Jim Ulvog

Proposal for “preparation” of financial statements will require signed, written engagement letters. Same requirement will apply to compilations.

1 Comment / Compilations & reviews /

The two exposure drafts (ED) to revise the compilation process and to create a new level of service for CPAs, now called preparing, will both require a written understanding with the client that is signed by the accountant and management.

Shall we just call that a signed engagement letter? I’m not quite sure what other characterization would apply.

There is a list of specific items that have to be addressed in the engagement letter.

Presumptively mandatory requirement

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Proposal for “preparation” of financial statements will require signed, written engagement letters. Same requirement will apply to compilations.Read More »

Proposal for “preparation” of financial statements will require signed, written engagement letters. Same requirement will apply to compilations. Read More »

New level of service from CPAs – “Preparing” financial statements

1 Comment / Compilations & reviews /

In October 2013, one of the accounting rule setters issued a proposal which creates a new level of service for CPAs. This will be called preparation of financial statements.

Such service will not be subject to the same rules that govern compilations, reviews, or audits.

When the client organization and CPA agree to this approach, the accountant can issue a set of financial statements without any cover report from the accountant. 

The accountant will not be obtaining any assurance on the financial statements and users should not infer any assurance.

I think this will be a big deal.

Technical description

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New level of service from CPAs – “Preparing” financial statementsRead More »

New level of service from CPAs – “Preparing” financial statements Read More »

Upland bribery case – where are they now? Three have served their time. Ex-mayor has six months to go.

Leave a Comment / Fraud /

Time for my semi-annual update on the location of defendants in the Upland bribery case.  Since my last update in July, a third schemer has been released. The former mayor still is in federal prison in Taft, California. That is a privately operated facility in Kern County.

Why am I still interested? Following the details of a specific incident helps demonstrate the tragedy of fraud. It’s also an education on the legal system.

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Upland bribery case – where are they now? Three have served their time. Ex-mayor has six months to go.Read More »

Upland bribery case – where are they now? Three have served their time. Ex-mayor has six months to go. Read More »

4 SSARS exposure drafts

Leave a Comment / Compilations & reviews /

A new service provided by CPAs which won’t require an accountant’s report. It is called ‘preparation’ of financial statements.

Big revision to compilation standards.

Revision of the SSARS into clarity format.

I’ve not mentioned these four exposure drafts, since I’m only diving into the details now.  You can find the exposure drafts on this page.

The specific links are:

These will be a big deal. I think you will really like them.

4 SSARS exposure drafts Read More »

It is amazingly easy to create video content

Leave a Comment / Other stuff, Social media /

Tech tools available today make it easy for a novice to create usable videos. No one will confuse what you create with what comes out of Hollywood or Madison Avenue, but it won’t cost thousands of dollars per minute of content either.

To show how easy it is, I’ve accumulated several of my videos and briefly discussed them on my other blog, Outrun Change:

 

Here is my most popular video, with over 3,600 views:

 

[youtube=http://www.youtube.com/watch?v=1qeibzgSemY]

 

Making videos is incredibly easy. I hope my simple efforts will encourage you to try it yourself.

Keep in mind I’m working with a point-and-shoot camera, have zero editing experience, and possess a level of creatively that is only slightly higher than the average accountant.

Equipment that is not cheapest on the market, some minimal experience, and measurable levels of creativity combined with the astounding tools available today would result in great video for your organization.

Jump in, the water’s fine!

It is amazingly easy to create video content Read More »

Need a place to keep track of all sorts of different types of files? Check out Evernote.

Leave a Comment / Other stuff /

The New York Times has a great article introducing Evernote as a storage tool for all the stray web articles, spreadsheets and photos that don’t have a logical home otherwise.

Check out An App That Will Never Forget a File.

Here is an intro to a superb tool: …

Need a place to keep track of all sorts of different types of files? Check out Evernote.Read More »

Need a place to keep track of all sorts of different types of files? Check out Evernote. Read More »

Why auditing isn’t like reading a history book

Leave a Comment / Audits, Pondering /

Sometimes it’s weird reading a story about the Civil War. It’s the same when reading about an audit fiasco.

People do the oddest things.

