News from Your Accounting Association
CPAmerica Advantage Future-Ready Firms:
September 2019
CPAmerica Audit Technology Resources Available to Members The notion of artificial intelligence (AI) and how it will affect accounting and the audit is at the forefront of items of concern for firms. CPAmerica would like to highlight member offerings in audit services, and in particular, audit technology resources firms have through their access to preferred providers and experts. We recently spoke to Art Winstead, director of A&A at CPAmerica and partner at DMJ & Co., PLLC, to discuss some of the avenues members have to both learn about and use these applications to become a future-ready firm.
Winstead started by saying, “Members can email or call me to ask where they can find preferred provider audit technology information. I usually direct them to Wolters Kluwer CCH Audit Automation, Thomson Reuters-PPC, MindBridge Analytics Inc, or the AICPA and talk to them about the audit technology resources that they could consider using. Another source that we should direct our member firms to is Randy Johnston of Network Management Group, Inc. (NMGI). He’s a great resource on technology, and he and I talk a lot about this topic. The Innovative Technology Committee that CPAmerica President Alan Deichler has put together is a good resource, too.” Preferred provider Wolters Kluwer has experts that can help your firm improve quality and efficiency when you move your audit workflow to the cloud with
Aldrich Wealth recognized P. 2
Member News P. 3 their platform of integrated audit solutions. Wolters Kluwer’s Cathy Member Services - Grace Horvath P. 4 Rowe, CPA, CA and Director of Accounting and Audit Product Management, explained further, “During a recent twoday “Audit Talks - LIVE” virtual conference, experts from the Tax & Accounting division of Wolters Kluwer were joined by speakers from the American Institute of Certified Public Accountants International (AICPA) and CPA practitioners from several Group firms to offer candid insights and share Meeting best practices to help firms better navigate the rapidly changing audit landscape and successfully transform their practices to better serve clients today and in the CPAmerica's 2019 International Meeting is set for Fort future. For anyone who missed the virtual Group Lauderdale, Florida. The luxurious conference, the session presentations and Ritz-Carlton, Fort Lauderdale will recordings are now available for download host the event on Dec. 2-5. free of charge on the Audit Talks – LIVE The meeting will help expand your webpage (https://engagetax.wolterskluwer. resources to identify and capture international markets. For more com).” info on the CPAmerica website, visit and sign in at: http://tinyurl.
Thomson Reuters is a preferred provider com/y26j8b56 that offers members progressive audit technology for growth-minded firms and said that their cloud audit suite “helps firms future-proof their audit capabilities through real-time digital collaboration, engaging employees See Future-Ready Firms, continued on page 2
The Intercompany Price Is Right: HPG’s Michael Arena talks about transfer pricing The area of transfer pricing continues to be a hot topic for clients and firms conducting international business. We recently spoke to Michael Arena, leader of Hughes Pittman & Gupton, LLP’s (HPG) transfer pricing practice about this topic. He will also be a speaker at CPAmerica’s International Group Meeting being held in Fort Lauderdale this Dec. 2-5. We asked Arena when transfer pricing applies to clients. He said, “A client may have transfer pricing issues to address if they have or are planning on having transactions or dealings between related parties in different tax jurisdictions. Transfer pricing is relevant whether the company is inbound, outbound, looking to expand so they will have future intercompany transactions, or if a company is operating solely in the U.S. but has entities in
multiple states. As you can tell, it applies to many companies.” In situations where transfer pricing comes up, Arena said “we try to be proactive and discuss transfer pricing in advance of relatedparty transactions occurring. That's the best time to talk about it. That way, we can help our clients plan accordingly, but that's not always the case. Often, our clients already have intercompany transactions taking place, and then it's a matter of gathering the right data and asking the right questions to determine how we can help. Before preparing a client's tax return, we have an obligation, as the return preparer, to ensure that the company’s transfer pricing meets a certain standard before we sign and file the return. The same goes for audit clients. Under ASC 740, there are requirements
that reserves be created for uncertain tax positions -- companies want to avoid this. So we work with our audit clients to ensure they have appropriate transfer pricing so we can complete the audit.” “Other situations in which transfer pricing issues arise include when a tax authority is auditing a client. In many countries, including the U.S., transfer pricing documentation is an automatic request from multinational companies during an audit. Also, M&A-type activity is a common time for transfer pricing to be scrutinized. The acquiring company will investigate the target’s transfer pricing as part
