tonnemacher

It is probably safe to say that when many people think of an accountant they picture a

CPA slaving away in a cubicle working on tax forms or auditing reports. While those of us in the CPA profession know that this is not true, many may not realize certain specialty practice areas, such as forensic accounting, entail excit-ing, gripping work.

“Forensic accounting” simply means that the material is suitable for argument within a court setting. That is, forensic accounting involves legal action or is expected to involve such action. Forensic accountants usually work closely with attorneys and corporations, although other posi-tions form subcategories of forensic accounting.

Most forensic accountants specialize in a particular area such as testifying during civil

lawsuits, while others focus on criminal trials such as white-collar criminal proceedings for embezzlement and insider trading. In addi-tion, other forensic accountants do not actively participate in court proceedings, but work with related matters such as business valuations and fraud or risk assessment.

Personally, I hold the certified forensic finan-cial analyst (CFFA) designation. While most of my experience is in the fraud and/or risk assessment area, I have also assisted in both criminal and civil cases. With regard to the fraud and risk assess-ment services, this generally involves reviewing a company’s internal control framework to identify any weaknesses in controls, followed by making recommendations to implement changes to re-

Tax preparer

campaign 2013

on insert!

Tax connections, representation you can trust

Among the current list of Society committees, the Taxation Committee stands as one that

fits both the traditional past and the fluid present. In the following interview of the committee’s chair, Kurt Konek, he comments on the value of the committee and how its volunteers are the Society’s “public face” for regulatory agencies and Iowa’s taxpayers.

Q: How would you describe the work of the Taxation Committee?

The committee purpose best describes what the committee is all about: “To offer technical assistance to members and keep them in-formed of significant changes in taxation laws. To increase public understanding of the CPA’s special competence in the field of taxation.”

This committee keeps ISCPA members informed on current issues related to income

taxation, sales tax, unemployment tax, and estate tax. The committee may also provide input to the Society regarding taxation legislation, as requested.

Q: Why should members consider volun-teering for this committee?

Committee members meet in person with federal and state representatives to discuss cur-rent taxation issues, administrative procedures, and enforcement activities. They help educate the membership, and the public, by participat-ing in various projects.

For example, committee volunteers develop a tax tip brochure each year. Members may purchase copies for a nominal fee and distribute them to clients, their communities, or

Continued on insert

2 Iowa CPA | January 2013

Issue No. 2013-01Published eleven times per year by the Iowa Society of Certified Public Accountants (ISCPA). Send address changes, advertising inquiries, and all correspondence to:

Iowa Society of CPAs950 Office Park Rd, Ste 300West Des Moines, IA 50265-2548 Email: [email protected] Website: www.iacpa.org

or, contact the ISCPA office:515-223-8161/800-659-6375 (in Iowa)515-223-7347 (Fax)

Member Focus

A message from your board:

The ISCPA Board of Directors met on December 6, 2012, at the ISCPA office

in West Des Moines. The board:

• Approved minutes of the September 21, 2012, meeting.

• Accepted financial statements for the six months ended October 31, 2012.

• Accepted a report from Mark Wackerbarth, chair of the Nominating Committee.

• Reviewed written reports submitted by committee chairs.

• Approved revised society long-term investment policy statement.

• Approved renewal of officers and directors liability coverage for calendar year 2013.

• Discussed long-term dues strategy.

• Reviewed item in Iowa Administrative Bulletin to amend Chapter 10, “Continu-ing Education,” creating an alternative continuing education cycle.

• Received a report from Vice President Don Seibel.

• Received a report on the fall 2012 meeting of the AICPA Council from Steve Marlow. See right.

• Reviewed PAC information. See PAC infographic at http://goo.gl/kZScs.

• Reviewed a roster of members granted “life member” status in ISCPA.

• Received a stewardship report sum-marizing activities of the staff since the previous meeting.

• Scheduled the next meeting for April 26, 2013. v

Council Corner: A plethora of issuesBy Steve Marlow, ISCPA Council representative

Despite Tropical Storm Sandy 350 miles to

the east, Amelia Island, FL, proved to be a wonderful location for the fall 2012 American Institute of CPAs Council/Annual Members

Meeting. Representing the ISCPA were Jan Towne, president; Don Seibel, vice presi-dent; Cindy Adams, executive director; and me, AICPA Council representative. A full report can be accessed at: www.iacpa.org/Libraries/member_resources/2012_Fall_Meeting_of_Council.sflb.ashx. A summary follows:

PIU by MelanconAICPA CEO Barry Melancon gave a

lengthy update on various professional issues. His presentation can be found on AICPA TV at http://goo.gl/9BslA.

