cpa report third edition 2013

Special TechnologySection

South Carolina Association of Certified Public Accountants

T h i r d E d i t i o n 2 0 1 3

Plus...New Volunteer

Structure

Special TechnologySection

Peer Review by the Numbers

Meet Your2013 Chair

Charleston 2430 Mall Drive, Suite 360 Greenville

843-884-3912 Charleston, SC 29406 864-245-8788

www.american-pensions.com

South Carolina CPA Report 3(888) 557-4814 | www.scacpa.org South Carolina CPA Report

In This Issue

In Every Issue

Officerssharon e. Mann, cPA, Chair

John B. fennell, cPA, Chair Elect

robert M. Tilton, cPA, Vice Chair

Penny Lewis, cPA, Secretary – Treasurer

Michael r. Putich, cPA, Immediate Past Chair

BOArD Of DirecTOrsWilliam R. Barefoot, CPA Patrick P. Carey Jr., CPA

Zoe M. Davis, CPA Amanda (Mandy) T. Hallman, CPA

Suzanne M. Harnois, CPA Lesley H. Kelly, CPA Cheryl O. Lang, CPA

A.D. (Dave) Masters, CPA J. Patrick (Pat) McDermott, CPA

James W. McIlrath, CPA Kenneth L. Newhouse Jr., CPA

Philip R. Snipes, CPA Jason C. Sweatt, CPA

William A. Thiem, CPA Beth T. Zamorski, CPA

cHief eXecUTiVe OfficerErin Hardwick Pate, CAE

MANAGiNG eDiTOrMaureen Taylor

GrAPHic DesiGNerLisa S. McGee

cONTriBUTiNG wriTersTimothy L. Baker, CPA, CITP, CMA

William R. Barefoot, CPAReva Brennan, MPA, CAE, IOM

Harris Darver, CPAAllyson DeHart, CPAJoel A Gibbons, CPA

Jonathan Godwin, CPAAlan Leichtle, CPA

Pat McDermott, CPAErin Pate, CAE

Thomas G. Stephens, Jr., CPA, CITPMaureen Taylor

2013 eDiTOriAL BOArDCharles E. Alvis, CPA, MPA, MBA, Chair

Tim Baker, CPAJohn B. Brantley, CPARobert Charles, CPA

Amanda S. Colgate, CPALisa S. Cooke, CPA

Lesley H. Kelly, CPAMargaret L. Lattimore, CPAA. D. “Dave” Masters, CPAErin Hardwick Pate, CAE

Derrick B. Stark, CPA

South Carolina Association of Certified Public Accountants Magazine

Volume 43, Third Edition 2013

Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers or members of SCACPA. Advertising rates will be furnished on request to SCACPA, 570 Chris Drive, West Columbia, SC 29169, (803) 791-4181. Publication of an advertisement in The CPA Report does not constitute an endorsement of the product or service by The CPA Report or SCACPA.

CPA ReportSouth Carolina Association of CPAs

4 From the Chair

7 Association News

8 On Your Behalf

34 Welcome New Members

4 Meet Your 2013 Chair

10 2013-14 Board of Directors

11 New Volunteer Structure and Chairs 2013-2014

12 Thank You to Our 2012-13 SCACPA Volunteers

15 Spring 2013 Meeting of AICPA Council

16 YCPA Section

18 Leadership is Changing – Do You Have What it Takes?

19 Key Challenges Facing Entry-level Accounting Professionals

20 SCACPA Members Make Their Voice Heard at CPA Day

35 Peer Review by the Numbers

Special Section: Technology

34 Member News

36 Chapter Connections

38 Upcoming CPE

42 Advertiser Index

23 Selecting a Cloud Accounting Strategy for a Public Accounting Practice

26 Thriving (Hopefully) in a New Environment

27 Going Paperless….Not as Easy as 1, 2, 3

28 Tools You Can Use On the Go

29 What is BYOD and Do I Want One?

30 Reducing Fraud with Technology

33 Member Profile: CITP a Natural Next Step for This CPA

South Carolina CPA Report 4 (888) 557-4814 | www.scacpa.org

From the Chair

“ I’ve received invaluable training from the committees and task

forces I’ve served on, board leadership training such as the CPA

Ambassador program and the AICPA leadership training which

has made me more valuable to my company.”

sharon Mann, cPASCACPA Chair

SCACPA member since 2000

Q. Tell us about your experience as a CPA. Why did you choose the profes-sion? What led you to business and industry?Choose the profession? It kind of chose me. I left the University of South Carolina and worked for a while. Then I went back to school at the University of Minnesota, took an accounting class and liked it. I returned to USC (it was too cold in Minnesota), and continued studying accounting. I had switched majors a few times before that and finally discovered something I really liked.

