The Georgia Society of CPAs Your GSCPA … · The Georgia Society of CPAs ... Barbara J. Evans, CPA...
Transcript of The Georgia Society of CPAs Your GSCPA … · The Georgia Society of CPAs ... Barbara J. Evans, CPA...
May/June 2016 | Volume V, Issue 3
2016 Legislative Session:Bills Important to the CPA ProfessionPAGE 14
PAGE 8
T h e G e o r g i a S o c i e t y o f C PA s
T h e G e o r g i a S o c i e t y o f C PA s
WORKS FOR Y UYour GSCPA Membership
RENEW YOUR M
EMBERSHIP TODAY!
To
renew your
membership,
please visit
www.gscpa.org.
Your Profession, Your Voice
To register, visit the event catalog at www.gscpa.org or call GSCPA’s CPE Department at 404-504-2985.
GSCPA Clusters gives you the
opportunity to design your own unique
education series and earn up to 16 hours
of CPE credit.
During this two-day event you can
choose from 12 different sessions across
three tracks of study: Accounting and
Auditing, Tax, and Management.
• Mix and match tracks to gain a
breadth of knowledge or deepen
your expertise in a specific area of
study by following one track.
• Attend all sessions over two days, or
come for morning or afternoon only
sessions
• Attend in person or log in from your
home or office via live stream—this
is education your way.
Spring ClustersMay 19-20, 2016GSCPA LEARNING CENTER
ATLANTA, GEORGIA
LIVE STREAM ATTENDANCEAll Clusters seminars are available to live stream
Live stream allows you to attend from your home, office or anywhere you can access the Internet. You view
the sessions in real time as part of the audience and have interaction with other attendees via chat areas.
For more information or to register, visit olc.gscpa.org or call 404-504-2985 or 800-330-8889, Opt. 3.
May/June 2016 3
GSCPA OFFICERS 2015-2016CHAIRJ. Lowell Mooney, Ph.D., CPA
CHAIR-ELECTBarbara J. Evans, CPA
TREASURERRodney L. Chandler, CPA
SECRETARYBoyd E. Search, CAE
IMMEDIATE PAST CHAIRTerry I. Parker, CPA
GSCPA DIRECTORS2015-2016FIRST OF A TWO-YEAR TERMK. Scott CollinsKaren C. DrescherG. Tom HarrisonLee Ellen FieldsJames W. Freeman
SECOND OF A TWO-YEAR TERMJennifer W. Birtz, CPA Amanda J. Carman, CPA Kirk J. Jarrett, CPA Ben P. Lee, CPA
Current Accounts is published six times a year by The Georgia Society of Certified Public Accountants (GSCPA). Statements and opinions expressed are those of the authors and not necessarily those of GSCPA. Publication of an advertisement does not constitute an endorsement of the product or service by GSCPA. Articles may be reproduced with permission. Copyright 2016 Current Accounts.
EDITOR-IN-CHIEFJamie P. Etzbach
DESIGNERFaith B. Ellis
CEOBoyd E. Search
COOGreg A. Wilder
VICE PRESIDENT, LEGISLATIVE AFFAIRSDon P. Cook
T h e G e o r g i a S o c i e t y o f C PA s
FEATURES
SOCIETY NEWS
8 | YOUR GSCPAMEMBERSHIP WORKS FOR YOU
14 | 2016 LEGISLATIVE SESSION: BILLS IMPORTANT TO THE CPA PROFESSIONDon P. Cook
5 | CEO MESSAGEBoyd E. Search, CAE
7 | CHAIR MESSAGEJ. Lowell Mooney, Ph.D., CPA
26 | STAY INFORMEDWITH GSCPA INTEREST COMMUNITIES
28 | ANNUAL CONVENTION
30 | MEMBER NEWS
32 | CPE
34 | CLASSFIEDS
36 | SELF-STUDY TEST
38 | MEMBER VIEWEncouraging the Best and the BrightestBeverly Smith, CPA, CFE,CGMA, MBA
Contents
COLUMNS16 | TAXATIONWhile You Were Away:Tax Updates from the 2016 Filing SeasonAnson Asbury, J.D., LL.M., Arthur Auerbach, CPA, CGMA, and Brian Gardner, Esq.
18 | A&AEmployee Benefit Plan Audit Quality IssuesChris Rouse, CPA
20 | INDUSTRYTaking an Innovative Approach to Communication in the Corporate World Peter A. Margaritis, CPA
22 | TECHNOLOGYTablets, Accounting, and Technology ChangesCalvin J. Wong
24 | FRAUDIdentifying ProbableDeception Through Observation and BehaviorDon Berecz, CPA, CFE, CFI
16
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Current Accounts4
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May/June 2016 5
Understanding and Valuing ExperienceBoyd E. Search, CAE
CEO MESSAGE
I’ve been thinking a great
deal lately about wisdom
and the value of experience.
I started piecing together
some thoughts that I could
share right here. Then I
came across a piece by my
good friend and colleague
Gary Bolinger, and I
thought why not just share
his very words. If you know
me, you know I am rarely at a loss for words, but experience
has taught me to sometimes just let others say it:
If I knew then …
Well. Have you ever said that? If I knew then … what I know
now. Or even if you didn’t say it, maybe you thought it. Of
course you have! We all do!
That’s life. We all learn from experience. Once you learn to ride
a bike, you never seem to forget. You may get a bit rusty, but
you really never forget. It’s like playing a musical instrument,
you don’t forget. You lose your “chops” but you still know
“how.” But actually doing the how part is what’s difficult. I
speak from experience on that one. As a long time drummer
who still understands the rudiments, but with execution that is
now iffy at best.
Experience is a great thing. As we go through our day, we
should keep in mind a very important aspect of “experience.”
And it isn’t just reserved for “old people.” Age is not the
determining factor. I am surrounded by younger people who
have all kinds of experience that I don’t have. Maybe they have
traveled somewhere that I am planning to visit and they can
give me some tips. Those tips are valuable because I don’t have
that experience. I don’t know which sights to see or restaurants
that are the best.
Or they may have some technology skill that I need to be
more aware of. Young people today become proficient using
technology at very early ages. By the time they hit college or
the workforce, they are ready for anything. And they also seem
better at adapting as technology changes because they have
grown up with it and have that familiarity where updates and
changes don’t phase them.
On the other hand, more “mature” people simply have more
experiences. Now that is a factor of age. Some experiences I
have had, I didn’t learn from. Why? I just didn’t understand
the potential value of that experience. I do think that as you
mature you do understand the value of experience more and
more. With a toddler, new experiences are just part of growing.
They learn to walk, to talk and to communicate – slowly at first
and then more effectively. But they aren’t thinking about the
value of the experiences as they acquire those skills.
No matter how you look at it, experience is valuable. Incredibly
valuable. What experience is most valuable to you? Have you
had some experiences that you didn’t learn from? If so, are you
now able to understand what you might have failed to learn
and how to take advantage of those opportunities?
The problem is, we don’t understand the value of experience
until we have it. So, I encourage you to take advantage of every
opportunity you have to gain experience. Especially the new
ones.
Gary Bolinger, CAE is the President & CEO of the
Indiana CPA Society
T h e G e o r g i a S o c i e t y o f C PA s
Current Accounts6
June 16, 2016 | Cobb Galleria Centre, Atlanta, Ga.
Event Codes: 13001 | LS13001
8 hours of CPE credit with a possible 3 hours of A&A (CLE credit applied for)
Real Estate Conference
The real estate market presents ongoing challenges for financial professionals. The ever-changing real
estate market requires CPAs like you to be on top of the latest changes, techniques, and strategies to
help your clients succeed.
The 2016 Real Estate Conference will provide you with everything you need to know on topics
ranging from a commercial real estate update with forecasts, challenges and opportunities; transit-
oriented and economic development; conservation easements and the impact green space has on the
community; accounting update for the real estate industry; and cybersecurity.
Who Should Attend: CPAs, CFOs, controllers, financial planners and financial professionals working
with real estate clients or real estate organizations.
The Georgia Society of CPAs
To register, visit the event catalog at www.gscpa.org or call GSCPA’s CPE Department at 404-504-2985.
May/June 2016 7
As I struggled to organize
my thoughts for this final
message, the lyrics from one
of my favorite musicals came
to mind: “Let’s start at the
very beginning…” So here
goes. I can never thank you
enough for the opportunity to
serve as Chair. My life, both
professionally and personally,
has been enriched in more
ways than words can express.
Like the mighty SOARING eagle, GSCPA remains at the top of its
food chain as I conclude my term. With its gifted and innovative
leadership and cutting-edge technology, the Society is executing
in an extraordinary way its mission to provide superior advocacy,
leadership, service, lifelong learning, and personal and professional
development opportunities to all of its members.
I’ve always taken pride in being an accountant. After all, how
many professions have been around for 10,000 years? But my
appreciation and respect for our profession and its future have
increased tremendously after working and interacting with so
many of you during this year. Sure, the profession has had its ups
and downs, yet it is ENDEARING. Why? Because we always step
up and face our challenges head on. We’re doing exactly that right
now as we reinvent our peer review process and our approach for
measuring how we learn.
As you know, the AICPA periodically conducts a practice analysis
for the purpose of REALIGNING the Uniform CPA Exam with
the knowledge and skills required of newly licensed CPAs. The next
version of the Exam, which a group of our fellow members helped
craft, will increase the assessment of the higher-order skills (e.g.,
critical thinking, problem-solving, and analytical ability) that today’s
CPAs need to protect the public interest.
By now, you know of my love for history. The first time the title
“CPA” was used in Georgia was 1903. You have to admire the wisdom
of those seven men who formed GSCPA just two short years later. If
you haven’t had the opportunity to visit the History Hall in the Society
office, I encourage you to stop by and spend some time enjoying
highlights from our past. Sometimes I worry that I spend too much
time looking through the rearview mirror, but I just have to believe
that time spent VALUING our past is not time wasted.
In my most recent message, I challenged us to move outside our
comfort zone. In this era of mindboggling change and complexity, if
our profession is to compete successfully then we must attract and
value diverse talent. We have a task force currently exploring different
ways of helping us do that. While there is certainly a strong business
imperative for EXPANDING our tent, we must also do it because it’s
the right thing to do.
All in all, it’s been a great year. The GSCPA executive team of Boyd
Search, Greg Wilder, and Don Cook, is, in a word, outstanding. In
addition, I worked with every director, Elizabeth Cook (membership
and communications), Jamie Etzbach (publications and marketing),
Jessica Mytrohovich (accounting), Jen Oleksa (CPE), Calvin Wong
(IT), and Jennifer Poff (peer review). They and their teams taught me
so much. Finally, I had the wise counsel and support of a great board:
Barbara Evans, chair-elect; Rodney Chandler, treasurer; Terry Parker,
immediate past chair; and statewide directors Jennifer Birtz, Amanda
Carman, Scott Collins, Karen Drescher, Lee Ellen Fields, James
Freeman, Tom Harrison, Jr, Kirk Jarrett, and Ben Lee. As my year
ends, my optimism about GSCPA’s future could not be higher.
