Download your copy today and keep it nearby as you go through this busy season.

Review the qualifications and download nomination forms online. The nomination deadline for all awards is March 30.

The U.S. Master Tax Guide provides helpful and practical guidance on today’s federal tax law that reflects all pertinent federal taxation changes that affect 2011 returns, and provides fast and reliable answers to tax questions affecting individuals and business income tax.

The Guidebook to California Taxes is a source for quick reference to all taxes levied by the state, including personal and corporate income, property taxes, and inheritance and gift, sales and use. This edition also reflects significant new legislation, regulations, court decisions and California Board of Equalization through press time in December.

The young accounting graduate, fresh out of university and knowing everything, applied for his first job. The prospective employer asked him what starting salary he was expecting. “Oh … around $100,000 a year, depending on the benefits package,” he replied. “Well, how does this sound?,” the prospective employer said. “Five weeks annual leave, 22.5 percent superannuation, paid expenses to overseas conferences every year, home telephone reimbursed and a company car—say a Mercedes convertible—replaced every 15,000.” The graduate sat up, tried not to look excited and asked, “Wow. Are you kidding?” “Yeah. But you started it.”

For some of us, this is our first busy season. To our veterans, remember to check with our rising stars to ensure the smooth transition into the wonderful world of limitless charge hours. Remind them about endlessly fulfilling the sense of self-gratification from the amount of work that can be done between 6 a.m. and 9 p.m. The power of arriving at work before the sunrise and leaving way after the sunset! Assure them that before they know it, they will crave the adrenaline rush associated with our busy seasons and they will wait eagerly for this magical time of the year. Repeat to yourself, “I am measured by the success of the rising stars behind me—together we can move mountains.”

I want to congratulate Erica Pastor and Chad Rinde on their first Government Accounting Committee meeting, which took place in January. The first meeting, in a series of two, was a single audit refresher presented by Michelle Knepp of Macias Gini & O’Connell.

The committee is in the process of scheduling speakers for their February–June meetings, which are held on the fourth Thursday of the month, 8–9:30 a.m. the Novey Building, Second Floor Conference Room; 2515 Venture Oaks Way.

The following is the tentative schedule for the next five months:

Feb. 23: Single Audit (Part II)—Advanced Topics; Michelle Knepp
March 22: RDA Update
April 26: Internal Control/Fraud Refresher
May 24: Presenter’s Choice (Possible topics: Yellow Book Update, Pension Update or School Districts Topic)
June 28: Financial Reporting/Revisiting Fund Balance

Erica states that the committee is open to any topic and speaker suggestions you may have. If you know of anyone who would be interested in speaking, please contact Chad or Erica. Although the meetings are scheduled for 1.5 hours, the material just needs to cover approximately one hour. Extra time is provided for questions, if needed.

I also would like to congratulate the next year’s chapter leadership group nominees and ask our veterans in the leadership group to ensure the smooth introduction of welcome our new faces serving their first year chapter board directors: officers on our chapter board:

Officers
President: David B. Boyce, Brown, Fink, Boyce & Astle LLP
Vice President: Perry Ghilarducci, Avaunt Ltd. CPAs & Consultants
Secretary/Treasurer: Jamie Baker, McGowan & Baker AC
Past President: Anjela V. DeRosa, Moss Adams LLP

Chapter Directors
(First year of a two-year term) Kim Kirkish, GALLINA LLP
Erica Pastor, Munn Urrutia Nelson CPAs & Associates LLP
Dorothea Silva, CCH, a Wolters Kluwer Co.
Stuart Robken, Robken & Company

(Second year of a two-year term)
Jolene Fraser, Ueltzen & Company LLP
Bridget Sanders, Crowe Horwath LLP
Annette Stalker, Ueltzen & Company LLP

(One-year term to replace Jamie Baker)
Holly Roznowski, Vavrinek Trine Day & Co. LLP

CalCPA Council Representatives
David Boyce, Perry Ghilarducci, Anjela DeRosa

As always, I would appreciate hearing your comments or suggestions and will be happy to answer any questions you may have. You can contact me and I will read and respond to every question.

If you would like to be more active in our chapter’s events, contact program associate Dana Agosti.

Our January meeting featured guest speaker Jolene Fraser from Ueltzen & Company, who discussed “How Fraud-Proof is Your Company?” Previous meetings included a meet-and-greet and a discussion on “Making Sense of Today’s Market.”

Come join us and let us know how we can better serve you.

Next meeting: Wednesday, March 14
Location: Piatti; 571 Pavilions Lane; Sacramento
Info: Chapter program associate Dana Agosti

Officers
President: David B. Boyce, Brown, Fink, Boyce & Astle LLP
Vice President: Perry Ghilarducci, Avaunt Ltd. CPAs & Consultants
Secretary/Treasurer: Jamie Baker, McGowan & Baker AC
Past President: Anjela V. DeRosa, Moss Adams LLP

Chapter Directors
(First year of a two-year term)
Kim Kirkish, GALLINA LLP
Erica Pastor, Munn Urrutia Nelson CPAs & Associates LLP
Dorothea Silva, CCH, a Wolters Kluwer Co.
Stuart Robken, Robken & Company

(Second year of a two-year term)
Jolene Fraser, Ueltzen & Company LLP
Bridget Sanders, Crowe Horwath LLP
Annette Stalker, Ueltzen & Company LLP

(One-year term to replace Jamie Baker)
Holly Roznowski, Vavrinek Trine Day & Co. LLP

CalCPA Council Representatives
David Boyce, Perry Ghilarducci, Anjela DeRosa

Take advantage of this great networking opportunity—and help our chapter’s scholarship fund.

