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aicpa fall meeting of council

January 2019 | Volume XXXVI | No. 1

IN THIS ISSUE:•Presidents Message 2•In Memory 2•New Members 2•Leadership Conference 3•Legislative message 3

By Patrick Kautzman, AICPA Council Member

Since TCJA passed last December, we have heard from a multitude of professionals with varying levels of concern regarding the continued existence of the food and beverage deduction in light of the fate of entertainment expenses. Well, Notice 2018-76, issued October 3, 2018, clarifiesthattaxpayersgenerallymaycontinuetodeduct50%ofthefoodandbeverageexpensesassociatedwithoperatingtheirtradeorbusiness.

2019Conference dates

Management ConferenceMay 22-23Fargo Holiday Inn

Summer variety packJune 17-19Bismarck Ramkota

Annual CPA Convention September 22-24 Fargo Holiday Inn

Professional Issues Update by Barry Meloncon, President and CEO of AICPABarry’s professional issues update included his recurring reminders of the rapid pace of innovation and disruption in our world and our industry. • Sincetheyear2000,41%ofS&Pconsumer-centriccompanieshavebeenacquired

orgoneoutofbusinessand39%ofthe5thto85thlargestfirmsnolongerexistasstandalonefirms.

• The World Economic Forum’s Future of Jobs Report shows that of the top 10 de-clining jobs by 2022, #2 is Accounting, Bookkeeping, and Payroll Clerks and #7 is Accountants and Auditors. Barry’s response: They are referring to an industry that is unwilling to change and adapt! He broke a future ready strategy down into 3 parts:

•Technology–Masteritbeforeitmastersyou •Trust–BuildonCPAsexpertise •Talent–Thinkbroader

Technology –CPAsmustembrace“SoftwareasaService”throughclientaccountingservicesandvirtualCFOservices,“BigDataandAnalytics”,“ArtificialIntelligence”throughmachinelearningandvirtualassistance,and“Blockchain”.CPAsmustlearnthefundamen-tals at a minimum but becoming an expert and applying these technologies to your com-pany or practice is vital to being future ready. Trust –Buildontheconfidenceandpublictrust that CPAs enjoy in the marketplace. Utilize the technology tools developed for Audit data analytics, RIVIO Clearinghouse, OnPoint Preparation Compilation and Review tool, and the Dynamic Audit Solution tool to help optimize processes and provide insights with technology. We need to explore adjacent opportunities such as expansion of SOC reporting, Cybersecurity risk management, and Integrated reporting and sustainability. Management accounting must move from a cost center to a value driver for their organization.

•YP Article 4•MemberProfiles5•Executive Director Column 6•No longer Licensed CPAs 6•Tax Commissioner 7

•AICPA Council Meeting Cont 9•Ethics Corner 10•ClassifiedAd10

Mark your CalendarContinued on page 9.

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NEW membersPRESIDENTS MessageJanuary 2019

Clarence Sitter, CPA

A belated Merry Christmas and Happy New Year to all of you! The holiday season is over and all the hustle and bustle that comes with it has gone. I hope you were able to take some time for the most important things in life: faith, family and friends.

Now many of you are just beginning the next race throughanother“busyseason”andwillbechal-lenged with getting lots of things done in a short amount of time. One of my many shortcomings

(according to my wife) is time management. I always believe I can get lots of things done with my time, but it rarely ever happens.

I was reminded of how we use and value our time with the strategic plan-ning that the Society recently worked through in December. It was two long days that involved several of our members with the board that produced alotofgreatideas,questionsandthoughts.Therewillbesomereallyexciting things to come out of that session that will be shared as the details come together. A huge thank you to all that were involved in that!

It is through exercises like strategic planning that I have come to appreciate that when we allow ourselves the proper amount of time to grind through the tough tasks we often produce the greatest gems in our lives and work. Time is our most valuable resource and John Wooden (the great UCLA basketball coach from the 1960’s and 1970’s) has a great story about this topic in his book Coach Wooden One-on-One. If you ever have chance it is a good read and the story is one that a lot of us CPAs can relate to because he correlates time to money. Hint: In the story, each of us get $86,400 each and every day of our lives.

