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

I recently conducted a brief survey at the board meeting to gain an understanding of each member’s perspective of leadership. I asked them to consider a definition, qualities and practice. The survey results may serve as a reminder for daily living:

• Great communication skills, which involve being patient and direct; decisive; provide clear direction; good listener; indicate clear priorities; empowering; trusting; and genuinely like and appreciate people.
• Make your entire team feel important because they are.
• Willingness to risk embarrassing yourself.
• High standards and realistic expectations.
• Lead by example.
• Possess vision, enthusiasm, prioritization skills, consideration, organization, intelligence, honesty, integrity and respect.
• Awareness of the needs of staff, peers and clients in making business decisions.
• Understand your goals and bring out the strengths in your employees, while keeping everyone focused on the task at hand.

According to Wikipedia, leadership has been described as the “process of social influence which one person can enlist the aid and support of others in the accomplishment of a common task.” Alan Keith of Genentech states, “Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen.”

Effective leadership is also defined as “the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational or societal goals.

Based on this definition, CPA Day at the Capitol is an example of effective leadership. This annual event connects members with legislators and their staff providing crucial information regarding our profession. I’m proud of the fact that the San Diego chapter sponsored 14 college students from 5 different schools to attend this function and gain experience first-hand in Sacramento.  I encourage you to embrace the spirit of leadership and make a difference during tax season, the new year—and especially in the lives of people!

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

Happy New Year! I hope everyone had a fun-filled holiday with enough rest and relaxation to begin 2012! Since it was hard for me to come up with resolutions, I needed some guidance and inspiration. Immediately, Dick Maches came to mind.

I met Dick in 1990 when I joined CalCPA. His career began after a two-year stint in the military, followed by graduation from SDSU in 1952. His first job was at a La Mesa CPA firm, where he earned $1.50 an hour. In 1962, he became a partner, received his CPA license and joined CalCPA. In 1970, Dick founded the Helix Computer Center with Bob Baugham and Cliff Asay.

At 55, Dick retired from the Helix, but worked there part time while contributing as a taxation lecturer at workshops in different cities. Today he is an on-site administrator for the CalCPA Education Foundation. Six months after his heart bypass surgery in 2009, Dick traveled to Greece with his daughter. While there, Dick received a message from the Oracle of Delphi that gave the secret of long life: blueberries, broccoli, chocolate, almonds, olive oil, salmon and red wine. He turned 83 in October and will soon celebrate his 60th wedding anniversary.

Dick still keeps his CPA license active by providing tax services to the third generation of clients. He also continues his involvement in CalCPA and has worn many hats over the years, including chapter president, committee chair and chair of the CalCPA MAP, Ethics and Taxation committees. He has served as AICPA Council member, CaCPA Education Foundation trustee and CalCPA vice president. Dick also has been chair of the chapter’s La Jolla/Life’s a Beach Discussion Group for 20 years.

Noting that Dick is a member who has spent almost 50 years with CalCPA, I asked him to describe what keeps him involved. “I believe in it,” he said. “CalCPA provides value for members. All professionals should belong to a professional association for continuous improvement and development of the profession.”

His advice for the younger generation? “Stop spending and start saving,” he said.

Dick ended our conversation by reminding me to have “an attitude of gratitude.” I’m grateful for Dick’s smiling face and wise words. We are so fortunate to have him as a part of our chapter. Attend the La Jolla/Life’s a Beach Discussion Group and meet Dick. I encourage everyone to have an attitude of gratitude as a New Year’s resolution!

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.

Don’t underestimate the importance of your presence!

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!

US Bank: Hector Zatarian

Brinig & Company Inc.: Paul Zimmer

CAMICO: Tracy Foster

Means & Associates: Mike VanderGriend

Principal Financial Group: Xavier Mahdion

Robert Half: Amy Hill

Stafford & Associates, Inc.: Steve Stafford

Stilwell & Associates: Alyssa Ehrlich

Thomson Reuters, Tax & Accounting: Pam Lambert

Date: Wednesday, Jan. 11

Register online.

Date: Wednesday, Dec. 7

Register online.

While relaxing on board the Shinkansen express train from Osaka to Tokyo last month, a headline grabbed my attention: “Olympus scandal puts auditors under scrutiny” My thoughts turned to my profession as I read about this fraudulent incident.

Olympus Corp., a Japanese camera and medical equipment maker with a 90-year history, has been battered by a scandal revolving around a $687 million payment for financial advice and expensive acquisitions of companies unrelated to its main businesses. The problems burst into the open when an ousted CEO questioned excessive advisory payments made by Olympus for its $2.2 billion acquisition of Gyrus, a British medical device firm, in 2008.

Olympus paid $687 million in advisory fees, about one-third of the purchase price, versus investment banking norms of about 1 percent to 2 percent. First, there were calls for Olympus executives to resign and then the board fired the CEO.

Next, the chairman abruptly resigned in an attempt to placate angry shareholders. The company’s shares have plunged from 2,482 yen to 484 yen. While the company has provided few details of its accounting maneuvers, it has stated that the effort to hide investment losses started as early as the 1990s when the company was being audited by Asahi & Co.

At that time, Asahi was the Japanese affiliate of Arthur Andersen. In 2003, Asahi became a member firm of KPMG International and later merged with AZSA & Co. to form KPMG AZSA LLC, which audited Olympus until 2009. KPMG’s British arm, which audited the subsidiary accounts of Gyrus, questioned the accounting treatment of some of the fees and whether Cayman Islands-based AXAM Investments Ltd., which received a big part of the fees, was a related party to Olympus.

However, KPMG AZSA signed off on Olympus group accounts without qualifications. Olympus removed KPMG AZSA as its group auditor in 2009 after a dispute over how to account for some controversial acquisitions. When Ernst & Young took over, questions were raised about AXAM in auditing Gyrus’ accounts, but gave Olympus a clean bill of health. As a part of due diligence effort, the inflated advisory fees should have prompted a more critical review of the related accounts and should follow up on red flags closely.

It is not unusual for an auditor to qualify a subsidiary’s accounts in one country and give the parent, located elsewhere, an unqualified green light if the issue raised is not deemed material to the consolidated accounts.

In light of the Olympus scandal, Japanese politicians are taking a renewed interest in the audit industry. The head of Japan’s second-largest opposition party said that there might be a need to reassess the accounting system as a whole if auditors are unable to fully point out problems to their clients.

This case should be a wake-up call for CPAs to take their duty seriously in safeguarding the public interests.

In more local matters, don’t forget to join me on Dec. 7 at our annual holiday party at Maria Maria restaurant. CalCPA Chair Ed Jordan will be our special guest. Please feel free to bring an unwrapped gift, cash or a check for the U.S. Marine Corps Toys for Tots Program. Wishing you the best during this holiday season!