Author: Adrienne Gonzalez

Adrienne is a 15-year veteran of the accounting industry, if by "veteran" you mean "vulture prowling the periphery of the profession waiting for something exciting to happen." She has been spewing vitriol on Going Concern since the site was founded in 2009. A former CPA review employee, she has sat through more FAR classes than any CPA exam candidate ever could -- even one who has failed FAR seven times -- and can still recall most of the mnemonics all these years later.

Credentials for Accountants: Certified Internal Auditor

This is the fourth in our series on certifications for accountants. Previously, we’ve covered the CFP, CMA, and CFE so if you’re not sure what you want to be when you grow up, be sure to check those out.

So, what’s the CIA all about?


Education Requirement
CIA candidates must hold a bachelor’s degree. Unlike the CPA exam, which often requires certain coursework or a minimum master’s level education in accounting, the CIA certification has no such requirements. The CIA exam is administered year-round by the Institute of Internal Auditors.

Professional Requirements
Those interested in pursuing a CIA designation must have at least 24 months (2 years) professional experience in internal auditing or its equivalent. Equivalent experience would be in the areas audit/assessment disciplines, including external auditing, quality assurance, compliance, and internal control. Candidates with a master’s degree can substitute their degree for one year of experience. Candidates may sit for the CIA exam before satisfying the experience requirement but will not be certified until meeting this requirement.

Career Options
Certified Internal Auditors can be in public or private industry and experience a diverse workload checking controls, planning the audit process for their company, testing, and compiling reports. Internal auditors may also give feedback on management policies and procedures based on their findings.

Compensation and Other Benefits
CIAs can expect to make a median yearly salary of $55k freshly certified and around $100k with 20 years of experience, making it a cozy career choice for auditors (Payscale). According to the U.S. Bureau of Labor, growth in auditing and accounting positions is expected to rise 18% between 2006 and 2016, which gives CIAs a certain level of job security not seen in other industries. Equally important, executive responsibility attached to Sarbanes-Oxley means CIAs are that much more critical to an organization by isolating incidents of fraud or waste.

Obviously, CIAs are not in it for the money but for fraud-fighters who love information systems, technology and auditing, the CIA is a safe, always-in-need designation worth looking into!

Three Study Motivators for the CPA Exam During a Blackout Window

Blackout months are notorious for inviting procrastination, especially June. The weather is nice, the work is light, and if you’ve been studying for most of the year, the mid-point can be exactly where you lose what little motivation you had to study. Because you have an entire month “off”, it can be easy to fall into a rut of not studying.

So as we go into this month, let’s remember some ways to stay motivated, even when it’s tempting to run off and play in the sun:


Get a study buddy – Sometimes all you need is someone chewing you out encouraging you to keep going. If you’re doing this alone and know you’re slacking, maybe you need to recruit a friend to keep you in check.

Bribe yourself – Yes, bribing yourself is a pretty low tactic but whatever works, right? Promise yourself a splurge when you pass whatever section you are studying for or, if you’ve got a little extra cash to throw around, bribe yourself often with treats like $4 lattes and DVDs or whatever it is you’re into that won’t break the bank. This goes in reverse – if you aren’t studying and know it, punish yourself by taking away the movie tickets or nice dinners out.

Schedule your exam date close to the opening of the next window – This way you know you can’t blow off the entire month. Obviously this isn’t a good idea if you’re taking FAR and don’t plan on studying until June 1st but if you’re planning on taking a smaller section like BEC and have the time to put it, schedule your exam in the first or second week of the window so you know you can’t procrastinate. I guarantee you’ll only lose one exam fee because of not studying before you learn that particular lesson.

Good luck and if you’ve had luck breaking the procrastination habit, do share what worked for you!

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here and all posts on the CPA Exam here.