I especially want to acknowledge the love and support of Paula and
our kids, Jessica, Sarah, and Christopher. Paula’s wise counsel
influenced by her invaluable been there-done that experience no
doubt minimized my “Oh-my-gosh” moments and my children’s
patience waiting on me to make decisions or get back into town was
greatly appreciated. I also had strong support from Tim Pearson,
director, and Dwight Sneathen, Tim Cairney, and my other colleagues
at Georgia Southern.
In closing, thanks again for this great honor. Good luck, Barbara!
We’re ANTICIPATING great things from you and team GSCPA in
the year ahead.
AnticipatingJ. Lowell Mooney, Ph.D., CPA
CHAIR MESSAGE
T h e G e o r g i a S o c i e t y o f C PA s
Current Accounts8
WORKS FOR Y U
THE GEORGIA SOCIETY OF CPASVISION, MISSION, AND CORE PURPOSEVisionOur vision is to enhance the accounting profession.
MissionOur mission is to achieve excellence in the practice of
accounting in all forms.
Core PurposeWe achieve excellence by providing superior advocacy,
leadership, service, lifelong learning and personal and
profession development opportunities.
FEATURE
STRATEGIC PRINCIPLESUnderstanding Members’ Needs GSCPA programs are and will continue to be designed
to meet the needs of the members. But in order for
that to happen, GSCPA must have a clear picture of the
varied interests and challenges of our 14,000 members.
Member input through such varied activities as volunteer
engagement, focus groups and surveys will all play
a part in helping to develop a real understanding of
member needs.
your ASSOCIATION
The Georgia Society of CPAs (GSCPA) is privileged to serve as your partner in creating value
for you as members, promoting the importance of the CPA credential and helping you meet
the challenges created by the ever-shifting landscape CPAs now face. Your GSCPA membership
is a critical part of a successful career in the accounting profession.
As a CPA in Georgia, you have a tremendous impact on our great state through your work
with business and individuals. No matter what area of the profession you’ve chosen,
The Georgia Society has resources to assist you. Whether its up-to-date information and analysis,
continuing education provided by the leaders of the profession, or serving as your voice before legislative
and regulatory bodies, GSCPA is prepared to advance your career and your profession.
With everything GSCPA has to offer, it’s easy to see why the majority of Georgia’s CPAs call GSCPA home.
Your GSCPA Membership
May/June 2016 9
Your GSCPA continued on page 10
FEATURE
Recruitment Recruitment impacts us on two fronts: growth in GSCPA
membership and growth in the profession. Attention to
membership growth is vital to our association’s long-
term health. But equally as important is the growth
of the profession through the attraction of the best
and brightest leaders of tomorrow. GSCPA and its
Educational Foundation work to see that both remain
successful priorities.
Technology-Oriented As technology advances, so will GSCPA. The Society will
continue to invest in technology that gives us actionable
intelligence and that also allows members to access the
many services and benefits offered to them through a
variety of platforms; GSCPA will continue the push to
make membership benefits and resources available at
your fingertips.
Increase in Legislative and Regulatory Presence As CPAs our voice has a unique perspective and GSCPA
strives to give power and influence to that voice. Simply
put, we want GSCPA to be the premier professional
proponent and advocate within the regulatory and
legislative community. With events like CPA Day at the
Gold Dome and our new Key Person program we’re
making great progress at turning up the volume of the
voice of Georgia’s CPAs.
Opportunities for Member EngagementAssociations are about the power of members. Through
an active and engaged member base, GSCPA will be
able to deliver upon the totality of this strategic plan.
The power of the collective in advocating for, protecting
and advancing the profession can be seen through our
member leaders.
Pursuit of Excellence GSCPA strives to be an organization of excellence that
is recognized as such by the profession, the public and
policy makers. As the premier professional organization
for CPAs in the state of Georgia, we will continually
endeavor to be the primary resource for the pursuit of
excellence in the profession, for continuing education,
for news and information, and for the protection of the
interests of both the profession and the public.
membership SNAPSHOT
Public Accounting 51%
Industry 27%
Students 8%
Lifetime Members 6%
Other 3%
Government 2%
Education 1%
*Excludes student members
Boomers 44%
Gen X 30%
Millenial 14%
Greatest 8%
Unknown 4%
PRACTICE AREA
GENERATION
GENDER
Male 57% Female 43%
AVERAGE AGE
MEMBERSHIP NATIONWIDEGSCPA has members in 41 states. Florida has the second most
members, and Alabama has the third most.
50
1-10 members11-50 members51-100 members101-150 members151-200 membersNo members
Current Accounts10
‘‘
FEATURE
The Georgia Society of CPAs understand that staying
on top of your professional news can feel overwhelming,
and we are committed to helping you stay ahead
of the curve. From tailored e-newsletters to videos
highlighting hot topics, GSCPA brings you the latest
news, insider perspectives and in-depth analysis. From
Current Accounts and The Voice to gscpa.org, Interest
Communities and GSCPA Studios, GSCPA is the official
source of professional information for Georgia’s CPAs!
After learning that I could earn two hours of CPE just for
reading Current Accounts, I decided to make the investment
of time for the CPE gain. I quickly learned that while
gaining two hours of CPE, I was also exposed to relevant
information, applicable stories, and it was a win overall.”
SAM LATIMER, CPA
The Georgia Society of CPAs recognizes that continuing
education is crucial not only to advance you as an
accounting professional, but also to improve the
profession as a whole. As a GSCPA member, our top-
quality offerings upgrade your knowledge while also
providing you with convenient options to fulfill the
requirements for keeping your CPA license up-to-date.
GSCPA understands that your time is valuable, and we
are committed to assisting you in getting the most out
of your CPE hours. GSCPA’s catalog of events available
to you as a member includes an extensive range of
subject matter and ensures that time and distance are
no longer obstacles to you in obtaining the CPE you
need and want.
GSCPA always says that membership pays for itself once
you register for two or more conferences. I checked, and I
actually paid for my membership two times, saving over
$400 in 2015 by taking my CPE hours from GSCPA!”
CARLA HATTERSON, CPA
Visit www.gscpa.org today to check out GSCPA’s online
event catalog. This customizable catalog gives you
access to GSCPA’s largest suite of education options.
Browse and modify your selections to find speakers,
topics and platforms that best fit your needs.
your CONTINUING EDUCATION
The Southeastern Accounting Show, held annually in
August, is GSCPA’s showcase event spanning two days
and offering 18 hours of CPE in seven tracks of study.
your NEWS
‘‘
2016 EDUCATIONAL EVENTS
20
325 90
CONFERENCES
SEMINARS LIVE STREAMS
May/June 2016 11
FEATURE
The Georgia Society of CPAs is committed to promoting
and safeguarding your highly regarded CPA credential
and profession. GSCPA works to ensure that the public
understands the true and unique value that CPAs
provide. As a CPA in Georgia, the profession benefits
from and takes pride in the contributions you make that
place the profession at the pinnacle of the business
community.
By utilizing the collective voice of almost 14,000
members throughout the state, The Georgia Society
places the interests of the profession front and center
as decisions are being made at the statehouse as well
as within Congress. As part of GSCPA’s continuing
efforts to magnify the role of CPAs and the accounting
profession, we maintain an aggressive legislative agenda.
GSCPA supports the efforts of local elected officials by
providing our CPA members as experts who are uniquely
skilled and qualified to offer input and advice.
As GSCPA members, you see the value and impact you
can make by contacting your elected officials. In 2015,
GSCPA saw record numbers of PAC donations and
key people.
Take advantage of
the newest addition
to gscpa.org, GSCPA
Studios. GSCPA Studios
features short videos
summarizing and
highlighting hot topics
and recent developments
related to the profession
along with recaps and
insights on GSCPA
events and conferences.
16,180
GSCPA Interest Communities provide members with
tailored web pages, private LinkedIn groups and
dedicated emails to advance the specific areas of
knowledge that interest you. This online tool brings you
relevant information and unique resources. Join as many
as you like and the best part is, they are free!
your PROFESSION
Georgia CPAs out in force at the Gold Dome to meet
with their elected officials and act as a resource to
Georgia’s General Assembly.
Your GSCPA continued on page 12
E-NEWSLETTERS IN NUMBERS
5000UNIQUE
SUBSCRIBERS
22,137UNIQUECLICKS
GSCPAcommunities 10 INTEREST
COMMUNITIES
NEWSLETTERSSENT
469
TOTAL SUBSCRIPTIONS
Current Accounts12
FEATURE
The Georgia Society is focused on positioning you for
greater success. As the home of the CPA profession
in Georgia, GSCPA is dedicated to expanding your
professional network and industry insight. GSCPA
provides countless opportunities to meet with fellow
CPAs and accounting professionals who will enhance
your life both professionally and personally. As GSCPA
members, you understand the importance of sharing your
expertise and talents while also increasing the awareness
of popular issues that are important to the public and the
CPA profession.
From taking a survey to speaking at an event to writing
articles and giving your time, The Georgia Society benefits
from the time you take to give back to your profession,
your community and your association. Two key examples
of GSCPA members responding to the needs of the
profession are The Annual Georgia Accounting Food Fight
and GSCPA’s Millennial Money Program.
Our profession has a strong and proud culture of giving back.
Participating in this annual food and fund drive competition
is a great opportunity for accountants to help their neighbors
in need.”
LOWELL MOONEY, PH. D., CPA, GSCPA CHAIR
THE EDUCATIONAL FOUNDATION OF THEGEORGIA SOCIETY OF CPAS
The Educational Foundation continues to
focus on its mission of encouraging the best
and the brightest individuals in Georgia to
become certified public accountants. The
Foundation accomplishes this mission through
the sponsorship of programs and scholarships.
It is only able to do so through the generous
support of GSCPA members.
I give to the Foundation annually because I can
see how valuable my dollars are in the number of
scholarships that are awarded each year. I feel like
my donation really helps accounting students pursue
their degree and goal toward becoming a CPA.”
J. ALLEN POOLE, CPA
your CONNECTION
‘‘
I took the time to meet with my reps and let them know that
I am available as a resource and that I am knowledgeable on
the issues that are facing the profession. I want to make sure
I develop a relationship with them and work to influence the
positions they take on issues that are important to me and
important to GSCPA.”
TOM HARRISON, CPA
Visit www.gscpa.org and review the legislative resources
available to you in the Advocacy tab. You can stay informed
on the status of current legislation, save the data for the
2017 CPA Day at the Gold Dome and influence the future by
becoming a key person.
‘‘
‘‘
The Educational Foundation Golf Tournament,
held annually to raise funds for scholarships and
institutional support, raised over $24,000 in 2015!
Visit Foundation.gscpa.org to donate today to
The Educational Foundation of The Georgia
Society of CPAs.
37Scholarships
Awarded
35$102,875
in scholarships awarded
$176,125in funds awarded total
Academic Excellence
Awards
May/June 2016 13
FEATURE
T h e G e o r g i a S o c i e t y o f C PA s
The Georgia Society of CPAs is looking forward to membership year 2016-2017! GSCPA will remain true to its vision, mission and core purpose, continuing to enhance the CPA profession in Georgia. Above all, GSCPA will remain the focal point for CPAs throughout Georgia by providing superior advocacy, leadership, service, lifelong learning and personal and profession development opportunities.
Thank you for your GSCPA membership and your commitment to the CPA profession!