As we go through 2019 together, I want to say thank you to all of you for beingmembersofourSocietyandthisprofession!Youmakesignificantimpacts with your time and talents in your businesses, your families, and the activities you are involved with. Know that the Society is working hard toadvocateforyouandusingthetimeofitsstaffandmanygreatvolun-teers to ensure that you receive the value you deserve in 2019 and beyond.

In memory

Ed Grunett passed away on November 3rd. He had been a society member since 1969 and served on several committees including CPE, Governmental, Nominations, Recruiting and Taxation. Ed worked for various companies throughout his career including 20th Century Fox and Standard Oil.Heownedhisownfirmfor many years and was most recently with Widmer Roel CPAs in Hazen.

Summer Aune, FargoSelorm Boateng, BismarckHunter Diegel, FargoKyle Dorow, FargoJace Dukart, Grand ForksEdward Eades, MoorheadJake Ellingson, MoorheadThomasFyffe,WestFargoEric Gefroh, Grand ForksCole Hiltner, Grand ForksScott Hogfoss, FargoAshley Honl, FargoHeatherJefferson,BismarckKristi Johnson, LisbonKillisha Keller, KilldeerTaylor Keplin, New TownDavid Krebsbach, BismarckAbby Lee, FargoTyrel Mollerud, Grand ForksRose Nichols, BismarckNathan Nigg, FargoAndrew Olsonawski, MoorheadTaylor Otto, Grand ForksPaige Qual, LisbonBrady Sirjord, UlenRandall Smith, New EnglandKarla Sveum, LisbonMichelle Syring, WalcottTyler Tessmann, MoorheadRebecca Thwing, FargoBlake Torbeck, Grand ForksGretchen Wagendorf, West Fargo

Edward Grunett

Pictured left to right Sherre Sattler, Tracey Golden (AICPA Vice Chair), Dianna Kindseth, and Barry Melancon (AICPA President).

President-Elect Dianna Kindseth attended the AICPA/CPA-SEA Leadership Conference. This annual event brings Executive Di-rectors and President-Elect from the Societies together to prepare them for their upcoming presi-dency. It updates them on issues pertaining to the profession and provides the opportunity to share and discuss ideas with peers.

Leadership conference2018 AICPA/CPA-SEA

COLLEAGUES YOU CAN COUNT ON 3

Know any legislators?During the upcoming legislative session the Society will be monitoring the legislative process, watching for issues of interest to the CPA community. We want to have member contacts available to reach out to legislators on key issues. Please scan the list below and mark those legislators you know and/or would be willing to contact. You may not be called on, and if you are, you are always free to decline if you are not comfortable with the issue. Please send your contacts to mail@ndcpas.org.

Howard Anderson Turtle Lake 8JoNell A. Bakke Grand Forks 43Brad Bekkedahl Williston 1RandyBurckhard Minot 5David A. Clemens West Fargo 16Dwight Cook Mandan 34Kyle Davison Fargo 41Dick Dever Bismarck 32Jim Dotzenrod Wyndmere 26Michael Dwyer Bismarck 47Jay Elkin Taylor 36Robert Erbele Lehr 28Robert O. Fors Larimore 19John Grabinger Jamestown 12Joan Heckaman New Rockford 23

North Dakota Senate

Mary Adams Grand Forks 43Bert Anderson Crosby 2Dick Anderson Willow City 6Pamela Anderson Fargo 41Thomas Beadle Fargo 27Rick Becker Bismarck 7Larry Bellew Minot 38Jake G. Blum Grand Forks 42Tracy Boe Mylo 9Glenn Bosch Bismarck 30Josh Boschee Fargo 44Mike Brandenburg Edgeley 28RuthBuffalo Fargo 27Chuck Damschen Hampden 10JeffDelzer Underwood 8Bill Devlin Finley 23Gretchen Dobervich Fargo 11Jason Dockter Bismarck 7Matt Eidson Grand Forks 43Sebastian Ertelt Lisbon 26Clayton Fegley Berthold 4JayFisher Minot 5Jim Grueneich Jamestown 12Ron Guggisberg Fargo 11LaurieBeth Hager Fargo 21Karla Rose Hanson Fargo 44Patrick Hatlestad Williston 1Craig Headland Montpelier 29Pat D. Heinert Bismarck 32Richard G. Holman Mayville 20JeffA.Hoverson Minot 3Michael Howe West Fargo 22