Transfer Pricing, continued on page 2
Future-Ready Firms, continued from front page
Transfer Pricing, continued from front page
with progressive technologies, and greatly improving client retention by delivering actionable insights and value-added services beyond the audit report. For more information, visit tax.tr.com/audit-in-the-cloud. Now you can start planning your engagements with Audit Intelligence, powered by Inflo, for free. This next-generation software offers you unlimited planning data loads, giving immediate value to your clients, and improving your planning work.” To gain free access, go to https://tax.thomsonreuters.com/en/accounting-solutions/ audit-intelligence/free-access
of the due diligence effort, and for those situations, we've been on both ends of the transaction. The other time it comes up is when companies are looking to optimize their tax rates. All companies are interested in reducing their tax cost, and transfer pricing can offer opportunities on that front as well,” he stated.
Another preferred provider that CPAmerica firms have at their service is MindBridge Analytics Inc. James Moffatt, CPA, of MindBridge spoke to us about their member offerings. He said, “Through the power of human-centric artificial intelligence, MindBridge Ai is an extensible AI platform for accountants that conducts financial audits and forensic work. It empowers accountants to detect errors in financial data with speed and efficiency and provide greater insights. Ai Auditor leverages machine learning & AI to analyze 100 percent of financial data with greater completeness & assurance to provide higher-value services to their clients. Backed by proven change management and a customer success team who streamline the adoption process, from client data ingestion through to analysis and reporting, MindBridge Ai helps your firm become futureready today.” To find out more about MindBridge, go to https:// mindbridge.ai or visit the CPAmerica preferred provider page located at www.cpamerica.org. The real goal here is in member awareness of what is available to them and where the future of the audit process is going. Winstead said, “If you Google Artificial Intelligence or Audit Intelligence to see the resources available for data analytics, data extraction, and artificial intelligence decision making, I think that's what we are trying to direct our member firms to. Randy Johnston would tell you that a lot of this is still in its infancy. He firmly believes that we're still in a waiting period. Get it on your radar, think about it, and go to the demos and webcasts.” Winstead tells members that they should get familiar with audit technology and AI because it is “really going to hit someday and we are all going to have to jump into it. So if members want to get involved with one of our preferred providers, we have several that can help. The AICPA also has its preparation, compilation, and review engagement software called OnPoint PCR. It is also an excellent tool that streamlines this process.” Along this point, Winstead mentioned that the AICPA and their technology partner, CaseWare International, are developing a transformational auditing methodology supported by a stateof-the-art technology platform.
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Arena spoke about how HPG handles this process and said, “Once we've identified that there are intercompany dealings, then it's a matter of assessing the company’s transfer pricing risk. Companies may have incoming transactions, but they may be very small, or something might indicate that they don't need analysis, so we have to figure that out. We want to figure out the magnitude of those transactions. What are the transfer pricing rules applicable in the tax jurisdictions involved? These rules and regulations vary from jurisdiction to jurisdiction. We want to make sure we are assessing the risk because we want to make sure we are going to add value. If the client is facing a compliance requirement or a significant level of risk, then we move on to discussing the client’s options and try to figure out a cost-effective way that we can help them meet their compliance requirements.” “Since for transfer pricing purposes, we’re looking at transactions involving multiple tax jurisdictions, it’s important to consider all perspectives. For our clients, one of the jurisdictions is typically the U.S., but the other one might be in the UK, Germany, India, or China. An important differentiator for us is our ability to consult globally. Many smaller firms only offer a local or U.S. perspective. Through our affiliation with Crowe Global, however, we have the resources to help out clients both in the U.S. and in 130 countries around the world. That's very important for us to go to our clients who have operations in Germany or India, for example, and say to them that we are going to assess this from both sides. We have someone in the foreign jurisdiction who can join in as a specialist,” he added.