First DayGreg Anton, outgoing chair of AICPA,

kicked off the meeting with a review of his year as chair. Next, we heard from Peter Hart, a political pollster. The profession’s fi-nancial literacy efforts were summarized by Ernie Almonte. Sharon Lechter promoted Save Wisely, Spend Happily, and the first day ended with discussing AICPA’s efforts to support specialization.

Second Day – MorningMark Harris, chair of National Association

of State Boards of Accountancy, began the second day sessions. Highlights: the time to issue certificates to firms and individuals is now five days and entries into the CPE registry are now processed within hours. Hawaii is the only state without CPA mobil-ity legislation. The next two presentations discussed reporting for small and medi-um-sized entities. Billy Atkinson, a retired Big Four partner, heads FASB’s Private Company Council to study financial report-ing for private entities. Melancon expressed his concern about the council’s ability to meet the needs of small and medium-sized businesses and their users. David Morgan and Robert Duvak discussed AICPA’s efforts to develop its own basis of accounting for small and medium-sized entities. It is

thought that 20 million businesses may fall into this category. Council acknowledged efforts would only be worthwhile if the user community accepted this proposed basis of accounting. Then, Council decided to support the non-partisan campaign to “Fix the National Debt.”

Second Day – AfternoonCouncil approved a resolution to

grant standard-setting authority to the Personal Financial Planning Executive Committee. AICPA reported record mem-bership numbers. The financial situation continues to be negatively impacted by its defined benefit retirement plan, which will be frozen in the future. The second day concluded with break-out sessions:

• Talent Recruitment and Retention for the Profession;

• Technology, Cloud Computing, and Cyber Security’s Effect on Business Models; and

• Innovating Quality Assurance for the Future.

Last DayThe Massachusetts Society of CPAs

breakfast honored Richard Caturano, the incoming chair of AICPA, a partner in the Boston office of McGladrey. Erik Asgeirsson made his annual presentation regarding the activities of CPA2Biz. Goran Tidstrom updated the Council on the activities of the International Federation of Accountants. Robert Israeloff discussed the mission and operations of the AICPA Benevolent Fund, designed to provide fi-nancial assistance to AICPA members and their families in times of need. The formal meeting closed with the election of new members to the Council, officers, board of directors, and various other bodies.

The fall Council meeting provided a tremendous level of insight into the day-to-day activities of AICPA. It makes one appreciate the level of passion our members have to make the profession better for the next generation. v

Steve Marlow is CFO with Care Initiatives, Inc., West Des Moines, and a past president of the Society.

Iowa CPA | January 2013 3

Bits & Bytes

2012 MAP survey results: Signs of

recoveryBy Jeff Drew

Accounting firms haven’t climbed all the way back to where they were

before the Great Recession, but they are making progress. That’s one of the many findings of note in the 2012 National Management of an Accounting Practice (MAP) survey. The biennial benchmarking poll generated responses from more than 2,300 U.S. accounting firms.

Those responses paint the picture of a profession slowly but steadily regain-ing ground lost in the biggest economic earthquake since the Great Depression. The survey results also reveal divergent trends in partner and staff compensation, increased adoption of fixed-fee pricing, and the growing importance of leverag-ing technology to accounting firms of all sizes. Read the summary of poll results in the December Journal of Accountancy or at: aicpa.org/pcps/MAP2012. v

We Go To Work For You.

1-800-397-0249The Holmes Group

[email protected]

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ED on financial reporting framework

for SMEs

The American Institute of CPAs (AICPA) has an exposure draft on its proposed

Financial Reporting Framework for Small and Medium-Sized Entities (SMEs). More than 20 million privately owned small and medium-sized entities in the U.S. are not currently required to prepare U.S. gener-ally accepted accounting principles-based financial statements. The FRF for SMEs is another comprehensive basis of account-ing (also known as a special purpose framework), which when finalized will offer those small and medium-sized en-terprises a reliable, relevant, and simplified financial reporting solution that addresses marketplace demands. Comments are due by January 30, 2013. v

Report: How the cloud changes the game for CPAs

The cloud is reinvigorating client ac-counting services for small and midsize businesses, and CPA firms that want to take advantage of this trend need to help their clients embrace digital technologies, according to Geoffrey Moore, tech consul-tant and bestselling author of “Crossing the Chasm.” Read details on and find a link to the report at: http://goo.gl/LQULo.