Panera Bread Combines Free Markets and Nonprofits in Missouri

In a test run to see if expenses can get covered at the end of the day, Panera Bread has opened a unique new location in Clayton, MO that combines the benefits of nonprofit status with the fundamental principle of the free market system: let the market determine what an item is worth. But it adds a unique qualifier to the traditional concept of the need determining price: human nature.


The menu is exactly the same as other Panera locations (sick foodies can check that out here if they aren’t familiar with Panera’s offerings) but instead of charging a fixed price for each item, this special little spot will ask only what customers can afford. “Take what you need, leave your fair share,” says the sign at their entrance, just in case one is confused by such a foreign transaction model. No prices? Do we even know how to value items independently any more?

Panera is hopeful that the “Cares Cafe” model will thrive and grow to a series of donation-based stores that rely more on empathy than capitalism. “Hopefully we’ll be able to open them across the country, but our original St. Louis location must succeed first!” tweeted the fine folks behind Panera’s official Twitter account.

Can someone confirm Missouri rules on sales taxes related to the sale of food? And is it a sale if the exchange is really a donation? I’m really confused.

Anyway, not everyone is thrilled about this concept. Though it is obviously well-intentioned, the donation model may not necessarily transfer outside of St Louis. Trends consultant Marian Salzman reality-checked USAToday saying “while young people are very much attuned to helping out and making a difference, if they find themselves sitting next to other customers with whom they don’t feel comfortable, they’re not coming back.” You know, as in the possibility of homeless and otherwise destitute individuals (of which our country has plenty nowadays) lounging around with the nerve to eat a cheap meal.

Hedging against operating losses, this particular location has one slight difference from other Panera stores: its bread (except for sandwich bread) is really day old product from other locations around the St Louis metro. Hey, nothing wrong with getting the most out of inventory with a horrible turnover rate.

In the end, it’s hard to say whether this nonprofit experiment will float but if it does, Panera wants to open two more within six months. Good luck with that.

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here.

How to Choose a CPA Exam Review Course

As many of you who have been reading Going Concern for some time already know, I used to be in CPA Review. I ditched that gig months ago to pursue my dream of writing full-time (so far so good) and can finally write a completely unbiased post on choosing a review course. I won’t name names here just for the sake of equal opportunity but let’s talk about how to pick a review coursntly, whether or not you actually need one.


First and foremost, if you are broke, you need to know that review courses are expensive. Like new car expensive. Ok, maybe like used Ford Focus expensive, either way, if you’re fresh out of school or still looking for work, you probably don’t have $2,000 lying around. It’s fine, you can get by on cheap textbooks but you’re going to have to bust your ass a tad harder than the guy who got his flashcards and full review paid for by the firm.

Keep in mind: the CPA exam is an investment of not just money but time. If you put $2,000 into it but still don’t study, you’re going to fail miserably. Unless you pay some brainiac $2,000 to take the exam for you but that would be illegal.

If you’ve got the cash for a full review, the first thing you’ll want to do is your homework. No, not practice MCQ, we’re talking research. A simple Google search will give you plenty of options (hell, there are less than a dozen CPA review providers so it’s not like you have to slog through pages upon pages of results). Remember: every candidate is different and what works for the stock photo chick on the company’s website may or may not work for you. Before you start looking for a course, take a personal inventory of your own needs and think up some questions to ask. Try these if you’re really stumped:

• Is there an instructor or teacher available if I have questions about homework or content? And if so, how long should I expect to wait for a response?

• How long from purchase do I have to access the material? Will it expire? Can I renew after that period and if so, are there any limitations on when?

• Are there any discounts available?

• Am I limited to one format or can I have the flexibility of combining online/live courses?

• What is the policy for students who fail a part? Is there a repeat or discounted option?

• Will I have access to updates as they are released and is there a cost and/or time limitation for this?

Those are a start. Most of this information is available on CPA review courses’ websites but sometimes it helps to get a real person on the phone and ask. You can quickly tell what sort of operation you are dealing with by the way the company’s phone staff handle your questions. The exam is a commitment and so is your choice of review course so be sure you are comfortable before you commit.