As the first major battle of the war shaped up near Manassas Junction, lots of people rode out from DC in their carriages. They brought along picnic baskets so they could eat as they watched the battle. Would be a fun afternoon outing with the children.

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Why auditing isn’t like reading a history bookRead More »

Why auditing isn’t like reading a history book Read More »

EU issues fines for rate rigging of Euribor and Yen Libor, cousins of Libor

Leave a Comment / Other stuff /

The European Union levied fines on multiple banks for manipulating Euribor and Yen Libor. Those are count parts to Libor. Penalties based on legal concept of operating an illegal cartel.

Money Beat provides a recap in The European Union’s Benchmark Fines: A Breakdown: …

EU issues fines for rate rigging of Euribor and Yen Libor, cousins of LiborRead More »

EU issues fines for rate rigging of Euribor and Yen Libor, cousins of Libor Read More »

Get started blogging. Do it for yourself, even if nobody ever reads anything you ever post.

Leave a Comment / Other stuff, Social media /

Just the process of putting into words what you are thinking will produce tremendous growth. Actually thinking about what is going on around you, in your industry, or in the wider world will stretch you like nothing else.

Do it for yourself!

I have grown tremendously from writing on my blogs. Check out Seth Godin and Tom Peters making that point:

 

[youtube=http://www.youtube.com/watch?feature=player_embedded&v=livzJTIWlmY]

 

A few great lines: 

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Get started blogging. Do it for yourself, even if nobody ever reads anything you ever post.Read More »

Get started blogging. Do it for yourself, even if nobody ever reads anything you ever post. Read More »

100 year history of the audit profession in under 300 words

1 Comment / Audits /

Professor Dave Albrecht outlines the origins of public accounting and status today:  Black Friday, Black Accounting, White Christmas.

Picture then:  demand from customers (large companies) to providers (public accountants) for a value-added service (audit) the large companies wanted so they could differentiate from their competitors.

Fast forward 100 years.

Picture now:  a self-protecting group of large firms that resist market needs and loud requests for change.

History and sad state of auditing covered in about 260 words, located in the middle part of the post.

Check it out.

100 year history of the audit profession in under 300 words Read More »

Is the $13B JPMorgan settlement actually greenmail?

Leave a Comment / Other stuff /

Jonathan Weil compares the $13B settlement by JP Morgan to greenmail in his article, The JPMorgan Settlement Isn’t Justice.

After having read the settlement, he realizes this is worse than the typical case of neither admit nor deny guilt wording we usually see in settlements. In spite of the press releases from the government saying JPM admitted misrepresentation, the settlement and statement of facts is worded so vaguely that there aren’t actually any details of what the government believes was done wrong.

Thus, there is nothing to deny: …

Is the $13B JPMorgan settlement actually greenmail?Read More »

Is the $13B JPMorgan settlement actually greenmail? Read More »

eBook ‘Tragedy of Fraud’ now available in multiple formats

Leave a Comment / Accounting, Books you might enjoy, Fraud /

Fraud has tragic effects on innocent people who didn’t commit the fraud. The person who did the deed will pay a severe price far beyond what the judge imposes. Just like a stone thrown into a pond causes ripples all across the water, so a fraud ripples out to cause all sorts of harm.

tragedy-cover

Only 99 cents.

Available in Epub for iPad, iBooks, Nook, and Sony Reader.

Also in mobi for Kindle, PDF for desktop reading, and 5 other formats.

Newest versions can be found here.

Has been available at Amazon since February.

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eBook ‘Tragedy of Fraud’ now available in multiple formatsRead More »

eBook ‘Tragedy of Fraud’ now available in multiple formats Read More »

For $13B, JP Morgan settles a slew of legal issues

3 Comments / Other stuff /

JP Morgan and the Department of Justice announced a huge settlement that covers a host of legal claims against the bank.

Price tag is $13 billion, but keep in mind that claims credit for $4B the bank separately negotiated with Fannie and Freddie. The Wall Street Journal report is J.P. Morgan, U.S. Settle for $13 Billion.

A few of the key terms: …

For $13B, JP Morgan settles a slew of legal issuesRead More »

For $13B, JP Morgan settles a slew of legal issues Read More »