Newly formed private company council identifies four areas to study

At its inaugural meeting in early December 2012, the Private Company Council (PCC), a new body created to improve the standard-setting process for private companies, identified four areas to research for agenda consideration. The areas involve consolidation of variable interest entities; accounting for “plain vanilla” interest rate swaps; accounting for uncertain tax positions; and recogniz-ing and measuring, at fair value, various intangible assets (other than goodwill) acquired in business combinations. Read details here: http://goo.gl/BW4N4.

What’s your firm’s path to partner?By Jennifer Wilson

I shared a meal recently with a group of the best and brightest from a great firm. During our time together, we talked about a number of topics, but one subject stood out. These young up-and-comers are passionate about their careers and their firms, and they wanted to know: What can I expect on the path to partner? Read Ms. Wilson’s advice here: http://goo.gl/03kCO.

Internal audit: The importance of being ‘soft’By Arvind Hickman

Companies are increasingly turning to internal auditors to identify operational risks and analyze information at the speed of light. This CGMA Magazine article takes a look at why communication is an increasingly vital tool for internal audi-tors: www.cgma.org/magazine/features/pages/20126591.aspx.

How to make your employees feel like superheroesBy Patty Azzarello

Want to foster employee satisfaction and a memorable culture? Check out these tips in this Fast Company article at: http://goo.gl/Xxm0I.

Technical assistanceTechnical staff questions and answers

issued since July 2012 are listed on the AICPA website at http://goo.gl/zXmLo.

Please note, this information is not a source of established authoritative principles and has not been approved, disapproved, or otherwise acted upon by any senior technical committee of AICPA. For specific situations, contact the AICPA technical hotline (877.242.7212) or submit a question online at http://apps.aicpa.org/TechnicalHotline/form.asp.

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ClassifiedsCAREER OPPORTUNITY-ACCOUNTING MANAGER–Our rapidly growing Daven-port manufacturing client has an immedi-ate need in this newly created position! The ideal candidate will have 6+ years in manufacturing with emphasis on cost accounting and GAAP reporting. CPA preferred. Responsibilities include all G/L, costing, variance analysis, budgeting/fore-casting, dashboard generation, fixed assets, and payroll. For confidential inquiry and consideration, contact Miles Morrow, CPC, Iowa Career Connection: 515-282-5823 or [email protected]. We are retained by our clients who pay all fees.

SEASONAL TAX ACCOUNTANTS–Palmer Group is assisting several clients in the Des Moines area who are searching for experienced Seasonal Tax Professionals in preparation for the upcoming tax season. Responsibilities: Preparing various types of tax returns including individual, small business, and corporate. Provide high quality customer service by answering cli-ent questions. Tax research. Requirements: Attention to detail. Organizational skills. Computer skills. At least 2 years experi-ence preparing tax returns. Hourly rate: $20 - $30/hr. If you’re interested, please apply online at www.thepalmergroup.com or send your resume to Barb Hooper, [email protected].

OFFICE SPACE AVAILABLE–Excellent small firm location on 50th Street in West Des Moines, 100-yards from I-235 entrance. One space is 821 square feet with one large office, two smaller offices and conference room; second space is 2,118 square feet, with six offices, reception area and large conference room. For information, call Laurie at 515-223-6600.

IOWA PRACTICES FOR SALE: Cedar Rapids/Waterloo Area CPA Practice - gross $201K; Des Moines Area/Dallas County CPA Practice – gross $410K; I-380 Corridor-Cedar Rapids/Iowa City CPA Partnership opportunity – gross $733K; North Central Iowa CPA Practice – gross $223K. For more information about any of these great list-ings, call 1-800-397-0249. Also, see listing details and register for free email updates at www.accountingpracticesales.com. Thinking of Selling Your Practice? Accounting Practice Sales is the leading marketer of accounting and tax practices in North America. We have a large pool of buyers, both individuals and firms, looking for practices to purchase. We also have the experience needed to help you find the right fit for your firm, negotiate the best price and terms and get the deal done. To find out more about our risk-free and confidential services, call Trent Holmes at 1-800-397-0249 or email [email protected].

CPA PARTNER WANTED for practice in Boone, IA. Submit resume in confidence to [email protected]. Located near Ames with easy access to Des Moines. Learn more about Boone at http://goo.gl/oc70R.

ClassifiedsRates: 50-word minimum of $95. Additional words $.95 per word. Additional bold lettering for up to 10 words/$1.00 per word (25% member discount). If exactly the same ad is placed in more than 5 issues of this newslet-ter, the sixth ad will be free.

