GUIDING PRINCIPLES PILLARS OF SUCCESS MEASURING OUR SUCCESS - - PowerPoint PPT Presentation
2/1/2019 TSCPA OVERVIEW JANUARY 2019 26,371 members in 20 chapters Professional IssuesUpdate 2,328 members in San Antonio Stephen Parker, CPA| TSCPA Chairman January 25, 2019 TSCPA Professional Issues Update San Antonio Chapter, Jan. 25,
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Stephen Parker, CPA| TSCPA Chairman January 25, 2019
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
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TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
Provide resources to assist members in the achievement of professional and personal success. Be the voice of our members before policy makers and the public. Provide members with opportunities and resources to connect, serve and lead.
PROFESSIONAL EXCELLENCE
ADVOCACY
COMMUNITY & CONNECTION
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
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ENGAGE AND GROW FUEL OUR CHAPTERS SUNSET REVIEW RE-ENERGIZE OUR BRAND FUTURE OF LEARNING
TSCPA EXCHANGE
COMMUNITY& CONNECTION
GET INVOLVED OUR CHAPTERS
Nearly 1,500 discussion posts to date Launched last November Update your bio, add a photo andget started! More than 16,000member logins in the first year New communities focused on tax issues and practice management
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TSCPA Professional Issues Update – Austin, June 26,2018
Tell us what’s important toyou! Ensures you receive communicationsbased on your interests and preferences Syncs with your TSCPA memberdata Gives us a better understanding of the needs of ourmember population Updates can be made online attscpa.org
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25,2019
PEER REVIEW CYBERSECURITY MEMBER RESOURCES
PROFESSIONAL EXCELLENCE
FUTURE TRENDS WAYFAIR DECISION
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Source: McKinsey Global Institute, January 2017
could be automated with current technology
It translates to …
workers affected worldwide
In wages
Robotics is predicted to automate or eliminate up to …
work by 2020.
Source: Deloitte | Accenture
Artificial intelligence Blockchain Data analytics Cybersecurity
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
Assemble Analyze Advise Apply Insight Information Influence Impact Works inisolation Works withothers
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
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SKILLS GAP IN FINANCE
Architect
Source: American Institute of Certified Public Accountants, 2018 TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
have a physical presence in the state before a state could require the seller to collect sales tax from that state’s customers.
retailers, but many are expected to take advantage of the potential windfall.
companies that develop accounting software.
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
Business Advisory Group and the Tax Advisory Group to discuss Wayfair implementation plans.
replacing it with a “safe harbor” provision for remote sellers by setting an in- state sales volume threshold below which there would be no use tax collection responsibility
for imposing local tax at a weighted average rate
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TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
Wayfair
Comptroller could then adopt rules to implementWayfair
the legislative session
PEER REVIEW IN TEXAS
PEER REVIEW
CHANGES & CHALLENGES DOCUMENTATION RISK ASSESMENT RESOURCES
Firms passed their initial peer review at a 73 percent rate and passed subsequent reviews ata much higher 86 percent rate
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
average pass rate
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Nationally, the Peer Review Program is helping firms improve their work after quality issues are identified.
program required a third-party review of their engagements or quality control documents.
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
New technology platform Focus has become morepunitive than educational Changing reporting and documentation expectations Reduced number of peer reviewers
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
Over 50 percent of non- conformity relates to lack
Nature, timing and extent of procedures
DOCUMENTATION COUNTS
To obtain sufficient audit evidence, you are required to document: Results of those procedures Any significant findings, issues or professional judgments
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The four most common risk assessment violations
INTERNAL CONTROL
40% of identified
issues related to failure to gain an understanding
identifying the client’s risk. Without understanding the nature of theclient’s controls, auditors can’t identify related risks or design appropriate responses. INSUFFICIENT RISK ASSESSMENT
14%of issues related
to incomplete or nonexistent risk assessment. If an auditordoesn’t assess the client’s risks,it could lead toinsufficient
seriously, a failure to
appropriateaudit evidence to supportthe
NO LINKAGE
24%of issues related
to auditors not linking their risk assessmentto their response. Auditors shouldconsider if their standardized practice aids respond to identified risks and modify the aids where needed. IMPROPER CONTROL RISK
13%of issues related
to auditors assessing control risk as less than high without appropriate tests of controls. Auditors can only reduce control risk below maximum when they have tested controlsand are relying on their
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
Firm Resources
Helpful links and connections Reviewer Search and Resources
CYBERSECURITY
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requests for cybersecurity risk management program reporting will increase in the next 12 months
Source: Deloitte poll, June 2018
expect to adopt the SOC for Cybersecurity framework
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
TAX SEASON AND CYBERSECURITY
cybersecurity risks
steal employees' W-2 forms by posing as company executives and targeting people who work in HR departments
that they are targets of thieves looking to steal personal information and identities during tax season
IRS REQUIRING MORE INFORMATIONFROM PRACTITIONERS
addition to their Centralized Authorization File (CAF) number when they callthe Practitioner Priority Service or toll-free numbers
effect Jan. 3, 2018
inform clients if they are using an Intermediate Service Provider to access client transcripts via the TranscriptDelivery System
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
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IRS REFORM PACKAGE
House voted on April 18 to pass bipartisan legislation to modernize the IRS’sinformation technology systems The bill would improve cybersecurity at the IRS and taxpayer identity protection The legislation would also set up an independent appeals office at the IRS, and make the Volunteer Income Tax Assistance program permanent
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
IRS resources: www.irs.gov/tax- professionals/protect-your- clients-protect-yourself
AICPA Private Companies Practice Section (PCPS) Cybersecurity Toolkit AICPA Cybersecurity Resource Center
KEEPING YOU UP-TO-DATE
webcasts eachyear
from TSCPA
www.tscpa.org
Tax Reform, Cybersecurity and more!