For more information on the many advantages of your membership in The Georgia Society of CPAs,
visit the Membership tab of GSCPA’s website, www.gscpa.org, or call the Member
Services Department at 800-330-8889, extension 2986.
Since its inception in 2014, the Georgia Accounting Food
Fight has collectively raised $197,260 and 21,237 pounds
of food. The second annual Georgia Accounting Food
Fight raised 11,376 pounds of food and $100,006.
During the third annual financial literacy day, Millennial
Money, a one-day outreach initiative, 144 GSCPA
members visited middle school classrooms where they
taught basic financial concepts, such as saving, investing
and budgeting to almost 6,500 eighth graders.
We created Millennial Money to help students understand
that a budget is a tool they should use to make smart
choices about saving and spending money. Eighth grade is
the right age to begin developing financially smart saving
and spending habits that can produce a generation of more
fiscally responsible adults.”
LYNN VIARS, CPA, CHAIR OF GSCPA’SFINANCIAL LITERACY TASK FORCE
In 2016, Millennial Money will take place on Thursday,
November 17. Registration will be available in August.
your GSCPA
With more than 400 volunteers just on GSCPA’s Board
of Directors, Leadership Council, chapter officers and
committees, task forces and special groups, GSCPA
thanks ALL of our volunteers for their dedication.
‘‘
T H A N K Y O U !
Current Accounts14
FEATURE
2016 Legislative Session: Bills Important to the CPA ProfessionDon P. Cook
The 2016 Legislative Session began on Monday, January 12 and ended on Friday, March 25. All bills that passed both the House and Senate have now been sent to Governor Deal. The Governor has 40 days, or until May 3, to review the bills that have been sent to him. He can choose to sign, veto or allow the bill to become law without his signature. A variety of bills for 2016 have an effect on Georgia residents, as well as the CPA profession directly.
Important Bills to Residents of GeorgiaHB 751 set the largest budget in our state’s history at $23.7 billion, an increase of $673.9 million, or 2.9 percent, over the amended FY2016 budget. It includes new transportation appropriations of $824 million, most of which resulted from the change in the gasoline tax under House Bill 170 in 2015. The 2017 budget includes cost of living adjustment (COLA) pay raises totaling three percent for teachers, school bus drivers, school nutrition employees and school nurses, as well as three percent for state employees. This bill passed both houses and awaits the Governor’s signature.
HB 722/SB 145, when it was first introduced as HB 722 this bill included a model for growing marijuana for medical purposes in Georgia. This model was removed in the House Judiciary Non Civil Committee after multiple hearings. The committee issued a substitute bill, which added to the conditions that can use medical marijuana to treat their symptoms. Ultimately this bill passed the House twice and was never heard in the Senate.
SB 369 is a substitute bill to include provisions related to MARTA expansion. The bill adjusts how TSPLOST dollars can be used in Atlanta and Fulton County, and would provide long term transit funding to the City of Atlanta if first authorized by voters. This bill passed both Houses and awaits action by the Governor.
HB 757, known as the Free Exercise Protection Act (formerly the Religious Freedom Restoration Act), passed in the House (104-65) and Senate (37-18) after extensive debate in both chambers regarding changes to the bill. This was easily the most contentious bill that came up this session. The bill was vetoed by Governor Deal on March 28, 2016.
Important Bills to the CPA ProfessionHB 742 (Conformity Bill) was signed into law on February 23, 2016. HB 742 is an annual Internal Revenue Code (IRC) update that incorporates certain provisions of federal law into Georgia law. The bill passed the House 174-0 on January 28, and passed the Senate 51-1 on February 9. HB 742 provides an effective date and applicability (in this case, for taxable years beginning on January 1, 2015), and repeals any conflicting laws that may exist.
It’s important to note that the Georgia conformity bill is written in such a manner that it mirrors the legislative changes that were made federally during 2015 with some exceptions. As written, some of the big pieces of this year’s conformity bill are:
• Section 179 deduction fully matches the feds (made permanent and for tax year 2015 will be $500,000, and will be adjusted for inflation starting in 2016).
• The phase out of the Section 179 will fully match the feds (this is now permanent and for tax year 2015 will be $2,000,000).
• Georgia W-2’s will be due from employers by January 31.• The tax due dates that changed with the IRS have been
added to this bill and will change with Georgia as well.
HB 951 is a state sales tax bill relating to major sporting events (i.e. the Super Bowl), and would position Georgia as a more competitive bidder for major sporting events. It also contains a provision for a back to school sales tax holiday
May/June 2016 15
FEATURE
(July 30-31, 2016) and energy efficient products sales tax holiday (September 30 - October 2, 2016). This bill passed both houses and awaits the Governor’s signature.
HB 952, the Georgia Professional Regulation Reform Act, provides for antitrust immunity for professional licensing boards. This immunity is achieved through added executive oversight of the boards to ensure they have clearly articulated rules, regulations and policies in place. The Supreme Court recommends the oversight not entail day-to-day involvement of a Boards operations or decision making. Rather, the oversight involvement should be limited to ensure that any perception of anticompetitive conduct promotes state policy which is not anticompetitive. As currently drafted, HB 952 might be interpreted as creating broader oversight and red tape than is necessary or meaningful. This bill passed both houses and awaits action by the Governor.
HB 960 provides for added confidentiality of certain tax information and provides for a more equitable interest rate on overpaid and underpaid taxes that will adjust to reflect changes in the prime rate. This bill passed both houses and awaits the Governor’s signature.
Other Bills of InterestHB 364 is legislation to assist the airport concessionaires by clarifying the law that possessory interests in property are not taxable and should not be included on the county tax digest. This legislation provides a method for return of the digest by the department of revenue and a method to take county tax assessors to a tax tribunal for failing to follow the law. This bill passed both houses and awaits the Governor’s signature.
HB 727 allows for local control on the regulation of fireworks while also allowing for more sales of fireworks from tents. This bill passed both houses and awaits the Governor’s signature.
HB 779 regulates the use of unmanned aircraft systems (drones). Except for military or governmental contracts involving research, it is unlawful to sell, manufacture, possess, or operate an unmanned aerial vehicle that is equipped with a
weapon. All drones must be registered and licensed. This bill passed both houses and awaits the Governor’s signature.
HB 991 provides that a tax collector or tax commissioner shall waive the collection of penalties and interest incurred upon default that occurred due to a taxpayer’s military service in a combat zone if the taxpayer pays the underlying tax liability within 60 days of the end of such military service. This bill passed both houses and awaits the Governor’s signature.
HB 1014 extends the sunset date to Dec. 31, 2021 of the existing exemption for donation of real property for conservation use. This bill passed both the House and Senate and awaits the Governor’s signature.
HB 1036 relates to the exercise of power of eminent domain for construction of petroleum pipelines. If signed into law, this bill will temporarily suspend work on the Palmetto Pipeline until 2017. Similar legislation has been considered in South Carolina that impacts construction of the same pipeline. Bill passed both houses and currently awaits the Governor’s signature.
HB 544 (Campus Carry Bill) permits anyone 21 and older who passes extensive finger print and background checks to carry a firearm on public school property. Excluded areas where carrying is allowed is dormitory, fraternity/sorority houses or athletic events. This bill passed both houses and awaits action by the Governor.
Stay InformedThe Georgia Society will continue to monitor future legislation and keep the momentum moving in the right direction. With potential changes and challenges ahead, GSCPA continues to actively participate in the legislative process.
For more information on legislation and representation or to locate your local representatives, visit www.gscpa.org. For questions on the above bills contact Don Cook, vice president, legislative affairs at 404-504-2935 or [email protected].
Don P. Cook is the vice president of legislative affairs at The Georgia Society of CPAs. He is responsible for legislativeadvocacy on behalf of the CPA profession in Georgia. Don is a registered lobbyist in the state and works on thegrassroots training of GSCPA members while providing education on why members should strongly considersupporting the GSCPA-PAC.
T h e G e o r g i a S o c i e t y o f C PA s
Current Accounts16
We return again to update you on tax news you may have
missed while you were away with busy season. Outside of
the IRS, not much has changed since January: the political
parties still haven’t chosen a presidential nominee; the
Braves still play in Fulton County; and Willie Nelson is on
the road again. Here’s what the IRS has been doing.
New GuidanceAdditional Guidance for Reporting Foreign
Accounts and Foreign Assets – On March 1, 2016,
FinCen issued a Notice of Proposed Rulemaking that
applies to financial professionals who file FBARs as part
of their employment responsibilities.1 The proposed
rulemaking removes the provisions that limited the amount
of information reported when a filer has 25 or more foreign
financial accounts. The proposed rule requires detailed
account information from financial professionals on all
foreign financial accounts for which they are required to file
an FBAR.
Application for Change of Accounting Method -
Remember how many questions we had about Form 3115
with the new repair regulations last year? Well, the IRS
decided to update the form with a new revision date of
December 2015. The changes were released on April 4 in
IRS Announcement 2016-14.2 New Form 3115 should be
used beginning on April 19, 2016, so it’s fine if you filed the
old form during busy season. Also note that the duplicate
copy (not attached to the return) required by Rev. Proc.
2015-13 should no longer be sent to Ogden, Utah. The new
address is Internal Revenue Service, 201 West Rivercenter
Blvd., PIN Team, Mail Stop 97, Covington, KY 41011-1424.
Annual Return/Report of Employee Benefit Plan -
New lines were added to Schedules H, I, and R of Forms
5500 and 5500-SF for 2015. However, in guidance released
on February 25, 2016, the IRS has advised plan sponsors
to skip (yes, skip) these questions when completing the
form.3 The new questions on Form 5500 include Preparer
Information, and these lines:
• Schedule H, Lines 4o-p, 6a-d
• Schedule I, Lines 4o-p, 6a-d
• Schedule R, New Part VII (Lines 20a-c, 21a-b, 22a-d,
and 23)
On Form 5500-SF, the new optional lines are:
• Preparer Information (page 1 bottom)
• Lines 10j, 14a-d, and
• New Part IX (Lines 15a-c, 16a-b, 17a-d, 18, 19, and 20)
IRS Extends Due Date of Form 8971 to June 30,
2016 - On March 4, 2016, the IRS finally published
temporary and proposed regulations under Section 1014(f)
and 6035.4 Section 1014(f) requires that the basis of certain
TAXATION
While You Were Away: Tax Updates from the 2016 Filing SeasonAnson Asbury, J.D., LL.M., Arthur Auerbach, CPA, CGMA, and Brian Gardner, Esq.
May/June 2016 17
TAXATION
property acquired from a decedent may not exceed the
value of that property as finally determined for federal
estate tax purposes, or if not finally determined, the value
of that property as reported on a statement made under
Section 6035. Because of the new regulations, the IRS
released Notice 2016-27, extending the deadline to file
Form 8971 or furnish a statement under Section 6035, for
returns that were due prior to June 30, 2016 is now June
30, 2016.5
Examination & Controversy IRS SB/SE Visiting Non-Compliant Businesses - On
February 23, 2016, the IRS reissued guidance to Collection
Officers recommending a field visit to the taxpayer’s
business within 15 days of the receipt of a Failure to Deposit
alert.6 Failure to Deposit alerts are issued to taxpayers that
are semiweekly depositors who have not made Federal Tax
Deposits during the current quarter or are making deposits
in substantially reduced amounts.
