Pondering

Tell my again why there’s nothing to write about in accounting?

I was out-of-town four days towards the end of January.  Provided a peer review to a CPA firm.  Took a break from the ‘net as much as I could.

I drove across the Central Valley of California for the first time and after the project, enjoyed taking one of those away days seeing Yosemite.  Haven’t been there before.  It’s breathtakingly awe-inspiring. (Yes, I know. I don’t get out enough.)

While driving I came up with two or three ideas for blog posts. Couldn’t help but think about some things and translate them to blog ideas as I was driving and observing and pondering.

Q: How do you make sure you can take a stand for your real client, and stand up against the person that signed the engagement letter?

A: Be ready to fire the apparent client.

If your real client is the stockholders or an NPO itself and not the CFO or CEO, then you may have to take a stand against the CFO or CEO.  How can you make it possible to do that since they can fire you?

Our responsibility as CPAs is to our clients, the shareholders

Francine McKenna reposts one of her favorite discussions on the responsibility of CPAs: – Madoff, MLK, Buddha And Elusive Nature of Self-Interest

The core question is where do we place our ultimate focus and loyalty?

Management who hired us?  The CFO who could get us fired?  The board of directors? Senior partners of our firm?

No, no, no, and no.

What’s the impact when there is zero cost to distribute one more item?

I have a series of posts up on my other blog, Outrun Change, discussing the radical changes in how books, music, and video are distributed today without having to use a traditional middleman.  There is a dramatic shift when it doesn’t cost anything to make and distribute one more copy of something.

This doesn’t just impact writers and musicians.  This has a huge impact on nonprofits that want to get their message and resources out, or businesses that want to start producing materials for education and promotion.

Check these out:

Rate of change in accounting rules

Coming away from the 2011 CalCPA A&A conference, I realized again what a huge volume of change we are seeing in the accounting rules now.  There is a lot of stuff in exposure draft and more things just over the horizon.  

Just in terms of GAAP, I think that volume of change is going to increase.

In addition, I learned that SSARS rules are being rewritten into the clarified structure. Also, I’ve previously read the independence rules are being rewritten in clarified structure.

Coming to terms with that idea of increasing rate of change is the whole purpose behind my other blog, Outrun Change, by the way.

Are you future ready?

Have a post on my other blog, Outrun Change, linking to a great discussion by Tom Hood, CEO of the Maryland Association of CPAs dealing with the changes in the nature of leadership taking place today.  Lots of other great resources on his post dealing with dealing with change. Check out Are you future ready? for more details.

Pendulum swings in how we use computers

The swinging of a pendulum is a great word picture for describing change.   Especially helps for explaining shifts in computing power.  The pendulum swung from dumb terminals to personal computers and now to ‘the cloud’.

I mention this in a post at my other blog, Outrun ChangeThe computing pendulum has swung back to dumb terminals and service bureaus – will it swing back?

There I discuss and link to a post by John Bredehoft.

By the way, my ponderings about the change taking place around us are posted on the other blog.  That leaves this blog focused on attestation issues.

If you are in business, you should be familiar with these writers

A few weeks ago I attended the Dave Ramsey Live! event in Long Beach.  Here is just one of the many great comments he had:

If you are in business, you should be reading these three authors:

  • Jim Collins
  • Seth Godin
  • Malcolm Gladwell

I wholeheartedly agree.

I have read all of the following books and heartily endorse them. If you want to grow and learn and stretch your brain, dive in anywhere!  Here’s a few titles to check out: …

Two overlapping recessions?

We may be in two simultaneous, overlapping recessions.  One will go away, but the other won’t.

I have two posts at my other blog, Outrun Change, discussing this idea of overlapping recessions:

I’m trying to move my discussions of massive change in the economy and the work world to my other blog.