INSIGHT Magazine July 2010

July

2010

Exploring the issues that shape today’s financial world g icpas.org/insight.htm

THE MAGAZINE OF THE

CAREERSPECIAL ISSUE

Win the Job g Get Promoted g Find Talent g Shape Leaders g Feed the Pipeline

2010

August 24-25, 2010Donald E. Stephens Convention Center

Rosemont, Illinois

Accounting & Finance

M I D W E S T

S H O W C A S E

Keeping you at the forefront of the profession.30YEARS

16 Hours of Quality CPE for Only $280

FREE Access to Over 80 Exhibitors andSponsors including:Harris® PNC®

Elite/Diamond Sponsor Elite/Platinum Sponsor

AlliantSM Warehouse Direct®

Elite/Silver Sponsor Elite/Silver Sponsor

Elite/Bronze Sponsor

ADP®, BNA®, CCH®, Comcast® Business Services,CPA2Biz®, Intuit®, SageTM and Thomson Reuters®

Expert Presenters including Rick Richardson,Carl Tannenbaum, Dennis Faurote and Albert Grasso

To register call 800.993.0393 or visit www.icpas.org

Clear FocusFinancial Search

BrilliantFinancial Staffing

NumeratePartners

Connect with us:

index

JULY

201

0V

ol.

60

No

. 2

features

job-hunters

employers

regulars

34 CFO 2010By Carolyn TangAs the role of the chief financial executive evolves and expands, weexplore three developing areas that weigh on today’s finance leader.

38 Go GreenBy Kristine Blenkhorn RodriguezThe markets are in flux. The accounting rules and federalregulations are still under construction. Universities don’t provide it as a standard area of focus. And yet, the age of greenaccounting is dawning.

42 A White, White-Collar Profession?By Jacqueline BabbFilling the pipeline with talented young accounting professionals is theproblem; boosting minority representation could be the solution.

16 Global The Overseas A-ListBy Selena ChavisGlobal hotspots for career advancement—and what to learn whileyou’re there.

18 Specialization Crime BustersBy Derrick LillyFinance gurus play a key role in bringing criminals to justice.

22 Planning Public or Private?By Sheryl Nance-NashWhich career route should you choose?

24 Recruiting Chasing the MillennialBy Christine BockelmanSmall firms set their sights on the Facebook Generation.

28 Talent The Perfect InternshipBy Allison EnrightMake it a success, on both sides of the desk.

32 Retention Flex PeopleBridget McCreaWhat’s the ROI of a flexible work environment?

4 First WordA message from the Illinois CPA Society’s President & CEO.

6 Seen & HeardNews bytes, sound advice and practical business tips.

10 Tax Insight Transparency RulesBy Harvey Coustan, CPAMoves to make the IRS exam process crystal clear.

12 Fraud Insight The Right StuffBy Brad Sargent, CPA/CFF, CFE,CFS, Cr.FA, FABFAAre you forensic accountant material?

14 Retirement Insight Money HungryBy Mark J. Gilbert, CPA/PFSBalancing risk and reward in the eyes of income-oriented clients.

46 Classifieds 46 Advertiser Index48 Time & Talent

A shout out for ICPAS member volunteers.

icpas.org /insight.htm

Garelli Wong and Jackson Wabash are Chicagoland’s experts in financial recruiting and staffing.

Our team unites employers with the right accounting and finance talent for direct hire, temporary and consulting assignments. We look and listen beyond the job description to combine the right skills with the desired experience. To learn more about our dedication to finding the right fit, visit us on the web or call your local office.

Finding the perfect fit doesn’t have to be a challenge, it’s what we do.

Chicago Schaumburg Oakbrook Terrace 312.583.9264 847.397.9700 630.792.1660

WWW.GARELLIWONG.COM WWW.JACKSONWABASH.COM

Elaine Weiss, ICPAS President & CEO

INSIGHT STAFF

Publisher/ICPAS President & CEO Elaine Weiss

Editor-in-Chief/Director of Publications Judy Giannetto

Creative Services Director Gene Levitan

Creative Services Manager Rosa Garcia

Publications Specialist Derrick Lilly

National Sales & Advertising Angie VanGorderYGS Group, 3650 West Market Street, York, PA 17404 P: 800.501.9571 x176 F: 717.825.2171 E: [email protected]

Circulation/Member Services Director Ron Jankowski

Editorial Offices: 550 W. Jackson Blvd., Suite 900

Chicago, IL 60661

ICPAS OFFICERS

Chairperson, Sara J. Mikuta, CPALeaders Bank – Operations Center

Vice Chairperson, Robert E. Cameron, CPACameron, Smith & Company PC

Secretary, Daniel F. Rahill, CPA, JDKPMG LLP

Treasurer, James P. Jones, CPAEdward Don & Company

Immediate Past Chairperson, Lee A. Gould,CPA/ABV, JD, CFE, CFF Gould & Pakter Associates LLC

ICPAS BOARD OF DIRECTORS

Brent A. Baccus, CPA, Washington Pittman & McKeever

William P. Graf, CPA, Deloitte & Touche LLP

Edward J. Hannon, CPA, JD, Freeborn & Peters LLP

John A. Hepp, CPA, Ph.D, Grant Thornton LLP

Cara C. Hoffman, CPA, Blackman Kallick LLP

Geralyn R. Hurd, CPA, Crowe Horwath LLP

Leif J. Jensen, CPA, Leif Jensen & Associates Ltd.

Elizabeth A. Murphy, PhD, CPA, DePaul University

Annette M. O’Connor, CPA, RR Donnelley & Sons Company

Michael J. Pierce, CPA, RSM McGladrey Inc.

J. Bradley Sargent, CPA, Sargent Consulting Group LLC

Edward H. Stassen, CPA, Recycled Paper Greetings Inc.

Reva B. Steinberg, CPA, BDO Seidman LLP

4 INSIGHT icpas.org/insight.htm

INSIGHT is the official magazine of the Illinois CPA Society, 550 W. Jackson, Suite 900, Chicago, IL 60661, USA. Its purpose is to serve as the primary news and information vehicle for some 23,000 CPA members and profession-al affiliates. Statements or articles of opinion appearing in INSIGHT are not necessarily the views of the Illinois CPA Society. The materials and information contained within INSIGHT are offered as information only and not as prac-tice, financial, accounting, legal or other professional advice. Readers are strongly encouraged to consult with an appropriate professional advisor before acting on the information contained in this publication. It is INSIGHT’s poli-cy not to knowingly accept advertising that discriminates on the basis of race, religion, sex, age or origin. The Illinois CPA Society reserves the right to reject paid advertising that does not meet INSIGHT’s qualifications or that maydetract from its professional and ethical standards. The Illinois CPA Society does not necessarily endorse the non-Society resources, services or products that may appear or be referenced within INSIGHT, and makes no representa-tion or warranties about the products or services they may provide or their accuracy or claims. The Illinois CPA Society does not guarantee delivery dates for INSIGHT. The Society disclaims all warranties, express or implied, and as-sumes no responsibility whatsoever for damages incurred as a result of delays in delivering INSIGHT. INSIGHT (ISSN-1053-8542) is published six times a year, in February/March, May/June, July, August, September/October, No-vember/December, by the Illinois CPA Society, 550 W. Jackson, Suite 900, Chicago, IL 60661, USA, 312.993.0393 or 800.993.0393, fax: 312.993.0307. Subscription rates for non-members: $30 US, $40 Canada and interna-tional addresses, $42 Mexico. Copyright © 2010. No part of the contents may be reproduced by any means without the written consent of INSIGHT. Permission requests may be sent to: Publications Specialist, at the address above.Periodicals postage paid at Chicago, IL and at additional mailing offices. POSTMASTER: Send address changes to: INSIGHT, Illinois CPA Society, 550 W. Jackson, Suite 900, Chicago, IL 60661, USA.

FIRST WORDA MESSAGE FROM THE ICPAS PRESIDENT & CEO

Modern life makes so many things seem out of ourcontrol. Fortunately, though, image—a concept orimpression that can be created or modified—is some-thing we can control.

Being caretakers of the CPA image isn’t an easy task,however. People have a lot of different ideas aboutwhat CPAs do, though they’re most likely to think oftaxes and tax season first and foremost. While this isan important area of a CPA’s work, we want peopleto know they can turn to CPAs for help with muchmore. CPAs are at work 365 days a year on matterspersonal and corporate, on things as simple as aretirement plan and as complex as a company’sstrategic risk assessment.

As part of our image-building efforts, the ICPAS actively promotes the CPA’s values of trust,integrity, respect and pride, and seeks opportunities to positively position CPAs and theprofession in the public eye. Our objective is to show the public the impact CPAs makethrough the important work they do each day.

In the first three months of the year, members were featured in more than 20 interviewswithin print, radio and TV outlets, including Channels 2, 7 and 9. They’ve talked to audi-ences about underwater mortgages, unemployment, and the new consumer credit cardlegislation, to name a few of the many areas. Through Society press releases and onlineconsumer resources they provided guidance for a better financial future. Nearly 5,000people read the Society’s article about ways to better manage your money in the New Yearwhen it appeared on the Chicago Tribune’s Triblocal.com.

Participating in our public service programs, CPAs have made lasting impressions on peo-ple’s lives. Take the army operations sergeant who recently returned from Afghanistan andparticipated in the Military Tax Preparation Program, for instance. The volunteer CPA whoworked on his tax return caught a previous tax preparer’s mistake, which resulted in an addi-tional $3,000. Not surprisingly, the soldier described his CPA volunteer as “awesome.”

An image is more than a two-dimensional picture or an impression you create by whatyou wear or how you act. At the ICPAS, the CPA image is all about who you are and whatyou do for somebody else—-because that’s what people will remember.

integrity

respect

trust

pride

Renew your membership!

Look for your Illinois CPA Society dues statement in the mail or simply renew online at www.icpas.org.

Questions?Please contact Member Services at 800.993.0393.

What does being a CPA mean to you?

Set yourself apart by being a proud ICPAS member.

Connect with us:


SEEN HEARDNEWS BYTES, SOUND ADVICE AND PRACTICAL BUSINESS TIPS

Top 10 Tips for Recent GradsWe asked ICPAS members to share their advice for thisyear’s up-and-comers. Here’s what they had to say…

“Start at the bottom to build a solid foundation, butclimb the ladder(s) available while the stairs are beingbuilt.” — James L. Galvin

“To get your foot in the door be willing to learn newthings, think outside the box and offer your serviceson any type of project…you never know where it willlead you in your career.” — Amy M. Ott, CPA,Greater Rockford Airport Authority

“Being a good CPA doesn’t just mean that you havestrong technical skills; having strong people skills intoday’s environment is a must.” — Michael G. Wall,Kessler Orlean Silver & Co., PC

“Your education is only just beginning. Like any otherprofession, to practice accounting means a commit-ment to keeping current with the law and regula-ions…it’s a great ride.” — Robert Schroeder, RobertE. Schroeder PA

“Ethical behavior is doing the right thing whennobody’s watching.” — Mark A. Peterson, Robin-wood Consulting LLC

“Choose a career that will give you exposure to allaspects of accounting. Careers in public accounting,industry, or seeking a rotational program are all goodchoices.” — Shantel Winder, FreedomRoads, LLC

“[E]ach day challenge yourself to learn somethingnew to continue to build your individual skill set.” And“never sacrifice your integrity…Your personal integrityis one of your most important assets.” — Jerome A.Harris, CPA, The Harris Consulting Group

“Don't be afraid to fail and don't be afraid to standout in a crowd.” — Jerome P. Frett, CPA

“Gain as much exposure as possible to the broaderbusiness disciplines…finance, marketing, manage-ment, business technology….The skill set that willserve you best needs to expand beyond pureaccounting.” — Richard T. Pawelko, CFA, CPA,CMA, JMG Financial Group, Ltd.

“Don’t fear failure” but “learn from every mistake.”— Tom Curatolo, Hometown America

Featured App:HandyLogs MoneySuitable for executives, small-businessowners and personal users of Black-Berry devices, HandyLogs Money is afree app that helps you manage andcustomize your expense, time andmileage reimbursements.

The HandyLogs Money app promisesto keep your claims in order and up-to-date, while also saving you money. Theapp accurately records your expensesin all currencies in customizable expen-se, timesheet and odometer lists thatcan be exported to Excel spreadsheets.What’s more, the app is usable evenwhen your BlackBerry has no signal orInternet connection.

Download it for free from BlackBerryApp World [appworld.blackberry.com].

17.1%Average pretax

profit margin

for CPA

offices, which

rank number one

on Forbes’

“The 20 Most

Profitable Small

Businesses” list.

&

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Look out for our next survey question in yourJuly INSIGHT eBlast.

We meanBusiness banking.

We meanBusiness banking.

Harris® is a trade name used by Harris N.A. and its affi liates. Member FDIC harrisbank.com

P R O U D D I A M O N D S P O N S O R O F T H E I L L I N O I S C PA S O C I E T Y.®

Ready for a business partner that works as hard as you do?

For more than 125 years, Harris Business Bankers have helped

businesses accelerate receivables, establish more e� cient

payments and get more from deposit dollars. To � nd out

how we can help you take control of your cash � ow,

talk with a Harris Business Banker today.

Call Bruce Kau� man at 888-214-6907.

11 percentPercent of time US users spend

social networking while online.

Source: ResearchShelf.com

‘War for Talent’ Has BegunDespite reports that the end of the recession is near, 86 percent of USadult workers feel the economy is still in crisis, according to aWorkplace Insights Survey from Adecco Group North America[Adeccousa.com]. In addition, 78 percent of workers believe this isthe worst job market they’ve ever seen in their careers. Nevertheless,workers of all ages are starting to think about (or have already startedto explore) new job opportunities, indicating that a “war for talent”has begun and that employers should brace for workforce changes inthe year ahead. According to the survey, the percentage of Gen Yworkers looking for a new job in 2010 has grown from 14 to 30percent, and 51 percent of workers plan to go—or already havegone—on a job interview. Furthermore, 30 percent of Gen X workers,29 percent of Baby Boomers and 22 percent of workers aged 61 andover also have interviewed or plan to interview in the year ahead.

SEEN&HEARD


New CPA Exam For 2011The CPA Exam is scheduled for ground-breaking changes designed tomake CPAs evermore relevant in the global marketplace. The revisedtest, which will take effect in January 2011, will include new Contentand Skill Specification Outlines (CSOs/SSOs), and will introduce newquestion formats and a new release of authoritative literature—the FASBAccounting Standards Codification. Other changes include new sectionstructures, research simulations, section time allocations and a weightedvalue for each component. Scoring will place more emphasis on skills,and a new calculator and improved spreadsheets also are beingdeveloped. Test results will be delivered much faster, too—2 to 4 weeksrather than 8 to 10 weeks after taking the exam. Another significantchange is the addition of IFRS, following research that revealed the needfor an increasing number of entry-level CPAs to be familiar with theinternational financial reporting standards. IFRS questions will be asmall portion of the exam to start, but will expand over time.The AICPA and NASBA also hope to offer the CPA Exam

internationally on a pilot basis in a few countries in 2011. Internationalcandidates will continue to apply through state boards and will have tocomplete the full process for attaining the CPA license.

The Best in DesignThe Illinois CPA Society has been selected as a multiple winner inGraphic Design USA’s 2010 American In-House Design AwardsCompetition. Of 4,000 entries submitted from across the country, theIllinois CPA Society received Certificate of Excellence Awards for bothits Young Professionals Group Student Membership “Real World”Application and its Legislators Tax Guide 2009-10 (pictured above).

Invest in Clean EnergyBloomberg New Energy Finance’s [newenergyfinance.com] quarterlyfigures show that new financial investment in clean energy worldwidetotaled $27.3 billion in the first quarter of 2010, up sharply from $20.8billion in the same period last year. The latest data shows that two of thestrongest features of investment in Q1 were, once again, China andwind farms. Investment in clean energy assets in China in the firstquarter totaled $6.5 billion, the largest for any country, while investmentin wind farms worldwide was $14.1 billion, increasing a respective 24and 43 percent over Q1 2009 figures.

Tax Depts Want to Get it RightAn overwhelming majority of senior financial executives say their taxdepartment’s top priority is not tax savings or their effective rate, buttimely and accurate return and financial reporting, according to anational survey of CFOs and senior comptrollers conducted by GrantThornton LLP [GrantThornton.com/cfosurvey]. Specifically, nearly two-thirds (62 percent) said their top priority is either timely and accuratefinancial reporting or timely and accurate tax return preparation andcompliance. Another 10 percent listed accurate tax risk assessment andappropriate management as the top priority. Just 12 percent rankedoverall effective tax rate as the top priority, and just 16 percent said theirtop priority was actual tax savings or deferrals.Both Congress and the IRS have recently taken far-reaching steps to

beef up compliance tools for what they see as too much aggressive taxplanning. The IRS is currently developing a tax return schedule that willforce large corporations to list and disclose detailed information on anytax position that meets the IRS definition of “uncertain.” And Congressjust passed legislation that changes the rules and dramatically increasespenalties for transactions that “lack economic substance.”

