SkyscapesSeptember 2011

Vol. 3 Issue 12

Newsletter of the Kansas Society of CPAs www.kscpa.org

IN THIS ISSUE:Lease Accounting

by M. Aron Dunn, CPA

The Characteristics of a Successful Auditorby Alan W. Anderson, CPA

Women to Watch AwardMeet the 2011 winners and nominees!

Business & Industry EXPOCheck out photos from this recent event!

Warm regards,

John H. Bruckner,

78th Chair of the Kansas Society of CPAs

FROM THE CHAIR

Greetings,

The Value Proposition

Welcome to the Fall season! It’s a busy time for the KSCPA members. Check out this issue of Skyscapes for information on upcoming professional development events. Watch for next month’s Skyscapes, scheduled for early October, for the Notice of the Annual Meeting and Report of the Nominations Committee. Register today for the events, courses, and conferences on www.kscpa.org.

A question that the leadership of the KSCPA continuously tries to answer is “How can we increase the value of membership in the KSCPA?”

With such a diverse membership, increasing value can be an insurmountable task! In looking through this current issue of Skyscapes, there is no doubt in my mind that our Society is a valuable part of each of our lives. There are courses, conferences, leadership activities, advocacy opportunities, communication, chapter activities – all designed to meet the needs of the diverse membership in public practice (small, medium, and large), business, industry, and education. And, as you can see, it is the membership that makes it a success.

The engagement of our members in the leadership ensures that the activities of the KSCPA are timely and relevant. The participation of the members and others guarantees that the activities are worthwhile. What do we hear most from our young professionals when we ask them what increases value of their membership in the KSCPA? NETWORKING! And they tell us that there is no better place to create life-long alliances than as a member of the KSCPA.

When asking some of our members how they became involved in the KSCPA, they tell us that it is because someone took them along to an event and introduced him or her to the other members. That’s just what happened to me. When I was working at Kennedy and Coe, Kurt Seimers, a past chair of the KSCPA, told me to come along to a meeting, and look where it led me. These types of opportunities are golden. There is great satisfaction in opening doors for other professionals, as Kurt did for me.

I hope you will consider bringing someone along with you to our November Professional Issues Update and Annual Meeting at the Sheraton Overland Park. Encourage him or her to become a member of the KSCPA. If already a member, suggest that s/he become involved in the leadership. I look forward to seeing each of you in November as I pass the gavel to Bob Schuster, our 79th Chair of the KSCPA.

Statements of fact and opinion are made by authors alone and do not imply an opinion on the part of the officers or members of the KSCPA. Publication of an advertisement in Skyscapes does not constitute an endorsement of the product or service by Skyscapes or the KSCPA. Copyright © 2011 Kansas Society of CPAs; Topeka, KS. All rights reserved.

OfficersJohn H. Bruckner, Chair, Designated AICPA Council Representative Robert J. Schuster, Vice ChairM. Aron Dunn, Secretary/TreasurerGary C. Allerheiligen, Immediate Past ChairBoard of Directors(Term Expires 2011)Richard K. DinkelJohanna D. LyleGreg B. SevierNathan L. Spearman Lisa P. TroutVirginia A. Powell, KSBOA LiaisonKyle J. Hawk, AICPA Council Rep.

Board of Directors(Term Expires 2012)Chet BuchmanM. George DurlerLewis R. EricksonGregg C. GoodwinMichelle Schneider

Educational Foundation Board of TrusteesDan S. Deines, ChairJohn C. Rich, Vice ChairNorman P. Hope, Secretary/TreasurerJohn H. BrucknerKyle J. HawkJeffrey J. KochJohn W. DenneyKenneth A. SelzerPaul T. MasonPolitical Action CommitteeDenis W. Miller, ChairJames T. Clark, TreasurerDeAnn A. HillEric J. LarsonLeon C. LoganKathryn J. MitchellMichael V. Rogers

Mary R. MacBain, MS, CPA. CITP President/CEOKaren Mitchell, CPAFinance DirectorMarlene Shellenberger,Administrative ManagerDanielle Bulson,Membership & Communications CoordinatorKevin Moravec, Graphic Designer

Editors: Mary R. MacBain, Editor-in-ChiefContributing Writers: Alan W. Anderson, CPA; M. Aron Dunn, CPA

The Kansas Society of Certified Public Accountants, Inc.100 SE 9th Street, Suite 502Topeka, KS 66612-1213Phone: 785.272.4366, FAX: 785.272.4468

Board of Directors(Term Expires 2013)James K. BoomerGinger L. FarneyCarolyn C. GeorgeMindi A. OrmistonMatthew R. List

Congresswoman Lynn Jenkins Holds Town Hall14

Peer Review Process Improvement TaskforceUpdate on Peer Review26

Find out what’s going on with your fellow KSCPA members.

Works with the KSCPA Team to Align Strategic PlanCynthia Lund, AICPA VP, Visits KSCPA28

Classifieds & Ads31

Secretary of Revenue Nick Jordan Visits KSCPA15

SkyscapesSept. 2011

Vol. 3 Issue 12

UPDATES AND UPCOMING EVENTS

FEATURES

Lease Accounting

by M. Aron Dunn, CPAFAQs for lessees on the proposed change to accounting for leases

8The Characteristics of a Successful Auditorby Alan W. Anderson, CPA

Women to Watch AwardMeet the 2011 Women to Watch winners and nominees!

22

Member News17

Congratulations CPA Passers!18Are Female CPAs Equal?21

4

Women to Watch

New Members & In Memoriam16

EXPOBUSINESS & INDUSTRY

Business & Industry EXPOSee photos from the recent Business & Industry EXPO in Wichita.

24Town Hall at the KSCPA on August 31st.

Secretary Jordan meets with KSCPA Executive Committee

The Future of the Profession and the Role of Women

Chapter News & Caffeinated Conversations29

From the IRS30

4 September 2011

Since FAS 13: Accounting for Leases was issued in November, 1976, accounting literature for lessees has established two types of leases: 1.) capital leases that result in an asset and a liability on the financial statements and 2.) operating leases which are expensed as paid, i.e., no balance sheet impact. Discussion and differences of opinion have resulted since the adoption of FAS 13. Thus, FASB decided to address these issues as well as attempt to converge the leasing standards with the international accounting standard. The result was an exposure draft in 2010 that is currently pending. This new standard essentially requires the recording of an asset and a liability for all leases that are not included in the scope exceptions. What follows are some typical questions on changes which could occur if the exposure draft becomes final.

1. What fiscal year would these proposed changes likely go into effect?

Currently, no dates have been set. A new pronouncement is expected to be issued in the second half of 2011 (which has been confirmed in the FASB’s technical plan) with an anticipated effective date no sooner than fiscal years beginning after December 15, 2012 or calendar years beginning January 1, 2013.

2. Will the proposed changes cover all types of leases, including small leases for office equipment such as copiers, mailing machines, fax machines?

Yes. However, there are a few scope exceptions such as leases for intangible or biological assets, and leases to explore for or use minerals,

LEASE ACCOUNTINGFAQs for lessees on the proposed change to accounting for leases

M. Aron Dunn, vice president in assurance services at CPA and advisory firm Allen, Gibbs & Houlik, L.C.

Skyscapes - Newsletter of the Kansas Society of CPAs 5

LEASE ACCOUNTING

oil, natural gas and similar non-regenerative resources (these types of agreements are covered in other literature). There is also a proposed simplified method for leases with duration of 12 months or less in which operating-lease treatment would be allowed. A short-term lease, however, is defined as a lease that has a maximum possible term (including any options to renew) of 12 months or less. Thus, simply structuring lease agreements to renew every 12 months may not qualify for a scope exception. However, if the lease agreement truly fits the short-term lease requirements, the company has the option to elect, as an accounting policy, to treat the short-term leases as operating leases and expense the costs over the term of the lease based on a systematic and rational basis.

And, of course, leases which are determined to be immaterial can be excluded.

3. Since the proposed changes basically require accounting for a lease as an asset purchase with a related liability, how will the interest rate be determined?

The initial asset/liability will be measured at the present value of the lease payments, discounted using the rate that the leassor charges the lessee within the lease agreement or, if that cannot be readily determined, the lessee’s incremental borrowing rate. In other words, if the entity leasing the asset to you will disclose what the internal return rate on the lease is, that is the rate used. Otherwise, the company’s incremental borrowing rate is used to discount the cash-flow analysis. Also, the pronouncement requires recognition of a “right-to-use” asset versus a property asset. This right-to-use asset is to be amortized on a systematic basis that reflects the pattern of consumption of expected future economic benefits. The liability is an obligation to make lease payments and is subsequently measured using the effective interest method.

4. Will the proposed changes be retroactive and apply to already existing leases? If so, how will the asset value, asset life, liability balance and discount interest rate be determined?