New Examination Guidelines from LB&I - In
February, the IRS released Publication 5125 and
corresponding updates to Internal Revenue Manual
section 4.46 outlining extensive changes to the Large
Business & International examination process effective
May 1, 2016. The updated procedures emphasize issue-
based examinations, the preservation of penalties, and
mandatory IDR enforcement procedures if responses are
not received by the agreed date.7 LB&I enforces U.S. tax law
for corporations, partnerships and individuals with assets
greater than $10 million.
New Industry Issue Resolution Program - The
IRS released its new Industry Issue Resolution Program
(IIR) in Revenue Procedure 2016-19, effective April 25,
2016.8 The requester should be an organization or group
of entities that represents a significant cross section of the
entities with the particular tax issue, e.g. a retail industry
group that represents large, nationwide retailers requesting
pre-filing guidance on a Section 263(a) capitalization issue
common to all member retailers. There is no required form
for IIR requests. Interested parties may submit a request
at any time by e-mail to [email protected]. Practitioners
should keep in mind that all IIR requests can and will be
disclosed to the public under the Freedom of Information
Act so submissions should not include confidential or other
taxpayer specific information not intended for disclosure.
Anson Asbury, J.D., LL.M. and Brian Gardner Esq. represent individuals, partnerships and closely-held businesses in tax controversy and tax litigation matters for Asbury Law Firm in Atlanta, Ga.
Arthur Auerbach, CPA, CGMA is an independent tax consultant located in Atlanta, GA, specializing in tax consulting and estate and financial planning for individuals and closely-held businesses.
T h e G e o r g i a S o c i e t y o f C PA s
1 Financial Crimes Enforcement Network; Amendment to the Bank Secrecy Act Regulations—
Reports of Foreign Financial Accounts, 81 Fed. Reg. 12613 (proposed March 10, 2016) (to be
codified at 31 C.F.R. 1010).2 Announcement 2016-14, 2016-14 I.R.B. 535.3 IRS Compliance Questions on the 2015 Form 5500-Series Returns at https://www.irs.gov/
Retirement-Plans/IRS-Compliance-Questions-on-the-2015-Form-5500-Series-Returns (last
visited April 10, 2016).4 The new information reporting requirement was created by the Surface Transportation and
Veterans Health Care Choice Improvement Act, Pub. L. No. 114-41.5 IRS Notice 2016-27, 2016-15 I.R.B. 576.6 IRS Memorandum, SBSE-05-0216-0009 (February, 23, 2016).7 For more on the mandatory IDR enforcement program and IRS summonses, See, R.S.V.P.: Late
Responses Trigger Mandatory IRS Enforcement, Current Accounts, The Georgia Society of CPAs,
November/December 2014.8 Revenue Procedure 2016-19, 2016-13 I.R.B. 497.
Current Accounts18
A&A
At the April 2016 Georgia Society Employee Benefit Plan
Conference, the Department of Labor representative
discussed the findings in the Audit Quality Study released
by the DOL last summer. It was certainly not good news.
The DOL found that firms that audit 24 or fewer employee
benefit plans had deficiencies in about 70 percent of the
audits reviewed, and even firms that audit 25 to 99 plans
had deficiencies in about 40 percent of the audits. And
what all the speakers at the conference agreed on was that
the deficiencies in the study were valid deficiencies, that is
they were important audit procedures required by generally
accepted auditing standards.
The AICPA Peer Review Program selected about 90 peer
reviews performed in 2014 and experienced auditors
reviewed some “must select” audit and attest engagements
that the peer reviewers had looked at. The AICPA experts
found that about 40 percent of the engagements had one
or more deficiencies, which is consistent with the DOL
study and consistent with findings by others, including the
President’s Council on Integrity and Efficiency, the PCAOB
and other regulators. Yet peer reviews have consistently
found less than 10 percent of the audits have one or more
deficiencies. In response to this difference in peer review
findings and the findings of others, the AICPA has made,
and continues to make, changes in the peer review program
to improve the effectiveness of the program, and has
undertaken an Audit Quality Improvement Initiative.
Let’s focus on what auditors need to do better on employee
benefit plan audits to improve the profession’s standing with
the regulators. First and foremost, document who did what,
what they found and what they did about it. As the DOL said
at the Conference, “You get credit for what you document,
not what you know.” The lack of documentation required
by GAAS was probably an important factor in the largest
area of deficiencies–internal controls. Some practitioners
may argue that of course they understood the plan’s internal
controls, but think a moment–did all of the staff understand
the controls in the areas they were performing tests in? Did
the audit team recognize deficiencies in internal control and
report them to plan management and plan governance?
One of the key reasons ERISA requires plans to have
audits is so plan management and governance receive an
independent view of areas the plan needs to do better in
taking proper care of participant retirement accounts. If
the plan’s controls over everybody being in the plan that
should be (and vice versa) aren’t adequate, that should
be recognized by the auditor and reported to the plan.
If controls over a participant’s contribution election
aren’t what they should be, the plan should know about
it and correct it. If controls over calculating how much
a participant should receive as a pension benefit aren’t
sufficient to insure the likelihood of an error is less than
remote, GAAS requires the auditor to communicate the
deficiency to management.
Employee Benefit Plan Audit Quality IssuesChris Rouse, CPA
May/June 2016 19
A&A
T h e G e o r g i a S o c i e t y o f C PA s
The next area of deficient audit work was in engagement
planning, specifically in understanding the provisions of the
plan and developing audit procedures specific to the risks
in the plan’s provisions. If participation is complicated, or
if contributions are complicated, then audit tests should
be more robust than in a plan where participation and
contributions is not complicated. Yet the DOL found that
auditors used exactly the same audit program in both
cases. Generally accepted
auditing standards are
clear that audit programs
should be tailored
for the risks that the
financial statements are
materially misstated, and
planning is when auditors
understand the plan’s
provisions, communicate
with management and
governance about the
plan’s operations, perform
planning analyticals, assess
fraud risk and write the
audit programs.
The third area of highest
deficiencies was participant account work. In my view,
this is the whole purpose of a limited scope audit, and
GAAS requires this work to be exactly the same whether
the audit is a full or limited scope audit. Congress gave
plans the opportunity to have a limited scope audit because
they were not concerned about investments held by banks
and insurance companies that were regulated for that
custodial function. Instead they wanted auditors to make
sure that participant eligibility, contributions, investment
elections, account income, distributions and forfeitures
were being handled in accordance with the plan’s provisions
and the participant’s instructions. Yet over half of the
audits performed by firms doing five or fewer audits had
deficiencies in testing participant accounts, and even the
firms doing many plan audits had a preponderance of their
deficiencies in the area of
participant account testing.
If there is anything that will
drive the DOL to increasing its
oversight of plan auditors, I
expect this is it.
There are lots of beans in
the study, and I encourage
all auditors of employee
benefit plans to go to the
DOL’s website, or the AICPA
Employee Benefit Plan Audit
Quality Center website, and
obtain the study and review it.
Not just the overview, but drill
down into Appendix II and
III, which is where the beans
are displayed. Grade your firm’s plan audits against the
findings in the study, and then make appropriate changes
in how you perform your audits. If we want to maintain
oversight of ourselves, we must improve our work product
or else the users of our audit service will demand someone
else oversight it.
Chris Rouse, CPA is an audit and accounting director at Windham Brannon, PC. He has spent his career with Big-8 and large local firms and has served primarily audit clients in his career, including clients in the real estate sector and the financial services industry, manufacturing, distribution and service entities, not-for-profit entities and employee benefit plans.
Current Accounts20
INDUSTRY
What makes a company or corporation great? What is it
that makes them truly stand out among their competitors?
It is by using an innovative approach to the way they
communicate with clients and with each other during day-
to-day inner workings. That innovative approach is found in
the principles of improvisation to promote a simpler, more
effective way to work as a team. Improv is more than stand-
up comedy. At its foundation, improv is about leadership.
Invite Productivity by Holding an Improvisation WorkshopThe foundation for effective leadership is active listening.
When leaders are listening to their employees and engaging
them using the skills learned from improv, growth happens.
Improvisation promotes cooperation and with greater
cooperation, productivity goes up. The principles of improv
fundamentally create productive interactions because it
forces people to truly listen to one another. Many companies
are discovering the powerful effect this has on the way
teams work together. It also has a profound effect on the
way clients feel. It shifts the atmosphere of the entire
corporation into feeling more energized because it will be.
“Yes, and…” is the glue that holds it all together. It is
the basic skill used when two people stand on stage to
improvise. They are not allowed to tell each other no.
Replacing the words ‘No’ and ‘yes, but’ with the phrase
“yes, and…” any chance you get will invite active listening
and valuable input in return. So much is communicated by
that phrase. It is supportive and respectful. It focuses the
conversation rather than shutting it down. It shows you
are listening to the other person and trust what they have
to offer. “Yes, and…” ties all the fundamental principles of
effective communication into a practical and productive
two-word tool that will cause companies to stand up and out.
In today’s dynamic market, companies need to be adaptable
and improv training is great for business. The next
generation wants to have fun. It has really struck a good
nerve amongst the millennials who have been more exposed
to improvisation classes in business schools and the popular
show Whose Line is it Anyway. They are driving the face
of corporate solutions by sparking creative thinking and
ending the corporate jargon that has left innovation stale.
Death to Jargon and Birth to CreativityWe all have some of our favorite “buzz words” we like to
use, and some we can’t stand. They are great at creating
imagery, but is it the kind of imagery that allows everyone
to be on the same page? Think about a few of these common
corporate buzz words used in a lot of meetings and emails
during the day-to-day. Do they create a clear path or is there
just a buzz in the room? Here are some common buzzwords
and what I think of when I hear them:
• Benchmarking: my photo on a bus stop bench
• Back of the Envelope: we need more legal pads
• Go the Extra Mile: a sweaty dude
• Best Practices: a Hallmark card
Taking an Innovative Approachto Communication in theCorporate WorldPeter A. Margaritis, CPA
May/June 2016 21
None of these buzz words mean anything anymore. Too
many of them in the conversation and the listeners, if they
are even that anymore, tune out. They are empty words
and provide very little clear direction and no focus that
employees can rally behind. With no clear direction, stress
increases and productivity goes down. It becomes everyone
doing what they think ‘best practices’ means.
What if we replaced the jargon with a simpler and more
precise speak? A company that states the customer service
policy as “we strive to provide top notch service to all of our
customers” can be innovatively replaced with “we listen to
the customers and meet their expectations.”
“Yes, and… lets hold a quarterly brainstorming session
with all the employees to think of ways we can show the
customers we are listening.”
INDUSTRY
Improvisation promotes innovative thinking by taking
the conversation and pushing it forward into the future.
That is what a good leader does. Ed Herbstman, who is a
cofounder of the Magnet Theater, a New York based theater
conducting corporate training, has even helped teach
courses for companies like Google. He said, “When you’re
the person saying yes to other people, they start to bring
you their best ideas. When you’re meeting things habitually
with ‘yes, and,’ with an energy of agreement, you transform
the way people perceive you.”