Looking for the most intuitive, cost-effective and complete XBRL solution? WebFilings takes

the mystery and complication out of XBRL mapping, tagging and reporting. Unlike “bolt-on”

post-process solutions, our end-to-end SEC report management software enables accountants

— not XML programmers — to tag SEC reports as they draft them. WebFilings is a revolution in

regulatory compliance software, delivering the only complete, integrated solution to meet SEC

reporting requirements.

A revolution in SEC Reporting is here.™

© 2010 WebFilings LLC

Ensure Accuracy

Sophisticated data

linking, document

review and validation

capabilities improve

accuracy, transparency

and compliance.

Reduce Overhead, Save Days

Integrated, easy-to use XBRL

tools and instant EDGAR

conversion eliminate time-

consuming and costly internal

and external processes.

Streamline the Process

Our intuitive “one active

document” collaboration

tools simplify the entire

reporting process from

drafting through fi ling.

TM

Schedule a demonstration now e: demo@webfi lings.com | p: 888-275-3125 | w: webfi lings.com

Transparency RulesMoves to make the IRS exam process crystal clear.

TAX INSIGHT


Commissioner Doug Shulman’s remarks beforethe April mid-year meeting of the Tax ExecutivesInstitute (TEI) shed some light on the IRS’ “evolvingapproach to the examination process.” In my lastcolumn, I described the January announcementrelating to the IRS proposal for taxpayer disclosureof uncertain tax positions. Apparently this disclosureis only one part of the new approach.

Although the Commissioner indicated a changein that approach to “balanced tax administrationwith respect to our large taxpayers,” if Announce-ment 2010-9 (the Announcement) is any indicationof the IRS definition of large taxpayers, far morecompanies than those represented at the TEI meet-ing will be affected. In fact, the Announcementwould require disclosure for taxpayers whose assetsexceed $10 million.

To refresh your memories, the Announcementproposed the inclusion of a separate schedule in theincome tax returns of those business taxpayers thatmeet the criteria. Each position for which a reservehas been established under FIN 48 (FASB Interpreta-tion No. 48, Accounting for Uncertainty in IncomeTaxes, an Interpretation of FASB Statement No. 109)or under other Generally Accepted Accounting Prin-ciples would be included in the schedule.

The schedule would need to describe the natureof the issue and include a statement of the reasonsthe position is uncertain. Among other requiredfactors, the schedule would reveal the InternalRevenue Code section potentially impacted by the

position and the maximum amount of potential federal tax liability attributable to eachuncertain position.

Shulman contends that taxpayers and tax authorities are looking for a tax administrationsystem that provides:

n Certainty regarding a taxpayer’s tax obligations sooner rather than later;n Consistency across taxpayers; andn An efficient use of government and taxpayer resources by focusing on the issues and

taxpayers that pose the greatest risk of tax noncompliance.Few would argue with his belief. However, if the methods employed require the taxpayer

to reveal the “uncertain (read that aggressive) tax positions” taken on a return, many taxpay-ers will likely believe this is too high a price to pay to attain those elements.

The Announcement requests comments in a number of specific areas, and the due datefor those comments was extended from March 29 to June 1 in Announcement 2010-17. Atan April hearing of the House Small Business Committee, Commissioner Shulman indicatedthat the IRS would consider raising the $10 million threshold and “would consider anything

Harvey Coustan, CPAis an Ernst & Young retired partnerwho currently consults on substantivetechnical and professional standardsissues. An ICPAS member since 1986,he has also appeared as an expertwitness on several cases.

icpas.org/insight.htm JULY 2010 11

based on comments and how persuasivethey are.”

At the TEI meeting, Shulman stated thatthe new audit approach, including therequired disclosure schedule as a “majorstep,” would involve “more transparencyon your part.” He used the ComplianceAssurance Program (CAP) as a good exam-ple of the success of a more transparentprocess. CAP’s goal is to put the taxpayerparticipant’s “cards on the table” and elim-inate the need for examining IRS agents tospend time on searching for issues, insteadallowing them more time to address thesubstantive quality of positions reflected onthe return.

Originally adopted as a pilot program in2005 when 17 taxpayers participated, theprogram boasted 70 participants by 2008.The Commissioner has indicated that the IRSis in the process of making it permanent.

Although the IRS and perhaps participat-ing taxpayers would praise the program’sbenefits, I have talked to executives of anumber of taxpayers who, in spite of sometaxpayer benefits, would not participate inthe CAP program, and are, in fact, very con-cerned about the Announcement and thetransparency it features.

At the TEI meeting, the Commissioner out-lined the IRS’ need to focus on three criticalareas to ensure the information received onthe proposed disclosure schedules would beused efficiently and effectively. His answer toeliminating uncertainty caused by ambigu-ous laws is to publish guidance as quickly aspossible. To make the audit approach moreefficient, he will see that the IRS does not ask

for the same sort of information requiredunder the present process.

Selecting the right issues on which tospend time will be a step in that process.He will also modify the tiered issue processso that resolutions are determined quicklyby fixing responsibility within the IRS tomost effectively use the information receiv-ed in a more transparent environment. Thethird critical area is the training of agents toproperly use the information on the disclo-sure schedules.

The Commissioner also addressed someconcerns he had heard about the proposal,specifically,n The list of disclosed uncertain positions is

not intended to result in deficienciesassessed for every position.

n The requirement for disclosure of eachposition’s maximum adjustment is intend-ed to help the IRS to prioritize issueswithin an audit, identify returns for auditand pinpoint emerging issues of potentialconcern. The IRS, according to Shulman,wants to honor its policy of restraint inobtaining information traditionally con-tained in tax accrual workpapers, andtherefore did not propose that the tax-payer disclose the risk-adjusted amountfor each issue (as is required under FIN 48for financial statement purposes).

n The Commissioner encouraged taxpay-ers to comment on the redundancy ofinformation reported to the IRS, and hementioned the overlap of the proposedsch-edule and schedule M-3. He indi-cated that he felt the new schedule hadthe potential to be a much more valu-able tool for fair and effective tax admin-

istration, and welcomed input regardingM-3’s future filing requirements.Commissioner Shulman stated that the IRS

is prepared to allow the new schedule toserve as adequate disclosure for certain areasthat require substantial understatementpenalty protection (Form 8275 or 8275R dis-closure under current rules).

In late March, the IRS issued a draft sched-ule UTP, Uncertain Tax Positions Statement,along with instructions that reflect a numberof points proposed in the Announcement.The draft instructions and IRS Announce-ment 2010-30 that accompanied them indi-cate that at the point when they were issued,only C corporations that file Form 1120,1120L (filed by life insurance companies)and 1120F (filed by foreign companies)would require the UTP schedule for 2010 ifthey met the other criteria.

The IRS stated that it would consider whenother entities might be required to file UTPafter it had received and considered com-ments. I will follow the progress of this veryimportant issue and report in future columns.

Even though the Commissioner attemptsto win the acceptance of taxpayers who willbe affected by the proposed disclosurerequirements, his prepared remarks includea statement that he understands “that it is a‘game-changer’ with respect to (IRS) relation-ships with and responsibility to…large cor-porate taxpayers.” This may be an under-statement and does not address the tensionthat might be created between taxpayers andtheir outside income tax return preparerswho, in many situations, also audit theirclients’ financial statements.

The Right StuffAre you forensic accountant material?

FRAUD INSIGHT


First, the good news—at least from a career perspective: Fraud is back in today’s head-lines. Lehman Brothers and Goldman Sachs coverage is dominating business publicationsand has crossed over into mainstream media, driving Fraud’s Q rating back up to levels lastseen in Sarbanes-Oxley days. Corporate greed and complex accounting transactions aremore than topical; they’ve caused real concern among business owners, managers and stake-holders. These concerns translate into a real need for more qualified, competent and expe-rienced forensic accountants.

So how do you get started?Though accomplished forensic accountants herald from a variety of backgrounds, they

do share common traits. First and foremost, forensic accounting is an accounting function.An understanding of accounting princi-ples, concepts and systems, and of acc-ounting’s role within an entity, is there-fore vital.

At the entry level, an accounting edu-cation is the first step in gaining theseinsights. Work experience in accounting,beginning with an internship, provides abackground in accounting systems,source documents and the accountant’sfunction. It’s important to note that manymajor fraud cases have been brokenbased on the observations and subse-quent disclosure of young accountantswith no more than two or three yearsexperience. They had enough educationand training to recognize problematicaccounting when they saw it. Forensicaccounting’s closely guarded secret is

that most accounting frauds don’t rise above an intermedi-ate accounting textbook level in terms of sophistication.

But that’s not to say the basics are enough. Forensicaccounting involves the detailed examination of data, typi-cally accounting and business records such as accountingsystem output, bank documents, shipping/receiving recordsand financial statements. Given this, there are three must-have traits that successful forensic accountants possess: big-

picture vision (or, to put it another way, the ability to connect the dots), attention to detailand tenacity.

The best way to illustrate the big-picture mindset is to give some examples. Take, forinstance, a staff accountant who looks over an employee expense report for travel—but travelnever occurred. Or the bank teller who recognizes an employee is cashing a business checkfor amounts far in excess of a payroll or expense reimbursement. Or an auditor who observesan accounting entry posted to an account two months after the period close. In all thesecases, the people involved saw beyond the numbers to find fraud.

Brad Sargent, CPA/CFF, CFE, CFS, Cr.FA, FABFAis the managing member of The Sargent Consulting Group, LLC,which specializes in forensic accounting and financial investigations.Brad is a frequent lecturer on forensics and fraud, and is chairemeritus of the American Board of Forensic Accounting. He alsoserves on the Board of Directors of the Illinois CPA Society, and hasbeen a member of the Society since 2002.

1 Based on Alliant’s new and used auto loan rates as of 05/21/2010 vs. Illinois bank average new and used 48 month autoloan rates as of 05/21/2010. 2 Alliant vehicle rates as of 05/21/2010. Loan approval, APR and downpayment requiredbased on payment method, creditworthiness, collateral and ability to repay. Rates include automatic payment option.Rates are 0.4% higher without automatic payment option. Rates, terms andconditions are subject to change. Add 1% for 84 month term. APR = AnnualPercentage Rate. Refinancing of existing Alliant loans and loans from otherlenders is available. Please ask an Alliant Loan Representative for details.3 Source: Illinois bank average rates provided by National Association ofFederal Credit Unions in cooperation with Datatrac Corp. as of 05/21/2010.4 You must be or become a member of Alliant Credit Union to apply. Applicantmust meet eligibility requirements for Alliant membership. 5 Terms up to60 months for loan amounts less than $20,000. Terms up to 72 months for2009 or 2010 models with a loan amount of $20,000 or more. Terms up to84 months on new vehicle loans of $25,000 or more.

The AlliantAdvantage...

As an Illinois CPA Society member,you’re eligible for…

Big savings on auto loans!

Your savings federally insured to at least $250,000and backed by the full faith and credit of the

United States Government

National Credit Union Administration,a U.S. Government Agency

©2010 Alliant Credit Union. All Rights Reserved. SEG337-R05/10

Get a great rate on your auto loanwith Alliant.4 Apply now:• http://alliantcreditunion.org/ilcpa• Call 800-328-1935 (24/7)- Up to 100% financing available- Flexible repayment terms up to 84 months5- Quick loan approvals…same day in most cases

Alliant vs. Banks

2.00%

0.00%new car

Alliant Credit UnionAuto Loan Rates2

used car

Illinois Bank AverageAuto Loan Rates3

3.85%

5.59%

4.10%

8.00%

6.00%

4.00%

APR

6.06%

30%less than bank rates!1OVERALLIANT VEHICLE LOAN RATES ARE

Lower rates mean lower payments!

With the sheer volume of data and document review that goesinto a forensic accounting engagement, a person who penetrates thedetails to see patterns or anomalies truly stands out. Huge fraudshave been perpetrated by those with internal knowledge of materi-ality thresholds and the smarts to keep transactions under the audi-tors’ radar. In forensic accounting, unexplained and irreconcilableaccounting, regardless of the amount, merits review. Clever fraud-sters will get bogus transactions close to reconciling with legitimateentries, taking the educated guess that auditors will pass and moveon. They also are aware that certain intentional defalcation might beviewed as innocuous typos or human error. The ability to distinguishbetween John Smith, Inc. and John Smith, LLP can be critical in aninvestigation. Bank account numbers that look identical at a glancemay, in fact, be two separate accounts with very different balances.In forensics, the devil truly is in the details.

Tenacity, however, may be the most important trait. You’ve con-nected the dots and identified some seemingly minor discrepan-cies, but what if the CFO or CEO or your supervisor insists you’vegot it wrong? It takes tenacity to cling to your beliefs.

At the conclusion of every forensic project comes a report of yourfindings and results. This is no longer entry-level or intermediatework; now we’re talking about expertise.

Forensic accountants must be able to communicate effectively,whether talking over the phone or preparing an expert report to besubmitted to a court. Verbal testimony should be short and to thepoint—and understandable to the layman. The ability to communi-cate findings in a succinct, cogent manner is critical.

After communication, credibility is the most important factor indeciding who to hire as an expert forensic accountant. Steven A.Weiss, chairman of Schopf & Weiss LLP, a firm specializing in busi-ness litigation, states that, “In hiring a forensic accountant, I look fortwo things. First, the accountant has to have a firm grasp of the tech-nical side of his or her job. I have to have confidence that he or shewill understand the issues and be able to find what I am looking for.Second, he or she has to be a good witness. Finding the key evi-dence is only half the battle. They also have to be able to explain itto a judge or jury, and do so in a compelling and credible manner.”

A background in the specific industry that relates to the investiga-tion is a definite plus in establishing credibility. In an automotivecase, for example, the forensic accountant who previously workedauditing automotive concerns would almost always be viewed asmore knowledgeable than the forensic accountant without thatindustry experience.

Michael J. Berger, senior partner at Berger Schatz, which special-izes in matrimonial and family law, explains that, “I look for a foren-sic accountant who has knowledge in the industry in which the sub-ject business is operating. In addition to tying out numbers, I expectthe expert to identify missing pieces that should be included in thebusiness model, and to identify pieces of the business that areincluded, but appear to be out of line. That accountant is there tohelp, to be free-thinking, not just doing the math.”

Credentials also are key. The CPA designation is universally rec-ognized by judges and jurists as the premier credential in account-ing. Additional credentials in areas such as fraud investigation, busi-ness valuation or insurance coverage add to an expert’s credibility.

If you’re still interested in being a forensic accountant, you mayneed to step back on the career ladder to get on a new path withmore relevance to the forensics field. If you have the right stuff anddevelop a passion for forensic accounting and its intrinsic rewards,however, you will have a great career.


Money HungryBalancing risk and reward in the eyes of income-oriented clients.

RETIREMENT INSIGHT


Clients entering retirement, or seriously planning for it in the near future, are likely toview the investment world more apprehensively than they ever have in the past.

One reason: The financial crisis and recession have cast a skeptical shadow on WallStreet, the financial markets and investing in general. Investor confidence in the continuedgrowth of the global economy, and in the rewards of investing, has been shaken to a greater

extent than in the aftermath of the 9/11 attacks, the2000 tech bubble and the 1987 market crash. Many oftoday’s retirees and pre-retirees lived through thoseevents and generally saw their portfolios stumble,sometimes significantly, but eventually come backfairly strong.

And while it’s true that equity markets have postedstrong returns recently (through March 31 of this year,the S&P 500, Russell 2000 and NASDAQ Composite12-month returns were 49.8 percent, 62.8 percent and58.3 percent, respectively) rising US debt levels andhigh unemployment rates have contributed to a gener-ally dubious view of the economy.

But even if the crisis had not taken place, many ofthese clients would naturally tend to favor a lessaggressive allocation for their investment portfolios.Instead of appreciation, which many sought whilemaking semi-monthly contributions to 401(k) plans orannual contributions to IRAs, some clients will con-clude that the income (interest and dividends particu-larly) that an investment portfolio will generate is mostimportant. That’s because interest and dividend pay-ments are relatively predictable and mostly stable,even if underlying asset values fluctuate widely.

Predictability in cash flows extends elsewhere inretirement. For instance, retiring clients can reasonablyestimate the amount of their recurring living expenses,and can also plan for income sources like pensions

(sometimes) and Social Security. When those income sources fall short of living expenses,though, clients look to their investment portfolios to generate sufficient income to makeup the shortfall. These investors also may want to generate a surplus of cash flow in caseexpenses are greater than they expect. And, understandably, they’d like their investmentsto provide as much income as possible.