Register today as previous ABC Nights have sold out!

Date: Wednesday, Feb. 1
Time: 5:30-8:30 p.m.
Location: Sutter Club
Cost (includes hosted bar and hors d’oeuvres): $60/members; $75/at the door (if space available)

By Anjela DeRosa

Why did the auditors cross the road? Because based on the audit file, that’s what they did last year.

Why did the auditors cross back? To charge the client for travel expenses.

Hard to believe it’s 2012! It seems to me that the millennium celebration was just here. I hope everyone is re-energized and is ready to charge!

I am looking forward to the busy season with enthusiasm and alertness—new opportunities, new beginnings, new challenges, new milestones and new achievements. Another exciting year full of life and looking at the glass as half full!

Well, although possibly the most convenient and efficient (we all know about our clients’ expectations to keep the external auditors’ fee down – my recommendation is for you to revise your approach so that you don’t have to cross back!), most likely “SALY” will be the most risky route to take on our assurance engagements. In today’s economic environment, there are a number of new elements of audit risk in financial reporting, as well as fraud concern areas. My recommendation is for you to revise your approach so that you don’t have to cross back.

The gloomy facts of current economic environment:

• Home prices continue to fall.
• Lack of agreement on fiscal policy.
• Problems in Europe.
• Continued high unemployment.
• Companies/investors holding on to cash.

Translated to the auditor’s language:

• Going concern considerations. Watch out for negative financial trends, default on loan or similar agreements, other financing uncertainties, customer or supplier concentrations, dependence on related parties, and regulatory requirements to name the most visible factors.
• Impairments and valuations: (“risk-free” interest rates; the impact of downgraded U.S. long-term credit rating; other-than-temporary impairment of equity securities, debt securities and AAA-rated debt instruments; disclosures considerations).
• Increased risk of fraud. Maintain your skepticism. Three key groups to mitigate fraud are management, audit committee/board of directors and external auditors!

A word from the AICPA and attest standards for 2011:

• SSAE No. 16 takes over for SAS-70.
• HUD Audit Guide changes.
• PCAOB Risk Assessment Audit Standards.
• SAS No. 118 (other information), No. 119 (supplementary information) No. 120 (required supplementary information).

A word from the AICPA and Attest Standards for 2012:

• The clarity standards SAS No. 122-124, effective for periods ending on or after Dec. 15, 2012, supersede all but seven outstanding SASs through No. 121. The biggest change is Group Audits and the most visible change is to Reports. Be prepared!
• Revised Yellow Book (2011 internet version; independence moved to conceptual framework; financial audits and attestations effective for periods ending on or after Dec. 15, 2012; performance audits for periods ending on or after Dec. 15, 2011; early implementation is not permitted).

Areas of a particular focus:

• Goodwill impairment (ASU 2010-28 and negative carrying value, nonpublic entities for years beginning after Dec. 15, 2011, with early adoption permitted; ASU 2011-08 introduces step 0, qualitative “more likely than not” analysis of potential impairment, if pass step 0, step 1 and 2 are not required, effective for years beginning after Dec. 15, 2011, with early adoption permitted. Remember that step 0 is a complex management estimate!)
• Fair Value Measurements (ASU 2010-06, level 3 roll forward of activity, netting is no longer allowed; ASU 2011-04, intent is to align U.S. GAAP & IFRS, change in some fair value measurement principles, effective for calendar year 2012 for nonpublic companies, however, nonpublic entities are exempt from several disclosures).
• Multi-employer plan (ASU 2011-09, effective for nonpublic companies for years ending after Dec. 15, 2012, the requirement however requires a retrospective application of disclosures, encourage clients to identify multiemployer plans and “individually significant” pension plan. Consider potential withdrawal liability or potential unfunded obligations implications when determining “individually significant”).
• Comprehensive income (ASU 2011-05, review for three main changes related to presentation, non-owner changes and reclassification adjustments from OCI to net income on the face of financial statements, retrospective application will be required; effective date for years ending after Dec. 15, 2012, with early adoption permitted).
• Revenue arrangement with multi-deliverables (ASU 2009-13 amends ASU 605-25 and 30; separate unit of accounting determination, use of “best estimate of selling price,” allocation of all deliverables at inception of the arrangement, elimination of the residual method of revenue recognition and expended disclosures requirements; effective prospectively for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010, with calendar year end companies required adoption as of Jan. 1, 2011, with early adoption permitted).

Stay safe and plan carefully!

As always, I appreciate hearing your comments or suggestions and will be happy to answer any questions you may have. You can contact me via email.

If you would like to be more active in our chapter’s events, contact program associate Dana Agosti.

Help legislators understand the issues facing California CPAs and sign up to attend CPA Day at the Capitol. How can your presence help? Take a look at our successful 2011 advocacy efforts for an idea and read the experience of past participants.

Don’t underestimate the importance of your presence!