Once this pronouncement becomes effective, this new method must be used on all outstanding lease agreements presented in the comparative financial statements. Essentially, the valuation method above will be used for the remaining estimated cash flow stream of each agreement and the asset and liability recorded for that amount. Keep in mind that this requirement does not require the recording of a property asset. The asset is a “right-to-use” asset for the life of the lease (or estimated economic benefit period). Thus, a depreciable life is not applicable. Instead, the right-to-use asset is amortized.

5. When changes occur to lease terms, how are they accounted for?

A modification to the contractual terms of a lease that is a “substantive change” should result in the modified lease agreement being accounted for as a new contract. Other non-substantive changes may or may not trigger a re-evaluation of the lease agreement as a new agreement. The pronouncement should be consulted (once it is finalized).

6. How should initial direct costs in obtaining the lease agreement be accounted for?

Costs that are directly attributable to negotiating and arranging a lease that would not have been incurred had the lease transaction not been made should be capitalized by adding them to the carrying amount of the right-to-use asset.

There are still some significant portions of the exposure draft still under deliberation by FASB,

6 September 2011

including: leassor accounting model (above information is lessee accounting only), application to leases on internal-use software, application to leases of inventory as well as various other provisions. Further, there are numerous provisions within this exposure draft not addressed in this article. You should always consult your CPA advisor with questions and concerns.

Needless to say, it is a foregone conclusion that change is imminent. The only question is when it will be required to be adopted. For entities with numerous agreements in place that qualify to be accounted for as leases, there will be quite a chore in analyzing each agreement and accounting for each properly under this proposed standard. Thus, it is essential that companies adequately prepare for this adoption and consult with their CPA to ensure a smooth transition.

About the Author

Author Aron Dunn, vice president in assurance services at CPA and advisory firm Allen, Gibbs & Houlik, L.C., serves AGH’s clients in the construction, contractor, grain milling, manufacturing, wholesale and distribution industries. He is one of the few Certified Construction Industry Financial Professionals not employed by a construction company. Mr. Dunn is a board member of both the national Construction Financial Management Association (CFMA) and the Greater Wichita Chapter of CFMA as well as a member of the Wichita Manufacturers Association. He is also currently a member of the executive committee of the Kansas Society of Certified Public Accountants (KSCPA) and a past president of the Wichita Chapter of the KSCPA.

Skyscapes - Newsletter of the Kansas Society of CPAs 7

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8 September 20118 August 2011

The Characteristics of a Successful AuditorBy Alan W. Anderson, CPA

President, ACCOUNT-ability Plus

Copyright 2011 Alan W. Anderson, used with permission.

Have you got what is takes to be a good auditor? The skills that are needed to be a good auditor are much more than learning debits and credits and completing checklists. Economist, E.F. Schumacher is quoted as stating, “You can either read something many times in order to be assured that you got it all, or else you can define your purpose and use techniques which will assure that you have met it and gotten what you need.”

Mr. Schumacher’s statement has auditor significance if you think about it for a minute. Putting an audit spin on the statement would go something like this:

You can either review the checklist many times in order to be assured that you carried out the audit procedure, or else you can define your audit purpose and use your audit skill to assure that you have

met the audit requirements and gotten what you need. Auditing is a complex process which involves many different skills and responsibilities. Also, in the current environment, the auditor continues to face ever-increasing demands because of regulation and client expectations. At one end of the spectrum, the auditor has the pressure to sufficiently document the work performed and on the other end, the auditor faces the pressure to get the work done on time and on budget.

These pressures can cause auditors to fall into the “complete the checklist” trap, giving them the illusion that to get the job done on time and the audit opinion will be correct. However, if the only technique an auditor learns how to do is to complete checklists, s/he fails to become good auditor. The balance of this article discusses certain critical characteristics of an auditor that are essential to audit success.

Skyscapes - Newsletter of the Kansas Society of CPAs 9Skyscapes - Newsletter of the Kansas Society of CPAs 9

The Fundamentals Strong technical and ethical characteristics are fundamental to audit success. These are not new to anyone and should be considered a baseline set of characteristics that is expected of all auditors. A good auditor continues to build upon these over the course of a career through what our profession defines as our “commitment to lifelong learning.”

Throughout the auditor’s career, s/he must possess a strong ethical foundation and avoid any temptation to “let it pass” when a deeper review of an issue may reveal error or fraud.

This foundation holds true in the technical area as well. The auditor must maintain appropriate technical skills throughout his or her career. If the auditor is not current with the technical rules, s/he could easily miss something and issue an inappropriate opinion.

Our profession reinforces these two characteristics through required continuing professional education hours with numerous training sessions being available.

As important as technical and ethical characters are, these are only fundamental to success. These characteristics won’t set you apart. Good auditors also possess the following additional characteristics:

• Vision and instinct• Able to see the big picture• People skills• Decision-making ability• Leadership• Superior communication skills.

Vision and Instinct As an auditor gains experience in working with numerous clients in multiple industries, a good auditors gains the ability to instinctively understand what the client’s business is all about. While carrying out the audit, s/he is able to determine a picture of any issues at the business and to translate them into what they might mean in the future.

There is an anonymous quote that states that “instinct is the nose of the mind.” The good auditor does not settle when a client’s answer or transaction doesn’t seem right. Instinct causes him or her to dig deeper to arrive at a conclusion that fits with the vision of the business. To develop instinct and

vision, the auditor must develop an inquiring mind and strive to learn from all experiences encountered in client situations throughout his or her career.

Able to See the Big Picture Auditors need to be able to understand the client’s business and industry. This requires the ability to quickly frame a picture of the client’s business, the organization. and key attributes within it. A good auditor is able able to sort out connections and linkages within the organization to focus the audit approach. The ability to see this big picture is very important to the planning stages of the audit. Putting the audit plan together requires an appreciation and an understanding of the organization and what constitutes a logical approach to the audit.

The audit checklist approach has a tendency to cloud the big picture because of the large number of questions that are asked. Many auditors in their attempt to get all the questions completed typically do not take to time to step back and ask, “What does all this mean.” Good auditors will have a much shorter list of targeted questions that are developed specifically for their client which allows him or her to focus on the big picture.

People Skills The audit profession is not all about ticking and tying; it’s about people. Auditors need to have exceptional people skills. They need to have the ability to deal with all types of clients in all types of client situations. In certain cases, client personnel have a fear of the auditor because they don’t like someone looking over their shoulders. So the auditor must have the ability to put client personnel at ease and be able to empathize from the client perspective. It is also important for the auditor to show respect for the client. After all, it is the client who is paying for the audit.

The most often overlooked people skill is listening. Listening seems like a simple concept, but few do it well. Many auditors listen to hear the answer they want to hear rather than to listen for understanding. Most audit checklists ask closed-ended questions which prevent the client form elaborating on a situation. When the client does expand their answer, the auditor must “hear” the client’s answer completely; missing one small piece of the answer can cause them to miss the message entirely.

10 September 201110 August 2011

Lastly, people skills are also very important within your firm and on your audit team. Auditors need to be team players as the entire team is working toward a common goal.

Decision-Making Ability Once the audit evidence is accumulated, the auditor needs to determine what is relevant and what is not. Making these decisions is, at times, not easy as there is so much information is accumulated and tying it all together can be a challenge.

Decision making can be hard. Most every decision involves some conflict or tradeoff. The challenging part is to select the best decision given the information that you have gathered to assist with the decision. There is a tendency to put off the decision by concluding that you need more information, only to again later conclude that you need even more information. This decision paralysis can cause the audit to drag on and on and can ultimately cause the auditor to feel pushed to the wall as they now must make a decision because the client needs their financial statements immediately. Clients want their auditor to be strong and effective decision makers. Waffling around on a decision causes the client to lose confidence in their auditor.

Leadership Great leaders have the desire to help others succeed. Henry Ford said, “Don’t find fault, find a remedy.” This statement is a classic in the context of leadership; leaders finds solutions, they don’t place blame. An auditor that is a leader finds solutions to complex problems at the client and has the ability and skill to assist in getting the solutions implemented.

A good auditor must strive to become a successful leader. Leadership characteristics can be taught but leadership must be earned day in and day out. Leadership is seen by the client as the auditor being a teacher and/or a trusted confidant. An audit staff member sees a leader as a mentor and coach.

No single audit or audit firm, for that matter, can rise above the quality of its leadership. A common theme on every well-run audit or well-run audit firm can be directly linked to leadership.

Superior Communication Skills Superior communication skills allow auditors to have connection and rapport with others on the staff, managers, partners, and clients. The technological world in which we live today can negatively impact the audit staff’s ability to become an effective communicator, especially when e-mail becomes a substitute for face-to-face communication with audit clients.