After graduating from USC, I started off in public accounting with Derrick Stubbs & Stith. Four years later I decided to leave public accounting. I had worked in industry before finishing school and knew that was where I wanted to be. Tax season hours helped spur that along, but the hours in industry can be just as challenging at times. So, I went to work for Tri-County Home Health & Hospice and then Palmetto Health as director of finance. I left health care in 2000 to take the position as CFO at GIS and have been here ever since.

Q. What has been the most rewarding part of your career? The most chal-lenging? The most rewarding has been leading a great finance staff for the companies I have worked for and making a con-tribution to the success of those same companies. To see the growth in the employees as they have learned and progressed in their careers is reward-

ing as well. The most challenging was the downturn in 2008. Our busi-ness is based on employers hiring and employees changing jobs and the downturn had a definite impact on our business. We had to make decisions that affected staff such as benefits and reduced hours, which of course was hard on them as well as those making the decisions.

Q. You have been involved in SCACPA leadership for a number of years. Why did you become a volun-teer? When I started in public account-ing, the partners encouraged me to attend Central Chapter meetings and state meetings. I met fellow CPAs and became friends with many at the different meetings and socials. Through that process I was asked if I would like to get involved in leader-ship with the Central Chapter. I did, and progressed through the officer positions to become president. At the same time, I also signed up to work on a committee for SCACPA.

Q. What are some of your milestones and how has SCACPA impacted your career? The chapter appointed me to be its representative to the SCACPA Board. My very first duty was to serve on a task force which looked at the relationship between chapters and SCACPA, how it was working and what could be improved. The first thing we did was have SCACPA start taking the dues and registration for the chapters CPE. This was a huge

help. I can still remember while I was the Central Chapter treasurer sitting on my floor sorting deposits for CPE and social events to get to the bank. I was later elected to an at-large board position and then served in various officer positions. I’ve served on numer-ous committees and task forces. This has had an impact on my career in so many ways. I’ve received invaluable training from the committees and task forces I’ve served on, board leadership training such as the CPA Ambassador program and the AICPA leadership training which has made me more valuable to my company. I have made lifelong friendships with people I would not have had an opportunity to get to know if not for SCACPA.

Q. What other community volunteer opportunities have you been involved in? My previous volunteer experience includes serving as treasurer of the National Kidney Foundation of S.C. and treasurer and chair of Palmetto Aids Life Support Services (PALSS). I received the Jefferson Award for my work with PALSS and the Outstanding Member in Business & Industry from SCACPA.

I am a member of Westminster Presby-terian Church and have served as an elder, deacon and children’s Sunday School teacher. I have also served as chair of Friends of the Accounting De-partment at USC and a board member of SC Economics. I currently serve as the treasurer of the Harbison Housing Foundation, a nonprofit dedicated to

South Carolina CPA Report 5(888) 557-4814 | www.scacpa.org

serving the needs of the elderly in the Midlands, and on the IHS Yellow Jacket Club Board of Directors.

As you can tell, I believe volunteer work is very important and reward-ing. As has been said many times, I’ve received much more in return than I’ve given.

Q. What do you see as the top issues facing the profession and the as-sociation?

• Staying relevant and delivering value to the membership.

• Addressing the changing landscape for our membership whether it be in the area of con-tinuing education or legislative.

• Pushing for issues that are important to the profession and citizens of the state and nation.

• Retiring baby boomers – how is the gap going to be filled over the next 10 years? How will this affect our profession and in par-ticular the members, firms and businesses in our state?

• The national debt and lack of leadership in Congress. This affects the entire country – our competiveness is eroding away and this will definitely affect our profession. We can be leaders in this area pushing to help with the national voice on this issue.

