February 2010 Of Interest

Who Killed The Billable Hour?
This recent article by Jason Rosenthal, JD, picks up where we left off on the February, 2010 issue of INSIDE Public Accounting, looking at CPA firm billing rates versus law firm billing rates. Regardless of which profession you are in, alternative fee arrangements are taking hold because clients are demanding them.

PCAOB Auditing Standard on Engagement Quality Review Approved by SEC, Effective for Fiscal Years Beginning Dec 15, 2009
The Public Company Accounting Oversight Board announced in January that the U.S. Securities and Exchange Commission approved Auditing Standard No. 7, Engagement Quality Review (EQR). The standard is effective for engagement quality reviews of audits and interim reviews for fiscal years that began on or after Dec. 15, 2009. (PCAOB)

The Domino’s Theory: What Your Company Can Learn from the Customer-Driven “Pizza Turnaround”
When the pizza giant asked consumers to tell the truth, it ended up back at the proverbial drawing board. New product development guru Dan Adams says there’s a lesson in this story for all of us – and he offers some insights on the art of really listening to customers. (New Product Blueprinting)

AICPA Issues Compilation and Review Engagements — SSARS No. 19
The AICPA has issued Compilation and Review Engagements — SSARS No. 19. The effective date is for compilations and reviews of financial statements for periods ending on or after Dec. 15, 2010. Early application is allowed with respect to permitting an accountant to disclose the reasons for a lack of independence in a compilation report. (CPA2Biz)

IRS Extends Moratorium on Small Business Penalties
The Internal Revenue Service has extended its moratorium on collecting penalties on listed tax shelter transactions from small businesses after an influential senator threatened to block the nominations of key Treasury Department nominees. (WebCPA)

AICPA Supports Legislation Requiring US Comptroller General To Be A CPA
The American Institute of Certified Public Accountants has announced that it strongly supports legislation introduced by Representatives Collin Peterson and Mike Conaway to require the Comptroller General of the United States to be a certified public accountant. (AICPA)

iDonatedIt – The First iPhone – iPod Touch Application For Charitable Donations
BMG Certified Public Accountants of Lincoln, Neb., released iDonatedIt – the first iPhone and iPod Touch application that calculates, tracks, and reports non-cash charitable donations. (BMG Certified Public Accountants)

Actively Manage Your Practice for Higher Profits in 2010
Many accounting firms are managed by continually looking at past events to analyze their practice and make business decisions. Whether it is discovering job overruns in their work-in-process that can’t be billed or reading their financial statements 3 or 4 weeks after month end only to discover that significant losses were incurred the previous month. These events are history at that point in time and cannot be changed. The conversations between partners and employees usually focus on finding fault and to blame the guilty parties. Have you had many of these conversations lately? (Steve Erickson)

High-Performing Firms Leverage Technology
Creating a long-term sustainable business advantage is the key to success for accounting firms, in both good and challenging times, yet some firms do it better than others. What’s their secret? (CCH)