Tax Practitioner

ficpa.org
  • No tags were found...

SSARS #19 – Ten Issues for the Tax Practitioner

SSARS #19 – Ten Issues for theTax Practitioner•Statements on Standards for Accounting andReview Services No. 19“Things that should make you go hmmm…”or“Things that if you don’t go hmmm… nowwill make you go oh sh**t later”


Top Ten Issues for Consideration Engagement Risks– Who’s our client?– What are we actually doing?– Who’s in-charge?– Are we independent, and if not, what do wedo?– Should we be doing this work?– Do I need my attorney on speed dial?Mark Brechbill, Certified Public AccountantsJune 25, 2010


Top Ten Issues for Consideration Practice Risks(continued)– Do we need a more formal system of qualitycontrol?– Is peer review going to affect my practice?– What kind of work do we want to beassociated with?– Where does the buck stop?Mark Brechbill, Certified Public AccountantsJune 25, 2010


Engagement RisksWho’s s our Client?SSARS 19 doesn’t define the user– But requires us to consider the user– Bookkeeping work we don’t always consider who might be usingthe financialsManagement Only– Don’t have to issue report– Must have “legend” on all pages– Can issue a reportIf you do, could be subject to peer review– Who is management in a closely held businessIf you know your user is other than management you can’tignore it– Should you expand your scope of work if your report is going tosomeone other than management?Mark Brechbill, Certified Public AccountantsJune 25, 2010


Engagement RisksWhat are we actually doing?Monthly bookkeeping for the tax return?– Are the financials in accordance with GAAP or something else– Are we putting a “GAAP” report on with Section 179 or bonus depreciationFinancial statements that can be used for whatever– Going to a mortgage company for a mortgage loan– Going to a passive owner “up north” (maybe an in-law or sibling)– Does our risk increase the broader or less defined the purposeWho’s really doing the work– Who’s responsible for the work– Is there adequate supervision– Is there adequate competency If not, are you more actively involvedIs materiality a factor (yes)– Have you defined it– If you’ve defined it, does the person doing the work know what it is and what itmeans– Does your clientMark Brechbill, Certified Public AccountantsJune 25, 2010


Engagement RisksWho’s s In-Charge? Secretary or bookkeeper “Full-charge bookkeeper” or accountant CPA You’re issuing a professional product thatrequires a CPA to perform work– Can’t shirk your professional responsibility– Can’t have your cake and eat it too Professional rates Non-professional service Bottom line is it’s your license that’s on theline, not your staff’s jobMark Brechbill, Certified Public AccountantsJune 25, 2010


Engagement RisksAre We Independent?What If We’re Not?You may know if you’re independent, but what about everybody else– Do you have procedures in place to determine this on bookkeeping clientsIf you’re not independent do you say why– Can still just say that you are not independentIf you say why, you have to give all of the reasonsDo you know all of the reasons– What about perceived independence• For you• For staff– Once you start saying why, you better be sureThere is a potentially long period of time to get your independence backMay be substantially more liability if you’re wrongMark Brechbill, Certified Public AccountantsJune 25, 2010


Engagement RisksShould We Be Doing This Work? Our professional requirements have beenbetter defined– Stick your head in the sand and hope– Isn’t it possible that some work may no longerbe cost effective Are all tax clients good attestation clients Should you restructure your practice– To embrace this work– To avoid this workMark Brechbill, Certified Public AccountantsJune 25, 2010


Engagement RisksDo I Need My Attorney On SpeedDial? We have been given additional “guidance”– Every time that has happened in the past it hasincreased our risk of being sued– Our guidance is an attorney’s roadmap At a minimum, we need to formalize anddocument in accordance with ourrequirements There is a reason banks still ask forcompilationsMark Brechbill, Certified Public AccountantsJune 25, 2010


Practice RisksQuality Control System Professional Standards Volume 2 QC 10– Required to have a system in place– Must address: Leadership Relevant ethical requirements Acceptance and continuation of client relationships Human resources Engagement performance MonitoringMark Brechbill, Certified Public AccountantsJune 25, 2010


Practice RisksOther Issues Peer review What kind of professional firm are we Where does the buck really stopMark Brechbill, Certified Public AccountantsJune 25, 2010


Conclusion Questions Thank you Contact info:– Mark Brechbill– Telephone: (772) 220-3380 ext 13– Email: mbrechbill@markbrechbill.comMark Brechbill, Certified Public AccountantsJune 25, 2010

More magazines by this user
Similar magazines