Publications

Much to the ire of businesses worldwide, hackers have ceaselessly attempted to penetrate their computer systems and abscond with valuable information. While seemingly no business sector is beyond the reach of opportunistic hackers, the financial services industry has been particularly sensitive to these intrusions due to the vast quantities of personal information stored therein. Yet, like all systems found in the business world, specialization of skills is a natural outgrowth.

CPAs all share a common background. Each CPA must complete some type of education program that includes a minimum number of accounting credits; unfortunately, practice management issues are seldom included in these requirements. Although accounting professors teach their students how to use professional standards and related guidance to minimize their risks, lessons related to malpractice insurance are typically not included in curricula or syllabi. Had they been, Joseph Brunsman and Daniel Hudson’s True Course would have been required reading. It should certainly be of interest to any sole practitioner or partner in practice. (Book review By  Joel Lanz, CPA/CGMA/CITP/CFF, CISM, CISSP, CFE)

A new series of cyber-related class action claims against at least 15 law firms could have serious implications into how CPA firms, and many of their clients, manage their computer systems and view data security.

Whether it’s in books or movies, the CIA has a certain reputation for intrigue and danger. Humorously, the CIA’s FAQ section on their website includes answers to questions such as, “Who is a spy? Are there secret agents like James Bond with secret gadgets?”, and, “The CIA has been accused of conducting assassinations and engaging in drug trafficking. What are the facts?” We find it unlikely that very many women, or for that matter any men, would find entertain the idea of becoming the next government sponsored Pablo Escobar.

Indeed, the perceptions of the CIA were so poor with women, they commissioned a million-dollar study on the topic. They wanted to know how women viewed their organization, and what steps were needed to overcome that perception in the hiring process. With women now comprising roughly half of all accounting graduates, taking these lessons from the CIA into the next hiring season can result in significant strategic advantages for your firm.

By best estimates, we still have at least a decade or two until computers replace humans in jobs that are exceedingly complex and require higher order decision making or forecasting skills. Until your entire audit department is replaced by a single computer, you are still going to need people to fill those seats. Before we delve into the future of hiring, it’s worth discussing first why the traditional hiring methods you’re currently using are scientifically irrelevant.

Daniel W. Hudson and Joseph E. Brunsman are graduates of the United States Naval Academy who, after serving in the Navy, founded a brokerage in 1995 specializing in practice insurance for CPA firms.  ”Our goal is to fundamentally change the way that CPA firms purchase and utilize their insurance on a national level,” says Brunsman, who wrote a book on the topic with Hudson.  The book, “True Course,” came to our attention via our own insurance gurus at CAMICO.  We drilled a little bit deeper with the authors to find out more about why they wrote the book and the importance of CPA insurance.

The IRS is now recommending that taxpayers use their driver’s license number to provide another layer of security when electronically filing a federal tax return.  Most CPA firm staff and clients have been trained to treat SSNs with exception care, but the same has not been true with driver’s license numbers (DLNs). While the reasons for that are understandable, the increased relevance placed upon DLNs has made them a new high value item for criminals and CPA firms alike.  As with many other “good ideas,” the unintended consequences may make this initiative more harmful than helpful.   

No business of any kind can operate in the modern digital environment without some risk of cyber attack or data breach.  CPA firms are especially vulnerable due to the volume of records they contain, often containing sensitive personal and financial information.  Insurance companies are increasingly offering solutions for CPA firms that need coverage against cyber attacks.  This article describes the most common type of attach--ransomeware--and it's potential costs, providing guidance on how to calculate coverage, along with tips and traps for potential buyers.