File numbers: Blind box ads are assigned file numbers by ISCPA and count as 5 words. All replies will be forwarded in a confidential manner. $15 handling fee.

Closing dates: Ad copy must be received in writing by 15th of the month prior to publication.

Content of all ads is subject to approval. ISCPA does not en-dorse any products or services advertised in its newsletter. “ ”

“We all have ability. The difference is how we use it.”

~ Stevie Wonder

From the IAEBBy Carol Schuster, chair, Iowa Accountancy Examining Board

The mission of the Iowa Accountancy Examining Board (IAEB) is “to protect

the public interest through the regulation of the practice of accounting by Certified Public Accountants and Licensed Public Accountants.” Under the Chapter 542C, Code of Iowa, the IAEB assures the com-petency and ethical standards required of CPAs and LPAs in the state of Iowa. This includes administering the examination of CPA and LPA candidates, issuing of cer-tificates and licenses, setting requirements for continuing education, investigating violations and infractions of the accoun-tancy laws and rules, and determining appropriate discipline for those who are found to have violated the statutes or regulations.

It is hard to believe that I am in my final year of serving on the examining board. I owe a great debt to board members, the IAEB executive officer, Toni Bright, and the licensing specialist, Jill Simbro, for all they do in serving the profession and the public. Additionally, I thank the Iowa Society for providing the examining board with a venue to stay in communication with Iowa CPAs and LPAs, since the Iowa Professional Licensing Bureau Newspaper ceased pub-lication in fall 2011. Also, check the IAEB website (www.state.ia.us/government/com/prof/account) for the newer feature:

“In the News.”

I plan to touch on these areas in future articles:

• Completing a SWOT assessment (strengths, weaknesses, opportunities, and threats).

• Being involved with NASBA (National Association State Boards of Accoun-tancy).

• Holding IAEB board meetings on campus.If you have any questions, please

contact Toni Bright at (515) 281-7468 or [email protected] or Jill Simbro at (515) 281-5910 or [email protected]. Fax: (515) 281-7411. Mailing address: 1920 S.E. Hulsizer Road, Ankeny, IA 50021-3941. v

Carol Schuster is a CPA and the current chair of the IAEB. Her final three-year term ends April 30, 2013.


News & Views

Impact of fair value measurement, considerations

In recent years, fair value has been at the helm of many accounting-related issues

that auditors need to negotiate. Much of the focus centers on models used to estimate “fair value” and the disclosures that can, and should, be made regarding their use. Auditors frequently lack the training needed to effectively test fair value measurements. Worthy of note are the findings of a study conducted by the Public Company Accounting Oversight Board (PCAOB) that identified 123 audit deficiencies related to fair value estimates and asset impairments in 2010 (out of a total of 234 general audit findings).

In May 2012, Acuitas, Inc., an Atlanta, GA based valuation and decision con-sulting firm, prepared and issued a compilation (http://goo.gl/qWLV8) of these findings. The report found that the primary causes of the deficiencies were attributed to fair value measurements and impairments. The fair value mea-surement deficiencies resulted from the increasing complexity of audits arising from the recent economic crisis (e.g., audit complexity rises with the level of bias and judgment used by management to develop estimates and assumptions). The impairment deficiencies were noted as resulting from “the failure to adequately

test management’s projected financial information assumptions.”

Fair value methodology applies to a wide variety of transactions and measure-ments. Examples include purchase price allocations, tangible and intangible asset impairment testing, and patent and trade-mark value assessments. Auditors frequent-ly turn to outside experts to assist with the evaluation of fair value measurements. If one is interested in becoming a fair value practitioner, it is advisable to become well-versed in regulations and methodolo-gies related to fair value measurement and obtain a valuation credential.

An appropriate credential will be a valuable marketing tool to help CPAs distinguish themselves as a competent and adequately trained valuation service provider. The Accredited in Business Valuation (ABV) credential is available only to CPAs with a valid license or certificate and is supported by AICPA (visit aicpa.org/ABV for details). Other valuation creden-tials are offered by the American Society of Appraisers (ASA) and the National Association of Certified Valuation Analysts. AICPA and ASA credentials also have minimum valuation-related experience and education requirements. All of these credentials require an exam. v