Kathy Hogan Fargo 21David Hogue Minot 38Ray Holmberg Grand Forks 17Jordan Kannianen Stanley 4Jerry Klein Fessenden 14Karen K. Krebsbach Minot 40Curt Kreun Grand Forks 42Oley Larsen Minot 3Diane Larson Bismarck 30Gary A. Lee Casselton 22Judy Lee West Fargo 13LarryLuick Fairmount 25Richard Marcellais Belcourt 9Tim Mathern Fargo 11Scott Meyer 18Janne Myrdal Edinburg 10

ErinOban Bismarck 35DaveOehlke DevilsLake 15Arne Osland Mayville 20Dale Patten Watford City 39Merrill Piepkorn Fargo 44Nicole Poolman Bismarck 7Larry J. Robinson Valley City 24Jim P. Roers Fargo 46Kristin Roers Fargo 27David S. Rust Tioga 2Donald Schaible Mott 31RonaldSorvaag Fargo 45Jessica Unruh Beulah 33Shawn Vedaa Velva 6Terry M. Wanzek Jamestown 29Rich Wardner Dickinson 37

North Dakota House of RepresentativesCraig Johnson Maxbass 6DennisJohnson DevilsLake 15MaryJohnson Fargo 45Daniel Johnston Kathryn 24Terry B. Jones New Town 4TomKading Fargo 45KarenKarls Bismarck 35Jim Kasper Fargo 46George Keiser Bismarck 47Keith Kempenich Bowman 39Dwight Kiefert Valley City 24Lawrence R. Klemin Bismarck 47Ben Koppelman West Fargo 16Kim Koppelman West Fargo 13Gary Kreidt New Salem 33Vernon Laning Bismarck 8Mike Lefor Dickinson 37Donald W. Longmuir Stanley 2ScottLouser Minot 5JefferyJ.Magrum Hazelton 28Andrew Marschall Fargo 16BobMartinson Bismarck 35Aaron McWilliams Hillsboro 20Lisa Meier Bismarck 32AlisaMitskog Wahpeton 25Corey Mock Grand Forks 18David Monson Osnabrock 10Mike Nathe Bismarck 30Jon O. Nelson Rugby 14Marvin E. Nelson Rolla 9Emily O'Brien Grand Forks 42

Mark S. Owens Grand Forks 17Bob Paulson Minot 3Gary Paur Gilby 19Chet Pollert Carrington 29Todd Porter Mandan 34Brandy Pyle Casselton 22David Richter Williston 1Shannon Roers Jones Fargo 46Karen M. Rohr Mandan 31Dan Ruby Minot 38Matthew Ruby Minot 40Mark Sanford Grand Forks 17Bernie Satrom Jamestown 12Mike Schatz New England 36Austen Schauer West Fargo 13JimSchmidt Huff 31Mary Schneider Fargo 21Randy A. Schobinger 40CynthiaSchreiber-BeckWahpeton 25Luke Simons Dickinson 36Kathy Skroch Lidgerwood 26Vicky Steiner Dickinson 37Michelle Strinden Fargo 41Nathan Toman Mandan 34Wayne A. Trottier Northwood 19Bill Tveit Hazen 33Steve Vetter Grand Forks 18Don Vigesaa Cooperstown 23RobinWeisz Hurdsfield 14GregWestlind Cando 15Denton Zubke Watford City 39

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Have you ever wondered what it’s like

When is the last time you took a week out of your busy life to focus on yourself? How long has it been since you paused to ask those around you what you do well and what opportunities you have for even greater impact? Have you ever stopped to think about what it might be like to sit downandtalkwithsomeofthemostinfluentialleadersinthe accounting profession about their key to a successful career?TheAICPALeadershipAcademyoffersallthesethings and more in one action packed week each fall. I en-courage YOU to represent North Dakota in the 2019 class!