When there are more people willing to speak up with their
ideas because they know they will be heard, employees take
a more vested role in the job they have. Their performance
goes up. People get excited about seeing their vision, no
longer just the “head hancho’s” vision, begin to take shape.
It is what sets companies up on the stage while others are
left looking for a chair in the audience.
Peter A. Margaritis, CPA is a speaker, educator, trainer, humorist, and self-proclaimed chief “edutainment” officer for The Accidental Accountant™. Partnering with the Business Learning Institute, his firm helps accountants and other business leaders to increase their profitability by strengthening their business success skills and improving morale through better communication. He is a member of the Ohio Society of CPAs, The Georgia Society of CPAs, National Speakers Association, and the American Institute of CPAs. Peter is also the Author of Improv Is No Joke: Using Improvisation to Create Positive Results in Leadership and Life. www.theaccidentalaccountant.com
T h e G e o r g i a S o c i e t y o f C PA s
Current Accounts22
TECHNOLOGY
Tablets, Accounting, andTechnology Changes
Technology advances have business tools heading toward
major changes within the next five years. Most workplaces
are moving away from good old desktop towers and going
in a variety of different directions, including all-in-one PCs,
tiny, thin clients that fit in the palm of your hand, laptops
in their latest, thinner and lighter iteration, and tablets that
are deceptively powerful.
After the release of the original Surface Pro, Microsoft
has released many iterations of its laptop replacement
tablet, and the current Pro 4 is an excellent device. It is
quite powerful and includes the latest Intel processors
(codenamed Skylake), along with the fast solid state drives
(SSD), bright and sharp 12-inch screen, and improved type
cover.
Enter Apple and its iPad Pro lineup. Aiming to take a piece
of the business market for themselves, the iPad Pro has a
few tools and accessories to make it a formidable device.
The iPad Pro sports a keyboard port where it magnetically
connects and supplies power to the keys. While not in
use, the keyboard snaps magnetically back on to itself and
becomes a part of the cover to protect the screen while not
in use. It also has an Apple Pencil, an accurate stylist pen
that is pressure sensitive, which gives creative types like
designers, artists and photographers additional business
tools.
Which option is best for CPAs, and what should be the long-
term business goals be when choosing a device?
In the past year, Windows tablets such as the Surface Pro 4
and numerous others have tried to enter the market as the
next must-have device for enterprise and small business
users. Interest in them have increased tremendously in
many industries. Delivering power comparable to laptops in
a much coveted form factor has led to its adoption for many
companies seeking mobility.
As for the iPad Pro, many major program developers have
released iOS versions of their desktop software, most
notably Microsoft Office and Adobe Creative Suites. They
are now much less watered down than previous iterations.
Tax software built for individuals and companies like
Quickbooks now have apps and online services to run on
both iOS and Windows devices, which opens the door for
businesses to transition to tablets and utilize cloud-based
software. CaseWare Cloud, CCH Axcess and others have
already developed cloud-mobile friendly applications and
allows for work on tablets as main workstations. Check with
your vendors for your software prior to considering going to
a new type of device.
When using one of these tablets, the first thing you will
notice is the size of the screen. The smaller iPad Pro is
9.7” and the regular sized one is 12.9” whereas the Surface
Pro is 12.3.” If screen size is important to you, tablets may
not be your thing. The iPad Pro does not have capability
to use multiple monitors; you can use Apple TV to mirror
your screen onto a larger monitor. The Surface Pros have
Calvin J. Wong
May/June 2016 23
TECHNOLOGY
Calvin J. Wong, director, information technology, plans and executes information technology for The Georgia Society ofCPAs, overseeing new technology integration, infrastructure maintenance and updates. He is the correspondent betweenthird party technology vendors of the Society.
docking stations that enable multiple monitors (up to
three, including the Surface display) while also provide
an Ethernet connection and additional USB ports. Also, if
you are a fan of number key pads, they are non-existent on
tablet keyboards. You will need to get one separate from the
typical setup.
What are the cons of tablets? Limited choices in terms of
models with limited features due to size. For example, the
Surface Pro only has one stereo audio jack, one USB port,
one micro SD slot and one Mini DisplayPort. The iPad Pro
only has a keyboard connector and a lightning port. Other
tablets from major manufacturers may have up to two USB
ports but since tablets are much smaller they lack the space
to physically provide additional connectors normally found
on laptops. Gone are Ethernet ports and VGA/HDMI ports.
You would need to buy additional adapters in order to
connect to those interfaces.
If the cons are not a big deal to you, the tablets offer a great
deal in terms of quality of life. Carrying these around from
meeting to meeting or traveling will quickly give you a sense
of thankfulness for not having to carry around a much
heavier laptop.
What else are we in store for? Many companies are going
to virtualized desktops on cloud servers and this opens the
door to using less powerful computers since you are using
server-level hardware powering your computing through
a remote application. This, of course, requires internet
service to work. Speaking of virtual, 2016 will be the year
of virtual reality and though it might not affect you or
your business this year, the technology could open doors
to new companies and clientele that eventually will affect
accounting in the years to come. Who knows, perhaps
having virtual workspaces will become the norm.
T h e G e o r g i a S o c i e t y o f C PA s
Microsoft Surface Pro 4 Apple iPad Pro
Current Accounts24
Identifying Probable Deception Through Observation and Behavior
Your interviews will involve many truthful people who
are basically relaxed, cooperative, and helpful. You
may notice the truthful person to be:
• slightly curiousness and interested in the
conversation and your job
• angry and irritated because you are checking their
knowledge, performance and compliance with the
procedures of their employer
• nervous and pondering if there is something they
know or discovered, that maybe they should have
been previously reported
These scenarios are known as outside issues, and
should be considered before mistakenly labeling this
truthful person as deceptive concerning substantive issues.
Let’s focus on the behavior of an assumed
deceptive person. The interpretation of probable
deceptive behavior is not an exact science. With practice
and experience, it is a powerful technique for identifying
issues requiring follow-up questioning – questioning that
most untrained and inexperienced interviewers might
not recognize or even consider. Let’s consider the best
human lie detector ever, the mother. She can reliably
detect probable deception of her child over 90 percent of
the time. This is true because she is the person that spends
the most amount of time with her child. She has been
observing and calibrating her child since birth and can
recognize abnormal threatened behavior.
In a professional setting, reliably spotting
deception is not easy, but like a fraud discovered –
there were probably some red flags that could have been
recognized earlier. When someone withholds significant
information, the threat of being detected of deception
with consequences pushes liars into the “flight or
fight syndrome.” Beyond their control, their brain starts
sending signals to their body to prepare it to get ready to
run from, or to confront and conquer, the threat. A liar may
be able to disguise deception to some degree on any one
moment, but cannot totally control nonverbal behavior 100
percent of the time over the course of an interview involving
good questions. Stress and leakage overcomes the mind’s
ability to disguise everything.
All interviews should start with general questioning
that is nonthreatening and allows you to calibrate
(norm) your interviewee for truthfulness. Ask
(discuss) routine simple background information for which
you already know the answers, or fully expect truthful
answers. “So how long have you been in your current
position, and what proud accomplishments have you
achieved?” “Tell me what you like about your job and this
firm.” Once you have a feel for their truthful behavior, start
your fact finding and then slowly move to the sensitive and
key questions. Start listening for inconsistencies. Keep
your eyes up to observe behavioral clue changes to certain
questions or question areas. Ask open-ended questions
Don Berecz, CPA, CFE, CFI
FRAUD
This is the second in a series of three articles and will discuss identifying probable deception through your observations and
interpretations of the interviewee’s behavior. The previous article discussed professional interviewing techniques and the
gathering of factual information. The article after this one will discuss the methods you should consider using for convincing
someone to provide truthful information that they are withholding.
May/June 2016 25
Don Berecz, CPA, CFE, CFI is a polygraph examiner, retired FBI agent and currently the director, fraud examination and forensic accounting at Georgia Southern University. Georgia Southern offers a Fraud Examination Certificate for undergraduates and a Forensic Accounting Certificate for graduate students. For more information on these programs, visit http://coba.georgiasouthern.edu/soa/fraud-forensic-accounting/
(“Tell me about…”) that should require explanations. You
cannot evaluate their behavior based on quick-response
closed-ended questions that elicit a simple “yes” or “no.”
Don’t react to any probable lies that are not
material or significant. Everyone tells socially acceptable
lies (5 - 14 times a day), or minimizes potentially threatening
information to themselves. Your goal is to keep the person
talking. Control your reactions when you think
you have identified probable deception. Keep your
professional and supportive conversation going without
revealing your discovery of their possible inconsistency. If
you need to, lightly clarify possible deceptive areas with soft
follow-up questions such as, “I don’t understand..?”
If you become adversarial in their eyes, they will start
shutting down on you and stop talking. Be curious,
nonjudgmental, and when necessary, help the interviewee
save face when they admit a mistake (“That could happen to
anyone…”).
Your chances of spotting hidden deception through
their statements is less likely than through their
physical behavior. Less than 10 percent of true
communication comes out through the verbal
(the words) channel. However, some verbal red flags
to deception could include responses that are told in a
cumbersome and unbalanced nature, and answers which are
qualified, too detailed or too vague in certain areas.
Be prepared to observe inconsistent physical
body movements, and listen for voice changes.
These two areas represent more than 90 percent of true
communication that the deceptive cannot completely
control. As you listen to their explanations and observe their
behavior, be aware for timely nonverbal changes in behavior
not consistent with their words and truthfulness, such as:
Changes in body movements (physical behavior):
• Unusual head tilts, facial expressions, forced smirks,
blushing or white out
• Eye contact that is too little or too much, or changes
at the wrong time
• Arm, hand, finger, leg, foot movements, or sudden
repeated scratching of certain areas
• Posture slumps or tension, breathing that gets
extremely slower or faster
Changes in the voice (tone):
• Volume changes get louder or softer
• Pitch changes that get higher or lower
• Speed of delivery changes that get faster or slower
• Responses which are too quick or too slow
Remember that no one action by a person you are
interviewing is conclusively a sign of their deception…unless
you’re interviewing Pinocchio.
Summary
The majority of people you interview will be good,
professional, and truthful individuals with some normal
unexpressed concerns. Good interview techniques and
questioning will get you useful and factual information.
Coordinating your interviewing efforts to include a proper
interpreting of their behavior, should affirm that the
information they provided can generally be relied on.
Prepare to identify probable deception, and know you
then have a problem area that needs to be addressed and
resolved. Getting an admission of truth from a deceptive
employee is the theme of the next article in this series.
FRAUD
T h e G e o r g i a S o c i e t y o f C PA s
Current Accounts26
SOCIETY NEWS
Stay Informed with GSCPA Interest Communities
The Georgia Society of CPAs (GSCPA) is committed to
helping you stay informed of the latest industry news,
trends, and developments. Member surveys, focus groups,
and comments have made one thing clear—receiving
current news and information are important GSCPA
member benefits. With this in mind, GSCPA created
Interest Communities.
What is an Interest Community?GSCPA Interest Communities are composed of Society
members who share a common interest or specialty.
Interest Communities provide timely, professional news
and updates along with relevant educational events. Each
community represents a different specialty within the
field of accounting. There are 10 different communities to
choose from, you can join as many as you like, and the best
part—it’s FREE!