New group aims to increase diversity in

CPA profession

The American Institute of CPAs has cre-ated the National Commission on Di-

versity & Inclusion to serve as a champion of diversity within the accounting profes-sion. The formation of the commission re-flects a renewed focus on diversity within the profession and the need to increase the retention and advancement of under-represented minorities to better reflect the clients and communities CPAs serve. The 15-member commission is comprised of representatives from minority professional advocacy groups, CPA firms, state CPA societies, and leaders from business and industry, government, and education. The first meeting was held in mid-September. The group plans to meet quarterly. Details can be found at http://goo.gl/PCTmj. v

Resources, guidance for states considering state tax tribunals

More than half of the state CPA societ-ies have helped their states adopt

independent state tax tribunals (either in the judicial or executive branch). In the 2012 legislative session, Georgia and Illinois enacted bills, and the issue was also considered in Alabama, Louisiana, Oklahoma, and Pennsylvania. The AICPA Tax and State Legislative and Regulatory Affairs teams have developed a resource (http://goo.gl/fWfTl) to help state societ-ies pursue a tax tribunal bill or expand the representation rights of CPAs before existing state tax tribunals.

The position paper includes the issue, background information, potential value of such a tribunal to taxpayers, and spe-cial commentary on how to protect CPA mobility when state tax tribunal legisla-tion is under consideration. If you have any questions about this issue or want to discuss a unique situation related to tax tribunal laws or case law in your state, please contact Mat Young, vice president, State Regulatory and Legislative Affairs, [email protected] or Eileen Sherr, senior technical manager on the AICPA Tax Team, [email protected]. v


News & Views

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515.279.1111 • 888.226.0400FAX 515.279.8788

[email protected]

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duce, or mitigate, such risks to an accept-able level. Company management also usually requires some follow-up actions or monitoring to be sure such recommend-ed changes are actually implemented.

The fraud investigations that I have conducted have varied greatly. Many think asset misappropriation or finan-cial statement fraud involves complex transactions. While this may be the case in some circumstances, a majority of the fraud committed is perpetrated by an individual who has complete control over an entire aspect of a business. For ex-ample, several embezzlement cases I have investigated consisted of a person who wrote checks to themselves or increased their payroll checks and buried the unau-thorized distributions in various expense accounts. Since there were no controls in place to catch these types of fraud, they continued for significant periods of time before they were discovered.

Forensic accounting services are of sig-nificant value to our clients. These services can help a business identify the amount of a misappropriation for insurance or civil or criminal proceedings. In addition, the services can assist management in designing and implementing a system of internal controls. While such controls are never foolproof and cannot prevent fraud, a good system of internal controls will be able to identify that fraud is occurring in a timely manner and reduce the risk of loss.

This is an exciting practice area that continues to grow and is projected to multiply in size in coming years, leaving plenty of opportunity for interested indi-viduals to begin an exciting career path. I would be happy to visit with members considering such a move. v

Joni Tonnemacher is a shareholder with McGowen, Hurst, Clark & Smith PC, West Des Moines. She can be reached at [email protected].

Forensic accounting: All that jazz

Continued from page 1

FVS report on the financial expert

witness role

The American Institute of CPAs (AICPA) Forensic and Valuation Services

Executive Committee, in collaboration with the Institute for the Advancement of the American Legal System (IAALS) at the University of Denver, has written a report that outlines five recommenda-tions to improve the legal system and better serve the public interest. This effort calls on CPAs, attorneys, judges, and other stakeholders of the civil justice system to consider and potentially implement these recommendations to maximize both the effectiveness and efficiency of financial expert witnesses in the civil pretrial process. Learn more about this first for CPA forensic accountants at http://goo.gl/T0fYg. v

Changes coming to internal audit

standardsBy Daniel Hood, Accounting Today

The Institute of Internal Auditors (IIA) has announced that a set of revisions

will be made to internal auditing stan-dards. The 18 revisions to International Standards for the Professional Practice of Internal Auditing, which are mandatory under the IIA’s Professional Practices Framework, became effective on January 1, 2013.

Key changes include:

• Clarifying the responsibilities of internal auditors and the chief audit executive (CAE);

• Increasing focus on the quality as-surance and improvement program requirements and clarifying ways in which conformance can be achieved;

• Clarifying the CAE’s role in communi-cating unacceptable risk;

• Explicitly requiring timely adjustments to the internal audit plan;

• Ensuring the audit plan covers risks to achieving strategic objectives; and,

• Adding more examples of what con-stitutes “functional reporting to the board.” v