Each year, approximately 40 of the nation’s most driven young accounting professionals gather in North Carolina to engage in a week of self-examination of leadership, career path and the CPA profession. The interactive dia-logue with the profession’s top leaders and other academy participants focuses on the issues that the profession is currently facing.

The Leadership Academy begins with pre-work consisting of articles and videos related to the most current issues faced by the profession. It also includes a personal compre-hensive 360 feedback assessment, along with a personal-ized executive coaching session. While on-site participants spendtimeself-reflectinganddiscussingleadershipchal-lenges they are facing in their careers, and as a profession. In addition, participants have extended one on one access tosomeoftheprofession’smostinfluentialleaders,suchas Barry Melancon and Tom Hood.

I assure you that this is a life-changing experience and is worth the investment in yourself. I attended the 2018 AICPA Leadership Academy and came back inspired not only personally as a leader but also inspired to bring new ideas to both my company and our state.

Ifyouhaveanyquestionsorwouldliketolearnmoreabout my experience at Leadership Academy, please feel free to reach out to me at misch@microsoft.com.

Applications are now open for the 2019 program which will take place October 6-10, 2019 in Durham, NC.

https://www.aicpa.org/interestareas/youngcpanet-work/cpeandevents/aicpaleadershipacademy.html

And last, but not least, the fall is hurricane season in NorthCarolina,soifyou’reluckylikeme,yourflightmaytakeoffastheeyeofahurricaneispassingby.

Past North Dakota Leadership Academy Participants:

•MichelleSchumacher–2018

•BrittanyDunn-2016

•KayceeHalley-2012

By Michelle Schumacher

Young Professional Group

to fly in a Hurricane

COLLEAGUES YOU CAN COUNT ON 5

Zac Wanzek, CFA, CPA

Member Profiles

Position: Senior Vice President Senior Portfolio Manager

Birth Place: Fargo, ND. Firm/Company Location: Bell

Bank Investment Management, Fargo, ND Job Responsibilities: Our investment teams serves a vital role for multiple business lines across the organiza-tion and part of my job is to oversee that team and ensure resources are properly allocated. Day-to-day responsibili-ties include investment strategy creation and portfolio management for institutional clients including insurance companies,foundationsandendowments,financialinsti-tutions and high-net-worth individuals. While I consult with clients across multiple asset classes, I specialize in managingfixedincomestrategies.

Professional Activities: AICPA, ND CPA Society, CFA Institute, CFA Society MN, NDSU Bison Fund Industry Advisory Board Chair

Hometown: Alaska, Idaho and Oklahoma. I grew up in an Air Force family.

First Job: Laborer for a painting contractor

How did you decide to become an accountant? Took an elective in high school that I really enjoyed and have a family history of accountants.

Alma Master/Degree: Minnesota State University Moorhead; BS in Accounting and Business Administration

Current Position: Accounting Manager at Alliance Management Group

What did you do to celebrate passing the exam? Went out to eat with my family.

Professional/Community Activities: Assist with the Central Cass Destination Imagination program

Company Biography: Bell Bank was founded in 1966 in Fargo, ND, and has grown to become one of the largest privately held banks in the country. Bell Bank employs over1,000individualscrossthemid-westandhasover$5billion in assets. Bell Bank Investment Management is a wholly-owned subsidiary and was founded in 1987. BBIM servicesclientsacrossthecountryandhasover$6.5bil-lion of assets under management.

Alma Master/Degree: University of North DakotaBachelor of Accountancy and Bachelor of Business Administration, Finance

Hobbies and Pastimes: Enjoy watching team sports, partaking in extreme sports (skiing, snowmobiling, dirt biking),golfing,remodelingprojects,traveling,andtime at Minnesota lakes.

Favorite Quote: “Thereisverylittletrafficontheextramile.”

Something Most People Don’t Know About Me: I absolutely hated math growing up!

Hobbies and Pastimes:Ienjoybeingoutsidegolfing,fishingandplayingsoftball

Family: I have one older sister

Dream Vacation: Always wanted to visit Jamaica to escape the rather chilly winters we experience.

The best advice you ever received was: Always be the hardest working person in the room.