If you have already committed to a course that isn’t working for you, call around and ask if there are discounts available for students who have taken other courses. Most CPA review companies offer this.

Keep in mind that review courses – like all businesses – are still interested in making money above all else. Some will push full programs with all the bells and whistles while others rely on materials that look like they were made at Kinkos; at the end of the day, it’s not how shiny your review book is but how effective the instruction style is in teaching you the concepts that will help you pass.

And you will, as long as you put in the effort.

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here and all posts on the CPA Exam here.

Credentials for Accountants: Certified Financial Planner (CFP)

Check out our previous certification posts on the CMA and CFE if you are interested.

The CFP is a pretty common sense credential for an accountant to pursue if one is focused on client service and looking to work closely with clients to create a blueprint for their future financial success. If you became an accountant to help people put their finances together, this one is for you. Unless you’re the least bit unethical or otherwise of unsatisfactory moral fortitude; check the CFP board’s Candidate Fitness Standards if you’re not sure whether or not your sketchy past will pass.


Here’s a quick rundown on the CFP:

Education requirement
The CFP Certification Examination is administered by the CFP board and in order to take the exam, you will need to be knowledgeable in all of areas covered by the financial planning topic list. There are three ways to complete the educational requirement: CFP Board-Registered Programs, Challenge Status or Transcript Review.

CFP candidates must have a bachelor’s degree but that requirement is a condition of initial certification and is not needed to take the exam. The areas of financial planning are as follows:

• Financial planning: process and environment
• Fundamentals of insurance planning
• Income taxation
• Planning for retirement needs
• Investments
• Fundamentals of estate planning

Professional requirements
Three years of full-time relevant personal financial planning experience is a requirement for certification.

Career Options
There are approximately 59,000 CFPs today, twice the number there were a decade ago. Despite the explosion in this designation’s popularity or perhaps because of it, the CFP is still an in-demand certification that can only grow in these uncertain financial times. CFPs can end up at large or small firms, or wish to start a private practice.

Compensation and Other Benefits
CFPs with 20 years experience make twice as much as those just starting out in the field, according to PayScale. Starting median salary is about $50k, and by 20 years a CFP can make anywhere from $90 – $100k. Of course pay depends on location and NY CFPs will naturally make much more (about $75k in their first year) than, say, metro Houston CFPs. Naturally, adding an MBA to one’s resume on top of the CFP will likely earn you an extra $20k in your first year. Income potential is based mostly on performance (sales).

It’s clear that CFPs have a real desire to help their clients (and pay their bills), so if you’ve got stars in your eyes and are planning to make a partner’s salary one day, this may not be the designation for you. But if you’re driven, love finance, and have a real feel for investments and clients, perhaps this is just what you need.

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here.

Three Signs That You Need a CPA Exam Study Buddy

Remember in elementary school when you used to have to partner up – or better yet form a chain – for safety while crossing streets on field trips or when returning back to the classroom? The CPA exam can sometimes be like that treacherous stretch and it’s totally OK to reach out and grab someone’s hand. Here are some telltale signs you need to phone a friend:


You’ve failed two of your last exam attempts and have studied at least 50% less than you should have because you just couldn’t get motivated to do it
If this is you, find someone who is really excited about the exam to study with. Believe it or not, there are some truly enthusiastic, motivated, excited candidates who are really into this thing. If you cannot locate one of those (using CPAnet or similar forums), settle for someone who will at least nag you enough to get you to study.

You spend too much time at work and not enough studying
Again, like our first case, you make excuses for not studying. Yours is just work (whatever it takes to get you out of it, right?) and though you know people at work that are taking the exam, you are too worn down at the end of the day to crack open a book. Find someone at your firm to study with and do MCQ at lunch. If you get one. Please, it’s not that bad.