This is Part 1 of 2 of the transfer pricing article, to be continued in the next issue of the Advantage newsletter
Aldrich Wealth Recognized by Four National Wealth Management Rankings
Aldrich Wealth LP was recognized by multiple publications in their annual rankings of wealth management firms across the U.S. Financial Advisor (FA) magazine named Aldrich Wealth 29th on its Top 50 Fastest-Growing Firms list. The firm was also honored in the Top 200 of the FA Annual Registered Investment Advisor (RIA) Rankings. Results were derived from year over year AUM comparison of figures provided by the RIA. In the same month, Accounting Today recognized Aldrich Wealth as the 24th largest wealth management firm affiliated with an accounting firm based on assets under management. This was the 13th annual Assets Under Management ranking, including more than 150 firms that provided information to the publication. Additionally, the firm was named a 2019 Top 300 RIA by 2019 Financial Times for the third year. Aldrich Wealth is one of only two advisors from the Pacific Northwest to receive this recognition.
More about Precision Payroll of America:
Last month we had the preferred provider spotlight on Precision Payroll of America (PPA), and we have a few items to clarify: Precision Payroll does business in every state of the union (including Alaska and Hawaii) and Puerto Rico; PPA is a full-service payroll company and their software is fully-integrated (HCM) -- included are HR, time & attendance and benefit modules; Bob Farrell is a former CPAmerica member and former PPA client. He currently is a liaison for PPA and for the members of CPAmerica; and inquiries can be made online at (www.precisionpayroll. com) or call PPA at 877-941-1040 and ask for Bob Farrell, Tom Sodeika or Paul Sivak.
Member News Wisconsin-based Wegner CPAs announces merger
Member firm with headquarters in Madison, Wis., recently announced that effective this summer, the , would be merging with the firm. Filter CPA is currently led by Jeffrey Filter who will now be joining the leadership team as a partner at Wegner CPAs. “Throughout the years we have had a great referral relationship with Jeff Filter. The opportunity to bring the two firms together to grow and expand our service offerings in the Reedsburg area was a perfect fit,” stated Glenn Miller, manager partner at Wegner CPAs. It will be business as usual moving forward and clients can be reassured they will continue to work with the same people for the same services out of the Reedsburg office - now under the name of Wegner CPAs. “Like us, Wegner CPAs prides itself on hard work, reliability, and integrity and we’re thrilled to be partnering with them,” said Jeffrey Filter, owner of Filter CPA. “We are excited to continue our work knowing we have backup with the expertise and knowledgeable staff from Wegner CPAs. Wegner CPAs provides services that we have not, such as business valuations, litigation support, auditing, and trust and estate tax work – in case you have those needs,” continued Filter.
Frazier & Deeter partner appointed to AICPA’s Financial Reporting Executive Committee The American Institute of CPAs (AICPA) has appointed Sean Lager, an audit partner at member firm Sean Lager LLC, as a member of the AICPA’s Financial Reporting Executive Committee (FinREC). Lager is one of the lead technical accounting partners in Frazier & Deeter’s Assurance Practice.
THF congratulates Harrell and Medley on joining local boards (THF), headquartered in Tallahassee, Fla., congratulated Allison Harrell on joining the Governor’s Club Board of Governors and Andrea Medley on joining the American Red Cross North Florida Region Board. Harrell is a shareholder in the Assurance Services Department at THF. She attended Florida State University and
received her bachelor’s in accounting and her master’s in accountancy with an emphasis on assurance services. She is a member of the AICPA, FICPA, the AICPA Not-for-Profit Expert Panel and Florida Society of Association Executives. Harrell recently joined the Governors Club Board of Governors. She is also on the board of directors of Tree House of Tallahassee. Medley is a director in the Tax Services Department at THF. She attended Florida State University and received her bachelor’s in accounting and master’s in taxation. She is a member of the AICPA, FICPA, and is a member of the FICPA Accounting Careers and Education Committee and FICPA FSU Accounting Conference Committee. Medley was recently invited to join the American Red Cross Capital Area Chapter Board.