Something most people don’t know about you: Myfirstjobwasn’tuntilthesummeraftermyfreshmanyear of college.

The nicest thing someone has said to you this week: We really appreciate having you being a part of this team

Jon Christianson, CPA

Industry profile

Young Professional Profile

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January is a month of new beginnings. If starting a new calendar doesn’t reinforce that thought, all of the diet commercials on TV will surely be a reminder! In late December the Society Board of Directors, committee chairs and several at large members met with facilita-tor Bill Reeb and his colleague, Tommye Barie to develop a new strategic plan. It was an excit-ing albeit exhausting two days. We will share highlights of the plan in our next newsletter but

here are a few things that stood out to me personally:

1. Many members, even those who are involved with the Society, don’thaveagoodunderstandingofwhattheSocietydoes;specifi-cally, our advocacy work and our outreach to schools and universi-ties. Goal: Communicate what we do

2. Those who are involved and engaged in the Society are passionate and see the value. Goal: Get more people involved

3. Now is the time to evaluate what we have done in the past. Moving forward means letting go of some tasks that hold less value.

Goal: Make an inventory and cut the low hanging fruit.

Of course now the hard work begins--making the plan and starting the process. Just like all those New Year diets, it will be a challenge to stay thecoursewhenthesparklynewwearsoff.

Lookingaroundtheroomduringourplanningsession,Ireflectedonhowyoumighthavetoplanforyourfirmsandbusinesses.Whetherthat is planning for a tax season when law interpretations and tax formshavenotbeenfinalizedortryingtofigureoutanexitstrategyso that you can retire. I thought of those in business and industry who aredealingwithmergersorstaffingshortageswhiledemandsfortimeincrease.Imarveledatthosewhoaretryingtofigureouthowtoef-fectivelyuseblockchain,artificialintelligenceandaugmentedreality.Withoutquestion,itisclearthattheworldofaccountingiseverchang-ing and how our members and our organization adjusts will determine if we remain relevant and even continue to exist.

I came away with the following advice that may help you as you begin your new year plans. • Take some time away from the daily grind to assess where you are

and chart a path. • Not all variables will be known. Doing something is better than

nothing.• If you are lucky enough to have a good support network, (like those

who worked on our strategic plan) — lean on them.

I wish you well with your New Year’s goals!

“Don’t be afraid to give up the good to go for the great” John D. Rockefeller

Charting the CourseSherre Sattler, Executive Director

CPAS NO Longer licensed Listed below are CPAs no longer licensed in the state of North Dakotaduetounfilledobligations.As a result, they may not perform accounting services for the public or useofthecredential“CPA”. CPAsandtheirfirmshaveanannual obligation to renew their certificateandlicense.Iftheyperform accounting work for the public, they also must participate inspecificamountsofCPE.Inmostcases,publicaccountingfirmsareexpected to participate in a practice review process. Contact the Board of Accountancy,at800-532-5904,withanyquestions

Wesley Dick, Grandin, ND Arlie Braunberger, Valley City, NDSteven Johnson, Fargo, NDVi Mai, Fargo, NDKathy Sauer, Fargo, NDTimothy Whalen, Grand Forks, NDJohn Stumf, Bismark, NDRobyn Myers, Bismark, ND Michael DeWall, Bismark, NDTodd Humphrey, Bismark, NDJerry Houn, Bismark, NDSteven Rhoden, Watford City, ND

Both the North Dakota CPA Society and the State Board of Accountancy have moved

ND CPA Society3325SWashingtonSt,SteB2GrandForks,ND58201701-775-7111

ND State Board of Accountancy215N3rdStreet,Suite202CGrandForks,ND58203701-775-7100

We have moved!

COLLEAGUES YOU CAN COUNT ON 7

2019 Tax season• Verify with your software company that they support

ACH debit of estimated payments. Visit our website for a list of approved software providers and the North Dakota tax forms supported.

Verify Client Information

• Current Mailing Address

• CorrectEstimatedPaymentAmount;AForm500willenableyoutocallourofficeonyourclient’sbehalftoobtain the correct amount.