As a community member, you will receive biweekly
newsletters full of specially selected articles from a variety
of sources to ensure you receive the top stories and most
interesting reads.
Online community networking groups are also available
through LinkedIn, so you can connect with your peers and
exchange information.
As an Interest Community member, you’ll benefit from:
• Curated, biweekly newsletters
• Exclusive access to community web pages
• Expert insights, unique videos and resources
• Access to expertise through private, member-only
LinkedIn groups
• Customized, community-related continuing
education courses
“I have joined several interest communities and look
forward to receiving the biweekly e-newsletters because
they help me to stay informed on the latest issues that
impact my business and clients.”
Bona K. Allen, senior VP/CFO, Kajima Building & Design
Group, Inc.
Enhance your membership experience by joining one or
more of the following interest communities.
How much does it cost?Community membership is complimentary with your
Society membership.
Accounting &Auditing
$
123
Business & Industry
Estate & Financial Planning
Fraud & ForensicServices
Health Care InformationTechnology
Real Estate
Taxation Young CPAs
Managementof an Accounting
Practice
GSCPAcommunities
May/June 2016 27
SOCIETY NEWS
How many communities can I join? GSCPA members can join as many online communities as
they like.
How do I join an Interest Community LinkedIn group?Visit LinkedIn.com. In the search box at the top of any
page, type in the word “GSCPA” followed by the name of
the community that you would like to join. A list of search
results will appear. In the list, click on your chosen group,
and then click the Ask to Join button.
How do I join a community? Sign up for one or more of these online communities
by visiting communities.gscpa.org, or call the Member
Services Department at 800-330-8889, extension 2986.
How can I contribute?We invite members to write and submit articles for
publication consideration. This is a great opportunity
to share your knowledge with the membership at-large.
Interested members can learn more by contacting Liz King,
assistant manager, communications at 404-504-2937 or at
NEW! Have you heard?GSCPA has an exclusive video interview
series! In Focus features leading experts discussing topics of interest to the CPA profession.
This series of videos provides up-to-date
information and guidance to help you
advance as a professional.
Visit the GSCPA Studios section of GSCPA’s
website to watch the latest In Focus videos.
Recent In Focus videos: • Recruiting, Managing and Retaining
Young Talent
• Understanding How We
Communicate Subconsciously
• The Professional Development
Equation
• The CPA’s Expanding Role
• Accounting in the Digital Age
ADVISORY COUNCILSLooking for an opportunity to further serve the CPA profession and your professional association?
Volunteer to become a GSCPA Advisory Council member.
Each Advisory Council focuses on a specific interest area and intends to meet the following goals:
• Keep GSCPA members apprised of the latest trends and hottest topics
• Advise on content, analysis, and resources for the membership at-large
• Serve as GSCPA’s “Think Tanks” or “Thought Leadership Groups”
To apply to serve on a GSCPA Advisory Council, visit http://bitly.com/GSCPA-AC
Want even more value from your GSCPA membership?
Join an Interest Community today!
Current Accounts28
June 19-22, 2016 | Atlantis Resort | Paradise Island, Bahamas
GSCPA Annual Convention
SOCIETY NEWS
Annual Meeting - Monday, June 20 GSCPA’s Annual Meeting is open to all members in attendance. Don’t miss the chance to hear about what YOUR
association has accomplished over the past year and what’s in store for 2016-2017 as we welcome our new Chair of the
Board, Barbara Evans, CPA.
Highlights• Join us for the opening reception and dinner for networking and family fun on Sunday evening
• Try one of five delicious restaurants during dine arounds on Monday. The restaurants offer everything from
fresh seafood, to barbecue, to a taste of Caribbean cuisine.
• Explore everything the Atlantis Resort has to offer, including the famous “Leap of Faith,” the waterpark’s most iconic
waterslide, as well as sting ray and sea lion experiences and much more.
• Participate in a Nassau scavenger hunt or a snorkeling excursion as one of two optional activities.
TO REGISTER: Visit ac.gscpa.org
The Georgia Society of CPAs Annual Convention will be held June 19-22, 2016 at Atlantis Resort Paradise
Island, Bahamas. The convention is a family-friendly, fun-filled, four-day event allowing attendees the
opportunity to mix and mingle and meet new friends. CPAs can take advantage of the 11 hours of
CPE being offered on topics including professional issues, technology, leadership and generational
differences. Annual Convention promises something for everyone and allows you to escape to Paradise.
We look forward to seeing you at Atlantis!
May/June 2016 29
SOCIETY NEWS
SCHEDULE OF EVENTS
SUNDAY, JUNE 191 – 5 p.m. Registration
1 – 5 p.m. Exhibits Open
2:30 – 3:30 p.m. Trust Objectives vs. Tax Minimization:
What’s a Trustee to Do? -
Jim Underwood, CPA
3:30 – 3:45 p.m. Break
3:45 - 5 p.m. CPE Session - Patrick Bell
7 – 10 p.m. Opening Reception and Dinner
MONDAY, JUNE 207:30 – 9 a.m. Breakfast Buffet
7:30 a.m. – 12 p.m. Exhibits Open
8:30 – 9:30 a.m. Annual Business Meeting
9 – 11 a.m. Nassau Scavenger Hunt (optional)
9:45 – 11:15 a.m. Professional Issues Update -
Tim Christen, CPA
11:15 a.m. – 6 p.m. Explore Atlantis on your own
6:45 p.m. Dine Arounds (optional)
6 - 8 p.m. Past Presidents & Chairs Dinner (Invite Only)
9 - 10 p.m. Hospitality Reception
TUESDAY, JUNE 217:30 - 9 a.m. Breakfast Buffet
9 a.m. Snorkeling at Stuart’s Cove (optional)
1:30 – 4 p.m. Exhibits Open
2 – 3:20 p.m. Tips and Techniques on Public Speaking
and Presentation Skills -
Peter Margaritis, CPA
3:20 - 3:30 p.m. Break
3:30 - 4:50 p.m. Leveraging Your Leadership Through
Improvisation - Peter Margaritis, CPA
5:30 - 9:30 p.m. Kids Club (ages 5-12)
6 - 9 p.m. Chair’s Reception and Banquet
9 - 11 p.m. Hospitality Reception
WEDNESDAY, JUNE 227:30 – 9 a.m. Breakfast Buffet
7:15 a.m. – 12 p.m. Exhibits Open
8:30 - 9:45 a.m. Managing and Motivating Multi-Generations
in the Workplace - Understand Millennials
and More
9:45 - 10 a.m. Break
10 - 10:50 a.m. Technology Update - Calvin Wong
10:50 - 11 a.m. Break
11 a.m. - 12:15 p.m. Town Hall Meeting - Boyd Search, CAE
12:15 p.m. Adjourn
Courtesy blocks have been set up at several restaurants for
Monday evening. You will choose a restaurant upon arrival on
Sunday at the GSCPA registration desk. Please note: options
are at your own cost.
OLIVES (KID-FRIENDLY OPTION) http://bit.ly/OlivesAtlantis
Todd English’s take on Mediterranean cuisine offers a variety of
options from meat to fish to various pasta and flat bread pizza
dishes. The Raw Bar offers a variety of seafood daily.
NOBU
http://bit.ly/Nobu_Atlantis
Featuring various sushi dishes, squid pasta and other Japanese
fare, Nobu offers a different twist by mixing items such as
jalapenos and garlic sauce into the dishes.
CASA D’ANGELO http://bit.ly/CasaDAngelo
Enjoy a blend of Tuscan entrees, southern Italian accents and
Caribbean flavors at this award-winning eatery. Enjoy a drink
from their extensive wine list and make sure you close the
evening with their espresso-soaked tiramisu.
77 WEST http://bit.ly/77WestAtlantis
Atlantis’ newest restaurant offers South American cuisine with
a taste of the Caribbean.
VIRGIL’S REAL BBQ (KID-FRIENDLY OPTION) http://bit.ly/VirgilsBBQ
This family style dining venue offers all your classic BBQ favorites
and will make you feel like you are at home while in the Bahamas.
Dine Arounds
Optional ActivitiesNASSAU SCAVENGER HUNT
$30/adult; $20/child ages 2-11 (includes transportation) Explore Nassau and see the key sights on this scavenger hunt
filled with fun, adventure and lots of history about the area.
SNORKELING AT STUART’S COVE
http://bit.ly/StuartCove
$79/adult; $39/child ages 4-11 (includes transportation and gear) Join other attendees for an exciting snorkeling excursion with
Stuart’s Cove, one of the top snorkeling companies in the
world. First explore a shallow reef and see all the beautiful sea
life that call this area home; second, visit an underwater film
location of wreckage that is being turned into a reef; and third,
swim with reef sharks that reside in the area.
Current Accounts30
SOCIETY NEWS
PROMOTIONS AND NEW POSITIONSThe Atlanta office of Warren Averett has added the
following four professionals as members (the firm’s
equivalent of shareholders): Bryan Hirsch, Susan Hill, William (Billy) Minch and Wayne Williams, Jr.
Kirschner & Associates, PC is pleased to announce that
Susan Weeks, CPA has been brought on as a managing
partner. With that, the firm has adopted the new name of
Kirschner Weeks, LLP.
FIRM NEWSMetcalf Davis is pleased to announce they have entered into
a merger with Warren Averett, effective February 1, 2016.
Warren Averett announces Emerant Wealth, a
new fee-only, holistic financial planning solution for the
emerging affluent, the retiree and the professional.
Moore Colson has been named one of Atlanta’s 2016 Top
Workplaces by the Atlanta Journal-Constitution for the
sixth consecutive year.
Smith & Howard and Smith & Howard Wealth Management recently announced the launch of a new
program for Atlanta’s high school students: Smith &
Howard’s Advancement of Rising Professionals. The goal of
this innovative program is to introduce juniors and seniors
in Atlanta Public Schools to the potential of a career in
accounting or finance.
IN MEMORIAMWe sincerely regret the loss of the following members and
extend deepest sympathy to their family and friends.
Robert R. Ellison, Jr., Columbus, Ga.
Stephen J. Hersch, Johns Creek, Ga.
Alan L. Landis, Atlanta, Ga.
Paul A. Thomas, Watkinsville, Ga.
Member News
877-277-0272
www.AkinsProfessionalBrokerage.com
David L. Akins, CPALicensed Real Estate Broker
We Specialize in the Brokerage ofCPA and Accounting Firms.
CPA Partnerships uses our expertise in technology and innovation to create loyalty partnership programs for Accounting and Real Estate professionals to increase their revenue and build trust with their clients who invest in commercial real estate.
Free Estimate and Proposal for client
Wholesale rates offered to Accounting Partners
Free marketing materials for Accounting Partners
Comprehensive Cost Segregation final reports that are easy for Accountants to read
New Income stream for Accounting Firms
No AffiliaNo Affiliate or Partner fees
Online brochures
Presentation with company logo
Webpage to educate clients on the benefits of Cost Segregation
Steve Emerson
FREE UP CASH FOR YOUR CLIENTSFREE UP CASH FOR YOUR CLIENTS
(205) 807-4466
cpapartnerships.com/steve
costsegregationhelp.com/steve
May/June 2016 31
your EDUCATIONSave time and money through GSCPAeducational offerings.