Boost your online presence, engage

your current clients

To help you reach consumers online, the American Institute of CPAs has

created ready-to-go Google ads. (http://goo.gl/PXbd4) To learn how to optimize your online presence, read this AICPA blog post. (http://goo.gl/bDP7o) In addition, the Tax Practitioner’s Toolkit (http://goo.gl/jcix5) has other resources, including tax blurbs (http://goo.gl/fvjyI), which cover a wide range of tax topics that can be added to client communications. v


Member Focus

Welcome, New Members!Jodi R. CooperProfessional Medical ManagementWest Des Moines, IA

Jennifer M. DiedrichDeloitte & Touche LLPVancouver, British Columbia (Canada)

Miranda K. FuessleyMcGladrey LLPCedar Rapids, IA

Stacy M. ListMcGladrey LLPCedar Rapids, IA

Brian M. McLennanErnst & Young LLPDes Moines, IA

Aaron M. PrieksatAviva USAWest Des Moines, IA

Brady L. QuinnMcGladrey LLPCedar Rapids, IA

Chad W. RegnierWilliams & Company PCLeMars, IA

Ezra RubiDeloitte & Touche LLPDavenport, IA

Andrea S. RumlerWinkel Parker & Foster CPA PCClinton, IA

Tia SamoDraper Snodgrass Mikkelsen & Co PCCreston, IA

Exam-Qualified Affiliates:Rebecca C. CovertErnest & Young LLPDes Moines, IA

Alan HoWest Des Moines, IA

Marcus B RippentropMcGladrey LLPDes Moines, IA

Members in the NewsThe following personnel have recently

joined McGowen Hurst Clark & Smith PC, West Des Moines: Mike K. Jensen as staff accountant and Walter L. Dietschweiler as senior auditor.

Heath E. Beck, formerly with KPMG LLP, Des Moines, has joined CasterFrame PC, West Des Moines, as tax manager.

The following personnel with CliftonLarsonAllen LLP, Cedar Rapids, have been promoted: Joshua R. Barta to manager and Missy N. Emerson to senior associate.

The following personnel with CliftonLarsonAllen LLP, West Des Moines, have been promoted: Matt J. Wittkop and Jamie M. Edwards to manager. Lori A. Willyard, formerly with Ernest & Young LLP, Des Moines, has joined the firm as manager.

Katherine M. Kerker, formerly with Carney Alexander Marold & Co LLP, Waterloo, has joined Friendship Village, Waterloo.

Welcome, Student Affiliates!Drake UniversityTinh N LeTimothy RugglesAndrew C. Shawd

2012 life members

For 40 consecutive years of membership in ISCPA, 41 CPAs achieved life member

status in 2012. See the entire list of life members here. >> www.iacpa.org/Mem-bers/life_mbrs.aspx. v

Thank you, PAC contributors

Political action committees (PACs) are a critical element in financing election

campaigns of congressional, state, and local candidates. ICPA/PAC provides an op-portunity for CPAs in Iowa to support can-didates who understand the needs and concerns of the profession. One hundred and sixty-seven Society members have contributed to ICPA/PAC from December 1, 2011, to November 30, 2012. See the list of contributors here. >> www.iacpa.org/Libraries/publications/2012PAC.sflb.ashx. v

Succession planning: The elephant in the CPA office

In the past six months, Cindy Adams, executive director, has crisscrossed the

state, meeting members and asking what can the Society do for them. Owners of CPA firms had a singular response: Help us with developing our firm’s succession plan.

The December 2012 issue of Public Practice E-News featured the first in a series of articles on succession planning written by Bill Reeb, CEO of Succession Institute, LLC, Austin, TX. Reeb is also a CPA and has addressed members at two ISCPA annual meetings in the past. He received rave reviews both times. Reeb has been consulting for three decades to all sizes of businesses, from Mom-and-Pop opera-tions to Fortune 100 companies, primarily in the areas of organizational structure

and processes, governance, automation, and revenue generation. He has written or co-written five books and has just finished his newest book, to be published in the first few months of 2013, currently titled Getting Unstuck: The Way of the Black Belt to Success and Happiness.