As CPAs and advisors, we know the dilemma in situations like this. In order to producehigher income or yield from a given amount of investments, the investor has to be willingto take on more risk, which often runs counter to the more conservative risk tolerance pro-file that these clients exhibit. So the challenge of balancing the desire for higher-yieldinginvestment assets with the tolerance for investment risk becomes especially critical.

As I am writing, the Federal Reserve’s target Fed funds rate is 0 – 0.25 percent, which ishistorically low. It means that market interest rates are also historically low, and therefore bor-

Mark J. Gilbert, CPA/PFSis a principal in the financial advisoryfirm of Reason Financial Advisors, Inc.His 25+ years of finance and account-ing experience includes 13 years inpersonal financial planning. An ICPASmember since 1982, Mark currentlyserves in the Society’s IA/PFP MemberForum Group and on its Committee onStructure and Volunteerism.


rowers like corporations, mortgage holders and credit card cus-tomers have benefitted. But savers have suffered. According toBankrate, the average bank money market account is paying just0.88 percent interest, while the average 1-year bank CD is paying1.34 percent interest. A client would have to place a deposit in a 5-year bank CD simply to generate an average return of 2.86 percent.

In the present economic environment, it’s hard for a conserva-tive investor to either generate an acceptable level of income orgrow a portfolio net of taxes and inflation. Up until now, inflationfortunately has been fairly well-contained, at a year-over-yearincrease in the CPI of 2.3 percent through March 31, 2010. How-ever, a number of clients are concerned that any significant pickupin economic growth and/or reduction in unemployment could trig-ger serious inflation, absent of preemptive action by the Fed.

In order to generate higher income than bank products, investorsmay well look to fixed income mutual funds. In doing so, it’simportant to consider all the statistics, including recent averagecredit quality ratings, average durations, average maturity and 12-month yields. For example, the average yield in the High YieldBond category is relatively attractive at 7.65 percent. However, itscredit quality is rated B, which is considered “highly speculative,”and therefore well below the prized-AAA rating. Most likely, thiswould be unacceptable to conservative investors because of therisk of principal loss.

On the other hand, AAA-rated categories such as IntermediateGovernment, Short Government and Inflation-Protected Bonds haveaverage yields of 3.36 percent, 2.34 percent and 1.83 percent,respectively, which may not be high enough for income-hungryinvestors. Even the AAA-rated Intermediate Government categorymay be unacceptable to some investors because of its average matu-rity in excess of 5 years. If interest rates rise, longer maturity bondswill fall in value more than shorter-maturity bonds. This is confirmedby the average duration of 3.98 for Intermediate Government funds,which roughly means that for every 1-percent increase in interestrates, the average value of the bonds would be expected to fall 3.98percent. In an environment where interest rates are expected toincrease, that may be more risk than a conservative investor is will-ing to take on.

Those income-oriented investors willing to take on more invest-ment risk than can be found in cash and quality bond investmentsmay be interested in preferred stocks, dividend-paying stocks, orreal estate investment trust stocks and funds. At May 28 marketclose, these exchange-traded funds provided yields of 7.98 percent(ticker symbol PFF, which tracks the S&P US Preferred Stock Index),3.90 percent (ticker symbol DVY, which tracks the Dow JonesSelect Dividend Index) and 4.01 percent (ticker symbol IYR, whichtracks the Dow Jones US Real Estate Index).

Today’s investors may have to be willing to accept higher levelsof investment risk in order to earn the higher amounts of incomethey need. It becomes especially critical in low-interest times likethese to understand the client’s financial objectives and to helpthem appreciate the cost of investing in higher-yielding assets.Some clients will likely decide this risk is unacceptable, and willbegrudgingly accept low-yielding assets in their portfolios. Ofcourse, over time the economy will change, and interest rates withit, which means decisions will have to be reviewed.

17th Annual Midwest

Symposium

Accounting and Financial ReportingUpdates from the SEC, FASB, IASBand PCAOB

An all-star line up of the “who’s who” in financial reporting – all in oneinformation-packed day.

A comprehensive overview of the latestdevelopments and projects impactingyour business and/or clients.

A unique opportunity to interact with the panelists to pinpoint your specificconcerns.

September 24, 2010Donald E. Stephens Convention Center, Rosemont, Illinois

$330 members / $400 non-members

8 CPE Credits (7 CLE Credits Pending)

Vist www.CCFLinfo.orgfor more information.

FINANCIAL REPORTING


The early bird catches the worm, as they say. And it’s no secretthat accounting professionals striving to stay relevant will take theinitiative to arm themselves with IFRS knowledge and a globalmindset sooner rather than later.

Who better to teach professionals the inner workings of IFRSthan markets and economies that have worked under these guide-lines for years? Industry professionals suggest that one of the bestmoves accounting professionals can make is to take an overseasassignment and learn the standards firsthand.

“The key here is deep knowledge. It’s knowledge of the differ-ences between IFRS and US GAAP that matter,” says Belverd E.Needles, Ph.D., CPA, an Ernst and Young Distinguished Professorof Accounting at DePaul University, former chair of the IllinoisCPA Society and a recent appointee to the United Nations Con-ference on Trade and Development Consultative Group to theIntergovernmental Working Group of Experts on InternationalStandards on Accounting and Reporting. “International experi-ence cannot hurt anyone. People who have worked in Europe forfive years are coming back to very important positions in theUnited States.”

Industry experts agree, however, that it’s more than a sense ofurgency over IFRS that’s inspiring interest in overseas engage-ments. It’s also about the global movement of business and a shiftacross US companies to a more global perspective.

According to Steven Lewis, division director for the Chicagooffice of Robert Half Finance & Account-ing, the formula is very simple—compa-nies want to hire professionals with abroad-based understanding of world cul-tures, and professionals who want the bestjobs need to have these skills to land onthe cutting edge.

“You don’t want to have too many peoplethinking the same way. You need differentcultural viewpoints,” Lewis explains. “Inter-national experience certainly can’t hurt.”

Consider current initiatives underway atGrant Thornton. Named as executive dir-ector of Global HR Strategy three years ago,Laurie Kalman is part of a strategic effort todevelop and integrate the firm’s employees,encompassing 99 member firms and 30,000people. Kalman explains that as the firmexamined its strategic roadmap for the fut-ure, the stress on global leadership becameevermore obvious.

GLOBAL

The Overseas A-ListGlobal hotspots for career advancement—and what to learn while you’re there.

By Selena Chavis

job-hunters

Find Jobs AbroadFinance Jobs Abroad [financejobsabroad.com]Offered by Robert Half Finance and Accounting, this portalfacilitates overseas career moves for the accounting andfinance industry. Search jobs by country.The BIG Guide to Living and Working Overseas [workingoverseas.com] A comprehensive guide for long-term planning. Resourcesallow in-depth exploration of specific topics, which areindexed in categories such as country, region and type of work. Accountants Without Borders [a-w-b.com]AWB is an online recruitment agency for auditors, accountantsand other finance pros interested in working internationally.International Careers and Jobs [4icj.com]A leading international employment directory that includesmore than 2,000 reviewed career resources in 190 countries.


“We are rapidly shifting from a net-work of autonomous firms into a morecohesive global organization,” she says.“Grant Thornton is undergoing a large-scale transformation to become a clearemployer of choice.”

As part of that strategy, the firm is look-ing for talent that has both relevant tech-nical skills and cultural diversity. “We arelooking for people who have a globalmindset and can lend a global perspec-tive,” she emphasizes. “We need peoplewho are not just technically excellent butculturally sensitive. As professionals serv-ice global clients, they need to be able toreach beyond borders.”

The first step for accounting profession-als, says Needles, is to look for assign-ments in locations that already have astrong IFRS footprint. Currently, in fact,more than 100 countries across the globehave IFRS in play, and many others areheading in that direction.

“Clearly, the major economies are goingthat way,” Needles notes, pointing to new-comers like Canada and Brazil. “Globally,there is a real need in this area.”

Europe and Australia are good startingpoints for solid IFRS experience, since bothhave had IFRS in place since 2005, Nee-dles adds. Remember, too, that English isspoken across both locations.

“If a young person were able to get anassignment in Europe or Australia for fourto six years, it would be a very valuablething,” Needles explain. Individuals withoverseas experience, he says, often findthey have an advantage over their in-country counterparts because they areequipped with global experience, possesssubstantial company knowledge andhave the skills to advance new projects.

The 2009-10 Robert Half Global Finan-cial Employment Monitor reports a num-ber of key findings regarding talentdemand globally. Overall, the survey of4,800 accounting and finance profession-als in 21 countries found that 56 percent ofrespondents were facing difficulty in find-ing skilled talent. The report concludedthat hiring challenges remain especiallyacute in Asia, as 86 percent of managers inHong Kong, 73 percent in Japan and 72percent in Singapore cited difficulty fillingaccounting and finance positions.

Demand in Europe varied widely as 40percent of managers in Ireland expresseddifficulty, while 65 percent in Spain, Italy

and France reported frustrations. Aus-trian managers reported trouble findingtax and treasury professionals as thehighest percentage for any single cate-gory. In Brazil, 79 percent of managersreported difficulty locating skilled talent,the highest percentage of any countryoutside of Asia. Res-pondents from Brazilalso reported the most challenges hiringfinancial management and financial andbusiness analysis professionals.

Since globalization goes both ways,international companies planning to ex-pand in the United States also will be seek-ing out firms and professionals who have akeen understanding of IFRS. As Lewisexplains, “European companies with USsubsidiaries previously couldn’t find talentto match needed skill sets. Going forward,it will mean expanded opportunities forUS accountants because they will have askill set that is in demand.”

Beyond the technical skills of IFRS,Kalman stresses that the “bar has beenraised in accounting” and, going forward,professionals will need to be able to col-laborate on a high level internationally.

Grant Thornton has implemented stepsto meet the challenge. “We actually havegotten very proactive in this,” says Kalman.“We’ve implemented world-wide trainingfor all managers. This is rigorous trainingon what it means to be a global leader andbe strategic.”

In its search for accountants, GrantThornton targets four key traits: Strongbusiness acumen; a global mindset that isflexible and adaptable to different cul-tural environments; a genuine interest inhelping clients achieve success in aglobal landscape; and an understandingof what operational excellence means.

To broaden their global perspectives,Lewis advises accountants to gain a wide-angle view of industries. Offering anexample, he suggests looking at the differ-ences between highly regulated compa-nies like airlines and big infrastructureindustries like renewable energy, andthen seeing how those differences line upwith career preferences.

“Taking a big picture look at these areasis becoming very important,” he states.“Manufacturing is great, but ask, ‘What isa company manufacturing?’ You’ve got tobe thinking where the underlying demandis coming from and how governments sup-port those industries.”


job-hunters

If you’ve ever dreamed of being a crime-fighter, busting bad guys and saving theday, you’re in luck. An education in accounting and the CPA certification, amongstothers, can open doors to far more than your typical accounting and auditing gig.In fact, our Federal government’s law enforcement and intelligence agencies arelooking for people just like you.

“What law enforcement has come to realize is that there are two sides of thecriminal investigation. There is the traditional criminal side where the pursuit ofthe targets takes place and evidence of the violation is sought, and on the flipsidethere is the fact that individuals get into criminal lifestyles for financial gain andbenefit,” says Todd H. Reichert, supervisory special agent in the Bureau of Alco-hol, Tobacco, Firearms and Explosives (ATF) Chicago Field Division. “The facts ofthe matter are, if we only focus on the principal targets and forego their benefitsand profits from engaging in criminal activities, we’re only doing half the job inkeeping the streets safe, because there would still be an array of assets to fund thecontinuation of a criminal organization,” he explains.

Here, then, are just four of the many government agencies offering CPAs oppor-tunities to serve and protect. For more agencies, visit USAjobs.gov.

Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) To shut down criminal and terrorist activities, the ATF enlists an elite group ofhighly trained forensic investigative accountants and auditors in its Financial Inves-tigative Services Division. These professionals take to the field alongside theBureau’s special agents in criminal investigations.

“The ATF is the only agency in the Federal government right now that has a veryunique use of forensic accountants and forensic auditors in terms of the responsi-

bilities they have,” says Franco Frandé,chief of the ATF Financial InvestigativeServices Division in the Office of Scienceand Technology, Washington, DC. “Wework every single case type for every sin-gle criminal investigation where ATF spe-cial agents feel there’s a financial motiveor nexus. Our forensic investigative acc-ountants and auditors work in partner-ship with our special agents every step ofthe way to develop the financial aspectsof the case.”

The ATF tackles a variety of casesunder its unique framework to protectour communities from violent criminals,criminal organizations, outlaw motorcy-cle gangs, the illegal use and traffickingof firearms, the illegal use and storage ofexplosives, acts of arson and bombings,acts of terrorism, and the illegal diversionof alcohol and tobacco products. 8

SPECIALIZATION

Crime BustersFinance gurus play a key role in bringing criminals to justice.

By Derrick Lilly

Insider Tips on How to Beat Out the Competitionn ATF: “We love to find candidates that have already passed the CPA Exam. We also look forCFE holders,” explains Frandé. “We encourage holding advanced certifications because theyadd to credibility in the courtroom and enhance the diverse skills you can bring to the tablewhen investigating frauds and other financial crimes.” Visit ATF.gov/careers for more.

n FBI: “One of the most important traits the FBI considers is character,” says Rossbach. “At theend of the day, the value of an employee is their ability to testify in court. We can train anyone,but you have to have solid, fundamental character to build upon.” Visit FBIjobs.gov for more.

n DEA: “The main thing is to have a desire to have a job where you’re doing somethingdifferent all of the time; you never know where a case may take you,” says Taylor. “You alsohave to be able to work independently and within a group, and need the patience for thesetypes of long-term investigations; looking at the financial aspects can take years.” VisitJustice.gov/dea/resources/job_applicants.html for more.

n CIA: “A strong sense of patriotism, an interest in global affairs and the willingness to take ontough challenges are some of the key things we look for,” says Weiss. “The CIA, which offersover 90 different occupations, seeks a broad range of skills and experiences from jobcandidates who are considering a career with America’s premier foreign intelligence agency.”Visit CIA.gov/careers/index.html for more.

�� The Illinois CPA Society is proud to recognize

the following award winners and congratulatethem on their accomplishments.

Lifetime Achievement AwardsEdilberto C. Ortiz, CPAManaging Partner, E. C. Ortiz & Co., LLP

Outstanding Leadership inAdvancing Diversity Award Dorri C. McWhorter, CPA, CIA Partner, Crowe Horwath LLP

Marisol Pantoja, CPA(Emerging Leader Category)Internal Audit Director, PricewaterhouseCoopers LLP

Outstanding Educator AwardsSara J. Leone, CPA Assistant Professor of Accounting, University ofSt. Francis

Donald E. Tidrick, CPA, Ph.D. Deloitte Professor of Accountancy, Northern IllinoisUniversity

Mary L. Zenner, CPAAccounting Instructor & Department Chair, Collegeof Lake County

Time & Talent PublicService Volunteerism Award Martrice Caldwell, CPAYMCA of Metropolitan Chicago

Robert E. Cameron, CPACameron, Smith & Company, PC

Kathleen A. Donahue, CPARetired

David J. Hensley, CPADavid J. Hensley, CPA, Inc.

Chris Manderfield, CPAClifton Gunderson LLP

Clifford B. Shapiro, CPABlackman Kallick, LLP

James G. Quaid, CPAOstrow Reisin Berk & Abrams, Ltd.

Distinguished Service AwardsJared J. Bourgeois, CPAFTI Consulting, Inc.Young Professionals Group

Timothy Cole, CPABaker Tilly Virchow Krause, LLPPeer Review Report Acceptance Committee

Timothy C. Custis, CPAGorenz & Associates LtdGovernment Report Review

Barbara Dennison, CPASelden Fox, LtdAccounting Principles Committee

Rose S. Doherty, CPALegacy Professionals LLPNot-for-Profit Organizations Committee

Burton W. Goode, CPABurton W. Goode, CPAICPAS Chapters

Edward J. Hannon, CPA, JDFreeborn & Peters LLPTax Executive Committee

Gary S. Hart, CPAGary Hart & Associates Ltd.Tax Estate, Gift & Trust Committee

Jon R. Hoffmeister, CPAClifton Gunderson LLPAudit & Assurance Committee

David V. Kalet, CPABP America, Inc.Tax Individual Income Committee

Irwin A. Lyons, CPAMiller Cooper & CompanyGovernment Executive Committee

Michael J. Maffei, CPAGATX CorporationAccounting Principles Committee

Ronald D. Marcuson, CPADePaul UniversityTax Business Committee

Frank J. McCauley, CPAState of IllinoisChicago South Chapter

Richard S. Meyer, CPAAlliant GroupTax Business Committee

Peggy Tomisek Nästi, CPAPeggy Tomisek Nästi, CPAFox Valley Chapter

Beth J. Pagnotta, CPAWomen’s Executive Committee

Mary Lou Pier, CPAPier & AssociatesTax Executive Committee

Michael J. Pierce, CPAMcGladrey & Pullen LLPAudit & Assurance Service Committee

Daniel F. Rahill, CPA, JDKPMG LLPTax Business Committee

Deborah K. Rood, CPABlackman Kallick LLPTax State & Local Committee

Michael J. Singer, CPAMichael J. Singer & Co. PCTax Executive Committee

Larry J. Wolfe, CPALarry J. Wolfe CPA’s LtdTax Practice & Procedures Committee

Distinguished Media ServiceAwardsMark J. Gilbert, CPA/PFS, MBAReason Financial Advisors, Inc.