DMJ IT professional Panknin earns CISSP credential
, a North Carolina based CPA and accounting firm, announced that Eric Panknin, MCSE, has been awarded the Certified Information Systems Security Professional (CISSP) credential. This certification is widely considered the gold Eric Panknin standard for security and IT professionals. The credential documents their proven technical and managerial competence, skills, experience, and credibility to design, engineer, implement, and manage information security programs to protect organizations from growing sophisticated cyberattacks, such as the ransomware assaults that may target businesses, healthcare organizations, and government agencies.
Robinson, Grimes & Company, P.C. introduces Pease as new managing partner At a recent meeting at member firm
Scott Voynich, former managing partner, introduced Jason Pease as the firm’s new managing partner. Pease assumed the position held by Voynich for the past 30 years and Voynich has been named as chairman of the board. The move exemplifies the firm's commitment to succession planning which has been an active process in the firm for many years. Pease represents the next generation of leadership. The firm has worked diligently over the years to grow partners representing each decade, with partners in their 30’s, 40’s, 50’s and 60’s. Pease took the opportunity to thank Voynich for his years of service in the managing partner role, saying “We know that Scott’s leadership ... will never be duplicated, and we owe him a tremendous amount
of gratitude for all he has done to lead us through the years. We will continue to lean on Scott in his new role as chairman of the board for guidance in all the transitions that come ... We look forward to continuing the firm’s 87-year tradition for generations to come." Palmisano and Selka of Hughes, Snell & Co., P.A. earn AICPA certificate Fort Myers-based member firm, (HSC), announced that Catherine Palmisano, CPA, and Aaron Selka, CPA, have received the Advanced Defined Contribution Plans Audit Certificate from the Association of International Certified Professional Accountants (AICPA). The AICPA is the world’s largest and most influential member association representing the accounting profession. It serves more than 650,000 CPAs, Chartered Global Management Accountants (CGMA®) designation holders and students in 179 countries.
Pease & Associates appoints Bell as managing partner
,a Cleveland-based CPA firm, announced the appointment of Kuno Bell, CPA, J.D., to managing partner of the firm. Joe Pease, current managing partner, chairman and founder, will step out of the role and onto the Executive Board but will remain chairman. Bell currently directs the Tax Department at Pease, and has led the team’s extraordinary growth efforts in that area. Bell will be instrumental in the firm’s continued Kuno Bell growth and success. He demonstrates key areas of expertise and experience in the manufacturing, real estate, and nursing home practice areas and is responsible for originating and growing the healthcare niche at Pease, which is now nearly half the firm’s revenue. “We are excited to have Kuno assume the role of managing partner, and continue the memorable journey we began decades ago ,” said Pease. “Kuno aspired to be in this role from the time of his interview way back as an intern, and now it has become a reality.” said Pease. “This firm has tremendous people and resources and I am looking forward to taking this firm into the future,” said Bell. Bell holds a bachelor’s in accounting from Cleveland State University and a Juris Doctor degree from Case Western Reserve University School of Law.