In the first article of his series, Reeb shares a list of issues that every good suc-cession plan should address, in order of importance. He also discusses a number of issues that are commonly focused on first, and explains why they should be considered later down the road. Take a look at Reeb’s article to learn more about the fundamentals of a succession plan. (www.iacpa.org/Libraries/publications/pp1212_1.sflb.ashx) Also, watch for up-coming CPE classes on this topic. v


Presorted StandardU.S. Postage

PAIDDes Moines, IowaPermit No. 3433

CPE Spotlight

Join the discussion on…

March, April seminars for

business & industrySioux Falls, South Dakota

Case Studies for the Financial Manager: Real-World Lessons Learned (4 hours)

March 26Essential Skills for the Survival and

Growth of Your Organizations (4 hours) March 26

AICPA’s Annual Update for Controllers March 27

Des Moines AreaEthics in the Real World (4 hours)

April 22

Financial Analysis in a Metrics Driven World (4 hours)

April 22

Chief Financial Officer: Executive Level Skills for Financial Managers

April 23

2013 staff trainingAHI Staff Training

Basic: September 4-6

Semi-Senior: November 13-15

Beginning In-Charge: June 3-5

2013 conferencesIowa Governmental

RoundtableMay 21

Technology ConferenceJune 6-7

Insurance Industry Conference

June 24

Fall Tax & Accounting ConferenceSeptember 26-27

Exempt Organizations Conference

November 8

Grain seminarsCourse highlights will include accounting, auditing and review, tax, grain warehouse and dealer regulations. Specific locations

to be determined.

May 30 – Western IowaJune 5 – Eastern Iowa

June 12 – Des Moines area

ACPEN monthly webcast

Small Business Entity Tax Forms Workshop

2013 annual meetingMay 10

Morning session speaker: David Rendall, professor and stand-up

comedian

Dead Leaders: Lessons from the Lives and Violent Deaths of the World’s Most

Influential PeopleHoliday Inn Airport, Des Moines

Iowa CPA | January 2013

ISCPA Tax Preparer Campaign 2013

ISCPA promotes CPA tax preparers

The ISCPA Public & Professional Rela-tions Committee is about to embark

on the second year of an image campaign to promote the value of CPAs as the best choice to prepare individual and small business taxes. The Society’s campaign will mostly take place in February and March 2013, the same timeframe as the American Institute of CPAs’ campaign.

2013 elements are a banner print ad (see other side) and two radio spots produced by AICPA with the Iowa Society of CPAs tagged as a sponsor. These are the same elements as used in last year’s campaign, which started in February and concluded in early April 2012.

The banner ad will be placed twice in the following newspapers: Cedar Rapids Gazette, Davenport Quad-Cities Times, Dubuque Telegraph Herald, and Waterloo/Cedar Falls Courier. It will also be placed January through April 2013 in the new, statewide edition of the Business Record, which is distributed the second Friday of the month.

Two 60-second radio spots, one targeting business owners and the other directed at individuals, will air from mid-February through mid-March. The venues are the Iowa Radio Network (63 stations, statewide); KDRB and KLTI in central Iowa; and KHAK and KDAT in eastern Iowa. v

Thanks, 2012-2013 Public & Professional Relations CommitteeThe Society commends the following members for their service to the committee.

Marty J. Fredericks (chair)Kiesling Associates LLP, West Des Moines

Kim L. Jacobsen (board rep.)Timmins Kroll & Jacobsen LLP, Urbandale

Michael J. BootsmaIowa State University, Ames

Chad M. BrandmeyerCliftonLarsonAllen LLP, Cedar Rapids

Beth M. BrockwayRobert Half International Inc, Des Moines

Jody L. Galloway Homesteaders Life Company, Des Moines

Kathleen A. KoenigMcGowen Hurst Clark & Smith PC, West Des Moines

David N. LesterCity State Bank, Norwalk

Anita K. NorianKemin Industries Inc, Des Moines

Amy R. VogtPrincipal Financial Group, Des Moines

Angela K. WagnerMcGowen Hurst Clark & Smith PC, West Des Moines

Promoting the value, services of CPAs

While most people do not think CPAs

wear green eye shades or pocket protectors, some still fall prey to unfavorable stereotypes. For example, in 2011, Bob Lutz called his diagnosis of the demise of General Motors Car Guys vs. Bean

Counters: The Battle for the Soul of American Business, Penguin Books. The Society’s Public & Professional Relations Committee strives to counter this type of bias and en-hance the image of the CPA by promoting value and services. In this interview, chair Marty Fredericks comments on how the committee accomplishes its goals.

Q: How would you describe the work of the Public & Professional Relations Committee?

The committee purpose is to “Further public awareness of the profession and enhance the CPA image.” We work with a marketing and public relations consultant, who brings contemporary and exciting ways to get our message out. Because funds are limited, we target Iowa business owners and corporate decision makers. We counter the negative by focusing on the positive: the many ways CPAs can help our target group be more successful in businesses and personally.

Each year, we review several ideas and venues. In addition to consultants, com-mittee members offer ideas that are work-

ing at their places of employment. Then, we reach a consensus on which will best implement a statewide effort and give us the most “bang for our buck.”

