Current Happenings in the Accounting Profession

          Changes on Tap for Compilation and Review Standards

          Red Flags Identity Theft Prevention Program - Enforcement Delay – But Not An Extension

          Proposed Regulations Relating to the Issuance of Preparer Identification Numbers by the IRS to Tax Return Preparers

          Idaho's Annual Conformity Bill died in Idaho Senate

          Idaho Department of Labor – Unemployment Insurance Rates

          AICPA White Paper Explains Practitioner's Role in Internal Control Services

New Compilation and Review Standard SSARS No. 19

From Journal of Accountancy: "Changes on Tap for Compilation and Review Standards"

"Significant changes to the standards for compilation and review engagements will soon take effect. The AICPA’s Accounting and Review Services Committee (ARSC) issued Statement on Standards for Accounting and Review Services no. 19, Compilation and Review Engagements, in December. The standard’s effective date is for compilations and reviews of financial statements for periods ending on or after Dec. 15, 2010, with early implementation permitted for the new reporting option for compilation engagements when the accountant’s independence is impaired. This article discusses the major changes made by the standard."

Read Article

Red Flags Identity Theft Prevention Progrom -
Enforcement Delay – But Not An Extension

From AICPA: "The FTC has delayed the enforcement of its red flags rules until June 1, 2010 – that happened back in October 2009. In the meantime, the American Bar Association and the AICPA each filed suit against the FTC to bar the FTC from applying its red flags rules to their members, respectively.

The court ruled in favor of the ABA, and the FTC appealed that ruling. The court is still considering the FTC’s appeal, and the AICPA’s suit is still pending.

However, the District Court has ordered that AICPA members in public practice won’t have to comply with the FTC’s red flags rules until 90 days after the Court rules in the ABA case that’s on appeal. So, whenever the court rules on the appeal in the ABA case, one of two things will likely happen:
1. Disappointing news, but with a grace period: If the court rules in favor of the FTC and upholds the red flags rules, our members will have a 90 day grace period in which to comply, from the date of the ruling (whenever that date is).

2. Good news: If the court rules in favor of the ABA and strikes down the requirement for attorneys, AICPA’s lawsuit would proceed, with a likely similar outcome of an exemption."

For more on the Red Flag issue, visit our website resources Red Flag section

AICPA & IRS's Proposed Regulations Relating to the Issuance of Preparer Identification Numbers by the IRS to Tax Return Preparers

AICPA comments to the IRS regarding the Tax Preparer Registration proposal. These comments address the PTIN implementation, along with other aspects of the proposed regulations.

Cover Letter Comments

HB709 - Idaho's Annual Conformity Bill
Status - passed the House; died in the Senate

State Senate Stops Annual Conformity Legislation

The State Tax Commission introduced House Bill 709 in the House Revenue and Taxation Committee on March 23, 2010, conforming Idaho Code with Internal Revenue Code retroactive to January 1, 2010. The fiscal note stated the State Tax Commission’s estimate of a negative $3.5 million to the general fund. The Bill was sent directly to the House floor where it passed the House with one dissenting vote on March 25, 2010.

When the legislation reached the Senate, the chair of the Senate Finance Committee and Senate Leadership asked the chair of the Senate Local Government and Taxation Committee to not run the legislation due to the fiscal note. Thus, the annual conformity bill died in the State Senate. Absent action by a future legislature, Idaho Code now conforms with IRS Code only through February 17, 2009.

AICPA White Paper Explains Practitioner's Role in Internal Control Services

A new white paper, Understanding Internal Control and Internal Control Services," has been developed to explain the concepts of internal control (specifically internal control over financial reporting) and the types of services related to internal control that may be performed by practitioners in public practice. It is intended to address confusion among practitioners on the topic. Download the white paper.