Linda H. Forman, CPA Linda Forman, CPA, PC

Geoffrey J. Harlow, CPA, MST, MBAKessler, Orlean, Silver & Co.

Enrique Lopez, CPALopez & Company

Mary Lou Pier, CPAPier & Associates

Maria D. Prado, CPA Prado & Renteria

Considering the fact that the bulk of these activities have finan-cial motives behind them, ATF forensic investigative accountantsand auditors are trained to be valuable field operatives, as well.

“At the special agent’s request we are geared and trained to knowwhere to go, how to go and what to do during operations. Whetherwe’re carrying out search warrants, writing subpoenas, reviewingdocumentation or conducting interviews, we are the special agent’ssupport,” Frandé explains. “We are with them step-and-toe everypart of the way. We train our forensic auditors and accountants notonly to have a vast and diverse skill set in accounting and auditing,but also to have a criminal investigative skill set in order to bring ourexpertise to the criminal investigation.”

Federal Bureau of Investigation (FBI) A background in accounting, auditing, business, economics,financial analysis and forensics are requirements for entry into var-ious FBI special agent programs. And professionals with advancedskills or credentials, like the CPA, CFA, CFE or CIA are a priorityin the recruiting process.

“The FBI is a leader in law enforcement, and widely viewed asbeing the best of the best. If you have a goal to work in lawenforcement, you want to work for the FBI,” says Special AgentEdgar A. Rossbach Jr., CPA, CFE, JD, MBA, who is assigned to aneconomic crimes squad in the FBI Chicago Field Office.

As a special agent in this squad, Rossbach’s responsibilitiesinclude conducting investigations and targeting incidences ofwrongdoing such as securities, corporate and commodities fraud,

and Ponzi schemes, in order to “protect and preserve the integrityof our financial markets.”

“CPAs are on all squads of all violations,” explains Rossbach.“Every facet of crime—whether it’s terrorism, counter-intelligence,or criminal matters—has a money component at its core.”

Special agents work on cases that may involve terrorism, foreigncounter-intelligence, cyber crime, organized crime, gangs, white-collar crime, public corruption, civil rights violations, financialcrime, bribery, bank robbery, extortion, kidnapping, air piracy,interstate criminal activity, fugitive and drug-trafficking matters,and other crimes that constitute violations of Federal statutes.

Outside of field service there are critical support roles. “A lot ofpeople think that you have to be an agent and carry a gun to workfor the FBI. However, there are opportunities available if you don’tdesire to be a special agent,” says Latisha A. Stokes, CPA, CFE, sen-ior forensic accountant in the FBI Chicago Field Office. “It’s proba-bly not widely known that forensic accountants assist in investiga-tions at the FBI without carrying a gun, but forensic accountants sup-port the investigation and address any financial aspects of the case.”

Considering the fact that money is linked in some way to everycase the FBI handles, forensic accountants “work the entire gamut;you aren’t focused on one particular area,” says Stokes. “You canbe assigned to a white-collar case as well as a counter-terrorism orcounter-intelligence case.”

“Knowing at the end of the day that you have assisted in puttingaway criminals and helping to keep the country safe is an addedbonus to having this job,” says Stokes.

US Drug Enforcement Administration (DEA)A bachelor’s degree in accounting, finance or economics will putyou on the DEA’s recruiting radar. Applicants with finance expertiseare on their special agent wish-list because such skills are highly uti-lized in accomplishing the DEA’s mission to dismantle the mostsophisticated illicit drug trafficking organizations in the world.

“We have a special recruitment emphasis on individuals withthese types of degrees because we need agents who have financialbackgrounds and training involved in our investigations,” explainsWill N. Taylor, special agent in the DEA Chicago Field Division.“There’s a large amount of money to be seized and forfeited indrug trafficking.”

Putting it in perspective, in Fiscal Year 2007 (the most recentpublicly released information) the DEA denied drug traffickers$3.5 billion in revenue through the seizure of money, property anddrugs. Touching closer to home, it’s estimated that $10 to $24 mil-lion a month in drug proceeds leave the greater Chicago area,which serves as a major consolidation point for US drug traffick-ing organizations.

“Most illegal drugs consumed in the United States don’t originatein the United States, so those proceeds need to make it out of thecountry to the sources of supply,” says Taylor. “We want to attackthe financial infrastructure of the drug trafficking organizations.”

To do that the DEA has developed specialized Financial Inves-tigation Teams (FIT) focused on destroying drug traffickers’ finan-cial networks. “We’ve established our FIT teams in all of our majoroffices, and we also have specialized financial teams in Columbiaand Afghanistan,” explains Laurie A. Schlag, head of the FIT teamin the DEA Chicago Field Division. The DEA has a network of 227

SPECIALIZATION

job-hunters


Mark Your Calendar!

FEATURED CPE EVENTS

For the most current information or to register, visitwww.icpas.org.

Dates and locations are subject to change. Events listed offer CPE Credit;check our website regarding CLE and other specialty credits.

Rainmaker AcademyWorkshop™ v.2.0

Business Development, Branding,Client Communication and Pricing

for Profit

July 20 – ChicagoFull-day workshop co-sponsored

by the Illinois CPA Society

The Illinois CPA Society

Annual Midwest Accounting& Finance Showcase

August 24-25, 2010Donald E. Stephens Convention Center,

Rosemont ILFree Access to Exhibitors

16 hours of CPE for $ 280

Employee Benefits ConferenceAugust 5 – Springfield

Practical Guidance for ImprovingYour Governmental Auditing Practice

Half–Day WorkshopAugust 2 – Chicago

August 10 – Springfield


offices in the United States and 87 offices in63 other countries.

“Our FIT teams support the domestic andinternational drug trafficking and moneylaundering investigations by focusing onthe flow of drug proceeds, especially onour priority targets,” she says. “They pro-vide a support role to other groups withtheir expertise, but they also carry out theirown street investigations and sophisticatedundercover and sting operations.”

The DEA also has its own internal financedepartments, which offer professionals acareer path into government finances inareas such as financial management, budg-eting, financial controls, organizationalmanagement, acquisitions and procure-ment, internal audit and capital planning.

Central Intelligence Agency (CIA) As the premier US intelligence agency, theCIA has an expansive network of agentstracking and analyzing the infinite changesin political, social, economic, technologicaland military environments around the globe.

“Accountants and other finance profes-sionals play valuable roles throughout theCIA, including as finance officers, econo-mists, auditors and analysts,” says PaulaWeiss, media spokeswoman for the CIAOffice of Public Affairs.

The agency recruits finance professionalsto actively assess both licit and illicit activ-ities that affect US security interests. Forexample, economic analysts within the CIAare used to assess foreign economic poli-cies and foreign financial issues that candirectly affect the security of our nation.

Simply put, “We need people withdiverse financial and forensic skills to helpus understand the national security chal-lenges that involve money,” says Weiss.

There’s a particular need for economicanalysts with strong backgrounds in China,the Middle East and South Asia, and forspecialists in international banking systems,financial markets, transactions and instru-ments. Economic analysts are activelysought to assess illicit financial activities,including terrorist networks and criminalgroups, financing and procurement ofweapons of mass destruction, money laun-dering, and corruption among foreign gov-ernments and companies. As a CIA officeryour duties not only shape the face of yourcountry’s security, but possibly that of theworld as well.


“Starting your career in public accounting is an immediate launch pad into business,”says Paul Stahlin, vice chairman of the American Institute of Certified Public Accountants.“I loved public accounting,” he says.

Stahlin spent six years at Price Waterhouse & Co, the predecessor firm of Pricewater-houseCoopers, and is now regional president of Skylands Community Bank in Somerville,New Jersey. “You cram two years of knowledge into one year of experience, because yougo to many clients and soak up many business models,” he says of public accounting. “Yousee best practices and deal with senior people at your client’s offices. You’re the person rec-ommending changes, showing them how they can make money. You get real experiencethat you can’t pay for.”

The diversity in public accounting is what sets it apart—professionals have the opportu-nity to gain an understanding of so many aspects of accounting and finance. And they gainexposure to the company’s decision-makers early on in their careers.

What’s more, public accounting offers the opportunity to become a partner of the firm,says Toby Coffey, director of permanent services for Robert HalfInternational in Chicago. “Starting your career in public account-ing is a great fundamental opportunity. New grads gain excellentexposure to a variety of companies and industries. It givesaccountants the opportunity to gain exposure to many differentareas and determine where their strengths lie and what mostinterests them.” All in all, public accounting provides an incom-parable starting point for a high-achiever’s career.

Furthermore, says Roy Cohen, author of The Wall Street Pro-fessional’s Survival Guide, “You get a chance to cut your teethon more challenging accounting issues in an environment whereyou’re surrounded by stimulating colleagues and experts. There’sa sense of camaraderie.”

There’s also a very public aspect to public accounting, which isan essential component of a professional’s grooming for top-of-the-ladder positions later on. Essentially, you are the face of thefirm, which means you have to put your best foot forward, always.Public accounting firms will do their part to help you. “Large firmsprovide a lot of professional development and training. They wanttheir employees to be on the cutting edge,” says Cohen.

Then too, there’s the earning potential that a start in publicaccounting offers you. “When you leave the public sector andgo private, you will command a higher salary than someone whomay have spent the same number of years in solely the privatesector because of the breadth and depth of your experience. Nodoubt, working in public accounting enhances your compensa-tion going forward,” says Stahlin.

The Sarbanes-Oxley Act of 2002 turned out to be a big boon to public accountants (andto internal auditors). “It basically added an extra level of job security,” says Faizal Chaud-hury, internal audit supervisor for manufacturer Stepan Company of Northfield, Ill. “Soeveryone in our industry will be watching very closely to see if this Act is modified orrepealed in the years to come. The transition of US GAAP (Generally Accepted Account-

PLANNING

Public or Private?Which career route should you choose?

By Sheryl Nance-Nash

job-hunters

ICPAS

careerSpaceFor career-minded CPAs and

the people who hire them

Introducing our neweNewsletter...

Look out for the next issue on

July 27th!

Visit www.icpas.org/publications.htm forthis and other ICPAS ePublications.


ing Principles) to IFRS (International Financial Reporting Stan-dards) also promises to be a hot new area of growth for publicaccounting firms, he adds.

But for all its promise, many of the people who leave publicaccounting tend to do so in the two- to six-year period, says Cof-fey. They choose to make the switch for various reasons. “Mostwant more well-rounded experience or experience within a par-ticular industry. In addition, many individuals don’t see them-selves becoming partners in the long run, so they would ratherclimb the ranks within the private sector,” Coffey explains.

What’s the appeal of the private sector? Private accountinggives professionals the opportunity to hone their craft in an areaof business they enjoy. Professionals in private accounting alsotend to achieve greater work-life balance than their publicaccounting counterparts, although public accounting firms aretaking steps to address this issue as they compete for top per-formers, says Coffey.

“As much as I loved public accounting, when I was marriedand my first child came along, I missed a lot of the moments thatmatter. My time wasn’t my own, so that lifestyle issue was partof the reason I decided to leave,” Stahlin admits. “It’s not thatyou don’t work hard in the private sector, it’s just that you havesome control over your time.”

Work-life balance, it seems, is where the private sector hasthe advantage.

What’s also different in the private sector is that the account-ant has a single client, the company, versus many clients. Withone client you grow your roots and establish relationships. Proj-ects tend to be more in-depth, lasting two years or so, comparedto the public sector where the time spent on projects may bemuch shorter. For those who like to dig deep and stay there fora while, the private sector is ideal.

Also, the career path is different; there can be mobility acrossa broader spectrum of roles. The long-term benefit of a corpo-rate position is the fact that it will give you exposure to differenttypes of projects and opportunities, says Coffey.

You don’t have to focus solely on finance, but if you do, youcan drill down and make decisions that have far-ranging impact.“It’s very rewarding to see the fruits of your labor, which you seewhen you’re going to the same place every day,” says Stahlin.

In the private sector you can move vertically into leadership,or laterally to learn new skills. Some people start in accountingbut learn new functions like marketing, says Cohen. Positionslike controller, CFO and CEO become a possibility as youbroaden your scope.

Job stability is top of mind for most people these days. “The pub-lic accounting area is a great place to be in when the economy isdoing well. However, the recent economic downturn (and the onein 2001), clearly demonstrated that you don’t want to be in thatarea during such times. Usually layoffs are quicker and muchdeeper in public than in the private sector,” says Chaudhury.

In the end though, what you want out of your career is whatmatters most. “Do you want to work for a large firm, while youdetermine where you’d like to specialize? Is there a particularcompany you want to work for? What kind of hours are you will-ing to put in?” Coffey asks. “Each accountant needs to ask thesetypes of questions to decide on the sector that’s best for them.”


The down economy has an upside—opportunities forsmaller accounting firms to attract top college talent are onthe rise. With larger employers not hiring quite as much,students are taking a more serious look at their small- andmid-sized firm options.

That translates to the need for a strong campus recruitingstrategy—a hiring route that many smaller firms may nothave considered in the past due largely to the competition.

“On-campus recruiting has declined a lot for people sothere are more opportunities for smaller firms to get afoothold or make a presence,” says Michael Shapow, VP ofRobert Half International. “Because of the decline, schoolsare doing more outreach to employers and giving smallregional CPA firms a bigger stage than in the past.”

Even if recruiting isn’t front of mind for your firm justnow, it’s still a good idea to showcase your assets on a big-ger stage. Why? Because firms that are most successful aton-campus recruiting are those that constantly work tokeep their names in front of potential hires

“One of our best practices, and one that I use for myregion especially, is to really maintain a presence on cam-pus throughout the year,” says Michelle Kolb, HR generalistat Plante & Moran. “There are two main times of recruiting,the early fall and, at some schools, the spring. We look tobe on campus in between by doing presentations to keyclasses, key decision-makers and student clubs, and work-ing with faculty to find ways we can engage students.”

Millennials, however, are get-ting information from dozens ofplaces—Twitter, MySpace, Face-book and YouTube, to name a few.Their attention is scattered, whichmeans your message has to bestrategically scattered as well.

“This generation has so manydifferent things available tothem, we need to be everywhereto be sure we’re hitting themwhere they are looking,” saysSean Treccia, director of Univer-sity Relations and Recruiting forKPMG LLP.

The best advice for success isto hit them from all sides.

RECRUITING

Chasing the MillennialSmall firms set their sights on the Facebook Generation.

By Christine Bockelman

employers

“Small firms shouldn’t try to compete on the same playing field as the big guys.Small firms have certain advantages, and they ought to highlight those,” saysShapow. “Play up your industry focus or other aspects of your firm that mightbe attractive to students.”

Also note that candidates interested in a small firm tend to come from smallercolleges. “They were attracted to that school for its small classes and morepersonal attention, and could be looking for the same thing from theiremployer,” Shapow explains.

“It’s about finding the right fit,” says Koziel. “Not everyone is built for the BigFour, and not everyone is built for a small firm. Evaluate the people you’retalking to and get an understanding of why they want to work for a smaller firm.”

Play up your strengths. Smaller firms often offer more in the way of work/lifebalance, such as working from home. And they may also offer more careeragility, Koziel explains, meaning that young hires will be exposed to more areasof the accounting business than they might be at a larger firm.

The lure of a small firm

“It means I have the financial support to continue my education.”

Paving the way for tomorrow’s CPAs

THE CPA ENDOWMENT FUND OF ILLINOISProvides Scholarships for Accounting Students | Funds Career Awareness Programs

Advances Diversity in the Profession | Develops New Leaders

The CPA Endowment Fund of Illinois, working in cooperationwith the Illinois CPA Society, raises philanthropic support tofund programs that nurture and sustain the CPA profession.

For more information or to make a tax-deductible gift:Julie Lenner, Director of Development, 312.993.0407, ext. 290or go to www.icpas.org.


First, the offline optionsMark Koziel, director of Specialized Communities & Firm PracticeManagement at the American Institute of Certified Public Account-ants, says it’s a good idea to tap into the talents of the fresh collegegrads and other young accountants on your staff to represent yourfirm. “Take advantage of their passion,” he says.