Q. How is the board’s strategic plan addressing these issues? Our five strategic goals directly address these issues, from looking at our CPE delivery and content to addressing our own governance to make sure our house, from the board to chapters, is structured and doing the things it needs to meet our mission. Each one of the five directly impacts the issues facing our profes-sion and the members in our state.

Q. As SCACPA chair, what are your top goals in the coming year? CPE content and delivery - specifi-cally, helping to figure out how we will position ourselves in the area of facilities, content and delivery methods to carry us forward. Our long-range planning task force is heavily involved in looking at facility planning, smart classroom, etc. and I would like for a set plan to be put in place and acted upon, or to start acting upon, during my tenure. Also, staying on target

with the goals we’ve laid out through our strategic plan.

If you could choose just one thing to accomplish, create or improve during your tenure what would it be? We have such a great staff at SCACPA. I would like to make sure that we retain them and give them the leader-ship and tools to keep them inspired in what they do for our members and the profession. It will all follow from there. n

ffavorite vacation spot?avorite vacation spot? I love the beach and moun- I love the beach and moun-tains and love to travel. Can’t say I have a favorite but tains and love to travel. Can’t say I have a favorite but Italy, Alaska & Hawaii are all at the top of the list.Italy, Alaska & Hawaii are all at the top of the list.

ffavorite book? avorite book? I love to read so it’s hard to say. My I love to read so it’s hard to say. My favorite authors are Patricia Cornwall, Janet Evanovich, favorite authors are Patricia Cornwall, Janet Evanovich, Vince Flynn and Kaled Hosseeni. Right now I’m reading Vince Flynn and Kaled Hosseeni. Right now I’m reading And the Mountains EchoedAnd the Mountains Echoed by Hosseeni. by Hosseeni.

wwhat you do in your spare time?hat you do in your spare time? – Read, as you can – Read, as you can tell from above, and travel, it’s one of our favorite things tell from above, and travel, it’s one of our favorite things to do. I also watch tennis – I’m a tennis mom, go to USC to do. I also watch tennis – I’m a tennis mom, go to USC football games in the fall and get on the lake in either football games in the fall and get on the lake in either the boat or jet skis. the boat or jet skis.

One thing people would be surprised to know One thing people would be surprised to know about you.about you. I seem to have gotten into the animal rescue area in the I seem to have gotten into the animal rescue area in the past two years. Since we moved to the lake I am con-past two years. Since we moved to the lake I am con-stantly rescuing baby animals whether it be bunnies or stantly rescuing baby animals whether it be bunnies or squirrels, and also birds, although some of the rescue is squirrels, and also birds, although some of the rescue is from our two cats and dog. I’ve even had to save lizards from our two cats and dog. I’ve even had to save lizards and frogs. I draw the line at snakes, they can keep them.and frogs. I draw the line at snakes, they can keep them.

wwhat inspires you?hat inspires you? My husband, Steve, daughter, My husband, Steve, daughter, Rachel, and the rest of my family. God and my friends.Rachel, and the rest of my family. God and my friends.

(888) 557-4814 | www.scacpa.org

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scAcPA cOO New President of scsAeSCACPA COO Reva Brennan, MPA, CAE, IOM, was recently installed as president of the South Carolina Society of Association Executives for 2013-14. Brennan is the first African-American, non-CEO to serve as president. SCSAE is an organization of chief executive officers and professional staff who manage a variety of trade, professional and nonprofit associations as well as companies that provide products and services to the association community.

Promoting the Profession

McDermott Named cPA of the MonthJames Patrick (Pat) McDermott, CPA, CGMA, was selected as the July CPA of the Month for Start Here, Go Places. A program of the American Institute of CPAs, Start Here, Go Places is designed to inspire the next generation of CPAs.

McDermott is controller/treasurer of The Beach Company, Charleston. A SCACPA member since 1982, he currently serves on the SCACPA Board of Directors and the Legislative and Advocacy Committee. He is also the South Carolina elected member to the AICPA Council.