• Correct Banking Information for Direct Deposit

• W-2 Information: Current Employer Info and FIN

Tax Clearance Requirements: When claiming certain tax credits, your client may need to attach to their return a completed property tax clearance record that is obtained for eachcountywheretheyhavea50percentorgreaterinter-estinrealproperty.Thiswillberequiredforeachyearthecreditisclaimed.Seethe“StateandLocalTaxClearanceGuideline”onourwebsiteformoreinformation.

Attach Schedule ND-1QEC for Credits: When claim-ingacreditlikethequalifiedendowmentcredit,youmustinclude or attach a PDF of the North Dakota Schedule ND-1QEC. It’s also helpful if you can attach the documents received from the charitable organization. This may help ourofficeprocessthereturnquickerbyeliminatingtheneedtocontacttheclientwhenthereisaquestionregard-ingthequalifiedendowment.

1099-MISC Miscellaneous Income: Remember to enter each 1099-MISC separately if claiming North Dakota withholding from a particular oil and gas company. This is similartoenteringeachW-2separately–youcannotlumpthem as one amount when there is withholding.

Utilize Electronic 1099-G: Encourage clients to consent to obtain the 1099-G electronically by marking the circle on the bottom of the ND-EZ and ND-1 forms (found at bottom of forms by the disclosure authorization circle for prepar-ers).Wealsooffera1099-Glook-uptoolonourwebsite–www.nd.gov/tax, then click on For Individuals, then select the“1099-GLook-upTool.”

No Non-resident Filer Use of Schedule ND-1CR: When preparing a return for a non-resident, they will never have a Schedule ND-1CR - Claim for Income Tax Paid to Another State or Local Jurisdiction. Only North Dakota residents can use a Schedule ND-1CR.

Taxpayer Access Point: Use TAP to electronically fileyourclientsW-2’sand1099MISCforms.Yourclientdoesn’thavetohaveaseparateTAPaccounttoE-file.

By Ryan Rauschenberger, Tax Commissioner

It’s hard to believe that tax season is already here. As you are in the midst of your busy season, we wanted to thank you for what you do as tax preparers and advisors to help the great citizens of North

Dakota. Here are a few tips and reminders to help your 2019 tax season go smoothly:

What’s New - notable changes to the North Dakota income tax forms for the 2018 tax year:

Individual Income Tax

• Suspension of the federal dependency exemption by the TCJA resulted in the removal of the stillborn child deduction from Schedule ND-1SA.

• Line changes on Schedule ND-1TC if claiming the endowment fund tax credit, and the addition of a new Contribution Adjustment Worksheet for Form ND-1, line 4a.

Other Income Taxes

• Fiduciaries claiming an income tax credit must now complete and attach a new supplemental schedule, Schedule 38-TC, to Form 38.

• FilersofForms38,40,58and60claimingtheendow-ment fund tax credit must now complete and attach a new supplemental schedule, Schedule QEC, to their returns.

• ChangestoSchedulesKandK-1forForm58andForm60filers,andtoScheduleK-1forForm38filers,to remove lines for expired tax credits and to add lines relating to an endowment fund tax credit received from another passthrough entity.

• For more information on these and the other changes made, see the developments pages in the income tax return instruction booklets found at www.nd.gov/tax/forms.

Other RemindersEmail Alerts: This is a legislative session year in North Dakota. Make sure you sign up for email updates (lower-left of our website’s homepage) and watch our website www.nd.gov/tax for tax law changes and other updates.

ACH Debit for Estimated Tax Payments: Enhance-ments to our online payment tool make it easy and secure for your clients to make free electronic payments. This will help eliminate lost payments.

• NorthDakotasupportsthequarterlypaymentofestimated taxes via Automated Clearing House (ACH) debitatthetimeyoufileyourclient’s2018taxreturn.

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COLLEAGUES YOU CAN COUNT ON 9

Your Charitable Giving Experts in North Dakota.

Kevin Dvorak, CFP President & CEO

Bismarck 701-222-8349

Kevin@NDCF.net

Amy Stromsodt, CFRE Development Dir.

Larimore 701-741-3193

Amy@NDCF.net

Kara Geiger, CFRE Development Dir.