Firm picnics, pre-interview receptions, tailgates and other casualevents are relatively low-cost ways to introduce students to yourfirm in a low-pressure setting. “Use the picnic as your first inter-view,” Koziel suggests. “Anyone who shows up and shows interestshould get a spot in the recruiting process. Bringing the students toyou helps to narrow their interest in you. Also, by having theseinformal events, you help students eliminate the jitters that a formalinterview can bring.”

Golf outings, service days—like building a house with firm part-ners for Habitat for Humanity—and case study competitions areother ways to get your firm’s name in front of students. “These don’tcost a lot of money, but they do have a time cost. It’s lots of planningfor the judges, but students really like them,” says Treccia. “Gener-ally speaking, we’re finding much more interest from students anduniversities in casual events than at career fairs.”

Second, the online optionsHuge companies, including McDonalds, Sears and Motorola, areposting jobs on Twitter—and accounting firms are following suit.

Successful social networking requires little more than someone tomonitor and post content, and guidelines concerning that content.

There are many ways to make a deal work and we havetried them all at one time or another. Our reservoir ofexperience will serve you well, whether you are an ownergetting what you deserve for your practice or a buyerseeking a new adventure. Accounting Practice Sales is alwaysworking for you. Call Trent Holmes today and let’s talk.

[email protected]

Visit www.AccountingPracticeSales.com to view current listings

NORTH AMERICA'S LEADER IN PRACTICE SALES

We Can Make That Deal for You.

Good NewsGood News

RECRUITING

employers

The best sites give students a snapshot of the firm’s culture, introducekey partners and employees, and offer a glimpse of what it’s like towork at the company. Many entice students to check back by offer-ing job-hunting tips and advice.

Bigger firms often link it all together to create a cohesive networkof recruiting info. At Plante & Moran, presenters who meet with stu-dents on campus take the opportunity to talk about the firm’s Face-book fan page or its Twitter tweets, says Kolb. The firm also hosts awebsite geared toward the millennial generation [plantemoran.jobs],which offers everything from downloadable ringtones to lists of indus-tries served by the company.

“We’ve found social networking to be effective because that’swhere the students are looking, and we need to tailor our commu-nications to them,” says Kolb.

KPMG is just starting to explore Twitter and Facebook. “It’s agreat way to push information to students,” says Treccia. On Face-book, KPMG is considering setting up school-specific sub-sectionsfor recruiting, including one geared specifically to the University ofIllinois. The firm is also using YouTube very successfully, and evenhas its own channel [youtube.com/kpmggo], which provides infor-mation on its global internships, community service activities andother programs.

Protiviti, a global business consulting and internal audit firm, has“used Facebook, Twitter, LinkedIn and blogs for on-campus recruit-ing,” says Bridget O’Malley, senior recruiting specialist at the firm’sChicago office. “We’ve really stepped up our efforts in the last yearand a half. We’re learning more and more about how we can use thedifferent kinds of technology available. Students are online all thetime. Email is the tip of the iceberg. These sites make it very easy toget in touch and get information about our company to students. Wecan promote our corporate culture and different opportunities that areavailable. We can access an audience that is already there and givea more colorful description of what we’re already talking about in ourmore formal recruiting efforts.”

Protiviti’s college recruiting blog [protivitirecruiting.blogspot.com]offers overviews of different professions and photos of industryevents—all designed to give potential hires a well-rounded view of thefirm. Company tweets typically target information about on-campusinterview times and other recruiting events. The Facebook page,which has more than 400 fans, includes much of the same content.

“When a campus is holding a mock interview day, we can useour online tools to give them tips and advice,” says O’Malley. “It’san easy way for us to show our interest in the students and give thema look at our corporate culture. Students are really looking to buildas many connections to as many employers as they can while inschool, and these sites are a great, easy way for us to do that.”

Although the world of college recruiting is constantly changing,the key to it all is really rather simple—be consistent. Choose a fewways to get your company within students’ sights, and then stickwith them.

“It’s very important to not disengage students,” says Kolb. “If youdon’t maintain contact on campus, you’re leaving an opportunityfor other firms to develop their relationships more strongly, andyou’re creating the potential for out of sight, out of mind.”

AUGUSTAUGUSTJULY

JUNE

1 2 3 4 56 7 8 9 10 11 12

How longwould your savings last

if your paychecksstopped tomorrow? ?

1 Please consult your tax advisor for more information.Underwritten by: Hartford Life Insurance Company, Simsbury, CT 06089. The Hartford® is The Hartford Financial Services Group, Inc.and its subsidiaries, including issuing company Hartford Life Insurance Company. All benefits are subject to the terms and conditionsof the policy. Policies underwritten by Hartford Life Insurance Company detail exclusions, limitations, reduction of benefits and termsunder which the policies may be continued in force or discontinued. d/b/a in CA Seabury & Smith Insurance Program ManagementGroup Policy Form SRP-1311 A(HL)(5060) AR Ins. Lic. #245544, CA Ins. Lic. #0633005 #45843 ©2010 Seabury & Smith, Inc.

5Real-Life Illnesses & InjuriesThat Can Stop Your Income

You’re not immune from the /nancialimpacts of a disability just because youhave a “desk job.”

Take a look at /ve common medicalconditions that are already preventingother professionals from earningan income:

1. Cancer2. Back injuries3. Complications of pregnancy4. Heart attacks, heart disease

and stroke5. Joint, muscle and connective

tissue diseases

Your income is too importantto leave unprotected. Take a

closer look at the ICPAS-sponsoredDisability Income Plan today.

Your income means more than the numbers written on your paycheck. That’s because your financialfuture is generally based on your ability to earn an income.

But what if a serious car accident led to back injuries? Or your doctor diagnoses cancerand prescribes an aggressive course of radiation and chemotherapy? Or the suddenheadache is really a stroke that leaves you unable to work as a financial professional?

They’re all real-life scenarios. And they couldeasily mean the end of your ability earn a paycheck asa financial professional.

Without a steady income, how long would yourfamily be able to pay rent or take care of the mortgage?What about car payments? Credit card bills? Utilitieslike electricity and the phone? What happens to yourchildren’s college education?

Those everyday expenses don’t disappear justbecause your paycheck stops.

That’s why ICPAS sponsors the Group DisabilityIncome Insurance Plan. Unlike disability coverageoffered through an employer or counted as a “businessexpense” if you own your own firm, benefits throughthis special program for ICPAS members are generallypaid TAX-FREE.1

Plus, the plan delivers up to $10,000.00 benefitsevery month if you can’t work as a financial professional.(Many other disability plans only pay benefits if youcan’t work in ANY job.) Think of it as ICPAS’s way ofprotecting your earning power as a specially-trainedfinancial professional.

Ready to find out more about the ICPAS-sponsored Group Disability Plan?

Call Toll-Free 1-800-503-9230 or visit us online at:www.personal-plans.com/promo/45843


Small and mid-sized accounting practices oftendon’t have the manpower or resources to create formal-ized internship programs to match the stature of those ofthe Big Four. But smaller firms interested in investing inan intern or two can derive a lot of the same businessbenefits that larger firms enjoy, and can satisfy anaccounting student’s need to learn and experience theprofessional work environment as well.

First, Set Your Business ObjectivesAccounting practices know how to get to the bottom line.If there is no business benefit to hiring, mentoring andpaying a student intern, why do it at all?

There are several questions you should answer beforeyou try to recruit an intern. In the short term, how will anintern affect the billable hours or projects already inplace? In taking the long view, will an intern be consid-ered for full-time employment? Is this a recruiting tool thefirm needs?

Once you‘re confident an intern will benefit the firm,the real work begins. “If you are going to have an intern-ship program, you have to commit to planning what theintern’s experience will be, and that might mean makingsome investments,” says Chris Montague, managing part-ner of the Chicago office for Plante & Moran, a mid-sizedpublic accounting firm based in Southfield, Mich. Plante& Moran’s Chicago office hires four to five interns a year,who work during either the spring school semester orsummer break. The firm’s smaller office in Elgin, Ill. hirestwo to four more.

At Lauterbach & Amen, a 40-person enterprise, servingthe accounting needs of municipalities, Partner Nathan J.Gaskill says the firm, which is based in Warrenville, Ill.,

will be utilizing five interns thissummer. The firm started an infor-mal internship program aboutseven years ago, but its first attemptwas a bit hit or miss at best. “Thefirst year we had an intern pro-gram, it was more of a problemthan a help. We almost didn’t con-tinue it,” Gaskill explains. He saysproblems arose when there wasn’tenough relevant work to be done,

employers

TALENT

The Perfect InternshipMake it a success, on both sides of the desk.

By Allison Enright

In April, the United States Department of Labor (DOL) issued Fact Sheet #71:Internship Programs Under the Fair Labor Standards Act, which clearly defines"trainee status" in the context of qualifying for a compensation exemption. Theguidelines address concerns over intern exploitation, and state that any for-profitcompany engaging in an unpaid internship that does not provide mutual valueto both intern and employer is likely to be breaking the law. Access The InternshipInstitute’s Compliance Advisory [InternshipSuccess.com] for a summary of theDOL’s guidelines as well as tips and recommendations.

Employers Beware: Are You Breaking the Law?

upcoming eventsAugust 12, 2010 - Chicago, IL

Managing the Intersection of CorporateGovernance, Risk Assessment/Management and Strategic LeadershipDan R. Dalton, PhDFounding Director of the Institute for CorporateGovernance, Dean Emeritus, and the Harold A. PolingChair of Strategic Management, Kelley School of Business,Indiana University

September 24, 2010 - Rosemont, IL

Midwest Financial Reporting Symposium

September 29, 2010 - Chicago, IL

International Financial ReportingStandards (IFRS) for Small and Medium-Sized Entities – 1/2 Day ProgramMarian Powers, PhDAdjunct Associate Professor, Kellogg School ofManagement, Northwestern University

October 18, 2010 - Chicago, IL

Developing and Implementing aBalanced Scorecard FrameworkMark Frigo, PhD, CPA, CMADirector, The Center for Strategy, Execution and Valuation,Kellstadt Graduate School of Business, DePaul University

October 20, 2010 - Chicago, ILTechnical Workshop:FASB Review for IndustryFred Christensen

November TBA, 2010 - Chicago, IL

Generations Apart...Yet Only a Cubicle AwayDennis L. FaurotePresident, The Faurote Group and Adjunct Professor, Kelley School of Business, Indiana University

December TBA, 2010 - Chicago, IL

Strategic Cost Analysis: Tools forLowering Your Company’s CostsJohn W. Hill, PhD, JDArthur M. Weimer Chair in Business, Kelley School ofBusiness, Indiana University

Dedicated to meeting the needs of corporate finance professionals through high-quality executiveeducation, knowledge resources and networkingcommunities

making your life easierCheck it out today at www.CCFLinfo.org

The Center for Corporate Financial Leadership is a service of the

Illinois CPA Society

and the lack of a real structure aggravatedboth interns and staffers.

It was the cyclical nature of the firm’s work(unlike a lot of firms, the summer season isits busiest and that coincides with studentsummer breaks) that convinced managementto try again, this time with a more formalizedprogram in place. The key to a successfulprogram, Gaskill comments, is planning.

Sofie Woodburn, human resources man-ager at the UK-based leadership develop-ment consultancy the Centre for High Per-formance Development, says having struc-ture and purpose is the key to a winninginternship program. “Planning internships isa time-consuming business. You have toknow that the staff can really give interns theopportunity to gain knowledge,” she says.

Project Your WorkloadWhat kind of work will the intern do? Atboth Plante & Moran and Lauterbach &Amen, interns are treated like any new staffaccountant and rotate through the firms’core business areas. Montague explainsthat, “We tell them we are going to givethem real-life exposure to what publicaccountants do at Plante & Moran,” which,he says, includes stints in areas like auditand tax for clients of different sizes and indifferent industries.

Firms also have to consider the workloadof staffers already in place. Are thereenough partners or team leaders on staffwho are willing to be accessible to interns?Plante & Moran assigns each intern an on-staff “buddy”—typically someone who hasbeen with the firm for two to five years—and a “team partner” who is higher up inthe organization, so that the intern can getexposure at the executive level. At Lauter-bach & Amen, which has a flatter organiza-tional structure, interns can expect to taketheir questions right to one of the firm’s fivepartners. “On a day-to-day basis we areconstantly reviewing the work interns doand giving them feedback,” says Gaskill.

The key to a mutually beneficial internshipis keeping everyone active doing tasks thatprovide real value to the firm. “Students have

three months where they can have a properworking experience, and while it’s wonder-ful to have someone to help out with tasksyou can’t get to, that’s not where the learn-ing opportunity is,” Woodburn explains,adding that pushing the start key on the pho-tocopier doesn’t qualify as a learning experi-ence for soon-to-be college grads.

“The most important thing is to treat themas you would any other valued candidate oremployee, or the program will die out,”Gaskill adds.

Communicate…Both WaysOne of the foundations of a successfulinternship program is communication. Mon-tague says his firm conducts a modified per-formance review with each intern at the mid-point of the internship, with input fromhuman resources, the assigned buddy andthe team partner. There is also a firm-wide“intern summit” that brings together all cur-rent interns to discuss the internship experi-ence. At this time, students work on theirfinal presentations to the firm’s partners, dur-ing which they relate their experiences.

While communication clarity from thefirm to the intern is important, it’s the infor-mation relayed from the intern to the firmthat is most beneficial to the long-term suc-cess of an internship program. Montagueexplains that this feedback helps the firmrefine the experience for future interns.Plante & Moran holds research focusgroups during the intern summit, for exam-ple, to collect information about what is orisn’t working for the intern class. “We learnwhat we have done well and what we cando better,” he says.

Some young professionals eager to makea good impression or to have a job offerextended, however, may be reluctant to tellit like it is, Woodburn points out, whichmeans firms need to work a little harder toget the most usable insights. A humanresources representative or firm employeewho doesn’t have supervisory responsibili-ties may be useful in getting straight to thetruth in these situations. “Sometimes youreally have to take time to get it out of them.

A lot of times interns won’t go to their man-ager and tell them about their experiencebecause they think it may sound like theyare complaining,” Woodburn explains.

Gaskill has sit-down meetings with eachintern at least three times during the intern-ship term and, because of the firm’s size, he’sable to get ongoing input from the internsabout their workloads and progress.

“It’s most important to start with the plan-ning and then make sure the experience stayson track for the employee and for the personorganizing the program,” says Woodburn.

Make it a 360o ExperienceAs the saying “the proof is in the pudding”implies, an internship program’s successcan be measured by the number of internswho go on to become full-time employees.With competition for talent running as hotas ever, recruitment by means of internshipis a prime reason for having an internshipprogram in the first place.

“From our perspective, we certainly valuethe work interns do while they are here.More candidly, it is a recruiting activity morethan anything else. It allows us to identifyand bring students into the firm to get expo-sure to us and our firm’s culture, and gives usthe opportunity to see them in action,” Mon-tague explains. Last year, 95 percent of theoffers made by Plante & Moran to internsfirm-wide were accepted.

Gaskill considers an internship tanta-mount to an extended interview and three-month jumpstart on training. Some internsare asked back to work for the firm twosummers in a row if they are still in school,and the firm has hired three past interns asfull-time staffers in the last two years.“They’re still here and eager and chompingat the bit,” he says.

“From the firm’s perspective, your peopleare the most important part of your firm. If aclient leaves, that’s one client. If a staff per-son leaves, they probably cover 30 clients,”says Gaskill. “With the training curve beingabout two years, finding the right people isthe most important thing to us,” and intern-ship programs help to do just that.


TALENT

employers

“The most important thing is to treat them as you would any other valued candidate or employee, or the program will die out.”

member buying advantage program

save m neyon the products and services you use every day.

A BENEFIT OF YOUR ILLINOIS CPA SOCIETY MEMBERSHIP

30% member discount on tax and accounting books. Email: http://tax.cchgroup.com/members/icpas (Enter member discount code: Y6202)

Discounts on products and services. Phone: 800.325.7000

Up to 15% off on auto insurance and 10% on home insurance. Call today for your no-obligation rate quote! Be sure to mention group #3408. Phone: 800.835.0894

Special group discounts on life, disability, major medical and liability plans.Phone: 800.323.2106 (liability) or 800.842.ICPA (medical & life plans)

Offering more than 65,000 products at competitive prices.Phone: Wanda Brooks at 708.969.5355 | Email: [email protected]

Complete administration of 125 Cafeteria Plan. 10% off of enrollment and administrative fees.Phone: 800.422.4661, press 7

Provides effective and ethical solutions for collecting debts and improving cash flow. Phone: 800.279.3511 Web: www.icmemberbenefits.com

Earn points and get rewards you want, with a no annual fee Platinum Plus MasterCard.Phone: 866.438.6262 Apply Online: www.bankofamerica.com/creditcards

$300 discount on one full four-part Becker CPA Review course.Phone: 800.868.3900 Web: www.becker.com.