Adkins Appointed to south carolina Board of AccountancyEllen K. Adkins, CPA, has been appointed to the South Carolina Board of Accountancy. A SCACPA member, Adkins is a partner in WebsterRogers’ Summerville office. She specializes in audit and attest and management consulting services for governmental entities, not-for-profit organizations and small to medium-sized manufacturers, contractors, retailers and service enterprises. Adkins also serves as the quality review partner for the firm and is responsible for the design and maintenance of all quality control policies and procedures.

She is a member of the American Institute of Certified Public Accountants (AICPA) and serves on the AICPA Professional Ethics Committee Technical Standards subcommittee. Adkins has served on multiple SCACPA committees including the Technical Standards Committee, Peer Review Committee, Behavioral Standards Committee, Audit Committee and the Editorial Board Task Force. n

(888) 557-4814 | www.scacpa.org

570 Chris Drive, West Columbia, South Carolina 29169(803) 791-4181 or Toll-free (888) 557-4814

Fax (803) 791-4196 | www.SCACPA.org

SCACPA

Erin Hardwick Pate, CAEChief Executive Officer

Ext. 104, [email protected]

Reva E. Brennan, MPA, CAE, IOMChief Operating Officer


Karen M. Hancock, CPAFinance Director


Maureen TaylorMarketing and Member Services Director


Glenna P. OsierPeer Review Manager


April C. CoxEducation Manager


Sandra P. Oxner, CMP, CMMMChapter & Special Events Manager


Kristi NiroMembership & Communications Coordinator


To empower our members to grow professionally.We believe that by providing education,

advocacy, communication, and leadership we will ensure our success.

South Carolina CPA Report 7

C L I C K

For more on Start Here, Go Places, or to view the CPA of the month, visit www.startheregoplaces.com/


On Your Behalf

For the profession, by the profession – that’s what the South Carolina Association of CPAs is all about. SCACPA’s board of directors, committees and task forces, and Young CPAs Leadership Cabinet are hard at work making decisions, providing guidance and embarking on projects and programs that strengthen the profession and enable members to improve their knowledge, network and technical skills.

LeGisLATiVe UPDATeFor the 2013 state legislative session, SCACPA created goals or a legislative “agenda” for its work on behalf of CPAs and the profession. Following are the agenda items and the outcomes of each.

1. Reduce risk to both the public and the profession by initiating legislation to seek operational and fiscal autonomy for the S.C. Board of Accountancy

House Bill 3459, the SCACPA-initiated Board of Accountancy (BOA) bill included a provision for dedicated staff for the board, exempted CPAs from the private investigator requirement and included cleanup language regarding license renewal for accounting practitioners. The bill was stopped the last day of the legislative session in the Senate when Sen. Gerald Malloy (Darlington) prevented the bill from receiving third and final reading. We are unsure at this time why Sen. Malloy chose to stop the bill, however we will work over the coming weeks to understand his concerns and use the summer and fall to prepare for the bill’s passage in 2014.

H. 3459, a compromise from our original interest in creating an independent BOA, addressed some of SCACPA’s main concerns by dedicating an administrator and investigator, both of whom would have to be CPAs. Rep. Bill Sandifer (Oconee), chair of the House LCI Committee, was the bill sponsor and our champion in the House. The bill flew through the committee process and received a 110-0 favorable vote in the House. The Senate was another matter. Some members of the Senate LCI Subcommittee had concerns about the bill, but thanks to CPAs serving as Key Person Contacts (KPC) – Kathryn Greene Heeney, Will Russell and Kendall Erickson – the senators were convinced to support the bill. On the floor of the Senate other concerns were expressed, which delayed the bill. KPC Wanda Scott was instrumental in voicing SCACPA’s position with the senator holding up the bill’s progress. Ultimately, we got the bill through second reading in the Senate only to be thwarted at the 11th hour.

Many thanks go to Reps. Bill Sandifer (Oconee) and Shannon Erickson (Beaufort), and Sens. Thomas Alexander (Seneca), Billy O’Dell (Greenwood), Kevin Bryant (Anderson) and Shane Massey (Edgefield) for their leadership and support.

2. Close an unintended loophole, by initiating legislation that will exempt CPAs from the requirement to become licensed as a private investigator if they perform forensic services for clients

This provision was part of House Bill 3459 that did not make it through the Senate in the 2013 session.