A good auditor recognizes the importance of face-to-face communication and strives to make it the primary mode of communication. It is essential that all auditors work to make verbal communication a priority rather than a last resort. In most cases, e-mail should be the last resort rather than the first resort.

Clients want to talk to the auditor, and the better the auditor is at effective communication, the better the conversation is with the client. Effective communication occurs when the client understands exactly what you are saying. Achieving this is not easy but once achieved, it will set you apart from the rest.

Conclusion The characteristics of a good auditor start with the basics of sound technical ability and solid ethical foundation. A good auditor considers those as baseline and work to grow beyond the “rules and regulations” mindset of our profession. Attaining and maintaining the characteristics mentioned in this article require a personal commitment but are crucial to the auditor’s long term success. Have you got what is takes to be a good auditor?

Skyscapes - Newsletter of the Kansas Society of CPAs 11

Lastly, people skills are also very important within your firm and on your audit team. Auditors need to be team players as the entire team is working toward a common goal.

Decision-Making Ability Once the audit evidence is accumulated, the auditor needs to determine what is relevant and what is not. Making these decisions is, at times, not easy as there is so much information is accumulated and tying it all together can be a challenge.

Decision making can be hard. Most every decision involves some conflict or tradeoff. The challenging part is to select the best decision given the information that you have gathered to assist with the decision. There is a tendency to put off the decision by concluding that you need more information, only to again later conclude that you need even more information. This decision paralysis can cause the audit to drag on and on and can ultimately cause the auditor to feel pushed to the wall as they now must make a decision because the client needs their financial statements immediately. Clients want their auditor to be strong and effective decision makers. Waffling around on a decision causes the client to lose confidence in their auditor.

Leadership Great leaders have the desire to help others succeed. Henry Ford said, “Don’t find fault, find a remedy.” This statement is a classic in the context of leadership; leaders finds solutions, they don’t place blame. An auditor that is a leader finds solutions to complex problems at the client and has the ability and skill to assist in getting the solutions implemented.

A good auditor must strive to become a successful leader. Leadership characteristics can be taught but leadership must be earned day in and day out. Leadership is seen by the client as the auditor being a teacher and/or a trusted confidant. An audit staff member sees a leader as a mentor and coach.

No single audit or audit firm, for that matter, can rise above the quality of its leadership. A common theme on every well-run audit or well-run audit firm can be directly linked to leadership.

Superior Communication Skills Superior communication skills allow auditors to have connection and rapport with others on the staff, managers, partners, and clients. The technological world in which we live today can negatively impact the audit staff’s ability to become an effective communicator, especially when e-mail becomes a substitute for face-to-face communication with audit clients.

A good auditor recognizes the importance of face-to-face communication and strives to make it the primary mode of communication. It is essential that all auditors work to make verbal communication a priority rather than a last resort. In most cases, e-mail should be the last resort rather than the first resort.

Clients want to talk to the auditor, and the better the auditor is at effective communication, the better the conversation is with the client. Effective communication occurs when the client understands exactly what you are saying. Achieving this is not easy but once achieved, it will set you apart from the rest.

Conclusion The characteristics of a good auditor start with the basics of sound technical ability and solid ethical foundation. A good auditor considers those as baseline and work to grow beyond the “rules and regulations” mindset of our profession. Attaining and maintaining the characteristics mentioned in this article require a personal commitment but are crucial to the auditor’s long term success. Have you got what is takes to be a good auditor?

Alan W. Anderson - Bio Al has over 25 years of experience in the accounting profession. After working primarily as a partner and National Director of Audit in the firm of McGladrey and Pullen, LLP and with the American Institute of CPAs as Senior Vice President of Member and Public Interest, Al founded ACCOUNT-ability Plus headquartered in Minneapolis. Prior to starting his new company, Al led the firm of LarsonAllen, LLP in coordinating accounting and assurance services across industry groups as the Managing Principal of Accounting & Assurance Services.

As President of ACCOUNT-ability Plus, Al is building a company to address the educational needs of auditors and to help push the vision of those he teaches to exceed client expectations by providing relevant services and meaningful information using real-time methodology.

Al’s experience in the world of auditing reaches far and wide. This includes helping to standardize the global audit approach of McGladrey and Pullen, overseeing the AICPA’s technical audit and accounting standards,

including self-regulation and the CPA examination and implementing paperless solutions.

Al served as Chair of the AICPA Assurance Services Executive Committee for 6 years and continues to lead task forces of the Committee.

The 12th in a Series of “ANDERSON’S AUDIT EXPRESS” This article is the eleventh of a series of 13 articles to be published. We asked Al to create articles that will stand the test of time and at the same time create a vision for how CPAs can stay relevant by adding value to their clients and organizations they serve. This series will soon become a self-study program produced by the KSCPA and available on a national level. If you missed the live webcasts, be sure to check out the self-study program.

You can look forward to the following and final topic:

“The Goal of the Audit”

Anderson’s Audit ExpressSelf-study Program

What Brings Value to the Audit? Value-Based Audits?

By Alan W. Anderson, CPA

President, ACCOUNT-ability Plus

Copyright 2011 Alan W. Anderson, used with permission.

Business owners and organizations typically regard the annual audit as a cost, or “a necessary

evil,” that adds little or no value to the business. In contrast, auditors routinely “say” that their audit is different

and does add value to the business or organization. To be sure, all audits have a purpose as they are generally

required to maintain financing or to meet regulatory requirements. But is the auditor truly adding value?

There are numerous dictionary definitions of “value,” all centering around the concept of something being

useful. “Adding value” then should mean to make something more useful. Do you set out on every audit with

the plan to add value by making it “more useful” for your client?

Unfortunately, most clients will say that the audit is not adding value to their decision-making processes. In a

2008 survey conducted by KPMG of 200 small to medium-sized companies, 56% saw the audit as a routine

chore that varied little from year to year. Just over 60% of the companies said their auditor did not raise any

issues or ideas that were used in their business to enhance their processes or decisions.

By taking the opportunity to truly understand your client’s business and going above and beyond the

mandatory requirements and typical “accountant’s speak,” you will bring value to the audit. As you gain new

insight into the client’s business and operations, you will continue to increasingly add value to the audit.

The remainder of this article discusses ideas on how to gain business insight during the audit process and steps

to follow to facilitate a meaningful discussion with your client.

Total Client Service: Did you Deliver all of Your Services or Just the Audit?

By Alan W. Anderson, CPA

President, ACCOUNT-ability Plus

Copyright 2011 Alan W. Anderson, used with permission.

High quality client service is essential to client

satisfaction and retention. Virtually every size accounting firm

that I know has marketing materials promoting their excellent

client service along with their high quality audit and tax services.

Prospective clients are forced to sort through all of the

similarities in marketing terminology in their due diligence on

the firms they are considering.

At the same time, firms are being challenged by continued

commoditization of historical services coupled with higher client

expectations. Commoditization in the audit world is commonly

referred to as the process clients use to reduce their audit firm

selection decision to the lowest common denominator – price.

In essence, clients view the audit as a commodity and want to

pay the lowest possible price but still expect superior client

service. In this environment, client service doesn’t typically

“win” the client, but it does work to “keep” the client.

The audit firms, on the other hand, become frustrated noting the

special skills and professional training required for a CPA to

perform quality work is extensive and all that effort is being

viewed as a commodity. High quality is seen as a given in every

firm so what remains as a means of differentiation is the quality

of your client service. Many firms will assign someone or set up a

department to be responsible for client service as a means to

support the client service programs and activities.

Consider the following question. In your firm, who is assigned

the responsibility for client service? If your answer is anything

but, “everyone in our firm has this responsibility,” your firm is

missing the boat. Client service is not a department, it’s

everyone’s job.

Internal Controls – So Much Time for so Little BenefitBy Alan W. Anderson, CPA

President, ACCOUNT-ability Plus

Copyright 2011 Alan W. Anderson, used with permission.

While I often wonder if an auditor understands what is required when s/he

performs the internal control procedures contained in audit programs, I am also

confident that most auditors question the benefit of completing the procedures. In

spite of the fact that there is little perceived benefit, auditors continue to complete all

the steps on the “canned” audit programs because they don’t question the efficacy of

the forms as it relates to the client. Auditing “military style”…..doing what you are told without question, may work in

the military but not in the audit. A fundamental component of the audit itself is to ask

questions, something one of my mentors in my early years coached everyone to do.

Yes, his words to “just ask questions” will make you a better auditor.

Without asking questions to gain a better understanding and simply following the

forms leads to the auditor’s perception of “so much time for so little benefit.” Instead,

by asking questions to gain a better understanding will help you determine if there is

a better and more efficient way. This article focuses on several important questions

and offers ideas to help auditors develop a better and more efficient way to

understand the client’s internal control.