You’re over 40, haven’t been in college in years, and none of your friends are accountants but you’ve decided to put in the effort to finally get the CPA you started pursuing years ago
It may feel like you’re on your own with this one but you have a larger incentive for seeking support than other candidates who are fresh out of school; none of your friends are taking this thing. Again, CPAnet is a good place to start if you are looking to find someone to study with or a group.

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here and all posts on the CPA Exam here.

Reminder to Nonprofits: 990s are Due By May 17th

Nonprofits don’t need the reminder but we’re going to remind them anyway: May 17th is the new deadline to file your Form 990s (it would have been the 15th but that happens to fall on a weekend, consider yourselves fortunate, procrastinators).

The Boys and Girls Clubs and Goodwills of America have probably already filed their 990s but what about the tiny, grassroots organizations that didn’t get the memo when Service rules changed to require even small non profits under $25,000 to file 990s?


The guess is that up to 1/4 of all non profits could inadvertently lose their tax exempt status by missing the May 17th deadline without even realizing they were supposed to file anything at all. It costs $750 to refile after losing said status, so blowing it could be a costly alternative to hiring a professional to get the 990 in order for a small, simple nonprofit.

This isn’t merely busywork presented to nonprofits for shits and giggles, as we all know the Service would never EVER waste anyone’s time with bureaucracy and paperwork just for kicks. The IRS is seeking to clean up tax exempt status claims to exclude agencies that exist in name only or simply for the tax break. In its view, leaving NFP organizations that take in less than $25,000 a year largely unchecked left the fraud door swinging wide open. And as we all know, the Service has a duty to the taxpayer to collect everyone’s fair share.

The Pension Protection Act of 2006 mandates that all nonprofits must file a 990 for three consecutive years, making 2009 (and thus May 17th) the 3rd year. Orgs that have not filed 990s will automatically lose federal tax exempt status.

The good news is that if you are trying to claim a tax deduction for a donation to one of these little bitty nonprofits that will be losing their exemption, you can still do so up until the date the Service notifies the charity that it can no longer claim tax exempt status.

All is not lost, of course, as those familiar with IRS tactics presume that “offenders” will be offered a chance to redeem themselves (after steep penalties and late fees, of course).

More on the 990 Filing Deadline:
When a Tax Time Bomb Goes Off: Repurcussions Await Some Small Nonprofits

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, former CPA wrangler and a Going Concern contributor. You can see all of her posts here.

What the AICPA’s New Website Means for CPA Exam Candidates

The short answer: not really anything but I spent 3 years slogging through that last design and can I tell the AICPA that it was absolutely awful? I’m not bitter or anything but I can only imagine what candidates felt like trying to find even the simplest bit of information.


They tell you before you take on the CPA exam to check out cpa-exam.org and run the tutorial before you actually sit down for a section so you can familiarize yourself with the computerized format. CPA Review providers cannot duplicate exam content or the environment exactly, as it is proprietary information, so simulations are a must-do and navigating is a skill you’ll pick up along the way if you don’t already have it. So as long as you’ve already done that, your next stop is the redesigned AICPA website.

Watch a PPT on becoming a CPA, learn about joining the AICPA as a candidate member, or check out their many resources on career options in the accounting industry. You’ve seen Start Here Go Places (an AICPA project that markets the exciting career of accounting to high schoolers and beyond), I don’t need to point you to that.

The AICPA is hot on marketing and excellent at it, even if they do make a poor choice every now and then (Benjamin Bankes, I’m talking about you, dude), so it’s no surprise that they are trying to seduce undecided college students and disgruntled finance professionals looking to switch professions. Things are slightly better in accounting so it isn’t all slick marketing, but I digress.

You can check licensure requirements for your state and even find out how much “average” accountants make. I encourage all of you considering accounting as a career to doublecheck those numbers with Going Concern salary threads.

Anyway.

Overall it’s an improvement and hopefully aggregating this information on the AICPA’s website will make it easier for candidates to find what they need. What do you think?