30% discount (up to $420 in savings) on real-time, interactive Online Review Courses or Self-Study Online Review Courses. Discount applicable to multiple or single section purchases.Phone: 800.CPA.2DAY (Use code: ICPASKAP)

Competitive loan rates and dividends, and access to a diverse line of products and services.Phone: 800.328.1935 Web: www.alliantcreditunion.org/ilcpa

NEW! Accept more payments, lower processing costs and build your business with a cardprocessing program from Bank of America Merchant Services. Be sure to mention promo code ILCPA01. Phone: Courtney Loacker at 847.615.2870

NEW! 20% off everyday items in-store, online, or through their catalog. Participating membersreceive free garment pressing and 24 hour tailoring on Jos. A. Bank merchandise purchased, aswell as exclusive invitations to attend special events. Phone: 800.285.2265

NEW! $400-$500 discount on our innovative and dynamic four-part review course in online orUSB drive format. Roger CPA Review students routinely achieve pass rates of 86%. Phone: 800.ROG.4CPA


Dark economic clouds have forced companies across all industries to look for ways tocut operating costs and boost profits. Accounting firms are no exception, with many lookingto their investments in human capital for help in the quest to “stay in the black.”

Some companies are finding the answer in flexible work arrangements, whether job-shar-ing (two employees work part-time to cover one full-time position), flex-time (employeeschoose their workday start and end times), telecommuting (employees work from a remotelocation), compressed work weeks (employees work 40 hours in fewer than the traditionalfive days) or all of the above. Truthfully, companies that “flex” do more than keep theirworkers happy when salary increases and bonuses are scarce.

“Right now it’s difficult for firms to reward withhigher compensation, so helping workers achievework-life balance through more flexible arrange-ments can be a great alternative,” says Janet Flewell-ing, director of human resources operations for per-sonnel management services firm Administaff.

In its recent Workplace Flexibility 2010 study, theGeorgetown University Law Center found thatnearly 80 percent of workers would like to havemore flexible options, and those same workerswould use those options if there were no negativeconsequences at work. The group also found thatthe percentage of the workforce that uses a flexibleschedule increased dramatically from 1985 (12.4percent) to 1997 (27.6 percent), and has since lev-eled off. Within the private sector, the highest ratesof flex-time are found among those working infinancial activities (37.7 percent), followed by thebusiness services (37.6 percent) and information(34.9 percent) industries.

The Holy Grail Best Buy is one of the most visible examples of flex-ibility done right. For years the electronics retailer

has offered its corporate office employees the opportunity to set the start and finish time oftheir workdays (within parameters established by the corporation). The return on invest-ment has been significant, with Best Buy reporting a 35-percent increase in employee pro-ductivity as a result of this initiative.

Best Buy isn’t alone in its mission to use flexibility to boost its bottom line. The Alliancefor Work-Life Progress (AWLP) says that companies supporting flexible work arrange-ments experience a 3.5 percent higher market value than companies that use more tra-ditional scheduling.

What’s more, says the AWLP, Hewlett Packard’s compressed work week meant a 200-percent increase in the number of transactions conducted on a daily basis and a 50-per-cent reduction in overtime. And UPS’ flexible work schedules helped the firm reduceemployee turnover by 44 percent.

These aren’t the only benefits of a flexible work arrangement. In the case of telecommut-ing, for example, employers can reduce the amount of floor space required for offices. “This

RETENTION

Flex PeopleWhat’s the ROI of a flexible work environment?

By Bridget McCrea

employers

Career CenterA benefit of your Illinois CPA Society Membership

Job Listings | Resume PostingsCareer Coaches* | Workshops and

Other Career Resources

Check out the Career Center at

www.icpas.org*fee-based service

keep yourcareer on track

translates into fewer desks and office equipment, along with asmaller budget for utilities such as heating and cooling,” saysFlewelling. And in the case of job sharing, employers can reducetheir headcounts without any interruption to productivity and serv-ice. “And don’t forget that companies save on the cost of benefitswhen using two part-time employees, rather than one full-timeemployee,” she adds.

What’s more, by allowing employees to start work at 6 a.m. andleave as late as 9 p.m., a company’s operational hours areexpanded by up to eight hours a day, with no additional man-power. In essence, they’re gaining hours of coverage.

Kathy Downey, managing partner in Plante & Moran’s North-west Chicago office, says her firm has been reaping the benefits offlexible work arrangements for years. “We see our staff as thelifeblood of our firm’s future, and we consider work-life balancecritical to their happiness and ability to do good work,” she says.

Downey explains that although the financial ROI is difficult topinpoint, lower employee turnover obviously means significantsavings. “Turnover costs for a CPA firm are very high, based on thenumber of hours and amount of energy invested in developingaccountants,” she says. “You can’t just ‘plug’ someone into a spotleft behind by a seasoned employee.”

But you can go the extra mile to ensure that your veteran work-ers don’t leave in the first place. “Flexible work arrangementsallow accounting firms to keep their best people,” says Downey.“That’s the business case.”

Which Flex for You?When developing a flexible work policy, Flewelling recommendsthat you consider the company’s onsite personnel needs first. Thefirm that needs employees physically on site at all times, for exam-ple, should steer clear of arrangements that leave them shortstaffed (such as telecommuting). Job-sharing or compressed work-weeks might be a better choice.

On the other hand, says Flewelling, firms that experiencereduced business flow after tax season might consider a virtual ortelecommuting arrangement for non-core workers. “Throw out theregular 9 to 5 schedule,” she says, “and pay them for results, ratherthan by the hour.”

Setting up and administering flexible work arrangements can bechallenging for accounting firms that are used to a more traditionalschedule. “You can’t just assume that Sally is going to be herebecause everyone else has clocked in,” says Downey. “If Joe isgoing to be on a different schedule next week, those around himmust be notified and his responsibilities have to be covered whenhe’s not here. Otherwise, things can unravel pretty quickly.”

Flewelling says companies that are new to nontraditionalarrangements should plan carefully and understand that an adjust-ment period may be involved. Workers who aren’t onsite on adaily basis, for example, have to keep in constant contact with thehome office, while those who are sharing jobs have to efficientlyexchange work updates.

Also consider how managers will measure performance, partic-ularly for those workers who aren’t sitting in the office with a tra-ditional 40-hour-a-week schedule. “Clearly outline what’sexpected of everyone, and adjust your evaluation periods toaccommodate the new work structure,” Flewelling advises. “Aswork-life balance becomes even more important, these arrange-ments will be a great way to accommodate employees’ needswhile also benefiting employers.”



As the role of the chief financial executive evolvesand expands, we explore three developing areasthat weigh on today’s finance leader. By Carolyn Tang

CF201

0



STRATEGIC ITLess than a generation ago, company finances were tracked usingpaper ledgers and calculators. Today, information technologycomprises a significant chunk of overall spending, which meansCFOs have had to get their knowledge bases up to speed—quickly.

Marc Linden, CFO of Intacct, an award-winning provider offinancial management and accounting applications, says it’s moreimportant than ever for a CFO to be involved in IT investmentdecisions in order to maintain company competitiveness and toensure financial decisions are held to the same standards as anyother investment. “IT investments should be made to meet specificbusiness objectives; for example, to increase revenue, improveefficiency or meet regulatory requirements,” he explains.

When it comes to enterprise software, says Linden, the CFO isoften the purchasing program’s executive sponsor, largely becausethe software is used for financial management and insight into rev-enue and cost. In other words, it is a mission critical tool for thefinance function.

“CFOs steer the selection process, marshal internal resources, andare often in charge of overseeing implementation of the software,”explains Charles Rathmann, a marketing analyst with IFS NorthAmerica. “Enterprise resource planning (ERP) has a real impact(beyond) the operation of the finance function of a company bytying various departmental functions into the general ledger.”

Michael Bechara is the managing director of Granite ConsultingGroup, a corporate governance, IT and financial managementconsultancy. In his experience, the typical CFO has influence overhow much money is spent, but not as much influence over whatthe money is spent on.

“In many ways, IT is still a ‘black box,’ as technology remainsmysterious and intimidating for many,” he explains. “The chal-lenge is that IT professionals are very tech savvy, but are not par-ticularly focused on return on investment. The CFO needs to delveinto the IT area to a greater degree in order to understand exactlywhat benefits are received from the investments made.”

Linden sees benchmarking IT spending against other possibleinvestments as essential in ensuring the highest possible returns.He says the CFO is uniquely positioned to make these decisionsbecause he/she has the training and experience necessary to max-imize the outcome of any financial trade-offs. Additionally, theCFO is one of the few executives in a firm that has insight into allaspects of the business.

“While it isn’t practical or appropriate for a CFO to be involvedin every IT spending decision, the CFO should be involved indeveloping the company’s overall IT strategy and objectives,ensuring proper investment justifications are made, setting andmanaging an overall IT and capital budget, setting appropriateapproval levels, and ensuring reporting of actual versus plan infor-mation for key IT measures,” he says.

While some CFOs have technology backgrounds, others areslow to get up to IT speed. In fact, in a Deloitte survey of CFOheadhunters, it was revealed that many CFOs aren’t keeping pacewith the business marketplace, and subsequently are setting thewrong priorities.

“A lot of CFOs are just too ‘GAAP-centric’ these days,”answered one respondent. “They’re focused on operations and, asa result, they’re too cautious. This is a real challenge in organiza-tions where the CFO should be participating in the strategic devel-opment of the company.”

Overall, however, Lawrena Colombo, a partner at Pricewater-houseCoopers, LLP, believes the impact of this rapid evolution hasbeen positive. “Individuals with high professional and personal stan-dards have been stepping up to CFO roles or have been acting withgreat integrity in this challenging environment, and have been bring-ing credibility to their companies. In turn, the investor communityhas been clearly differentiating well-run, transparent companies inthese recessionary times, and the share prices have reflected this.The reward for the risk of being a CFO remains positive, as long asaccountability and performance remain high,” she says.

DE FACTO DECISION-MAKINGOf course, this “evolutionary phenomenon” is not limited to the ITfunction. These days, the CFO is taking an increasingly active role inlarge-scale company decision-making, and is more likely to partnerwith, rather than merely serve, the all-knowing, all-powerful CEO.

“Great CFOs have always been the most important businesspartner for the CEO, and should be involved in every key decisionthat adds or subtracts substantially from the value of the organiza-tion,” says Colombo.

Bill Graf, a partner with Deloitte & Touche LLP, agrees that CFOshave unique leadership and organizational skills that positionthem well to be trusted advisors to the CEO. Not only does theCFO have a bird’s eye view of organizational needs from both afinancial and a strategic vantage point, but in the case of publiccompanies, CFOs also tend to have a feel for shareholder and mar-ket expectations.

Graf identifies four key roles that fall under the CFO function:

“Public scrutiny of the executive financefunction has intensified of late, driven by

hesitant ripples and unexpected fluctua-

tions in the economic landscape. The

spotlight is specifically focused on the

CFO, since investors, employees and

even government branches are looking

to companies to play a more active,

vocal part in financial accountability. ”

n Operator: CFOs have to operate an efficient and effectivefinance organization, providing a variety of services such asfinancial planning, financial analysis, treasury, tax, and more.n Steward: As the steward of corporate value, CFOs work toprotect the vital assets of the company, ensure compliance withfinancial regulations, close the books correctly and communi-cate value and risk issues to stakeholders.n Catalyst: CFOs stimulate and drive the timely execution ofchange in the finance function or enterprise. Using the power ofthe purse, they can selectively drive business improvement ini-tiatives, such as enhanced enterprise cost reduction and pricingexecution—all of which will add value to the company.n Strategist: CFOs take an important seat at the strategic plan-ning table, and influence the future direction of the company.They are vital in providing financial leadership, and aligningbusiness and finance strategy to grow the business. With each of these responsibilities, the CFO role is inextricably

intertwined with that of the CEO, and as such, significantly morevisible than it once was. This increased exposure adds anotherdimension to the CFO’s responsibilities.

THE PEOPLE PERSONFaizal Chaudhury manages the internal audit department at StepanCompany, a global chemicals manufacturer located just north ofChicago. He believes that increased scrutiny and accountability inthe corporate finance arena has certainly contributed to anincrease in the CFO’s oversight and visibility.

“The Sarbanes-Oxley Act of 2002 fundamentally changed thefinance landscape, putting accountability front and center. But Ithink this trend of partnering instead of serving is also based on arealization that objective financial advice is critical to success,and the way to achieve this is by making the finance function avalue-added partner as opposed to thinking of it as a cost center,”he explains.

The CFO is also the point person when it comes to the investorcommunity. “As the financial crisis has dragged on, investmentanalysts are asking evermore penetrating questions about the com-pany’s finances,” says Bechara. “In an environment of shiftingaccounting rules and transactions of increasing complexity, hav-ing a CFO who clearly explains to investors the company’s strat-egy is priceless.”

But with this increase in responsibility comes an increase in per-sonal risk; the greater a CFO’s public visibility, the greater his orher assumption of blame when expectations are not met. What’smore, the CFO may be expected to take the heat and direct pub-lic attention away from the CEO office in an effort to protect thecompany as a whole.

“As a senior executive of the organization, CFOs position them-selves to be in the public domain, delivering company informa-tion, including historical results, outlook for the future and com-pany strategy,” Graf explains. “Those that deliver a message tendto be held fully or partially accountable when expectations are notreached or desired results are not achieved.”

Which is not to say that the CEO should try to protect or shelterthe CFO. “The savvy CEO knows how valuable a CFO can be asa representative of the management strength of the company, andwill give them room to establish relationships with the investor

community, the board of directors, and other external and internalconstituents,” says Colombo.

A symbiotic relationship often exists between the CEO and theCFO. For instance when the CEO leaves, the CFO may well gowith them. A few prominent examples include former SIGMAPharmaceuticals CEO John Stocker and CFO Elmo de Alwis inApril of this year; and former Porsche CEO Wendelin Wiedekingand his CFO, Holge Härter, in 2009.

The fact that the CFO often takes over the executive seat whena CEO leaves is another illustration of just how much of a com-pany’s brain trust resides in both roles. This happened earlier thisyear when AIG CFO Alan Lund assumed the reins when actingchief executive Jon Plueger resigned less than two months aftertaking over.

Whether CFO or interim CEO, the weight of responsibility is aheavy one. Both internal and external stakeholders hold the CFOresponsible for establishing a culture of accurate reporting, fairdealing and consistent, visible performance. “Accountability forCFOs is much more personal than in the past. Senior executivesacross organizations are under great scrutiny concerning their per-sonal behavior and their judgment in both private and public set-tings,” Colombo explains.

Because of this, CFOs are being very particular about the peo-ple to whom they give their allegiance. “Increasingly, qualifiedCFO candidates are being very choosy in terms of accepting CFOpositions, especially with publicly traded companies,” saysChaudhury. “Given that there are financial and criminal penaltiesinvolved with Sarbanes-Oxley, potential CFOs are now facingmore than just the loss of reputation if things don’t work out quiteas planned.”



go greenThe markets are in flux. The accounting rules and federalregulations are still under construction. Universities don’tprovide it as a standard area of focus. And yet, the age ofgreen accounting is dawning. By Kristine Blenkhorn Rodriguez


Before you shrug off green accounting as just a fad, consider the fact that var-ious accounting organizations, including the Financial Accounting StandardsBoard (FASB), are working towards issuing guidelines that reflect rapidlychanging federal and global environmental regulations. Although still a workin progress, when regulations ultimately converge with accounting, there’ll bea mighty sea change—one that offers CPAs yet another career option.

Green accounting is far more than tracking carbon emissions using nifty soft-ware and possibly trading carbon credits. Also known as environmentalaccounting and sustainability accounting, it blends the financial, operationsand sustainability functions of enterprises within all industries.

“A significant number of companies even publish separate reports alongsidetheir annual reports to expand on their so-called corporate social responsibil-ity efforts, many following the guidelines of the Global Reporting Initiative,”says Julie Lockhart at Accounting for a Sustainable Future.

“I do believe CPAs will be doing a good portion of the future accounting inthis area,” says Jeffrey Frost, director of environmental accounting firm AgRe-fresh. “Large firms will send their junior partners to be trained at greenhouse gasinstitutes and the like. But right now the rules—both traditional accounting andgovernmental—are in flux. Many are still being created. There’s a market but alsomuch uncertainty as to how it will play out.”

Why CFOs CareFor progressive companies with a mission and/or charter that spells out corpo-rate sustainability as a key component, global warming in and of itself mightbe enough to spur green accounting practices. For those at the other end of thespectrum and all points in between, however, a more compelling financial casehas to be made.