Evolving Risk Landscape and its Impact on the Audit OpinionBy Alan W. Anderson, CPAPresident, ACCOUNT-ability Plus

© Copyright 2011 Alan W. Anderson, used with permission.

For many of us, auditing used to mean “beating up the balance sheet” and sending a handful of

confirmations to support our audit opinion. Due to some significant events of late, such as the subprime

mortgage crisis, the risk profile of today’s auditing environment is significantly different from those earlier

audits. More importantly, it’s rapidly changing and evolving. Bob Dylan’s 1964 ballad, “The Times They Are A-Changin’ ” was conceivably a call to action to deal with

those turbulent changing times. The song’s lyrics seem as appropriate today as they were back then. The

song begins with:

“Come gather ‘round people Wherever you roam And admit that the waters Around you have grown Accept it that soon You’ll be drenched to the bone If your time to you Is worth savin’ Then you better start swimmin’ Or you’ll sink like a stone For the times they are a-changin’” So, come gather ‘round auditors, as the changing waters of the risk landscape are impacting us and our clients.

None of us wants to “sink like a stone” in the riskier waters of today’s audit environment. This article focuses on

recent changes in the risk environment and learning how such changes impact the audit process. We must be

prepared to navigate these waters.

Fieldwork Complete…Is the Audit Complete?By Alan W. Anderson, CPA

President, ACCOUNT-ability Plus

© Copyright 2011 Alan W. Anderson, used with permission.

It’s It’s Friday afternoon, and you are off to another client on Monday morning. You have

exhausted your allotment of fieldwork time at this client. There is one “small” problem; however, the audit is

not done. You will have to complete the audit in “wrap-up” mode, even though wrap-up isn’t scheduled. You

ask yourself, “How will I get it done?” Does this sound familiar?

When I talk about the above scenario to auditors, they all recognize the inefficiencies in the “wrap-up” mode

and hope that audit quality won’t be negatively impacted. They acknowledge that addressing the situation is

an opportunity for reducing audit time yet confirm that beyond talking about the issue, they seldom do much

to change. If we see the issue and know the issue, why then don’t we do something to deal with this issue?

Peter Senge is quoted as saying, “People don’t resist change. They resist being changed.” In many respects,

Mr. Senge’s quote fits this situation. The auditor sees and knows the issue but resists being changed.

Resistant to change or not, most audit firms do not effectively deal with this audit issue and just hope it will

get better.

Change based on hope, without action, is doomed to fail. Many firms take this situation for granted and audit

staff are simply “told” either directly or indirectly to “just deal with it.” This article is designed to help you

make appropriate, positive steps toward change in the audit process.

Imagine again, it’s Friday afternoon and you are off to another client on Monday and this audit is complete!

This doesn’t need to be a dream; it can happen.

Technology: A Blessing or a Curse During the Audit

By Alan W. Anderson, CPA

President, ACCOUNT-ability Plus

© Copyright 2011 Alan W. Anderson, used with permission.

The pace of technology change continues to move at what seems to be nearly the speed of

light and shows no real signs of slowing down. What is considered a new technology today is old

technology tomorrow. In contrast to the speed of change in technology, consider the speed of change in

the audit world. Unfortunately, audit processes and approaches have not changed in what seems to be

light years.

Many firms jumped on the technology bandwagon over the past several years but frequently

question their return on investment through enhanced efficiency and improved audit effectiveness. Bill

Gates is quoted at stating, “The first rule of any technology used in a business is that automation applied

to an efficient operation will magnify the efficiency. The second is that automation applied to an

inefficient operation will magnify the inefficiency.” Unfortunately, many firms unknowingly followed

Mr. Gates’ second rule and have applied technology to inefficient processes. The end result has been

minimal improvement in efficiency and effectiveness, at best. While many firms wanted their

technology investment to be a blessing, it just hasn’t turned out that way.

The good news is that is not too late. You can turn the tide and have technology utilization

become a tremendous asset in your audit process. The remainder of this article will offer some ideas

and suggestions for you to consider that can enhance the benefits of the use of technology in the audit

process.

Copyright 2011 Alan W. Anderson, used with permission

The Pros and Cons of E-mail Use during the Audit

By Alan W. Anderson, CPA

President, ACCOUNT-ability Plus

audit staffs grew up with technology and rely on it to perform their jobs

better. Armed with BlackBerrys, laptops, cellphones, iPods and other tech tools,

most are plugged-in 24 hours a day, 7 days a week. They generally prefer to

communicate through e-mail and text messaging rather than face-to-face contact.

Given these preferences, the auditor must consider the impact of “internet-

interfaced communication” tools on the quality and effectiveness of the audit.

Recently, Pope Benedict XVI expressed his views concerning the over

reliance on the use of technology as an exclusive communication vehicle. In his

message at the Catholic Church’s 45th World Communications Day he said, “It is

important to always remember that virtual contact cannot and should not be a

substitute for direct human contact with people at all levels of our society." In

many respects, e-mail has become the auditor’s substitute for face-to-face

communication with their audit clients. The remainder of this article discusses

effective ways to communicate with an audit client for a high-quality and efficient

audit.

Today’s

Did you miss the LIVE Program?No worries...

Coming Soon...Anderson’s Audit Express

Self-study Program

For more information, contact Danielle Bulson at Danielle@kscpa.org.

twelfth

12 September 2011

www.AccountingPracticeSales.comkathy@accountingpracticesales.com

Kathy Brents, CPAP. O. Box 70

Cleveland, Arkansas 72030(501) 669.2505

Mobile (501) 514.4928Fax (501) 669.2291NORTH AMERICA'S LEADER IN PRACTICE SALES

Go with the biggest in the industry. We are North America’s leader in marketing accounting and tax practices because we understand the value of your firm, know how to market it and have hundreds of buyers who want a practice. Our biggest concern is you. Our wealth of experience culminates to make sure your comfort level is met, your questions are answered and everything is being done to sell your firm. Give us a call today so that we may go to work for you and produce the results you desire. Call Kathy Brents today!

We Go To Work For You.

Skyscapes - Newsletter of the Kansas Society of CPAs 13

DRINON'S LEADERSHIP EXPRESSRich Drinon, a leading consultant to business, has teamed up with the KSCPA to present a new videocast series, “Drinon’s Leadership Express.” This series focuses on the four perpetual actions managed by those in a leadership role. Those essential actions include building relationships, achieving results, navigating change and making decisions. This 13-topic program helps experienced leaders understand the implications of both leadership and followership styles in the organization. The program examines the use of power, leverage and influence in the workplace, and important pillars of leadership such as character, commitment, competence and a maturing consciousness. Participants will explore relationship building in the framework of connecting, communicating and collaborating with others as well as approaches for getting results, promoting change, solving problems and making decisions within their respective organization.

Learning for each topic begins with an article published in the KSCPA Skyscapes, followed by a one-hour viedocast with Q&A (designed to qualify for CPE) and enhanced with a blog page. The topics are designed to lead participants through an understanding of key elements for leading others. Although each session builds upon previous entries, each session will also provide a valuable learning experience as a stand-alone, one-hour program.

• The Four Perpetual Actions of Leaders• RefiningYourLeadershipPhilosophy&Style• Recognizing & Relating to Four Behavioral Styles• Managing Your Image, Perception & Mis-Perceptions• Facing the Challenges of Diversity & Generational Differences• Leading Groups & Making Presentations• Developing Credibility & Trust with Others• Maintaining Focus, Multitasking & Managing Time• Getting Results through Others with Coaching Skills (Part 1): Expectations, Delegation & Motivation• Getting Results through Others with Coaching Skills (Part 2): Evaluation, Praise, Correction & Discipline• ResolvingConflict(WithConflictStyleAssessment?)• Navigating Change Curves & Using Persuasion to Promote Change • Practicing Subjective, Objective & Intuitive Problem Solving & Decision Making

TOPICS COVERED EACH MONTH INCLUDE:

NEW!

COMING IN NOVEMBER!

VIDEOCAST

SERIES

Produced by the:

14 September 2011

Congresswoman Lynn Jenkins and Secretary of Revenue Nick Jordan Visit the KSCPA Offices

The KSCPA hosted a Town Hall to discuss tax simplification with Congresswoman Lynn Jenkins, CPA on August 31, 2011 at the KSCPA offices in Topeka. A diverse group of CPAs, guests from the Department of Revenue, KSCPA government relations consultants, and Cynthia Lund from the AICPA provided feedback to Congresswoman Jenkins on a variety of topics. Gary Allerheiligen, Champion of the KSCPA Advocacy Tax Force and Chair of the Legislative Executive Committee, led the Town Hall. Congresswoman Jenkins was accompanied by her Chief of Staff and Director of Legislative Affairs. Some of the items discussed were corporate tax rates, business tax rates on individual returns, earned income credit, like-kind exchanges, oil & gas deductions/credits, fringe benefits exemptions, state & local tax deductions, mortgage interest deductions, estate tax, and pass-through entities. The consensus of the group is to support tax simplification, but what resonated among the CPAs was the desire to reduce uncertainty about the tax code to enhance the ability for taxpayers to plan. The KSCPA plays a major role in advocacy for the profession at both the Kansas Statehouse and in Washington in conjunction with the AICPA. Members of the KSCPA are representatives on the AICPA Council (its governing body) and meet with Kansas Senators and Representatives and their staff on a regular basis.