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SUNSET REVIEW 2019 FEDERAL TAX POLICY
TAX REFORM CPA PIPELINE CPA & TSCPA BRAND
AICPA’s Tax Reform Resource Center Dedicated section of www.tscpa.org Updates from TSCPA in e-communications and
SUNSET REVIEW 2019
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The Sunset process was implemented by the Texas Legislature to assess the need of a state agency toexist
How often agencies typically undergo review unless changed by theLegislature
through Sunset Review in 2019
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
Five Senate Members
(Granbury) - Chair
(Lakeway)
(Jacksonville)
Five House Members
Vice Chair
Pass)
(Houston)
Two Public Members
(Dallas) – RetiredCPA
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
TSCPA RESPONSE TO STAFF REPORT
Texas State Board of Public Accountancy
Oppose the recommendation to change the composition of the Board of TSBPA to require a majority of public members Oppose amending the Peer Review rules for CPAs to allow for less frequent reviews and to prohibit TSCPA from charging a non-member fee Recommend that the requirement for a fingerprint-based criminal background check not be applied to the CPAs who are in retired status
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Report: Allow CPA firm mobility and add “attest services” to existing mobility provisions in the TPAA Modify the current law to allow CPA firms with non-CPA owners to serve as managers of offices of the firm
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
SUNSET COMMISSION ADOPTS FINAL REPORT
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
Board of Public Accountancy (TSBPA) and the Texas Public Accountancy Act (TPAA).
another 12 years (until 2031).
and adopted a number of suggestions fromTSCPA
Recommendations
Oppose the recommendation to change the composition of the Board of TSBPA to require a majority of publicmembers Fingerprint-based criminal background check not be applied to the CPAs who are in retired status Removing unnecessary licensure and CPE requirements for non-CPA owners of CPA firms TSBPA should comply with Texas statute on rules and procedures to accommodate military service members, veterans and military spouses TSBPA should update its complaint policies and procedures
Sunset Commission Modification
Request that the legislature examine all state boards, including TSBPA, for any legislation needed to mitigate the potential liability of boards controlled by active market participants Addressed through Commission modification A firm’s internal management would be left to the discretion of the firm’s owners, provided that CPAs continue to supervise accountancy work regulated by TSBPA Moving up the timetable from June 1, 2019 to March 1, 2019 Moving timetable from Sept. 1, 2019 to March 1, 2019
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
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March 2018 - Committee issued comments to the IRS on proposed partnership audit push-outelection regulations for tiered partnerships under Sections 6226 and 6227. August 2018- Committee issued letter in support of Section 202, Regulationof Tax Return Preparers, in the Protecting Taxpayers Act. December 2018- Committee issued letters to IRS Commissioner Charles Rettig asking the IRS to halt implementation ofpolicies limiting practitioners’ access to tax transcripts and to engage practitionersas stakeholdersto provide input before moving toward increased use of technology to serve taxpayers. December 2018- Committee sent a letterto the IRS about TIGTA’s report on third-party authorization controls. They encouraged the IRSto seek input from the tax professional community before implementing TIGTA’srecommendation.
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
CPA PIPELINE
2–5 6–10 11–20 21+ 2–5 6–10 11–20 21+
55% 43% 36% 23% 42% 46%
81% 56%
Source: AICPA PCPS Firm Culture Survey; Results indicated by firm size.
Actively encourage CPA license Require eligible staff to possess/pursue CPA
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TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
number one influencer for candidates in their CPA Exam journey.
show your commitment totheir success.
Support” toolkit:
New accounting graduate firm hires since 2014
non-accounting grads
FIRM HIRING OF NEW ACCOUNTING GRADS HAS SLOWED
Source: 2017 AICPA Trends Report
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
This year’s report has an expanded list of assignment areas for new graduate hires in public accounting
5%
Auditing
Taxation
Financial Accounting Assurance Services Consulting Information Management and technology assurance
2% 2%
Other Areas 1% Management Accounting 1% TransactionServices 1% Financial Forensics 0.3% Business Valuation 0.1% Personal Financial Planning 0.1%
Source: 2017 AICPA Trends Report
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
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Source: World EconomicForum
Top
skills in 2020
New skill sets will be needed
Complex problem solving Critical thinking Creativity People management Coordinating with others Emotional intelligence Judgment and decisionmaking Service orientation Negotiation Cognitive flexibility 1 2 3 4 5 6 7 8 9 10
Career Awareness Program Student & Candidate Memberships Campus & Faculty Ambassadors Scholarships Accounting Pilot & Bridge Program Bootcamps
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
CPA & TSCPA BRAND
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TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
proposition for membership.
serving as a timely and trusted resource
Our brand and visual identity will be used to promote TSCPA to various audiences: Current Members Prospective Members/Future CPAs The Public
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
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Elevate the CPA brand and help establish CPAs as being indispensable to the business community. Convey pride, respect and Should look and feel: integrity. ▪ Professional ▪ Trustworthy ▪ Respected ▪ Established ▪ Dynamic ▪ Welcoming ▪ Approachable
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
Stephen Parker, CPA| TSCPA Chairman January 25, 2019
2019 EnergyConference Austin
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
Jan. 29-30
Advocacy Day and Midyear Board& MembersMeeting Austin ValueConference Houston
March 11 May 13-14
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Midyear Board of Directors and Members Meeting January 29-30, 2019 Sheraton Austin Hotel atthe Capitol
TSCPA Professional Issues Update – San Antonio Chapter, Jan. 25, 2019
Stephen Parker, CPA| TSCPA Chairman January 25, 2019
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