Cue The Energy Efficiency Imperative: Why CFOs Need a Financial Strategy forEnergy and Carbon, a December 2009 report published by independent researchfirm Verdantix. The report cites increasing oil and electricity prices, the hiddencost of carbon, growing risks from energy supply disruption and board-level cli-mate change compliance issues as strong reasons for a CFO to make energy effi-ciency a new imperative. The report urges CFOs to create a multi-year energy effi-ciency plan to maximize cost savings, help the CEO meet carbon reduction goalsand make financial decisions based on the total cost of ownership.

Fiscal sense alone is not driving CFOs to focus on this area, however. USRepresentative Henry Waxman introduced The American Clean Energy andSecurity Act last year. The bill calls for a nearly 20-percent reduction of carbonemissions by 2020 by cutting methane, carbon dioxide and other greenhousegasses. It also calls for a cap-and-trade system for carbon emissions.

The Act has passed the House, and similar legislation is under development inthe Senate. In the meantime, the Environmental Protection Agency (EPA) is requir-ing new carbon emissions disclosures for 2010 to be reported in 2011. All in all,

there’s good cause for CFOs to take an interest in environmental accounting. Boards of directors are also increasing their focus on environmental matters,

as investors demand greater transparency concerning a company’s exposure tocarbon costs. Savvy finance executives see the writing on the wall and are ask-ing their teams to include the cost of carbon in their financial forecasts. All indi-cations are that a “carbon-constrained” economy is on its way, and emitters ofall sizes are gearing up for the imposition of limits and the requisite reportingthat accompanies them.

Market Potential & Current PlayersLast year, Australian analyst firm S2 Intelligence projected that US companieswould spend $91 billion on green accounting technology in the next six years.They estimated worldwide spending for the same to be $595 billion through 2015.

According to the 2009 Greenhouse Gas & Climate Change Workforce NeedsAssessment Survey Report (Greenhouse Gas Management Institute & Sequence


Staffing), many industry experts believe that carbon-trading vol-umes will rival those of other major commodities such as steel orcoal. The same study estimates that if the United States entered thecarbon-trading market today and encouraged other countries tofollow suit, the global carbon market would swell to anywherefrom $1 to $2 trillion within the decade. In fact, it would becomeone of the most significant international commodity markets.

High emitters, such as energy-reliant manufacturers and power-generating utilities, are obviously first entrants into the greenaccounting foray, simply because they need to be—the stakes arehighest in these industries. However, companies in a variety ofsectors are already embracing green accounting (large retailerssuch as Walmart are asking suppliers to account for their carbonfootprints, for example). Scrutiny of carbon footprints is likely toturn into a customized scorecard for each supplier that deals witha mega-business. And, in fact, it’s highly likely that consumerproducts will begin to display labels identifying their carbon foot-prints to help to guide consumers in buying the greenest products.

Demand High, Training LowGiven the household names that are now tracking their carbonfootprints and issuing sustainability reports, green accounting skillsare poised to be in extremely high demand. More than 83 percentof the 2009 Greenhouse Gas Management Institute study respon-dents believe there is either a moderate or high risk that carbonmarkets will suffer from problems similar to those symbolized bythe Enron, WorldCom and Tyco accounting scandals of the past.However, if seasoned CPAs are brought in to help regulate report-ing, that risk should decrease.

And yet, it seems that current accounting undergraduates willnot graduate with the requisite green accounting training neces-sary, simply because universities are not providing courses thatcover this discipline. In fact, almost 82 percent of respondents tothe Greenhouse Gas Management Institute study believe that uni-versities are not currently providing the necessary skills for newgraduates to work within this emerging industry.

Harvard University is making moves in the right direction, hav-ing worked with the Greenhouse Gas Management Institute to pro-vide a course on climate change within its Extension School Pro-gram. “Investing in a Sustainable Future” is offered as part of itsSustainability and Environmental Management Programs. Butagain, there is no true finance/accounting angle.

Illinois schools seem to be no exception. Dr. Elizabeth Murphy,associate professor in the School of Accountancy and MIS atDePaul University, Chicago, says the issue is touched on margin-ally in some traditional accounting classes, but that no formalgreen accounting courses are on the horizon.

“Some accounting pronouncements in financial reporting dealwith this issue—asset retirement, for instance. But, we have nocourses in environmental accounting. There aren’t enough rulesaround it yet,” she explains.

Dr. Murphy also mentioned that DePaul University PresidentReverend Dennis H. Holtschneider, C.M., recently sent faculty amemo announcing the establishment of an internal SustainabilityInitiatives Task Force, which will focus on sustainability initiativesin a variety of areas, including curricula.

It’s difficult, however, to create a syllabus when there’s no cleardirection on what should be covered, says Dr. L. Murphy Smith, aleading scholar on environmental accounting and professor ofaccounting at Texas A&M University. “The AICPA statement ofposition 96-1 is one of a very few documents that detail theresponsibility of a corporation regarding environment remediationliabilities. But there’s very little out there to address companiesincorporating accounting for sustainability and environmentalpractices that are proactive.”

As a former professor of accounting at Western Washington Uni-versity, Lockhart created and taught a popular environmentalaccounting elective course for 12 years. “If we are forward-think-ing,” she explains, “we will realize that environmental accountingaffects all of the sub-areas of accounting. Management accountantsneed to understand how to trace environmental costs, create metricsto track performance and estimate risks of noncompliance with envi-ronmental regulations; systems specialists need to design trackinginto the information systems; and auditors have an opportunity tojump into the emerging need for attestation of sustainability reports.Plus, getting students to think about the implications of environmen-tal accounting is a great way to develop critical thinking skills.”

Looking Forward“Companies will be much more focused on this area, as reportingrequirement such as the EPA’s mandatory greenhouse gas rulescome into force, bringing compliance concerns into sharperfocus,” says Brian Murrell, a partner in Deloitte’s Accounting, Val-uation & Analytics practice.

“Companies will leverage internal resources, such as internalaudit, to the extent they can to validate disclosure data, but manywill also look for third-party help as well,” Steve Engler, directorof Carbon Management Services for Deloitte, adds. “This is not anarea they will take lightly. The SEC offered interpretive guidanceon disclosure requirements, indicating enterprises must include athorough discussion in company disclosures on risk regarding cli-mate change. That discussion and the disclosures will need to rec-oncile completely with reporting, CEO comments and the like. It’snot dissimilar to financial reporting and verification.”

The resulting niche could benefit CPAs who have been buildingtheir skills arsenal in the environmental area. “We’ve already gotderivative accounting, pension accounting, lease accounting,”says Murrell. “In a larger CPA firm, it’s not unreasonable to thinkyou’ll have carbon and renewal accounting.”

Future CPAs need to have both financial and environmentalaccounting expertise if they hope to specialize in this emergingarea, says Pankaj Bhatia, director of the World Resources Institute’sGreenhouse Gas Protocol Initiative. “The skill set is very similar,actually. The way a company consolidates its financial accounts isthe same method you should use for greenhouse gas accounting.You should be consistent on everything from joint ventures toassets you’re writing off.”

It’s just common sense, says Engler. “Reporting emissionsinvolves numbers. Where numbers are involved, accountants arenot too far behind.”


A WHITE WHITE-COLLARPROFESSION?Filling the pipeline with talented young accounting professionals isthe problem; boosting minority representation could be the solution.

By Jacqueline Babb



omeowners know the story withpipes. There’s always a begin-ning. There’s always an end.

There’s usually a leak somewhere in themiddle. And so it goes with the pipeline ofdiverse students who become CPAs.

Specifically, the pipeline begins with theCPA Exam and ends with partner or seniorexecutive status. But statistics show that,when it comes to African-American andLatino professionals, making it all the wayfrom beginning to end is far from certain.

While the American Institute of CertifiedPublic Accountants (AICPA) reports that11.5 percent of accounting undergradu-ates are African-American and 6 percentare Hispanic/Latino, the actual demo-graphics within accounting firms arecloser to 4 percent at the junior level, andthey decline from there. The percentage ofminority CPA partners within accountingfirms hovers around 1 percent. These num-bers have remained unchanged over thepast several years.

At the other end of the spectrum lies theAsian and Pacific Islander demographic.Ascend, a Pan Asian organization dedicatedto enhancing the voice of Pan Asian andPacific Islander businesspeople, reports thattheir stakeholders make up 28 percent of thebusiness school population, and that thepercentage of Asians and Pacific Islanders tohold a business degree is 85 percent higherthan that of the average in the United States.

So why the low numbers for somegroups more than others? Money is one ofthe biggest barriers. University and col-lege tuition is simply too high, whichoften makes community colleges moreattractive to minority students. In fact, theAmerican Association of Community Col-leges reports that African-Americans andLatinos represent 13 percent and 16 per-cent, respectively, of all community col-lege students.

Community colleges, however, maylack the name recognition employers tra-ditionally look for when scouring forsoon-to-be-grads to recruit into theirranks, and campus recruiting efforts maynot extend as far as local community col-leges—even though they may well be themost logical choice.

What’s more, a survey conducted forThe CPA Journal noted that minority stu-dents perceive more hurdles to becominga CPA than do their Caucasian counter-parts, most notably due to a lack of minor-

ity role models and mentors in senior ranksof the accounting profession.

In the face of these challenges, expand-ing opportunities for minority students toenter the profession is imperative.

Rick Cerda, CPA, senior manager ofCrowe Horwath and president of theChicago Chapter of the Association ofLatino Professionals in Finance andAccounting (ALPFA), explains that, “Basedon my experience, a significant amount ofthe young minority professionals currentlyentering accounting are first-generationcollege graduates who have workedextremely hard to lift themselves out ofchallenging environments. Firms that cangive these young, talented professionalsthe opportunity to excel will be rewardedwith a high level of engagement and loy-alty. In a profession that often finds itselflosing talent after a few years, the value ofengaging professionals who love whatthey're doing and are loyal to the firm theywork for results in tremendous returns forthe firm, its clients and the individual.”

What’s more, a talented multi-culturalteam is a significant business asset intoday’s global economy. Some of thesavviest organizations in the world, in fact,recognize that an increasingly globaleconomy demands diversity of experienceand an unwavering commitment to inno-vation. Clients today want service teamsthat reflect the same level of diversity thatexists within their own organizations.“Accounting firms are getting the messagethat future buying decisions may beimpacted by the ability to field a morediverse team,” notes Scott Steffens, CPA, apartner at Grant Thornton.

Key to encouraging minorities to enterthe profession is understanding their cul-tural context. Studies show that minoritiesare often first-generation college studentsliving in urban areas. They tend to comefrom tight-knit communities in which it iscustomary to choose one of a handful of“acceptable” professions. Making a choiceof major outside of the social norm is dif-ficult. Also, looking to white-collar profes-sions, such as accounting and finance,medicine and law, may well be perceivedas simply unattainable.

And yet, the Diversity Pipeline Alliance’sresearch confirms that younger students ofcolor are motivated and ambitious, and thatthey value stability and challenge in a sup-portive work environment. Furthermore,

they perceive careers in business as alignedwith their priorities. In other words, they area perfect fit for the accounting profession.

Accounting, however, isn’t alone in itsstruggle to attract top diverse talent. Lead-ers in professions as far-ranging as medi-cine and engineering also are taking afresh look at inclusion strategies.

The Association of American MedicalColleges (AAMC), for example, launched amarketing campaign in 2006 to encourageminority students to choose medicine. Thecampaign includes a website [aspiring-docs.com], advertisements for the websiteand pilot outreach initiatives on four col-lege campuses. According to the AAMC,the website received more than 100,000hits within its first year, and of those regis-tering for the site, 55 percent were studentsfrom minority backgrounds.

The National Academy of Engineers(NAE) reached far back in its pipeline toattract and prepare talent. Its challenge isthat minority students may have an inter-est in engineering, but don’t necessarilyhave access to advanced math and sciencecourses in high school. The NAE has there-fore invested in K-12 education, highereducation and government initiatives toremove systematic barriers to degree com-pletion. As of August 2008, the NAE hadleveraged relationships with 50 partnerinstitutions to establish mentorship-basedacademies with after-school programs inurban areas.

Accounting firms have been amongstthe most proactive of employers in termsof inclusion efforts. Many firms have estab-lished internal resource groups to serve theneeds of its minority professionals. Thesecommunities host professional develop-ment programs and roundtables, and fos-ter much-needed and much sought-aftermentoring relationships. Accounting firmsalso have been diligent in partnering withorganizations that represent groups influ-encing and impacting the talent pipeline,including Ascend [ascendleadership.org],ALPFA [alpfa.org] and the National Associ-ation of Black Accountants, Inc. (NABA)[nabainc.org].

To a certain extent, though, every CPA ispart of the solution. No matter your rolewithin an organization, you can help to fixthe leak in the talent pipeline. It begins withan understanding of cultural competenceand an appreciation of the talent that sur-

H

rounds you. Incremental efforts in thisregard yield large returns.

Young minority professionals alreadywithin your ranks can impact thepipeline by reaching back to students attheir alma maters to share their insights andtheir experiences of the profession. At thesame time, they can reach up to professionalsin senior ranks to share their experiences ofworking within multi-cultural teams.

Also, says Sammy Delgado, a CPA withAbbott, “Getting parents involved can be agreat way to increase family support. In myexperience, I have seen some great eventshosted by accounting firms and DePaul'sMAHA organization where parents areinvited to have a dinner, listen to their chil-dren’s success stories and interact with otherfamilies who have similar struggles thatthreaten prioritization of education and workexperience. Having someone else they canrelate with provide examples of their owncareer paths can increase family buy-in andpromote further encouragement.”

Seasoned professionals can affect change byinfluencing infrastructure enhancements andtaking the time to learn about diverse profes-sionals within their organizations—their her-itage and culture, and the barriers they mayhave overcome to become CPAs. The strongeststatement about diversity should come from thetop. Empower employees to create inclusion-oriented initiatives, and to establish minority-specific mentoring programs and workplacecommunities. Set a roadmap with clear goalsand key success measures, unequivocally com-municating the fact that you are committed toa diverse workforce, and all the benefits thatcome with it. Word of mouth is a powerfultool—make your commitment known to awider audience, therefore boosting your attrac-tiveness to successive generations of talentedminority grads.

Opportunities also exist outside of theworkplace. Support programs that createopportunities for diverse students. Organiza-tions, such as NABA, ALPFA and Ascend, forexample, offer mentorship and volunteeropportunities. What’s more, the Illinois CPASociety is launching its Mary T. WashingtonWylie Scholars and Fellows Program, with thegoal of increasing the number of African-American and other underrepresented minori-ties in the accounting profession.

The opportunities to motivate a generationof ethnically diverse accounting professionalsare at your fingertips. You simply have to lookfor them—and act.

Mary T. Washington Wylie Scholars & Fellows Program

Mary T. Washington Wylie (1906-2005) provided apprenticeship to a

generation of African-American CPAs who could not find work due to the

racial discrimination prevalent in 1950s America. In the basement of her

Southside Chicago home, Mrs. Washington mentored some of today’s most

notable accounting leaders, and created the firm now known as Washing-

ton, Pittman & McKeever.

In 2006, Lester McKeever, managing principal of the firm, established the

Mary T. Washington Wylie Opportunity Fund, with the goal of raising $1

million to support a new scholarship program. In this, Mrs. Washington’s

“interest in young people and her interest in effectuating young people, par-

ticularly African-American” was a driving force. “I thought it was most

appropriate that we find a way to recognize and honor her,” says McKeever.

To date, nearly $500,000 has been committed, including gifts from Wash-

ington, Pittman and McKeever; Ernst & Young; Deloitte; Grant Thornton;

Crowe Horwath; and Fred Ford/Draper and Kramer. Thanks to this support,

the Mary T. Washington Wylie Scholars and Fellows program launched in

April, with a call for young professionals to serve as Fellows, the corner-

stones of a triad of mentors that also includes a senior professional and a

Ph.D. The Fellows not only mentor students, but also engage in leadership

activities to build their repertoire of skills. This collaborative effort between

the Illinois CPA Society and the CPA Endowment Fund of Illinois will strive

to bring mentorship to the next generation of African-Americans and other

underrepresented minorities in the accounting profession.

Students from Harold Washington College in Chicago will serve as the pilot

group of Mary T. Washington Wylie Scholars. Fellows will lead them through

a series of professional development workshops, and Ph.D.s in accounting

will coach them on their four-year college applications. Upon transferring

to a four-year college or university, Scholars will receive nontraditional

financial assistance in the form of textbooks, summer school, laptops and

other items not covered by financial aid packages. They’ll also have an

opportunity to intern with an accounting firm or corporation during their

fourth year, and will become eligible for a complimentary CPA Exam review

course upon graduation. Up to 10 Scholars will be chosen annually, for a

total of 40 in the program when it reaches full capacity in 2014. The triad

of mentors will remain a constant presence throughout the program to sup-

port student Scholars.

