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Who We Are
Master of Science in Management, Accounting Specialization (MSM-ACCT)
Bruce Lubich, PhD, CPA, program director for Accounting
Donald Gakenheimer, academic coordinator
Announcements/News
Accountants Look Forward to Stimulus Bill
On February 13, 2008, President Bush signed an economic stimulus bill designed to stave off a recession. Most taxpayers will receive a check of up to $600 for individuals and $1,200 for couples from the Internal Revenue Service, with an additional $300 per child. People earning at least $3,000 and those who owe little to no taxes would get $300 for singles, $600 for couples. Those making more than $75,000 and couples with income exceeding $150,000 are to get smaller rebates — $50 less per $1,000 they make over those thresholds. Approximately 130 million Americans will receive the checks.
The cost to the government for this measure is expected to be approximately $152 billion in 2008 and an additional $16 billion in 2009.
The impact for accountants is understanding the provisions if the tax breaks for individuals and businesses, and to qualify, taxpayers must first file their 2007 tax return. The IRS will send out rebates by mail or by direct deposit during the late spring and the summer.
IFRS: The ‘State of Convergence”
International Financial Reporting Standards are taking hold as the FASB and IASB work together on convergence of reporting standards. The Journal of Accountancy (June 2007) reports that though IFRS is 30 years old, two factors have given the convergence initiative new life. The first was the mandate by the European Union that all companies listed on the EU exchange report under IFRS effective January 1, 2005. The second is the SEC’s support of convergence as part of a plan to drop its requirement that foreign private issuers prepare IFRS-GAAP reconciliation schedules effective in 2009.
GTnews (July 2007) reports estimates of 9,000 European companies using IFRS, with programs in Japan and the US going strong. Effective 2007, China now requires its listed companies to use IFRS. On January 1, 2011, Canada, will switch to IFRS. Canada currently compromises nearly half of the foreign issuers filing with the SEC. It’s estimated that counties accepting IFRS will grow from 100 to 150 in the next few years.
To ‘keep pace with the pace’ of IFRS convergence, bookmark these two sites:
Internal Auditor's Role Growing
According to results of a recent Ernst & Young study reported in the December 2006 issue of Risk Management, demand for internal auditors continues to be high. Companies are seeking to expand their internal auditing teams to solidify their assurance and risk management systems. The study revealed that in this post-Enron era, company stakeholders, including audit committees, are demanding more understanding, documentation, and assurance of internal controls and risk management processes, thereby pushing the expansion of internal audit departments.
Additionally, corporate management has broadened its view of the internal audit function and now sees potential to involve the internal audit team as consultants and advisors on risk management issues, including the “identification, management and monitoring of risk across the organization” (Risk Management, 2006). In addition to traditional financial audits and fraud investigations, responsibilities in risk management may extend to assessing “business risk, IT risk, and ethical and environmental issues” (Risk Management, 2006).
The Risk Management article states that, while most internal auditors welcome the increased opportunity to be more than a policing authority within their organizations, they also recognize that potential conflicts of interest may develop in playing such a dual advisory role.
To learn more about the opportunities in internal auditing, visit The Institute of Internal Auditors. To learn more about the growing role of internal auditors as company advisors, and how to balance the internal audit function with growing responsibilities, read The Auditor as the Internal Consultant and The Other Side of the Fence.