Bismarck 701-222-8349

Kara@NDCF.net

John Heinen, CFRE Development Dir.

Dickinson 701-590-4614

John@NDCF.net

We are your resource if your client has quesons about

charitable giving. Call us about:

* The 40% State Tax Credit for Gis to Qualified ND Endowment Funds

* Charitable Gi Annuies * Charitable Remainder Uni-Trusts * The IRA Charitable Rollover * Donor-Advised Funds * How to discuss charitable giving with

your client

Over 600 charitable funds benefiting North Dakotans

www.NDCF.net

Talent–TheFutureofJobsreportalsoindicatedeveryonewillneedanextra101 days a year of learning by 2022! Many of the skills that are at an increasing demand in the marketplace are very aligned with the skills that CPAs possess, such as analytical thinking, critical thinking and analysis, complex problem solving. Futurelearningwillrequireustolearn,unlearn,andrelearn.Wemustmakethemost of our people by embracing diversity and inclusion and development of mentoringprograms.HiringofAccountantsbyCPAfirmsincreased4.9%overthe past 7 years, while hiring of other client service professionals increased over doublethatat10.4%.

Enhancing Audit Quality by Sue Coffey, VP of Public PracticeSueCoffeyprovidedtheupdateontheEnhancingAuditQuality(“EAQ”)initiativethat was originally launched in 2014. Since then, the EAQ initiative has helped driveincreasesinauditqualitythroughenhancedfirmoversightandpeerreviewreforms. The initiative is aimed at having a balanced approach at moving the needleonauditqualitythroughmeaningfulreformswhilehelpingfirmsthroughthe process. The 2018 focus has been on Risk Assessment, Documentation, Single Audits, and Peer Review. The focus will stay on Risk Assessment and Documentation in 2019, but also move towards Auditing Estimates, Internal Control,andSOCReports.YoucanlearnmoreabouttheEAQinitiativesandfindresourcestohelpincreasethequalityofyourauditsatwww.aicpa.org/EAQ.

Expanded Eligibility for ABV CredentialFive Council members brought a motion to suspend the May vote to expand eligibilityfortheAccreditedinBusinessValuation(ABV)credentialto“otherqualifiedprofessionals”andfurtherstudythecredentialchanges.Apaneldiscussion of professionals for and against the vote was held to inform and educate Council members. Council members ultimately did not support the motion, voting to continue to implement the earlier decision to expand eligibility.

Licensure Under Fire in the States by Mark Peterson, VP of AdvocacyThere are several groups that are active across the country to challenge the necessity and value of occupational licensing. The friction is the result of the dichotomy between individual liberty and public protection. Worker licensing has increasedfrom5%in1950upto30%in2015.Iftheyaresuccessful,CPAsstandtolosetheabilitytocontrollicensinginstatesaswellasindividualandfirmmobility,comprehensivedefinitionofattest,andCPEreciprocity.Legislativeactivitytorestrict licensing has skyrocketed in 2016 and 2017. The AICPA’s state regulatory andlegislativeaffairsstaffwillcontinuetomonitorlegislativeactivityandthefightagainst the passage of these anti-licensing bills. State CPA Societies need to be aware of these trends and assist in advocating against these bills within their state legislatures.

10 Years of AICPA Leadership Academy Mark Koziel, VP of Firm ServicesIn 2018, 38 Participants graduated from the 10th class of the AICPA Leadership Academy. Congratulations to North Dakota CPA Michelle Schumacher for being oneofthose2018graduates!Theprogramhasover350alumni,someofwhichhavedescribedtheeventas“lifechanging”.ParticipationintheAcademyhashelped develop increased leadership competencies for a group of loyal, highly-motivated volunteers. The numbers show that 124 served on AICPA committees, 32 have served on AICPA Council, and 1 graduate served on the AICPA Board. A 2017surveyshowedthat67%volunteeredatthestatesocietylevel.TheNDCPASociety strongly desires to have ND candidates at the Academy and supports and encourages anyone interested to pursue this opportunity. The Society can put youintouchwithpastparticipantsfromNDfindoutmoreabouttheirpersonalexperience. The deadline for applying to the 2020 class is May 31, 2019. You can findmoreinformationontheprogramandtheapplicationprocessontheAICPAwebsite.