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From Member Services: CPAmerica, Crowe Global & the International Group Meeting – What’s the Connection? This December we will hold the eighth annual International Group Meeting. At the request of members of CPAmerica and Crowe Global, we are moving south to the sunny, winter beaches of Fort Lauderdale. Similar Grace Horvath to our traditional Atlanta Vice President location, it was determined of Services that South Florida is another easy to reach and central location when you consider people coming from as far overseas as Poland to western stateside locales such as Seattle. Each year attracts a group of about 70 multinational partners and professionals. Many have an established international service line, and some are first-time attendees who are just now recognizing the opportunity or professionals who have recently joined member firms and have a background in foreign expertise. The meeting has one of our most challenging and interesting agendas due to a need for it to be technically relevant and universally appealing. Like all CPAmerica live events, the underlying purpose is in member sharing and relationship building. The unique, international nature of this meeting frequently invites questions about our relationship with Crowe Global. Crowe Global is the eighth largest worldwide network of accounting firms consisting of more than 200 independent accounting and advisory firms in 130 countries. Our association, CPAmerica, has a special relationship with Crowe Global as we are a member of this network. Being in a network, Crowe Global members are regularly inspected, providing a high level of assurance to CPAmerica members. Your firm is not a member of Crowe Global -- the association is the member. The association entered into a formalized agreement with the network in
1998 when they were Horwath International. The association became a member in 2012 with the implementation of our strategic plan that placed greater emphasis on member firms’ access to international expertise and opportunities to enhance cross-border relationships. Our members can access the expertise within this network through our international referral system and through the ongoing relationships being built through the International Group Meeting. (On a side note, this relationship should not be confused with our exclusive relationship with Crowe LLP. Also emphasized in the 2012 and Beyond Strategic Plan (updated in 2018) was the commitment of CPAmerica to ensure members’ access to Top 10 firm expertise. Crowe LLP is the eighth largest independent U.S. accounting and advisory firm who is also a member of the Crowe Global network. More on this relationship in another issue.)
anyone, providing annual international tax updates since our very first year. Hughes Pittman Gupton’s transfer pricing specialist, Mike Arena, will lead a much-anticipated panel that includes two of Crowe Global’s leading specialists, Adriana Escobedo and Wolfgang Kirschning, who will look at this complex topic from U.S. and international viewpoints. Other topics of interest include updates on Brexit and the EU, a technology panel that will take a look at several firms’ implementations of new technologies, and a strength-based workplace session led by Kristen Rampe that addresses stronger people engagement, higher profitability and lower turnover.
Not all CPAmerica firms have clients with international needs or are in a market with international opportunities. However, I see many who may overlook this resource because international is not currently a significant niche in the firm. I encourage you to look at It is very apparent at the International Group the agenda and consider not only your existing Meetings that regardless of nationality, the clients, but your potential in this area as firms international firms are very similar to our explore their opportunities to specialize. firms. They face the same challenges of Business is no longer contained to your own staffing and retention, trying to be innovators, backyard. and understanding the impact of new technologies. Many of these commonalities are revealed in one of the opening sessions designed to stimulate sharing early on in the meeting. Guests participate in round-robin introductions and share a collaboration with another member or something significant they’ve achieved in the past year in their firm. Considering the variet y of expertise represented among attendees, technical updates on subjects such as international tax and transfer pricing remain key presentations of the conference. Align Global Consulting’s Sean King is as much a part of the group as
Accounting Today Names Managing Partner McDaniel to 2019 MP Elite
Seth McDaniel
Accounting Today, the premier publication of the certified public accounting industry, has named Frazier & Deeter, LLC's Seth McDaniel to the 2019 Managing Partner Elite list. McDaniel is one of 10 managing partners across the country to receive this prestigious recognition from
Accounting Today. Under McDaniel's leadership, Frazier & Deeter has expanded into multiple new niches, established national practices, and implemented the technology, including an entirely virtual IT environment, to support these new specialties and geographic
expansions. Even as the firm grows its presence, McDaniel is locally recognized as a community leader with accolades such as being named one of the Most Admired CEOs in Atlanta in 2019 by the Atlanta Business Chronicle. His accomplishments embody the Frazier & Deeter brand promise he developed, "Investing in relationships to make a difference." "It's a tremendous honor for me and our team," said McDaniel. "A great deal of our success comes from our relationship with CPAmerica and the other member firms." Accounting Today's Managing Partner Elite brings together a selection of the country's best firm leaders, from firms of all sizes, to highlight the skills and strategies it takes to lead an organization to success in the 21st century.
You can reach us at: 7555 W. University Ave. Gainesville, FL 32607 (352) 727-4070 www.cpamerica.org
Send feedback and advantage@cpamerica.org OHM
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