3. Facilitate conforming of the state tax code with the federal tax code, by actively lobbying for the passage of the Department of Revenue’s tax conformity legislation

Tax conformity is legislation most tax professionals want to see passed early in the calendar year to give them certainty about the rules, no matter what the rules are. That’s why SCACPA has made this an annual priority. This year was more challenging than usual, mostly due to the federal fiscal cliff and related actions at that level.

Due to the phase out of certain deductions which resulted in a moderate tax increase for high income earners, Republican senators resisted supporting the bill, while Democrats accused them of protecting the rich. Tax conformity legislation became a political football thus taking nearly six weeks to pass the Senate. Using a special procedure, the House dispensed with conformity legislation in less than a week. The governor signed it into law on March 9.

When this legislation was stalled in the Senate, many Key Person Contacts were asked to contact their senator to urge action. Thanks goes to John Camp, Pat Carey, Mark Hobbs, Bill Robinson, Janene Schmidt, Jim Lollis, Kathryn Greene Heeney, Steve Miller, Bernie Ackerman and Deanna Cochran for making contact with their senators and letting us know.


Erin Hardwick Pate, CAE, has served as SCACPA’s CEO since 2005. She currently serves as president of the CPA Society Executives Association, a member of the S.C. Secretary of State’s Nonprofit Advisory Council and Francis Marion University Advisory Council for the Non-Profit Leadership Institute.

A special thanks to Sens. Hugh Leatherman (Florence) and Billy O’Dell (Greenwood) and Rep. Brian White (Anderson) for their leadership and support of tax conformity legislation.

4. Provide leadership for members in tax preparation working with senior members of the S.C. Department of Revenue to address a wide range of issues.

Meeting quarterly with the SCDOR director and his senior staff has proved fruitful by fostering open dialogue about what works and what does not work for CPAs in practice. Much of the conversation with the department over the past nine months has been around the data breach and how they are shoring up their systems. We’ve received regular, detailed updates throughout the process, including a watch for a new growing scam – criminals filing using stolen W2s to file false returns for refund.

E-filing did not seem to take a hit despite the public concerns about data security. Some 16,000 more individual returns were e-filed this year over last, for a total of 1.6 million or 74 percent of total returns. Sixty-six percent of these returns are filed by a preparer. Seventy percent of refunds were direct deposited, 30 percent were paper checks and 2 percent were debit cards. Corporate return filing was up too – 33,000 more this year which is a 21 percent increase.

The DOR has asked if there are schedules not currently e-filed that should be – like extensions and amended returns. The DOR would like to see more individuals file their estimates electronically; only six percent do this now. SCACPA has long advocated for the ability to e-file partnership returns and at the most recent meeting with the DOR this was a major topic of conversation. We will continue to press the department to make this a priority.

South Carolina Firm Managers GatherOn May 13, SCACPA hosted some 17 managing partners of mid-sized and larger firms in South Carolina for a meeting that offered time for networking and professional development. Held at the Columbia office of Elliott Davis, participants were briefed on state legislative issues and SCACPA’s activities. Bob Wilson, Elliott Davis’ director of human resources, gave a presentation on the firm of the future. AICPA CEO Barry Melancon gave an overview of

the numerous and wide-ranging issues facing the profession and firms.

“Larger firm managers, while in a competitive market, benefit from knowing each other better,” said Erin Pate, SCACPA CEO. “We are delighted to offer a forum in which this can happen.”

Small Firms ConferenceSmaller firms and sole practitioners are the backbone of the profession. Realizing this, SCACPA has created a Small Firms Conference, scheduled for Oct. 17. While conference planning is still under way, session topics include technology, ethics of peer review and financial reporting framework for small and medium sized entities. Updated information will be available on the SCACPA website. n

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SCACPA 2013-14 Board of Directors

Sharon E. MannGeneral Information Services Inc.ChapinBoard Chair

John B. FennellBurroughs & Chapin, Inc.Myrtle BeachChair Elect

Robert M. TiltonWebsterRogers LLPFlorenceVice Chair

Penny LewisPenny A. Lewis, CPA, PAIsle of PalmsSecretary - Treasurer

Michael R. PutichRobinson Grant & Co., PAHilton Head IslandImmediate Past Chair

William R. BarefootWebsterRogersFlorencePee Dee Chapter Rep.