Take advantage of innovative and timely topics taught by leaders of the CPA profession.
Enjoy flexible formats that meet your needs.
your NEWSStay informed on the latest news and analysisof the topics affecting your profession.
Receive frequent updates on industry changes through resources produced with you in mind.
Get the most out of your GSCPA membership by utilizing GSCPA’s top communication vehicles.
Benefits of MEMBERSHIP
your PROFESSIONJoin fellow GSCPA members and be an active part of the collective voice of Georgia’s CPAs.
Showcase your affiliation andcommitment to the CPA profession.
Invest in the future of the profession through recruiting the best and the brightest as CPAs.
your CONNECTIONExpand your influence and connect with adiverse group of almost 14,000 peers.
Gain access to numerous volunteer opportunities to give back to your profession and your community.
Utilize career guidance and professionaldevelopment to help you advance as a professional.
Don’t lose access to these and many more valuable member benefits–Renew today!Visit www.gscpa.org or call GSCPA Member Service at 800-330-8889 ext 2986.
Current Accounts32
SOCIETY NEWS
Early Standard Late
Members $255/$365 $315/$425 $355/$465
Nonmembers $355/$465 $415/$525 $455/$565
SEMINAR FEES - Member vs. Nonmember** (One Day Fee/Two Day Fee)
**Exceptions apply. See specific event information for more details.
June 7-8, 2016Annual Accounting and Auditing Workshop**Event Code: 06002 | GSCPA Learning Center, Atlanta
June 14, 2016AICPA’s Annual Update: Top 12 Governmental and Not-for-Profit Accounting and Auditing Issues Facing CPAs**Event Code: 06005 | GSCPA Learning Center, Atlanta
June 20, 2016Financial Strategies and Decision Modeling - War Plans for the Financial ProfessionalEvent Code: 06010 | GSCPA Learning Center, Atlanta
June 28, 20162016 Current Practice Issues and Update for Audits of Employee Benefit PlansEvent Code: 06016 | Infinite Energy Center, Duluth
July 18, 2016Current Accounting and Attestation Updates for Practitioners with Small-Business ClientsEvent Code: 07007James H. Rainwater Conference Center, Valdosta
August 5, 2016Nonprofit, Government and Compliance UpdateEvent Code: 08005 | GSCPA Learning Center, Atlanta
August 10, 2016Annual Update for Preparation, Compilation, and Review Engagements**Event Code: 08010 | Hilton Garden Inn Albany, Albany
August 12, 2016FASB’s “Big 3” - Revenue Recognition, Leases, and Financial InstrumentsEvent Code: 08019 | GSCPA Learning Center, Atlanta
August 17, 2016Accounting and Auditing Update for Small Businesses**Event Code: 08023 | GSCPA Learning Center, Atlanta
August 19, 2016Governmental and Not-for-Profit Annual Update**Event Code: 08028 | Doubletree Hotel Augusta, Augusta
September 8, 20162016 Accounting & Auditing Update for the Real WorldEvent Code: 09002Oconee Fall Line Technical College, Dublin
September 20, 20162016 Compilation & Review Update for the Local FirmEvent Code: 09010 | Central Georgia Technical College, Macon
September 26, 2016A&A Year in Review: Exploring the Latest Issues and Challenges Facing CPAsEvent Code: 09018 | Coastal Georgia Center, Savannah
October 27, 20162016 Accounting & Auditing Update for the Real WorldEvent Code: 10038 | GSCPA Learning Center, Atlanta
November 15, 2016U.S. GAAP Review for Business and Industry**Event Code: 11046 | Central Georgia Technical College, Macon
December 12, 2016Don Farmer’s 2016 Federal Tax Update (CFP)Event Code: 11045UGA Tifton Campus Conference Center, Tifton
December 15, 2016Don Farmer’s 2016 Pre-Tax Season Review for Individual Returns (CFP)Event Code: 12064 | Cobb Galleria Centre, Atlanta
December 16, 2016Don Farmer’s 2016 Pre-Tax Season Review for Corporate Returns (CFP)Event Code: 12065 | Cobb Galleria Centre, Atlanta
Many of these events are offered in multiple locations. For the full list of education events in your area, please visit the Online Event Catalog at www.gscpa.org.
**Qualifies for $30 AICPA discount
Essential Updates for 2016
May/June 2016 33
The self-study tests in the back of every issue of Current
Accounts are a quick and easy way to earn two hours of
CPE, and each test is available for two years.
The January/February 2016 self-study test will be
available until February 28, 2018. Take each test as you
receive the issue or wait and take them all at one time.
For more information on how to take a test, see page 36.
March/April 2015 - Self-Study Test # CA50304
May/June 2015 - Self-Study Test # CA50506
July/August 2015 - Self-Study Test # CA50708
September/October 2015 - Self-Study Test # CA50910
November/December 2015 Issue - Self-Study Test # CA51112
January/February 2016 Issue - Self-Study Test # CA60102
< March/April 2016 Issue
Self-Study Test # CA60304
May/June 2016 Issue >
Self-Study Test # CA60506
REGISTER ATCASELFSTUDY.GSCPA.ORG
Current Accounts Self-Study
SOCIETY NEWS
March/April 2016 | Volume V, Issue 2
The Georgia Societyof CPAs
Should YouOutsource Your IT?PAGE 16
Forensic Interviewand InterrogationPAGE 24
PAGE 8
T h e G e o r g i a S o c i e t y o f C PA s
T h e G e o r g i a S o c i e t y o f C PA s
Surprise!You’re a GlobalOrganization
Frequent Frauds Found in Governmentsand Not-for-ProfitsJune 3, 2016 | Event Code: LS06001
Advanced Topics in a Single AuditJune 13, 2016 | Event Code: LS06004
AICPA’s Annual Update: Top 12 Governmentaland Not-for-Profit Accounting and Auditing Issues Facing CPAsJune 14, 2016 | Event Code: LS06005
Advanced Controller and CFO SkillsJune 29, 2016 | Event Code: LS06017
Analytics and Big Data for AccountantsJune 30, 2016 | Event Code: LS06018
Taxation of Individuals Living Abroad and Foreign Nationals Living in the U.S.July 19, 2016 | Event Code: LS07008
Condos & HOAs: Advanced Accounting, Auditingand Other IssuesJuly 20, 2016 | Event Code: LS07013
S Corporations: Key Issues, Compliance,and Tax StrategiesJuly 20, 2016 | Event Code: LS07014
The New Leasing Standard: It’s Here and It’s HugeJuly 21, 2016 | Event Code: LS07015
Postmortem Estate PlanningJuly 26, 2016 | Event Code: LS07020
Live stream allows you to attend the conference or seminar from your home, office, or anywhere you can access the Internet. You view the sessions in real-time as part of the audience and have interaction with other attendees via chat areas.
Available Live Streams
REGISTER ATOLC.GSCPA.ORG
May/June 2016 | Volume V, Issue 3
2016 Legislative Session:Bills Important to the CPA ProfessionPAGE 14
PAGE 8
T h e G e o r g i a S o c i e t y o f C PA s
T h e G e o r g i a S o c i e t y o f C PA s
WORKS FOR Y UYour GSCPA Membership
RENEW YOUR M
EMBERSHIP TODAY!
To
renew your
membership,
please visit
www.gscpa.org.
Your Profession, Your Voice
Current Accounts34
BUSINESS SERVICESPrivate Money Investment Goldmine
Atlanta Commercial Loans Inc. represents Direct Lenders
& Private Investor’s with minimal loan document
requirements. We provide funding for commercial and
residential real estate projects with starting rate
of 6.25%. Contact Tony Amini 800-706-1321
http://www.atlantacommercialloans.com/
International Tax Services. Expert cross-border tax
planning, structuring and tax return compliance review
services for your firm’s international business and
expatriate-individual clients. We also provide professional
opinions for complex international business and financial
transactions. To discuss more today, contact Anthony
Malik, Point Square Consulting; (770) 845-9289;
Firm-on-firm reviews: Fowler, Holley, Rambo and Stalvey,
PC is interested in performing your firm’s peer review.
Personnel have 35 years review experience. Contact Richard
Stalvey for qualifications, references, and a proposal. P.O.
Box 1887 Valdosta, Ga. 31603; 229-244-1559.
Peer reviews for sole practitioners and small firms. We have
the client base, technical skills, plus the understanding, to
help your firm. Fifteen years of peer review experience with
150 firms ensures efficient work on engagement reviews.
Contact Jennifer Cherry or Steven Rea, Crescent Centre,
Tucker. 770-455-8706, [email protected] or
[email protected]. www.kilpatrickcpa.com.
Business Valuations: Formal valuations, consulting services
for CPAs/clients. Areas: Estate & Gift Taxes, Family Limited
Partnerships, S Corp conversions: built-in tax gains, SBA
7(a) Valuations, Acquisition/Sale/Merger of Business.
Contact Marvin T. Brown, CPA/ABV, CVA, Brown Valuation
Group, for qualifications, references, and a proposal.
706-254-3134 or 770-447-1300.
IRS and State Representation. Attorney & CPA available
to consult with your firm or your clients on IRS and state
matters. Audit, appeal, collection or criminal matters
including offers in compromise, foreign bank accounts,
bankruptcy discharge of tax and non-filers. Practicing in
Atlanta since 1982. Call Jeffrey S. Gartzman, The Gartzman
Law Firm, PC; 770-939-7710; [email protected].
POSITIONS AVAILABLECome join us at Roberts DeWitt LLC. We are seeking
to expand our team of CPAs, accountants and business
advisors with experienced tax professionals committed
to client service and team work. We offer a pleasant, fun
and dynamic work environment. Interesting, high-level,
complex clients. Very competitive compensation package.
Opportunities for advancement. Emphasis on professional
education, training and self improvement. Flexible work
schedules. An environment that fosters professional growth
and technical expertise. And, we are centrally located near
historic downtown Roswell. Positions currently available:
Tax Senior; Tax Manager; Senior Tax Manager; We can be
reached at 678-352-8258 (contact Marc Fialdini) or www.
robertsdewitt.com. Resumes can be emailed to marc@
robertsdewitt.com or faxed to Marc Fialdini at
678-278-1223
CLASSIFIEDS
May/June 2016 35
MAIL FILE BOX RESPONSES TO:GSCPA File Box ____
Six Concourse Parkway, Suite 800
Atlanta, GA 30328
CLASSIFIEDS
North Atlanta/Perimeter Area CPA firm looking for an
established audit manager/partner to take over and
grow our audit practice. The firm currently performs
approximately 25 audits. Need to have audit experience at
the partner or manager level and preferably a client base
which can be brought into the firm. Please respond to: lori@
frickecpa.com or 770-216-2226.
OFFICE SPACE/ACQUISITIONSNW Metro CPA firm with unique practice model seeking
small practitioner to include in practice. Excellent
opportunity for the small practitioner to reduce expenses,
add service capability, and retain ownership of clients.
Call Tom Tripp, (770) 565-2422 or email
We are an established North Atlanta CPA firm growing
through the merger or acquisition of accounting/audit/tax
practices. Owner of the acquired firm may continue to work
during and after a transition period. We are also interested
in acquiring practice segments. Please respond to GSCPA
File Box 456.
