Editorial Staff

Publisher/Editor-in-Chief
Colleen Katz

Managing Editor
Cheryl Rosen

Senior Editors
Laura Baron
Katharine W. Coveleski
Peter D. Fleming
Michael Hayes
James Quaglietta
Robert Tie

Senior Assistant Editor
Sarah Cobb

Assistant Editor
Vince Nolan

Contributing Editors
Anita Dennis
Lesli S. Laffie
Joan Mancuso
Barbara J. Shildneck
Stanley Zarowin

Production Director
Peter M. Tuohy 

Art Director
Jeryl A. Costello

Production Manager
Gene Cioffi

Senior Manager—
Production Services—
Publishing Technology
Robert DiCorcia

Production Editor
D. Hillel Lofaso

Senior Production Associates
Valrie Mason
Ingrid Medina

Associate Publisher
Thomas R. Greve

Advertising Team Manager
Karin DeMarco

Advertising Representatives
Joseph Torres
Kurt Weber

Advertising Coordinator
John Weinberg

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201-938-3292
e-mail: joaed@aicpa.org

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201-938-3767

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Highlights

INSTITUTE RESPONDS TO QUERIES ON NONATTEST SERVICES
To help practitioners better understand when they may perform bookkeeping, tax and other nonattest services for attest clients without impairing their independence, the AICPA professional ethics executive committee (PEEC) has developed a series of questions and answers (www.aicpa.org/download/) on its revision of Interpretation 101-3, “Performance of Nonattest Services,” of the Code of Professional Conduct. A number of members had sought assistance in applying the guidance, which the PEEC had issued in September 2003 (www.aicpa.org/download/ethics/interp_revisions_sept03.pdf). The questions and answers augment the revision’s clarification of existing guidance and its strengthening of the general requirement that members document in writing their understanding with the client regarding the services to be performed. In February 2004 the documentation provision was deferred to allow members more time to comply; it will take effect for nonattest services performed for an attest client after December 31, 2004. All other provisions of the revised interpretation are effective for engagements that began after December 31, 2003. Additional information is available at the AICPA professional ethics division’s Web site (www.aicpa.org/members/div/ethics/index.htm).

AICPA INITIATES DIALOGUE ON FORENSIC SERVICES GUIDANCE
The Institute’s forensic and litigation services committee released a discussion paper—Forensic Services, Audits, and Corporate Governance: Bridging the Gap (www.aicpa.org/members/div/mcs/)—noting that forensic accountants, as well as audit committees, audit engagement teams and others, may need additional guidance to enhance an audit’s validity, reliability, consistency and transparency. The committee also discussed the use of forensic accountants by independent auditors and others to increase the effectiveness of financial statement audits and investigate accounting fraud. The paper poses nine questions, including whether Statement on Auditing Standards no. 99, Consideration of Fraud in a Financial Statement Audit, provides sufficient guidance to auditors to improve audits and protect investors and how and to what extent audit committees or internal auditors should engage forensic accountants. To develop such guidance the committee is soliciting the views of all involved, including auditors, managerial accountants, representatives of standard-setting and regulatory agencies and forensic accountants. The committee also invited representative stakeholders to take part in a roundtable discussion at the National Press Club in Washington, D.C., on September 22, 2004. Comments on the discussion paper should be sent to jfeldman@aicpa.org by October 15, 2004.

SEC CONSIDERS USE OF XBRL IN SECURITIES FILINGS
In July, five years after the Institute’s board of directors began funding development of an XML-based financial reporting language that became XBRL, the SEC said it would seek public comment on the benefits of using tagged data to improve the timeliness and accuracy of financial disclosure and facilitate analysis of securities filings (www.sec.gov/news/press/2004-97.htm). The SEC is considering proposing a rule this fall that would allow public companies to voluntarily file supplemental financial data in XBRL format beginning with 2004 calendar-year-end reports. Meanwhile the European Commission has pledged one million euros to accelerate the development and adoption of XBRL in the European Union (www.xbrl.org/Press%20Releases/2004/).

AICPA AMPLIFIES CPA VOICES
This past year the Institute launched the CPA Ambassador Program (www.cpaambassador.org), which trains practitioners to speak before audiences and with the media about CPAs’ contributions to their local communities, as well as their expertise and integrity. Through intensive one-day sessions offered most often in conjunction with state CPA societies, close to 200 members already have completed this training. The Institute expects to conduct 15 to 20 such sessions annually and to include participants in a national database of trained CPA spokespeople. Participants receive extensive background materials and talking points that, combined with their own professional experiences, deliver positive and compelling messages about CPAs.

Editorial Advisers

Catherine R. Allen, Kenneth D. Askelson, James Bean, John C. Boma, Jacob R. Brandzel, Steven J. Brown, Jolene C. Brucks, Thomas F. Burrage, Linda Burt, J. Gregory Bushong, R. Patrick Cargill, Benson J. Chapman, Rosemarie T. Dunn, Thomas Emmerling, Elizabeth Fender, Robert J. Freeman, Kim Gibson, Alan Glazer, Randi K. Grant, Patrick T. Hanratty, DeAnn Hill, James E. Hunton, Frank J. Kopczynski, Jeffrey B. Kraut, Dennis B. Kremer, William F. Laurie, Alan Levin, John Lewison, Joseph P. Liotta, Mano Mahadeva, Benjamin F. Mathews, David McIntee, Anita Meola, Debra Mitchell, Roger H. Molvar, Brenda Morris, Craig Murray, Lyne P. Noella, Edward T. Odmark, Mary P. Ricciardello, Mark L. Richardson, Marshall B. Romney, Peggy Scott, Carolyn Sechler, Gary Shamis, Ivan J. Sotomayor, Alan Steiger, Paul C. Sullivan, Gary R. Trugman, Robert Willens, Mark A. Yahoudy