All members are welcome to participate on the Advocacy Task Force. Register for the upcoming Leadership Summit on November 16 at the Sheraton Overland Park and request the Advoacy Task Force. We appreciate the opportunity to provide input to Congresswoman Jenkins and to the representatives and officials in the State of Kansas. Please contact Mary MacBain at the KSCPA office to request input from members of the KSCPA.

MEMBER VALUE

Congresswoman Lynn Jenkins Holds Town Hall on August 31 at KSCPA Offices

Membership in the KSCPA provides value to CPAs Listen to this 1 minute video with Lynn Jenkins and Gary Allerheiligen

Skyscapes - Newsletter of the Kansas Society of CPAs 15

MEMBER VALUE

Secretary of Revenue Nick Jordan Meets with KSCPA Executive Committee and Government Relations Consultants

Congresswoman Lynn Jenkins Holds Town Hall on August 31 at KSCPA Offices

Secretary Nick Jordan met with John Bruckner, Bob Schuster, Aron Dunn, Gary Allerheiligen, Marlee Carpenter, Natalie Bright, and Mary MacBain on September 21 at the KSCPA offices to receive an update on tax policy in Kansas.

Secretary Jordan is eager to maintain communication with the members of the KSCPA and will plan to keep the membership appraised of the Governor’s initiatives. He agreed that input from the membership of the KSCPA is critical to the success of implementing new tax policy, and he will be contacting the KSCPA for input, testimony, and recommendations.

In summary, the administration is seeking a strong tax policy that other states will look to as a model. They are working with a group of economists, labor experts, and the department of revenue to determine the best policy to propose.

Stay tuned for frequent communication from Secretary Jordan as the new tax policy begins to unfold. Secretary Jordan will speak at the upcoming KSCPA 61st Kansas Tax Conference to be held at the Sheraton Overland Park on November 17-18, 2011. The title of his presentation is “A Guide to the Future of Kansas Business Taxation and its Impact on Economic Growth in Kansas.” The session will provide insight from the Secretary’s travels throughout Kansas as he and the Governor spoke with Kansas to assess the business climate and receive feedback to the Administration’s plan to reduce taxes to spur economic growth.

Dr. Jeff Colyer, Lt Governor of Kansas, who spoke at the Conference on Kansas Taxes (and for whom the participants “wanted more”) will be a special guest speaker at the luncheon on Thursday.

Other speakers include Dr. Chris Kuehl, Sandy Praeger, Ed Karl, Dennis Gerschick, Michael Daggett, Lori Mings, Gary Allerheiligen, Jeff Lanza, Curtis Dean, and Randy Johnston.

PAYCHEX is sponsoring the conference and will host a reception on November 17. The Metro Chapter of the KSCPA will serve as hosts for the conference and be available to provide information on the happenings in the area.

Register today for this annual event!

KEY CONTACTS NEEDEDThe AICPA and KSCPA need your key contacts! When a bill or other issue comes to the forefront and we want to contact our state representatives or members of congress, we need that “special connection.” If you have connections with a state representative/officials or members of congress that would be helpful to the CPA profession, please e-mail these to Mary MacBain at mary@kscpa.org.

16 September 2011

MEMBERS

Welcome to the KSCPA!

CPA Members

Brent C. Bradbury Davis & Bellomo, PA Overland Park, KS

Jason L. Carlstedt Ernst & Young LLP Kansas City, MO

Angie K. Costley INVISTA Wichita, KS

Cassandra Dolen BKD, LLP Wichita, KS

Patrick Dougherty Overland Park, KS

Amelia Erhart Lindburg Vogel Pierce Faris Chtd Dodge City, KS

Jeffrey Goldstein Viega LLC Wichita, KS

Sherrie Hodges Kramer & Associates Leavenworth, KS

Casey Horton Mayer Hoffman McCann, P.C. Topeka, KS

Jonathan L. Hullman Adams Brown Beran & Ball, Chtd. Hutchinson, KS

Tara J. Laughlin Allen Gibbs & Houlik, L.C. Wichita, KS

Laura M. Lehmer Regier Carr & Monroe, L.L.P. Wichita, KS

Adam Manlove Allen Gibbs & Houlik, L.C. Wichita, KS

Randy D. Porter Porter & Associates CPAs, LLC

Brian Stawinski Wagner Kressig PA Lawrence, KS

John B. Walter Kennedy and Coe, LLC Salina, KS

Danying Zhu Gutschenritter & Johnson, L.L.C. Wichita, KS

Affiliate Members

Patricia A. O’Sullivan Wichita State University Wichita, KS

John Sweeney University of Kansas Lawrence, KS

Jennifer Zavadil Mayer Hoffman McCann, P.C. Topeka, KS

Student Members William Carpenter Southwestern College

Stephanie Pippenger Upper Iowa University

Cayla Sommers Kansas State University

In MemoriamGary Eugene KahmannJanuary 10, 1943 – September 3, 2011

From the Kansas City Star:Gary Eugene Kahmann, CPA passed away on September 3, 2011. Gary graduated from Pittsburg State Uni-versity where he earned a Bachelor’s degree in Accounting and played baseball and basketball. He began his accounting career at Arthur Anderson and Co. in Kansas City. He went on to have his own firm in Olathe for 30 years. Gary was a lifetime member of the KSCPA and AICPA, making significant contributions to the profession. Gary was proud to earn lifetime membership to the KSCPA. He showed up to accept the honor in person, even though he was on dialysis. He will be greatly missed!

Skyscapes - Newsletter of the Kansas Society of CPAs 17

Member NewsMEMBERS

Skyscapes - Newsletter of the Kansas Society of CPAs 17

Irene Barkman, CPAFrom Sterling Bulletin: Irene Barkman, Hutchinson, has joined Sterling College as an assistant professor of business. Barkman has extensive accounting experience. She completed her Master’s degree from Wichita State University this summer. Congratulations, Irene!

Rob Berard, CPAFrom Manhattan Mercury: Rob Berard, Wamego, has been hired as Heartland Plant Innovations, Inc.’s new CFO. Rob previously worked for GTM Sportswear as the VP/CFO. He graduated from Kansas State University in 1991. Congratulations, Rob!

Rob Fisher, CPA.CITPFrom AICPA: Rob Fisher, Olathe, is on the steering committee for the AICPA’s Controller Workshop East conference. The conference is November 10-11, 2011 in Lake Buena Vista, Florida. Rob is the assistant Vice President of Kansas City Life Insurance Co. in Kansas City, MO. Congratulations, Rob!

William D. Glazner, CPA.CITPFrom Ness Co. News: William D. Glazner, McPherson, has received his Certified Information Technology Professional (CITP) designation from the AICPA. William joined Adams, Brown, Beran & Ball in 1986. He is a shareholder in the firm’s McPherson and Hillsboro offices. William provides tax, audit and consulting services to small businesses and clients in the agricultural and manufacturing industries. Congratulations, William!

Congresswoman Lynn Jenkins, CPAFrom ACIPA: Congresswoman Lynn Jenkins, Topeka, will be a featured keynote speaker at the AICPA’s Controller Workshop East conference. She will present a session entitled “A Legislative Outlook.” The conference is November 10-11, 2011 in Lake Buena Vista, Florida. Congratulations, Congresswoman Jenkins!

Tim Johnson, CPAFrom Wichita Business Journal: Tim Johnson, Wichita, has been promoted to supervisor in the audit department at BKD, LLP. He was formerly a senior auditor at the firm. Congratulations, Tim!

Frank Laubhan, CPAFrom Hutchinson News: Frank Laubhan, Pratt, has been appointed to the Kansas Advisory Council on Aging. He earned a degree in accounting from Kansas State University. Frank has served as mayor for two years, on the boards of the Pratt Community College Foundation, the Pratt Chamber of Commerce and the SW Kansas Agency on Aging. Congratulations, Frank!

Chuck Underwood, CPAFrom Greely County Republican Tribune: Chuck Underwood, Salina, has opened a new accounting/consulting practice in Salina. UCentric Solutions seeks to take advantage of technology to provide outsourced accounting services, including part-time CFO-Controller services and other financial consulting, to small businesses. Chuck received a degree in accounting from Sterling College in 1998. He worked for 11 years with Kennedy and Coe. Congratulations, Chuck!