PRACTICES FOR SALEFulton County, GA: 65% tax with balance consisting of non-
audit accounting services. Estimated revenues $700,000.
Visit our website at www.akinsprofessionalbrokerage.com to
track new listings. Call David Akins, CPA at (877) 277-0272.
Email: [email protected]
ABA Advisors, LLC represents a 110K Tax Practice for Sale
in the Dunwoody, GA area. High average fees. Contact
Chuck Hayes at 317-546-7720 or [email protected].
Website: www.AcctSales.com
Snellville area CPA $150,000 ... Atlanta-Tucker CPA
$190,000 ... Peachtree City area CPA $300,000 ...
Dunwoody-North Perimeter CPA $550,000 ... Marietta CPA
$175,000 ... North GA-Chattanooga area CPA $500,000 ...
Blairsville area CPA $185,000 ... Canton CPA $600,000 ...
Greenville SC CPA $380,000 ... Jonesboro Tax $300,000+
... Many others throughout the Southeast. Contact Leon
Faris, CPA at Professional Accounting Sales. Telephone
770-859-0859 or 800-729-9031, or visit our website at:
www.cpasales.com. Let our 33+ years of experience work
for you.
CONTACT US:To place a classified ad, please contact
Andrew Lloyd, assistant manager, strategic
relationships at [email protected].
Current Accounts36
How do you earn a quick two hours of CPE? Take the self-study test provided in each issue of Current Accounts. Simply answer the 10 questions based on content in Current Accounts and submit your answers to GSCPA. Receive a grade of 70% or better and earn two hours of CPE credit.
*Please Note: All Current Accounts self-study tests are available for two years from the issue date.
PRICING Online PrintMembers $25 $30Nonmembers $50 $60
ONLINE INSTRUCTIONS1. Go to caselfstudy.gscpa.org.2. Click on “Register Here” for the appropriate issue.3. After registering, you will receive an email
confirmation with a link to the self-study test. Look for “CURRENT ACCOUNTS SELF-STUDY TEST” in the body of the email.
4. Complete the test and click “Submit” when you are finished.
5. Print the confirmation page for your records.
PRINT INSTRUCTIONS1. Detach the test insert from Current Accounts.2. Take the test, recording your answers on the answer
sheet by filling in the appropriate circle.3. Complete the registration and payment information.
Payment must be submitted with the test. Print clearly.
4. Mail this page, along with your payment, in an envelope to: The Georgia Society of CPAs Current Accounts Self-Study Test Six Concourse Parkway, Suite 800 Atlanta, GA 30328 OR Fax to the CPE Department at 404-237-1291.
ANSWER SHEET
1.
2.
3.
4.
5.
a b c d
a b c d
a b c d
a b c d
a b c d
6.
7.
8.
9.
10.
a b c d
a b c d
a b c d
a b c d
a b c d
REGISTRATION INFORMATION
PAYMENT INFORMATION
Full Name Member #
Company/Firm Name
Address
City State Zip
Phone Fax Email
q Check for $_______ made payable to
The Georgia Society of CPAs
q Amount to charge to credit card $_____________
q Discover q MC q AmEx q Visa q Personal OR q Company Card
Card Number Exp. Date (required)
Name as it appears on card
Signature
QUESTIONSIf you have any questions about this test, please contact the CPE Department at 404-504-2985.
TEST RESULTSUpon completion of the test, your answers will be graded and within two business days you will either receive an Event Acknowledgement stating you passed the test along with certificate of attendance or an email stating you did not pass along with a link to retake the test.
ATTRIBUTIONThe Self-Study Test is developed and written by Lowell Mooney, Ph.D., CPA, professor of accounting at Georgia Southern University.
May/June 2016 | Test No. CA60506
Current Accounts Self-Study Test
SELF-STUDY
May/June 2016 37
Current Accounts Self-Study Test
SELF-STUDY
Your GSCPA Membership Works for Youi1. Which of the following is not a GSCPA publication designed to help you stay on top of professional news?
A. Current Accounts
B. GSCPA.ORG
C. The Voice
D. Your Connection
2. Advocacy is one of the GSCPA’s core purposes. Select the non-advocacy related response.
A. Key person program
B. Political action committee
C. Bribes and kickbacks
D. CPA Day at the Gold Dome
3. Which of the following is not a way that you can team up with fellow GSCPA members to give back?
A. Educational Foundation
B. Millennial Money
C. Accounting Food Fight
D. All of the above
2016 Legislative Session: Bills Important to the CPA Profession4. Which of the following 2016 bills had been vetoed by the Georgia governor as of the publication of this issue of Current Accounts?
A. The Conformity Bill
B. The Free Exercise Protection Act
C. The Unmanned Aircraft Systems (Drones) Bill
D. The Professional Regulation Reform Act
5. This bill could potentially provide significantly greater oversight of the State Board of Accountancy:
A. The Professional Regulation Reform Act
B. The Conformity Bill
C. The Free Exercise Protection Act
D. The Unmanned Aircraft Systems (Drones) Bill
E. The Georgia Professional Regulation Reform Act
While You Were Away: Tax Updates from the 2016 Filing Season 6. Updated provisions emphasizing issue-based examinations, the preservation of penalties, and mandatory IDR enforcement procedures are associated with
A. Form 3115
B. Form 5500
C. Publication 5125
D. Form 8971
Employee Benefit Plan Audit Quality Issues7. Department of Labor research indicates that auditors need to improve employee benefit plan audits. Which of the following was not recommended?
A. Customize audit procedures to the specific risks in the plan’s
provisions.
B. Document who did what, what they found, and what they did
about it.
C. Test participant accounts thoroughly to ensure participant
eligibility, contributions, investment elections, account
income, distributions and forfeitures are handled properly.
D. Do not attempt to audit employee benefit plans that have
fewer than 99 participants.
Taking an Innovative Approach to Communication in the Corporate World8. Which of the following actions was not advised?
A. Use corporate jargon as often as possible because it sparks
creative thinking.
B. Choose buzz words carefully.
C. Replace the words, “No” and “Yes, but …” with “Yes, and …”.
D. Use improv to promote active listening.
Tablets, Accounting, and Technology Changes9. Which of the following is not a disadvantage of tablets?
A. Limited features due to small footprint
B. Weight
C. Number of available models
D. The number of ports or connectors
Identifying Probable Deception Through Observation and Behavior 10. Which of the following is true when conducting interviews designed to spot deception:
A. Calibrate the interviewee for truthfulness early in the
interview
B. Ask about sensitive and key areas from the very start of the
interview
C. Concentrate and focus on just one area of the interviewee’s
body for signs of deception
D. Make it clear that you and the interviewee are adversaries
Current Accounts38
MEMBER VIEW
Please Note: The views and interpretations reflected below are those of the author and do not necessarily reflect an expression of opinion on the part
of The Georgia Society of CPAs.
I have two children who are
seven years apart in age and
eons apart in their approach
to learning. My son, who by his own admission is not
responsible, floated through school without a care. On
the other hand, my daughter looks for things to worry
about and take ownership of. Early on, my husband and I
established the requirement that they both do their best.
But in order for them to accomplish their best we couldn’t
just leave it at that, we had to equip them. With my son, we
had to be very active in the learning process and stay on
top of things. My daughter didn’t require as much active
help on our part, but we did find a reliable tutor to help in a
weak area.
All of that being said, my husband and I felt that it was
our responsibility as parents to encourage and equip our
children to meet our requirement that they do their best.
We had to provide the tools needed in order for them to
succeed.
As GSCPA members and experienced CPAs, shouldn’t we
take that same approach to the up and coming accounting
students in Georgia? Shouldn’t we be willing and eager to
provide them with the tools and encouragement that they
need in order to succeed?
Beverly Smith, CPA, CFE, CGMA, MBA is a partner at WJR CPAs. With 10 years’ experience, Beverly’s focus is on audits of small businesses and non-profits, as well as tax analysis and preparation; working with limited liability companies and partnerships and individuals; and compilations and reviews. She is a licensed CPA, CFE and CGMA in Georgia, and an active member of the American Institute of Certified Public Accountants (AICPA) and The Georgia Society of Certified Public Accountants (GSCPA) where she serves on the Leadership Council and the Educational Foundation Executive Board.
That is exactly what The Educational Foundation of
GSCPA does in so many ways. Among other programs
and initiatives, the Foundation provides scholarships and
awards, funds for professional awareness events, matching
funds for local chapter scholarships and support for our
accounting educators.
The mission of The Educational Foundation of The
Georgia Society of CPAs is to encourage the best and the
brightest individuals in Georgia to become certified public
accountants.
The Educational Foundation can only accomplish its
mission through the continued support and donations of
the members of GSCPA. The most convenient way for each
of you to make a donation is through the check box on the
annual dues statement. What could be easier than simply
checking a box and including a donation to the Foundation
when you pay your annual dues? The check box donation
to the Educational Foundation is available online or on
your paper statement, whichever you prefer. The suggested
donation is $25 but it can be amended to any amount, lower
or higher.
Just like parents, we have a responsibility to encourage and
equip the students who are the future of our profession.
We want the best and brightest, we expect the best and
brightest, so we need to provide them with the tools they
need to become the best and brightest.
Encouraging the Best and the BrightestBeverly Smith, CPA, CFE, CGMA, MBA
T h e G e o r g i a S o c i e t y o f C PA s
May/June 2016 39
To register, visit the event catalog at www.gscpa.org or call GSCPA’s CPE Department at 404-504-2985.a
2016 GEORGIA FEDERALTAX CONFERENCEJune 9-10, 2016 | Cobb Galleria Centre, Atlanta, Georgia
Event Code: 13075 | LS13075
Credit: 16 hours CPE Credit
12.3 hours CLE Credit at $5 per hour (applied for)
16 hours CLU Credit (applied for)
16 hours CFP® Credit (applied for)
The Georgia Federal Tax Conference is designed for
experienced tax professionals and features up-to-date
changes in tax law and the latest from Washington,
D.C. in anticipation of future developments.
The Conference focuses on one specific area of
knowledge each day. Day one will discuss trending
topics related to estate planning. Day two will delve
into income tax issues.
Six Concourse ParkwaySuite 800Atlanta, GA 30328
The Georgia Societyof CPAs
PRE-SORTEDSTANDARD
U.S. POSTAGE PAIDATLANTA, GA
PERMIT NO. 6495
To register visit www.gscpa.org or call 404-504-2985 or 800-330-8889, Opt. 3
August 25-26, 2016 | Cobb Galleria Centre, Atlanta | Event Code: 13085
KEYNOTE SPEAKERSChip Moore
SunTrust Park and the Battery
Mr. Moore was named the Braves’
Chief Financial Officer after
spending the previous 12 seasons
as Senior Vice President and Controller. Moore was
instrumental in the Braves’ efforts to secure SunTrust
Park, which is currently under construction and is
scheduled to open in Cobb County in 2017.
Denise Ryan
Leadership from the Kings of
Chocolate
Denise Ryan is an author, an MBA
and a CSP (Certified Speaking
Professional), a designation of excellence that is held by
less than 10% of professional speakers. She has worked
with IBM, Wells Fargo, even the Department of Homeland
Security. She recently made Meeting & Convention
Magazine’s list of planners’ favorite speakers.