(Remember also that the ultimate authority on your CPA exam experience is your state board, NASBA, or CPA exam administrating company (like Washington), not the AICPA. Always check with your state board et al. before filing applications or forms if you are unsure on any CPA exam information you read.)

Adrienne Gonzalez is a Going Concern contributor and former CPA wrangler. You can see more of her posts here and all posts on the CPA Exam here.

Just Because Cloud Companies Pay For a SAS 70 Doesn’t Make It Any Less Legit, Does It?

Confession: not 100% sure on the hype surrounding SaaS, cloud computing, living in the cloud and whatever but apparently it’s the next big thing (if it’s not already) and might make our lives just one notch short of Jetsons flying car awesome.

Ask guys like Geoff, he’ll tell you all about it. I buy it and I don’t even need to use it, have heard amazing things, and have even evangelized it once or twice.

But it’s your data so instead of jumping on the SaaS/Cloud bandwagon without asking what happens to it once you do, it might be wise to check out the SAS 70 certification and the strange relationship that legitimizes it.


Complying with the AICPA lends a certain bit of credibility to vendors who want to show how tight their control systems are so auditors can rely on them, right?

Perhaps not, says Jay Heiser via Gartner in “Analyzing the Risk Dimensions of Cloud and SaaS Computing,” who is concerned by a sense of deja vu between the faulty systems that collapsed throughout the financial crisis and cloud computing. In an extremely risk-adverse environment, a bit of caution is due before jumping head first into the unknown.

Or you can just trust the shiny marketing materials and forget that it’s your data.

Now back to cloud computing and SAS 70. Okay, let me get this straight: So the cloud companies pay accounting firms for SAS 70 certifications just as the financial organizations paid Moody’s for an investment-grade rating?

“Yes, if you see someone who claims to be SAS 70, they have paid an accounting firm. Not only have they paid an accounting firm to go do the test, but they’ve told the accounting firm what processes need to be tested,” Heiser says.

And that’s different from an audit client paying an auditor how?

In a financial crisis corollary, Big 4 opinions are fetching less these days than they used to. Cloud computing marketers don’t really get what they are pushing but cloud provider clients certainly should understand what this means for the shift to life in the cloud.

Better start updating those marketing materials.

How Cloud Computing Security Resembles the Financial Meltdown [Datamation]

Here’s What You Need to Know About Authoritative Literature and Research on the CPA Exam

Though it doesn’t get much coverage in CPA exam study guides (for a reason, which we’ll get to later), your ability as a CPA exam candidate to tackle research on each exam section might make or break your overall performance.


When planning out the amount of time you will spend on each exam section (i.e. 45 minutes on each simulation as a general rule), you can rest easy if you save the research portion of each sim for the very end. It is believed to be worth only one point so if you can’t get to it, don’t worry about it too much. Focus on the written communications as those are worth 10 points – or one of them is, and you don’t know which one so take care of both and save the research for last only if you have the time.

As for practicing, newer CPA Review practice software already has this function built in.

If you would like to practice manually, you’ll have to take your active NTS to register for 6 months’ worth of access to the professional literature from cpa-exam.org. With this, you can search through AICPA Professional Standards and FASB Pronouncements to familiarize yourself with accounting regs, though you are still encouraged to take the tutorial CPA exam on the cpa-exam.org website as the research on its own is not exactly representative of the research function in the exam environment.

If that is not enough practice, book a 30 minute test run with Prometric to check out your testing center and the computer you’ll be using.

Anyway, don’t obsess too much over the literature. Like the tax code, a lot of your “answers” will be provided in the questions, it’s just up to you to look into what the questions are asking.

Think about it: CPAs have access to volumes of regs and standards in their careers, it is not imperative that they memorize each one. The CPA exam is meant to test your understanding of accounting fundamentals, not how well you can memorize 200 FASBs and spit them back out.

Looking for a Tax Break? Try Donating Your Erotic Artifacts to the Museum of Sex!