18 September 2011

Danying Zhu, CPAFrom Wichita Business Journal: Danying Zhu, Wichita, has been promoted to audit manager at Gutschenritter & Johnson LLC. Congratulations, Danying!

Sterling College Offers New Accounting Concentration for Business MajorsFrom Lyons News:Sterling College has announced that it will be offering an accounting concentration for business majors. Irene Barkman, will be teaching the accounting courses for business majors. According to the “Job Outlook 2011 Spring Update” published in April by the National Association of Colleges and Employers, employers plan to hire 19.3 percent more graduates in 2010-2011, with business and accounting being two of the biggest industries expanding.

Member News (Continued)

MEMBERS

CPA Exam Passers (April/May)

Brent BradburyOlathe, KS

Mark BrowneKansas City, KS

Tamara CreekAuburn, KS

Matthew FellowsWichita, KS

Christopher FosterOlathe, KS

Erin FoxOlathe, KS

Bradley HopeEl Dorado, KS

Stephanie IrwinBartlesville, OK

Sarah KongsOverland Park, KS

Julie MillerOverland Park, KS

Jennifer ObarAndover, KS

Courtney RiersonMcPherson, KS

Aleksandra RobertsonOlathe, KS

Jacqueline SmithColwich, KS

John SteyerLenexa, KS

Brian ThiesOverland Park, KS

Stephen TubbertLeawood, KS

Matthew TuxhornDodge City, KS

Ryan VanlandinghamAustin, TX

Knox VarelaOlathe, KS

Tabitha WeigelTopeka, KS

Erin WhiteManhattan, KS

Justin WhitneyLawrence, KS

Kara YoungWinfield, KS

Top Scorer for this window

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Have news? Contact Danielle Bulson at Danielle@kscpa.org.

Skyscapes - Newsletter of the Kansas Society of CPAs 19

KSCPA BUSINESS VALUATION CONFERENCE“A Recent Perspective on Estate and Gift Taxes”

October 21, 2011Ritz Charles Overland Park

20 September 2011

61st ANNUAL KANSAS TAX CONFERENCE“TAKING TAXATION INTO THE FUTURE”

Sponsored by:

Sheraton Overland ParkNovember 17 - 18, 2011

Skyscapes - Newsletter of the Kansas Society of CPAs 21

The 2011 Women’s Leadership Conference and “Women to Watch” award luncheon was held on September 16, 2011 at the Hilton Wichita Airport. Jennifer WIlson, of Convergence Coaching, facilitated the conference over “Ten Winning Strategies Every Woman Should Know.” Greg Anton, CPA, Vice Chair of the AICPA, the premier membership organization for CPAs with membership over 350,000, presented his speech “Changing Face of the Profession and How Women are Impacting Firms and Organizations.” Anton spoke about the strides women have made to been seen as equals in the professional world. He also touched on the disparity between men and women in terms of pay and leadership positions. Anton called on the attendees to look toward the future of the profession and women’s role. Anton called upon the women nominated for the “Women to Watch” awards to help push their colleagues to pave the way for future women leaders. He suggested networking, mentoring educating one another, and nominating women for professional awards, like the “Women to Watch” as ways to build future leaders. After inspiring the attendees to push themselves to get the leadership roles they deserve, Anton presented the awards to the 2011 winners. Nominee certificates were presented by John Bruckner, chair, KSCPA. Awards were given in two categories, Experienced Leaders & Emerging Leaders. An experienced leader is defined as a KSCPA / AICPA member who is in a higher level or leadership position within her organization, such as partner, owner, member, executive, elected official or appointee, etc. An emerging leader is defined as a KSCPA / AICPA member who is not yet in her highest level of advancement; however, she makes contributions to the profession and her community. The winners of the Experienced Leader award are: DeAnn Auman Hill, owner, DeAnn Hill, CPA, Baxter Springs and Ginger Powell, managing director, Berberich Trahan & Co., P.A., Topeka. The winners of the Emerging Leader award are: Julie Allen, manager, manufacturing group, Kennedy and Coe, LLC, Wichita and Trisha Spader, shareholder, McFarren & Magnifico, CPAs, PA, Wichita.

Nominees for the award were:Experienced Leaders: DeAnn Auman Hill, Baxter Springs; Ginger Powell, Topeka; Julie E. Kauffman, Melissa Goetz, Salina; Lynn A. Fountain, Overland Park and Michele C. Hammann, Lawrence.

Emerging Leaders: Shellee Callahan, Salina; Suzanne R. Johnston, Topeka; Julie Allen, Stephanie Bowen, Cassandra J. Dolen, Kari A. Henning, Christine M. Hilton, Rachel B. Johnson, Trisha A. Spader, Cassandra R. Sporleder, Noelle Testa, and Kristen F. Windscheffel, Wichita.

AreFemaleCPAsEqual?The Future of the Profession and the Role of Women

View photos from this event on the next page >>>

22 September 2011

Women to Watch September 16, 2011

Skyscapes - Newsletter of the Kansas Society of CPAs 23

September 16, 2011

Women’s Leadership Conferencewith Jen Wilson

24 September 2011

EXPOBUSINESS & INDUSTRY

Sponsored by:

Our Business & Industry Members want more!Mark your calendars for August 22, 2012 for a “Repeat Performance” in Wichita.

Anysuggestionsforspeakersortopics?

Contact a member of the Steering Committee (e-mail addresses in Member Directory at www.kscpa.org).

Speakers, including AICPA Chair Paul Stahlin (middle)

Visit Koch Industries’ Richard Dinkel Speakers have dinner with sponsors and hosts

Speakers have dinner with sponsors and hosts Paul Stahlin and his wife Nanny

Skyscapes - Newsletter of the Kansas Society of CPAs 25

Speakers have dinner with sponsors and hosts

Paul Stahlin and his wife Nanny

Speaker Paul Stahlin presents his vision for the future.Speaker, and conference sponsor, Ginger Farney does a technical update.

Speaker Hubert Glover with KSCPA CEO Mary MacBain. Participant is all smiles!

Conference Chair Teema Roberts presents gift to speaker.

Conference Committee Member Robyn Seglem introduces Gary Allerheiligen.

Gary Allerheiligen receives speaker gift

Committee Member Jill Kruse introduces Rich Drinon

Reception Sponsor and committee member Stephanie Bowen introduces final speaker

26 September 2011

As reported to the membership in an audio from Aron Dunn, Chair of the PRPITF, and Mary MacBain, CEO of the KSCPA, a task force is undertaking an extensive look at the peer review process.

Members of the Task Force are:Aron Dunn, Chair – representing KSCPA Executive CommitteeJohn Bruckner – representing KSCPA Executive Committee (Bob Schuster to fill in when needed)Bert Denny – AICPA Peer Review CommitteeLaverne Soetebier – KSCPA Peer Review Technical ReviewerTom Thomas – Chair, KSCPA Peer Review CommitteeGinger Powell – State Board of AccountancyMary MacBain – CEO, KSCPAJim Brackens – Vice President, AICPA

Also attending the meetings are Alan Anderson, serving as facilitator of the process, as well as Chris Ellis and Beth Thoreson of the AICPA.

To see photos and bios of the task force, click here.

Purpose of the Task ForcePeer Review within the CPA profession was initially established to ensure that the CPA profession is providing high-quality attestation services to meet marketplace expectations and to ensure that all members in the profession who are providing attestation services are doing so in a high-quality manner. The peer review program is designed to have other members (i.e. “peers”) review a sample of a practitioner’s work and to provide constructive suggestions to im-prove the quality of the practitioner’s services.

In the spirit of transparency, the peer reviewer does issue a report covering the practitioner’s quality that is available to the public after the report has gone through the appropriate levels of review and acceptance by professional and state governance bodies.

Because it is good practice to review programs on a periodic basis in the spirit of continuous improvement, this project is designed to review all aspects of the peer review program and to make process improvement recommendations and close any “gaps” in the process should they exist.

Update on Peer Review Process Improvement Task Force (PRPITF)

Skyscapes - Newsletter of the Kansas Society of CPAs 27

It is the intent that any proposed recommendations will be balanced along the following three areas: 1. Public Interest Protection, 2. Impact on the members, and 3. State and National regulatory requirements and guidelines.