Continued from page 1.

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North Dakota Practices for Sale: gross revenues shown:SouthwestNDTax&Accntg$350K-90%tax/10%accntg/payroll;SoutheastNDCPA$141K-75%tax/8%Accntg/Bkkping/13%audits/reviews/4%other.Formoreinformation call 800-397-0249 or view listing details and register for free email updates at www.APS.net.Thinking of Selling Your Practice?Accounting Practice Sales is the leading marketer of accounting and tax practices in North America. We understand your concern for your clients as well as your desiretofindtherightprice/terms.Wewelcometheopportunity to talk to you about valuation, the process, confidentialityandotherissues.PleasecontactTrentHolmes at 800-397-0249 or trent@accountingpracticesales.com. Interested in Buying? See listings and register for free email updates at www.AccountingPracticeSales.com.

Clarke & Associates, P.C.Clarke and Associates, P.C., a family friendly, local CPA firminWilliston,NDisinneedofadditionalprofessionalstaff.WearelookingforaCPAorCPAcandidatewith1-5years’ experience. Duties will include individual, corporate, non-profit,andtrustincometaxpreparation,writeupwork, payroll preparation and reporting, and Quickbooks consulting. For immediate consideration, pleases forward yourresumeandcoverletterto:Clarke&Associates,PC,JeffClarke,CPA,POBox819Williston,ND58802

Minot State University Accounting FacultyThe Department of Accounting and Finance in the College of Business at Minot State University, invites applications for atenure-trackpositionasafacultymemberinthefieldofAccounting beginning August 2019. The Department of Ac-counting and Finance currently has six faculty members and its programs have approximately 200 students. Candidates should submit a letter of application, curriculum vita or resume,unofficialtranscriptsfromallinstitutionsattended,contact information for three references, evidence of teach-ingeffectivenessandastatementofteachingandresearchinterests to: jaywahlund@minotstate.edu

Tax Specialist- Ag Country WeareseekingafulltimeTaxSpecialistlocatedwithina75mile radius to the Fargo/Moorhead area to join our team. If you are a team player, have a bachelor’s degree in account-ingorrelatedbusinessfield,twotofiveyearsofrelatedex-perience, and a solid understanding of tax and farm records products and services. To submit your resume, please visit our website at: www.agcountry.com/employment

The Case of the ATF FinePeg Bored, CPA works as a controller at Plead the Fifth Industries, a distiller of spirits that sells their products only infifths;noquarters;nopints.TheCompany’sfinancialstatementsareaudited annually. During the wrap-up phase of the most recent audit, Peg was sent a draft representation letter to put on corporate letterhead and date July 30, 2018 for her and the CEO, Westing House

to sign. The letter included a representation that there were no regulatory actions against the Company. However, the Bureau of Alcohol Tobacco and Firearms recently wrapped up a compliance audit at the distillery and presented Peg withatentativepenaltyassessmentof$625,000,amaterialamount.Peg’sgoingtofightitand,thereforedidn’tchangethe representation letter language.

Q. Is this unethical.

A. Yes - the penalty is material and she failed to disclose a material fact to the Company’s outside auditors. [See ET 2.130.030.01 of the Code]

Imagine... a chair without a desk

Trent Holmes 800-397-0249Trent@APS.netwww.APS.net

Delivering Results - One Practice At a time

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This newsletter is published bimonthly, by the North Dakota CPA Society.

DIRECTORSClarence Sitter, PresidentDianna Kindseth, President-electDave Glennon, SecretaryMichelle SchumacherRobert DoschBrittany DunnMaureen StorstadRyan BakkeLyndsey RoemmichRandy HellerJanet KubisakSteve Britsch, Past President

3 Year AICPA Council Member, Patrick Kautzman

Sherre Sattler, Executive DirectorKayla Johnson, Membership & Education Manager

North Dakota CPA Society3325SouthWashingtonSt,SteB2GrandForks,ND58201Toll Free: 877-637-2727Local:701-775-7111Email: mail@ndcpas.org

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