To learn how you or your firm can support this program, contact Julie

Lenner, Illinois CPA Society development director, at 312.993.0407 x290

or [email protected].



BUSINESS SERVICES

Look at our D NAWe are KUTCHINS, ROBBINS& DIAMOND, LTD., a growingSchaumburg Illinois full serviceCPA firm. Come meet with us tohear first-hand about how we areDifferent, New and Attractive–our DNA.DifferentHands on responsibility / Consistentfirm growth / No “killer hours”

NewEntrepreneurial spirit /Highly computerized/internet basedsoftware (state-of-the-art equipment) /Charitable involvement at both firmand individual levels

AttractiveFriendly work environment with goodworkspace / Fully stocked kitchenyear around / Great benefits andcompensation package

Contact:Al Kutchins, CPA

847-240-1040 [email protected]

We have openings in our auditand tax departments for theright professionals with twoor more years of experience.

MERGER/SALESCL

ASS

IFIE

DS

+ A

DVE

RTIS

ER IN

DEX ACCOUNTING OPPORTUNITY

Small CPA firm with many high earning clients located in Buffalo Grove looking to bring in a Junior CPA for future partnership.

My goal is to possibly retire in approximately 10 years. Please respond only if you have an established client base.

[email protected]

ADVERTISER INDEX [www.icpas.org/advertiserindex.htm]

PAGE ADVERTISER ONLINE

Visit these websites for more information on the services and products provided by advertisers featured in thisissue of INSIGHT.

26 Accounting Practice Sales accountingpracticesales.com

13 Alliant Credit Union alliantcreditunion.org/ilcpa

11 Audimation Services Inc. audimation.com

3 Garelli Wong garelliwong.com

7 Harris harrisbank.com

20 Herbert H. Landy Insurance Agency landy.com

27 Marsh Consumer Connexions personal-plans.com/promo/45843

Inside Front Cover Robert Half International roberthalf.us/smallbusinesscenter

9 Webfilings webfilings.com

VALUATION OF YOUR

CLIENT’S BUSINESS OR

PRACTICE

By: Crandall & Brackett, Ltd.

(630) 653.7922

email:

[email protected]

Web: www.crandall-brackett.com

Our only service is performed on your

behalf in a mutual engagement

setting. From basic research to a full

valuation, we tailor our services to

your needs. We author, teach and

participate on policy setting

committees and boards within the

valuation profession.

BUY OR SELL AN

ACCOUNTING OR TAX

PRACTICE

ILLINOIS PRACTICES FOR SALE:

Downtown Chicago practice gross

over $200K; Grayslake CPA Practice

gross $491K; Rochelle CPA Practice

gross $106K; Peoria Area Tax &

Accounting Practice gross $137K;

Springfield Area CPA Practice gross

$135K. For details, call 1-800-397-

0249 or visit us at

www.accountingpracticesales.com to

inquire about available opportunities

and register for free email updates.

THINKING OF SELLING YOUR

PRACTICE? Accounting Practice

Sales is the leading marketer of

accounting and tax practices in

North America. We have a large

pool of buyers, both individuals and

firms, looking for practices now. We

also have the experience to help you

find the right fit for your firm,

negotiate the best price and terms

and get the deal done. To learn

about our risk-free and confidential

services, call Trent Holmes with The

Holmes Group at 1-800-397-0249

or email

[email protected]

Use INSIGHT Magazine

reprints to promote or

supplement your

seminars, meetings and

tradeshows. Reprints

make a great marketing

tool and can be used as

handouts or to enhance

your media kits. We will

work with you to create a

customized piece that

suits your needs.

Call 312.993.0407

ext. 227 for further

information.

INSIGHTReprints

2010-2011 Boardof DirectorsCHAIRPERSON

Sara J. Mikuta, CPALeaders Bank

VICE CHAIRPERSONRobert E. Cameron, CPACameron, Smith & Company PC

SECRETARYDaniel F. Rahill, CPA, JDKPMG LLP

TREASURERJames P. Jones, CPAEdward Don & Company

IMMEDIATE PAST CHAIRPERSONLee A. Gould, CPA/ABV, JD, CFE, CFFGould & Pakter Associates LLC

DIRECTORSBrent A. Baccus, CPAWashington Pittman & McKeever

William P. Graf, CPADeloitte & Touche LLP

Edward J. Hannon, CPA, JDFreeborn & Peters LLP

John A. Hepp, CPA, PhDGrant Thornton LLP

Cara C. Hoffman, CPABlackman Kallick LLP

Geralyn R. Hurd, CPACrowe Horwath LLP

Leif J. Jensen, CPALeif Jensen & Associates Ltd.

Elizabeth A. Murphy, PhD, CPADePaul University

Annette M. O’Connor, CPARR Donnelley & Sons Company

Michael J. Pierce, CPARSM McGladrey Inc.

J. Bradley Sargent, CPASargent Consulting Group LLC

Edward H. Stassen, CPARecycled Paper Greetings Inc.

Reva B. Steinberg, CPABDO Seidman, LLP

Committee ChairsACCOUNTING PRINCIPLES

Reva B. Steinberg, CPABDO Seidman, LLP

Jeffery P. Watson, CPA*Blackman Kallick LLP

AGRIBUSINESSJason S. Bartell, CPABartell & Barickman LLP

AUDIT & ASSURANCE SERVICESKevin V. Wydra, CPACrowe Horwath LLP

James J. Gerace, CPA*BDO Seidman, LLP

ETHICS Richard M. Franklin, CPAWarady & Davis LLP

George A. Heyman, CPA*Retired

FINANCE & TREASURYMANAGEMENT

James P. Jones, CPAEdward Don & Company

GOVERNMENT EXECUTIVEBert Nuehring, CPACrowe Horwath LLP

GOVERNMENT REPORT REVIEWBrian D. LeFevre, CPASikich LLP

ILLINOIS CPAS FOR POLITICAL ACTION

Sheldon P. Holzman, CPA, CFE, CFFBaker Tilly Virchow Krause LLP

NOMINATING Lee A. Gould, CPA/ABV, JD CFE, CFFGould & Pakter Associates LLC

NOT-FOR-PROFIT ORGANIZATIONSCharlotte A. Montgomery, CPAIllinois State Museum Society

PEER REVIEW REPORTACCEPTANCE

John J. Belletete, CPAStriegel Knobloch & Company LLC

Gregory J. Pierce, CPA*Pierce Riesbeck & Associates

REGULATION & LEGISLATIONLawrence A. Wojcik, CPADLA Piper US LLP

TAX ADVISORY GROUPGary S. Hart, CPAGary Hart & Associates LLC

TAXATION BUSINESSChristina Immelman, CPAMcGladrey & Pullen LLP

TAXATION ESTATE, GIFT & TRUSTSGregory M. Ciokajlo, CPACiokajlo, Hein & Associates, Inc.

TAXATION EXECUTIVEMary Lou Pier, CPAPier & Associates

Steven R. Goluch, CPA*Wolowicki & Associates, LLC

TAXATION FLOW-THROUGHENTITIES

Michael N. Radencich, CPATrimarco, Radencich, Schwartz & Mrazek, LLC

TAXATION INDIVIDUALCara C. Hoffman, CPABlackman Kallick LLP

TAXATION PRACTICE &PROCEDURES

Larry J. Wolfe, CPALarry J. Wolfe CPAs, Ltd.

TAXATION STATE & LOCALDavid A. Hughes, CPA, JDHorwood, Marcus & Berk

WOMEN’S EXECUTIVEMargaret M. Hunn, CPARozovics & Wojcicki

Task Force ChairsACCOUNTING ACT SUNSET

Lee A. Gould, CPA/ABV, JD, CFE, CFFGould & Pakter Associates LLC

COMMITTEE STRUCTURE &VOLUNTEERISM

Elizabeth A. Murphy, PhD, CPADePaul University

CPA EXAM AWARD PROGRAMAnnette M. O’Connor, CPARR Donnelley & Sons Company

DIVERSITY INITIATIVESAnthony Fuller, CPAGrant Thornton LLP

INFORMATION SERVICESDaniel F. Rahill, CPA, JDKPMG LLP

LIFETIME ACHIEVEMENT AWARDLee A. Gould, CPA/ABV, JD, CFE, CFFGould & Pakter Associates LLC

OUTSTANDING EDUCATOR AWARDPenelope J. Yunker, CPARetired

SMALL PRACTICE ADVISORYLawrence H. Shanker, CPAShanker Valleau Accountants, Inc.

WOMEN’S INITIATIVESAngela S. Goyke, CPAGolub Capital

YOUNG PROFESSIONALS GROUPBetsy Matthews, CPALake County Neurosurgery, LLC

Jason Parish, CPABlackman Kallick LLP

Member Forum ChairsCHICAGOLAND CONTROLLERS

Kenneth J. Nowak, CPABusiness Office Systems

EMPLOYEE BENEFIT PLANSJanice Forgue, CPAMcGladrey & Pullen LLP

Erik Pienkos, CPAGrant Thornton, LLP

FUTURES, SECURITIES &DERIVATIVES

Jonathan Waterman, CPARSM McGladrey Inc.

INVESTMENT ADVISORYSERVICES/PFP

Mark Gilbert, CPAReason Financial Advisors, Inc.

MERGERS & ACQUISITIONSMary Warmus, CPAKensington Financial Consultants, Inc.

TAXATION NW SUBURBANSamuel Pass, CPASamuel Pass, CPA, Ltd.

Chapter PresidentsCENTRAL CHAPTER

Mickey M. Scheffki, CPAClifton Gunderson LLP

CHICAGO METRORebecca Babowice, CPABP America, Inc.

CHICAGO SOUTHMichael Grove, CPAGNC Consulting, Inc.

FOX RIVER TRAILKurt Schneider, CPADam, Snell & Taveirne, Ltd.

FOX VALLEYJeffrey M. Fabbri, CPA, CSEPJeffrey Fabbri, CPA, CSEP, PC

NORTH SHORELisa M. Malina, CPAMalina & Company

O’HARENorris C. Harstad, CPABenchmark, Aspen & Associates, Ltd.

WESTERNJohn T. Kustes, CPAAmerican Bank & Trust Company

Conference Task Force ChairsBUSINESS TAX

Linda M. Martin, CPAClifton Gunderson LLP

BUSINESS VALUATIONJon C. Peterson, CPAJon Peterson & Associates

CORPORATE TAXChristina Immelman, CPAMcGladrey & Pullen LLP

CONSTRUCTIONJames D. Rowe, CPALaSalle Bank NA

EMPLOYEE BENEFITSMark A. Yahoudy, CPARSM McGladrey Inc.

ESTATE AND GIFT TAXLeif J. Jensen, CPALeif Jensen & Associates Ltd.

FINANCIAL INSTITUTIONSBrady J. Nitchman, CPAPlante & Moran PLLC

James L. Calvert, CPAGreat Lake Banks NA

FORENSIC ACCOUNTINGMichael D. Pakter, CPAGould & Pakter Associates LLC

FRAUDJ. Bradley Sargent, CPASargent Consulting Group LLC

GOVERNMENTLinda S. Abernethy, CPAMcGladrey & Pullen LLP

HEALTHCARE COMPLIANCE & FRAUD

Howard L. Stone, Esq., CPAStone, McGuire & Siegel

IRS COLLECTIONSLarry J. Wolfe, CPALarry J. Wolfe CPAs, Ltd.

INDIVIDUAL TAXCara C. Hoffman, CPABlackman Kallick LLP

NOT FOR PROFITNancy G. Wallace, CPA(Chicago)Nancy Wallace, CPA

Richard L. Grafton, CPA(Springfield)Estes, Bridgewater & Ogden

REAL ESTATERobert H. Krueger, Jr., CPA

STATE AND LOCAL TAX UPDATEJohn C. Bird, CPARSM McGladrey, Inc.

TAXMichael J. Singer, CPAMichael J. Singer & Company, PC

TAXATION ON REAL ESTATEDouglas Hart, CPA

Illinois CPA Society

LeadershipWe Salute You

The Illinois CPA Society applauds its outstanding volunteerleaders. Their tireless dedication and contributions helpelevate the Society as the premier organization for CPAs andfinance professionals.

*Vice Chair


A SHOUT OUT FOR ICPAS MEMBER VOLUNTEERS

Military Tax Preparation Volunteers Assist Illinois Military FamiliesICPAS members volunteered in record numbers forthis year’s Military Tax Preparation Project. Throughthe dedication and generosity of these volunteers, 93military members and their families received free taxreturn preparation during the 2009 tax season.Specifically, the Military Tax Preparation Project offersfree federal and state income tax return preparation tomembers of the US Armed Forces in Illinois who arecurrently serving in a combat zone or have recentlyreturned from deployment. Military members and theirfamilies can utilize this program any time during theyear. Volunteers are matched with requests based ongeographic proximity, and work directly with servicemembers and their families. We are thankful for all thevolunteer members who stand at the ready to bematched with a Military Tax request.

FOR MORE INFORMATIONContact Jill Wiles, ICPAS community service manager, at [email protected] or 312.993.0407 ext. 277. Alternatively, visit us online aticpas.org/volunteer.htm to learn about upcoming volunteer opportunities.

Brian AndersonChance BahadurDale CabreiraRobert CameronDouglas CanfieldLynn CheesemanBrenda Cheuvront MufflerShayne ClennonJulie CunninghamTom CuratoloMary DoonanGregory DunhamJames EganChristopher EricsonWilliam FatesNeil FinnPatricia FosterLeland FrebergLawson Giles

Christine Goldesberry-CurryChristina GolschClay GreenDonald GriffinDoug HartDan HartnettPatsy HastyDavid HensleyDaniel HolderShelly JaegerNorm JoyceBruce KillianHoward LampertJohn LamszusGeorge LehmanJack LevineBrian MarronDorothy McFadden-ParkerAngela Meyer

William Morrison, Jr.Larry OdelsonLarry OwensKrista PiwonkaJohn PoulopoulosElizabeth PritchardEugene ReardonDaniel ReilyNeal RichardsonRobert RyanPrashant ShethRebecca SommerTomas StonkusTracy TrelloCarrie Van HornJames WaltonSteve WattsKara WeberBrian Wojtasiak

TIME TALENT&The ICPAS invites its members to be part of the Society’sfirst CPA Day of Service on Friday, September 24. Thisevent offers a great way for CPAs across the state to unitetogether to positively impact their communities. Firms,companies and individuals are invited to volunteer for acommunity organization of their choice, and are able totailor the event to fit any schedule—whether committingto a whole day or just a few hours. Clean up the localpark, serve lunch at a soup kitchen, or give a homelessshelter a fresh coat of paint. Members who register theirvolunteer plans will receive a free CPA Day of Service T-shirt to wear on the day.

CPA Day of ServiceSeptember 24, 2010

We would like to thank this year’s volunteers, including:

Please note: We have done our best to compile a fulllist of volunteer names. Our sincerest apologies if wemissed anyone.

join CPAs fromacross the state

help those in yourcommunity

get a free t-shirt

have funDay of Service

Be a part of the Illinois CPA Society’s firstCPA Day of Service on September 24, 2010.

How it works: 1. Choose a community organization or charity to help. Ideas include working

at a soup kitchen, cleaning a local park, or painting a homeless shelter.

2. Register your volunteer activity plans at www.icpas.org/volunteer.htm

3. Receive a free CPA DAY OF SERVICE t-shirt (while supplies last).

Volunteer with your work colleagues, yourfriends, or by yourself – JUST VOLUNTEER!

Questions? Please contact Jill Wiles, Public Service Manager [email protected] or 800.993.0407, ext. 277.

ATTENTION CPAs:Are you licensed? If not, you must be registered.

Illinois law requires that all CPAs who are not licensed but hold themselves out to thepublic in Illinois in any way as a CPA, must register with the Illinois Department ofFinancial and Professional Regulation. This would include anyone who uses the CPAdesignation on resumes, business cards or letterhead, or in any other manner.

The registration option has been extended to July 1, 2012. (Pending signature of Governor Quinn)Special accommodations are in place for out-of-state CPAs meeting certain criteria.

Visit www.icpas.org for more information.

How Registration Works:

> $90 for initial registration and $90 every three years after that to renewyour registration.

> Registration does not require CPE or experience.

> If you are not registered by the new July 1, 2012 deadline, you will haveto be licensed in order to use the CPA designation, and will be subject toall license requirements, including CPE.

> If you don’t register now and continue to use the CPA designation, youcould be fined up to $5,000.

Register Today.

To download theregistration form, and for help in filling it out,visit www.icpas.org

Please share this with other CPAs in your firms and companies.

INSIGHT Magazine July 2010

Documents

right accounting

promoted g

talent g shape leaders

todays financial world

fraud insight

finance talent

financial recruiting

right skills