Accomplishments

1. A communication to the membership was made via audio podcast regarding the departure of Teresa Keating as peer review administrator and providing information on the interim solution.2. Interim administration was arranged for and continues with the Oklahoma Society of CPAs under the direction of Patty Hurley, Associate Executive Director of the Society.3. Based on a study by the task force to determine whether to outsource administration or to maintain the current in-house administration, the task force has recommended to the KSCPA executive committee that a new administrator be hired and housed at the KSCPA. This recommendation was accepted by the executive committee on September 21, 2011.4. A job description for the administrator position was prepared and posted on the KSCPA website. Click here to view the job description.5. Conference calls have taken place (August 3, 30, and September 7, 12, 19) to create a charter, decide how to handle administration, gain a better understanding of the peer review process, and to review the current initiatives of the AICPA to improve the peer review process.

The task force will meet by conference call on October 7 to review a proposed survey that will be sent to those participat-ing in the peer review program during the month of October. The task force will meet in person on November 16 in con-junction with the KSCPA annual meeting and leadership summit. Recommendations will be made to the KSCPA executive committee and to the AICPA who is also undergoing a review of the peer review process.

James Brackens, CPA, Vice President, Firm Quality and Practice Monitoring, AICPA, visited the Kansas Board of Accountancy at their August meeting to review the AICPA peer review program and process. Jim’s responsibilities at the AICPA include providing strategic and tactical direction for the AICPA’s peer review programs, as well as Employee Benefit Plan and Governmental Audit Quality Centers.

Jim is participating in the KSCPA Peer Review Process Improvement Task Force and was a speaker at the 2010 KSCPA Governmental Nonprofit Accounting & Auditing Conference. He met with peer review team captains at a special luncheon during the conference.

Jim can be reached at jbrackens@aicpa.org. He is located at the Durham, NC office of the AICPA.

HEADS UP!Be on the lookout for a survey from the Peer Review Process Improvement Task Force during October!The survey is designed to ascertain your opinion about the current peer review process – from “Stem to Stern.” If you are not a part of the peer review program but want to participate in the survey, please contact Mary MacBain at mary@kscpa.org.

Jim Brackens Visits the Kansas Board of Accountancy

28 September 2011

Cynthia Lund, AICPA Vice President of State Affairs, visited the KSCPA offices and worked with the KSCPA team on August 30-31. Cynthia provided the team with a professional issues update and worked with them to review the leadership's strategic plan and help to align the team members’ job responsibilities to the action items of the plan.The KSCPA Board of Directors met on July 22 to review and update the strategic plan, at which time they identified 4 new "big rocks."

The "big rocks" for 2011-2012 are:Leveraging Technology to Communicate Member ValueProfessional DevelopmentAdvocacyMembership Growth

All members are welcome to serve on task forces at the KSCPA leadership summits on November 16 in Overland Park and May 24 in Lawrence. A board member is assigned as a champion of each big rock and will lead the discussion at the Leadership Summit.Register for the Leadership Summit and other events on the KSCPA website or contact Mary MacBain for further information.

Cynthia Lund, AICPA VP, Visits KSCPA Team to Align Strategic Plan

MEMBER VALUE

Skyscapes - Newsletter of the Kansas Society of CPAs 29

“Congressional Update” Congressman Mike PompeoOctober 17, 20115:30-7:00pmLocation: Grant Thornton LLP

Chapter News

Chapter MeetingOctober 19, 201111:30-1:00pmLocation: Topeka Country Club

“Offer in Compromise” Joel Krieger, Past President, Metro ChapterOctober 19, 201111:30am-2:00pmLocation: Overland Park Chamber of Commerce

Metro:

Wichita:

Northeast:

Caffeinated ConversationsThe KSCPA has completed a full year of a new professional development activity “Caffeinated Conversations.”

Caffeinated Conversations is a series designed for members in the Business/Industry/Government/Education sectors, but is open to all members. The goal of the series is to provide a casual continuing education offering where group participation is encouraged and new connections can be made. Each session brings a new topic and a fresh perspective.

The Wichita Caffeinated Conversations were graciously hosted by Kennedy & Coe, LLC in Wichita. Thank you for providing such a great space and providing lunch for the participants!

The Metro area Caffeinated Conversations were held at the Bristol Seafood Grill. Recently, there was a full house when Catherine Murphy, Missouri/Kansas IRS Stakeholder Liaison, led the discussion.

The KSCPA offices was the site for the Topeka Caffeinated Conversations.

Ethics with Jim ClarkNovember 15, 201112:00-2:00pmLocation: Hyatt Regency Wichita

Accounting & Auditing UpdateDecember 15, 201111:30-1:00pmSpeakers: Shelly Hammond & Aron Dunn: Allen, Gibbs & Houlik, L.C.Location: Petroleum Club

KSCPA and Educational Foundation Update Mary MacBain and Ken Selzer11/09/2011Location: Overland Park Chamber of Commerce

Want to lead a Caffeinated Conversation?Contact Danielle Bulson at danielle@kscpa.org today! We are currently formulating our 2011 programs.

30 September 2011

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KSCPA members receive $300** off the full course tuition.

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IRS Seeks Volunteer CPAs to Test New Program

The IRS is launching new Nationwide Tax Forum Online (NTFO) Curriculum for all tax practioners. The IRS hopes to launch new NFTO courses in October, but it needs volunteer CPAs to test the program.

The NFTO provides alternative, self-paced courses for the practioner community. It is a NASBA requirement to have courses tested prior to making them available to the public.

If you are interested in helping the IRS meet the NASBA requirement click here to learn more

From the IRS...

Skyscapes - Newsletter of the Kansas Society of CPAs 31

prepared for

You’ve got this test covered. Becker Professional Education has helped accounting professionals pass the CPA Exam with confidence for more than 50 years. With Becker you can:

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· Join over 400,000 successful candidates who prepared with Becker

· Tailor our program to the demands of your busy life with live, online and self-study formats

“Wow! I passed all 4 parts the first time. I could not have done it without Becker. The materials are great and the national instructors are amazing. Thanks so much to everyone at Becker for helping me pass.”

- CPA Candidate and Becker Alum

* Becker Professional Education students pass at twice the rate of all CPA exam candidates who did not take a review course from Becker, based on averages of AICPA-published pass rates. Data verified by an independent, third-party firm.

** This offer valid only on full 4-part course tuition price and cannot be combined with any other offers.©2011 DeVry/Becker Educational Development Corp. All rights reserved.

KSCPA members receive $300** off the full course tuition.

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For over 55 years, Lewis, Hooper & Dick, LLC has been an industry leader in providing premier accounting and consulting service to their clients in the Midwest.

We invite you to join our growing firm, recently recognized as a top 100 in “The Best Accounting Firms to Work For” national rankings by Accounting Today.

We are currently seeking CPA’s with a minimum 5+ years experience in commercial or governmental auditing as well as those with strong tax backgrounds.

Ideal candidates will value the opportunity to work both independently and to lead a team of professionals, value cutting edge technology and support systems, and enjoy direct client contact.

Minimum requirements include a Bachelors Degree in Accounting, CPA certification, solid technology skills and a client service mind set.

We offer a competitive salary and benefits package, with superb opportunities for professional growth and development. Please forward your resume to: Lewis, Hooper & Dick, LLC, Attn. Human Resources, 405 N. 6th Street, Garden City, KS 67846 or to davidl@lhd.com. E.O.E.

All applicant resumes will be kept confidential.

WOLTERS KLUWERTAX ANALYST OPENING – CCH, A WOLTERS KLUWER BUSINESS, TAX, ACCOUNTING & LEGAL DIVISION, WICHITA, KANSAS

The Tax Analyst will be responsible for designing and testing software for use by CPA firms and corporations. The Analyst must be versed in tax law and able to use electronic research tools.

***This position is not remote, it is based in the Wolters Kluwer Wichita, KS office***

The ideal candidate will have the ability to apply knowledge of corporate tax law and tax filing processes to define, analyze, design and support proprietary Federal and State tax form product development.

The ideal candidate will also: • Design the complete user experience for all assigned forms, including layout, data collection windows, calculations, help screens (guide and functions), e-Filing, and printing functionality. • Design and edit the product interview content and government tax form data entry/data collection screens, working closely with the graphics department to produce mock-ups.• Conduct product testing and debugging of tax programs to ensure accuracy and complete functionality. Test assigned products and cross-test products designed by other analysts. • Provide customer support for ProSystem fx products on an as-needed basis.

Qualifications:Education:• Bachelor’s degree in Accounting, Finance, Business Administration or related preferred, or if no degree, 4 years of income tax preparation experience working in a Public Accounting firm or corporate tax department• CPA certification preferred

Experience:• Requires 2 years of income tax preparation experience working in a Public Accounting firm or corporate tax department• Must have strong analytical skills, with ability to thrive in a deadline-driven team environment

Tools:• Basic computer skills and familiarization with MS Office Suite, Word and Excel

About CCH, a Wolters Kluwer business:CCH (www.tax.cchgroup.com), a Wolters Kluwer business (CCHGroup.com ) is a leading provider of tax, accounting and audit information, software and services. It has served tax, accounting and business professionals since 1913. Among its market-leading products are The ProSystem fx® Office, CorpSystem®, CCH® TeamMate, CCH® Tax Research NetWork™, Accounting Research Manager® and the U.S. Master Tax Guide®. CCH is based in Riverwoods, Ill.