Using a foundation to fuel your for-profit business is never nice, especially when there is an extensive collection of BDSM memorabilia involved.

New York’s Museum of Sex does not claim to be a non-profit but it has obtained over 1,000 items donated through its tax-exempt Muse Foundation for tax deductions. Well? You wouldn’t donate your old brushed-steel bondage machine to Goodwill for the deduction now would you?


Want to help by bequeathing your great-grandma’s old pasties? There’s a handy donation link on their website that explains this bizarre relationship between for-profit museum and non-profit foundation:

The Muse Foundation of New York is a fully registered private foundation affiliated with The Museum of Sex. Its mission is to work with The Museum of Sex to preserve and make available a comprehensive collection of materials relating to the history, evolution and cultural significance of human sexuality.

That’s awesome but does the Treasury realize taxpayers can get fat deductions for contributing to this effort?

Museum founder Daniel Gluck claims that his lawyers allowed this relationship (plenty of for-profit companies have non-profit foundations that share their name) and the Museum would love for its Foundation to be, erm, profitable enough to serve its stated goal of providing underwriting art grants but that plan just hasn’t quite worked out. Yet. After more than a decade of operation. “The Muse Foundation is completely its own separate entity,” he said. “We can’t take money from the foundation and we don’t plan to. We aim to build it up into a foundation whose interests are aligned with the museum.”

Gluck told the NYT that the museum earns 70% of its income from admissions fees – nearly $17 a pop – and the remainder by selling cute Sex Museum tchotchkes in the gift shop (perhaps your dog is sexually frustrated and desperately needs a modern and arty $650 toy to hump?)

Before you ask, no the $300 bunny bondage hood is not tax deductible. But hold onto it long enough and you might just be able to get one for donating it back to the museum if Treasury still hasn’t caught on to this unique foundation/corporation relationship.

Tax Break for Erotica? A Museum Favors It [NY Times]

Just When You Thought You Knew the CPA Exam…Three Ways It Will Change in 2011

Now that we are nearing the end of the second CPA exam testing window in 2010, it’s about time to remind you (once again) that the CPA exam is scheduled for a pretty significant facelift in just two testing windows. Though we have covered it before, we thought it would be helpful to go over some of the planned changes.

Let’s meet your new CPA exam for 2011, shall we?


Changes to Content Specification Outlines – First and most significantly, the CSOs will undergo a huge overhaul. IFRS will be added – initially – to FAR and eventually international accounting standards and demonstration of an understanding of how they work will play a larger role in examination questions. Keep in mind that IFRS testing will be gradual and likely focus on the differences between IFRS and US GAAP initially until the AICPA BoE feels comfortable with candidate performance and the SEC’s procrastination on IFRS adoption. IFRS will also be tested in AUD and BEC (XBRL for one, which they have already been pre-testing for several windows) but expect a skiddish stance from the BoE in the beginning.

Audit loses 30 minutes to BEC – The reasoning behind this to allow candidates more time in BEC for written communications, which will be removed from FAR, AUD, and REG (where they currently are). Don’t bother trying to avoid written communication altogether by taking BEC this year and the other three next year, it’s an easy 10 points as long as you can write a standard business letter. You do not even have to be correct when you answer the question, you need only stay on topic and use good grammar.

International CPA exam testing is coming – Thirdly, the AICPA, NASBA and Prometric are working together to make international CPA exam testing a reality. Chances are if and when Prometric begins administering the CPA exam offshore, testing will be limited to a handful of countries (likely Japan, Dubai, and possibly India, where large numbers of Chartered Accountants tend to also seek the US CPA designation). We’ll see how this unfolds come 2011, as the AICPA would like to begin international testing with new CBT-e changes.

All in all, accounting is still accounting and the CPA exam will be exactly as it always has been: a test of your basic understanding of many broad topics that you may or may not ever encounter in your professional life. CBT-e will most likely be rolled out in pieces and subject to tweaks along the way.