Q: Why should members consider volunteering for this committee?

I’m fortunate enough to chair a committee that has many talented and enthusiastic members who are not shy about sharing their opinions about the direction our group should take to pro-mote the value of the CPA. We are excited about our profession and everyone’s voice is heard during our meetings. We really work well together in getting the word out about the advantages of using the services and skills of a CPA.

Q: What is your story on becoming involved with the committee?

The main reason I decided to volunteer for the committee years ago was because our profession had fallen out of favor with the general public. It was after the Enron debacle, when several corporations had also gone bankrupt and CPAs were some-what responsible. I was passionate about helping to rebuild our image and restore our status as trusted professional advisors.

I respected the other committee mem-bers and our board representatives. I felt becoming the chair would be no different than being a member of the team. We are true collaborators. v

Marty Fredericks is partner with Kiesling As-sociates LLP, West Des Moines.

Marty Fredericks

Iowa CPA | January 2013

Thanks, 2012-2013 Taxation Committee

The Society commends the following members for their service to the com-

mittee:

Kurt J. Konek (chair)Konek PC, Prairie City

K. Dwayne Vande Krol (board rep.)Nyemaster Goode PC, Des Moines

Heath E. BeckCasterFrame PC, West Des Moines

Lambert J. Blank JrLambert Blank Jr MST CPA PLC, Clive

Kelly P. BrickleyHacker Nelson & Co PC, Decorah

Edwin J. BurdorfBurdorf Parrott and Associates PC, Emmetsburg

Anna S. DehrkoopD D Pyle Company PC, Ames

Ruth R. LongRuth R Long, CPA, Creston

Dennis R. MartinDennis Martin CPA PC, Oelwein

Stephanie A. MendenhallStephanie A Mendenhall CPA PC, Humeston

Paula J. MillsErnst & Young LLP, Des Moines

Michael A. PerryInternational Management Solutions, Bettendorf

Michele C. SibleSchuring Uitermarkt Sims McCleish, Urbandale

Todd E. ThorsonKiesling Associates LLP, West Des Moines

Charlotte M. UpahUpah Income Tax & Bookkeeping Service, Toledo

wherever they choose. Committee mem-bers also assist our law makers by updat-ing the annual guidebook that focuses specifically on taxation impacting state legislators. Volunteers write numerous articles each year for Iowa CPA and post comments for the members-only LinkedIn group. And, whenever members need individual, technical assistance, they can contact one or more volunteers on the Tax Consultation Service.

Q: What is your story on becoming involved with the Tax Committee and what goals have you had as chair?

Being a member of the committee allows me to have ongoing, personal contact with federal and state represen-tatives. It helps me stay knowledgeable on current taxation issues and become aware of those on the horizon. I have also appreciated the rewarding opportunities to work with a considerable number of committee members over the years to effectively communicate tax law changes to Society members and the public.

I agreed to chair the committee be-cause I enjoy being involved with organiza-tions that can positively impact the CPA profession. As chair, my goals have been to:

•Continue projects which align with the committee’s purpose.

•Expand the promo-tion of the CPA desig-nation to the general public, particularly as it relates to our knowl-edge in the taxation area.

•Meet with more federal and state representatives to discuss current tax issues, where appropriate.

•Find new ways to offer technical as-sistance to members.

Q: How would you sum up your com-mittee year?

As a committee, we had a great year in 2012. We met with representatives from several state and federal agencies (the IRS, the Iowa Department of Revenue, the Iowa Department of Labor, and the Iowa Department of Workforce Development) and drafted articles for the Iowa CPA to assist in keeping members informed of cur-rent activities and issues. v

Kurt Konek owns Konek PC in Prairie City.

Tax connectionsContinued from page 1

Kurt Konek

CPAs should talk up tax expertiseBy Jina Etienne

Three years ago, the IRS launched the tax return preparer oversight program.

That means more competition is coming and it will influence the public perception of tax return preparers. Unfortunately, the public doesn’t really understand the differ-ence between a CPA and other tax return preparers.

When do you need to start building your new value proposition? Yesterday. And how do you do this? Develop a val-

ue-centric firm culture, then educate your staff on the importance of value-based client communications. Once you know your value and live it every day, clients will never have to guess.

Read the entire AICPA Insights article at http://goo.gl/Ve4Z2. v

Jina Etienne is a CPA and director of taxation, the American Institute of CPAs.

IowaCPA - January 2013

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