CCH offers a range of innovative online productivity tools as part of IntelliConnect™, including the award-

KELLER & MILLER, CPA’S L.L.P.ACCOUNTING PROFESSIONALS-ALL LEVELS

Keller & Miller, CPA’s L.L.P., a firm that is diverse in all aspects of the public accounting field is currently seeking growth-oriented individuals to become a member of our successful team.

Candidates for this position must have a Bachelors Degree in Accounting. Previous experience in public accounting is a plus. Individuals must have good technical and organizations skills.

We offer excellent growth & development opportunities along with an excellent benefits package. Compensation is commensurate with experience.

Please forward resumes to: Keller & Miller, CPA’s Attn: Personnel, 401 Campus Dr., Garden City, KS 67846 or to djd@kellermiller.com. All applicant resumes will be kept confidential. EOE

32 September 2011

winning CCH@Hand – a breakthrough application that speeds and integrates tax research with the workflows of accountants, tax preparers and lawyers.About Wolters Kluwer:Wolters Kluwer (www.wolterskluwer.com) is a market-leading global information services company. Professionals in the areas of legal, business, tax, accounting, finance, audit, risk, compliance, and healthcare rely on Wolters Kluwer’s leading, information-enabled tools and solutions to manage their business efficiently, deliver results to their clients, and succeed in an ever more dynamic world. Wolters Kluwer is a market-leading global information services company. Professionals in the areas of legal, business, tax, accounting, finance, audit, risk, compliance, and healthcare rely on Wolters Kluwer’s leading, information-enabled tools and solutions to manage their business efficiently, deliver results to their clients, and succeed in an ever more dynamic world.

Wolters Kluwer has 2010 annual revenues of €3.6 billion ($5 billion/£3.1 billion), employs approximately 19,300 people worldwide, and maintains operations in over 40 countries across Europe, North America, Asia Pacific, and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.Visit our website, YouTube or follow @Wolters_Kluwer on Twitter for more information about our customers, market positions, brands, and organization.Wolters Kluwer offers a competitive compensation and benefit package including 4-weeks of paid time off (1st year), 12 paid holidays, and a generous profit sharing program.

We are an equal opportunity employer and committed to a diverse workforce.

To apply directly for this position, please use the link below:http://www.wolterskluwer.apply2jobs.com/ProfExt/index.cfm?fuseaction=mExternal.showJob&RID=6517&CurrentPage=1-

WE BELIEVE WE ARE JUST WHO YOU’RE LOOKING FOR!

We are Adams, Brown, Beran and Ball, Chartered, a Kansas Leader Specializing in Auditing, Tax and Financial Advisory Ser-vices. Founded in 1945, the firm maintains 12 office locations throughout the state where our progressive, innovative culture invites employee participation. We believe that honesty, integrity, hard work and providing excellent client service are what it takes to be successful, along with allowing time for self, family and enjoying life.

Currently, we are searching for an experienced CPA or CPA candidate with 3+ years experience in auditing for commer-cial, governmental and not-for-profit organizations along with tax preparation for our McPherson office. If you pos-sess solid analytical, problem solving, communication and organizational skills along with an aptitude to learn and effectively use multiple software applications, you could be-come a part of our dynamic team.

Adams, Brown, Beran and Ball, Chartered is proud to of-fer a work environment that offers the latest, cutting-edge technology, career growth and training and professional development opportunities as well as an excellent benefits package.

Let us assist you in making the most of your abilities and skills where advancement potential and work/life balance are a shared goal. Please send resume to: Adams, Brown, Beran & Ball, Chtd. Attn: Human Resources, PO Box J, Great Bend, KS 67530 or apply online at www.abbb.com EOE

KANSAS BAR ASSOCIATIONCONTROLLER

Controller. Topeka-based professional association seeks savvy, organized controller. Preferred candidate has experience managing the financial functions and HR administration of an organization. Send resume, cover letter and three professional references to dlattimer@ksbar.org by Wednesday, September 7, 2011. Visit http://www.ksbar.org/controller.pdf for complete job description.

CLASSIFIED ADVERTISING

DR. JOHN SWEENY JOINS KU AS DIRECTOR OF ACCOUNTING & INFORMATION SYSTEMS

Best wishes & THANK YOU to Dr. Jim Heintz for his many years of service as Director!

Dr. Jim HeintzDr. John Sweeny

Skyscapes - Newsletter of the Kansas Society of CPAs 33

MIZE HOUSER & COMPANY P.A.ACCOUNTING PROFESSIONALS

Our Accounting Firm is Growing - Come Grow with Us!At Mize Houser & Company P.A. we serve highly regarded clients in our region and in over 40 states, representing privately-held companies and nonprofit organizations.Business is great - all we really need at Mize Houser is YOU! We have a number of positions open and are particularly interested in talking with experienced accountants to work in our Topeka office.Current openings include:

Experienced Staff AuditorExperienced Tax SeniorExperienced Accountants

If you are ready for a change, email your resume to Stella Penry at spenry@mizehouser.com and visit us at www.mizehouser.com to see details on our current openings.Mize Houser is a great place to work and grow!

REGIER CARR & MONROE, LLPTAX SUPERVISOR/MANAGER

Outstanding opportunity for the 5+ year CPA with minimum of 5 years of tax/small business public accounting experience. (Litigation support experience a plus) Compensation and benefits extremely competitive. Looking for the right individual who desires a rewarding career in public accounting. All inquiries will be held in strict confidence. Contact Larry Sell by phone @ 316-264-2335 or by private email to larry.sell@rcmcpa.com for more information.

EXPERIENCED AUDITOR

A CPA firm located in Topeka, Kansas has an opening for a career oriented individual in its audit department. Ideal candidates would be a CPA with three to four years of recent audit experience in public accounting. Experience serving healthcare clients would be a plus but not required. Our firm offers a professional work environment, challenging work, career advancement opportunities and a highly competitive compensation and benefits package. Please send resume in complete confidence to Ms. Kim Rodie, WENDLING NOE NELSON & JOHNSON LLC, 534 S. Kansas Avenue, Suite 1500, Topeka, Kansas 66603-3491 or e-mail to krodie@wnnjcpa.com

SEASONAL TAX PROFESSIONAL

A CPA firm located in Topeka, Kansas has an opening for a seasonal tax professional, January 16, 2012 - April 16, 2012. Flexible hours. Ideal candidates would have two plus years of tax preparation experience. Please send resume in complete confidence to Ms. Kim Rodie, WENDLING NOE NELSON & JOHNSON LLC, 534 S. Kansas Avenue, Suite 1500, Topeka, Kansas 66603-3491 or e-mail to krodie@wnnjcpa.com

Mark Your Calendar!

Designed for the profession, by the profession. SM

Events Conferences

Issues Update & Leadership SummitMay 24-25, 2012 - Lawrence

4th Annual Legistlative ReceptionJanuary19,2012-KSCPAOffice

Business Valuation ConferenceOctober 21, 2011 - Overland Park

61st Annual Tax ConferenceNov. 17-18, 2011 - Overland Park

AICPA Fall Meeting of CouncilOctober 17-19, 2011 - Phoenix, AZ

AICPA & CPA/SEA LeadershipOctober 15-17, 2011 - Phoenix, AZ

5th “20 up to 40” ProgramNovember 15-16, 2011 - Overland Park

www.kscpa.org

To view more details, click on any event or conference or visit www.kscpa.org.

Heartland Technology ConferenceDecember 15-16, 2011, Overland Park

Conference on Kansas TaxesJune 25 , 2012

Issues Update & Annual Meeting(Reception - November 15, 2011)

November 16, 2011 - Overland Park

1st 2012 “20 up to 40” ProgramJanuary 19-20, 2012 1st Session - Topeka

AICPA Spring Meeting of Council

May 15-18, 2012 125th Anniversary - Washington D.C.

Risk Management ConferenceMay 22, 2012 - Overland Park

Wealth Mgmt ConferenceMay 22, 2012 - Overland Park

Governmental&NonProfitAccounting & Auditing Conference

June 5-6, 2012 - Wichita

Young Professionals ConferenceMay 24, 2012 - Lawrence

Hosted by Metro Chapter, KSCPA

Business & Industry EXPOAugust 22 , 2012

Women’s Leadership ConferenceSeptember 21 , 2012

KSCPA Board RetreatSeptember 28 , 2012

“20 up to 40” Leadership TrainingJuly 26-27 , 2012