Patrick P. Carey Jr.Carey & Company, PAHilton Head IslandSea Island Chapter Rep.

Zoe M. DavisHubbard Davis CPAs, LLPMount PleasantCoastal Chapter Rep.

Amanda (Mandy) T. HallmanCMAC Inc./ Logan’s RoadhouseMyrtle BeachGrand Strand Chapter Rep.

Suzanne M. HarnoisBernard N. Ackerman, CPA, PARock HillAt Large Director

Lesley H. KellyMcGregor & Company, LLPColumbiaCentral Chapter Rep.

Cheryl O. LangTindall CorporationSpartanburgFoothills Chapter Rep.

A.D. (Dave) MastersDerrick Stubbs and Stith, LLPColumbiaAt Large Director

J. Patrick (Pat) McDermottThe Beach CompanyCharlestonAICPA Elected Council Member

James W. McIlrathDuncan, Farmer, Munden, McIlrath & Co.Myrtle BeachAt Large Director

Kenneth L. Newhouse Jr.Moore Beauston & Woodham, LLP, CPAs & ConsultantsWest ColumbiaAt Large Director

Philip R. SnipesErnst & Young, LLPGreenvillePiedmont Chapter Rep.

Jason C. SweattErnst & Young, LLPGreenvilleAt Large Director

William A. ThiemThiem & McCutcheon, CPAs, PACharlestonAt Large Director

Beth T. ZamorskiTodd, Bremer & Lawson, Inc.Rock HillCatawba Chapter Rep.


New Volunteer Structure and Chairs 2013-2014

2013 VOLUNTEER OPPORTUNITIESConnect, Make a Difference, and Grow.Connect, Make a Difference, and Grow.

SCACPA volunteer opportunities offer more ways for you to give back to your community and profession:

• Committees,taskforces,actionteams• Governmentalaffairsopportunities• Communityoutreachandstudentinitiatives• Professionaleducationandnetworkingevents• Communications

To connect, make a difference and grow signup today at www.scacpa.org/getinvolved.

n Committees: m Standing Committees: A group of members, appointed by the Board, to whom a matter is referred, or is committed for attention, investigation, analysis, or resolution. A standing or permanent committee is intended to continually consider all matters pertaining to a certain subject. Meets at regular intervals throughout the year.

• Audit Committee – William Barefoot• Political Action Committee – Steve Mann• Finance Committee – Robert Tilton• Nominating Committee – Sylvia Kitchens

m Other Committees: A group of members, appointed by the Board, to whom a matter is referred, or is committed for attention, investigation, analysis, or resolution. Other committees meet regularly but do not exist due to a constitutional mandate; therefore, they can be dissolved should the purpose no longer meet a need.

• Accounting Careers and Academic Relations Committee – Tim Baker

• Behavioral Standards Committee – TBD

• Continuing Professional Education Committee – Russ Madray

• Legislative, Advocacy and Regulatory Committee – Todd Dailey

• Members in Business & Industry Committee – Amanda Koehler

• Peer Review Committee – Christina Kelly• Taxation Committee – Brian Johnson

n Special Interest Forum: A forum of like-minded members who meet periodically as needed to share information, ideas and views and to undertake projects, if needed

• Business Valuation and Forensic & LitigationServices Forum

• Information Technology Forum

n Task Force: Temporary group of members formed to carry out a specific project or to solve a problem. Meets as needed for the duration of the project.

• Editorial Board Task Force – Charles Alvis• Long Range Planning Task Force – Dave Masters

n Action Team: Similar to task forces, but designed to be even shorter in scope and duration. May or may not actually have a meeting. May be asked to provide work individually and/or electronically. Staff has the authority to create action teams to meet a need, i.e. Conference Action Team to assist with speaker introductions and registration, Social Media Action Team to promote programs and services, and create networking among members.

• Benefits Action Team• Conference Planning Action Teams• Membership Action Team

n Roundtable or Council: Made up of members with a common specialty or practice area. Meets generally one to two times a year to discuss issues and ideas. Generally does not take on projects but may provide direction to Association on initiatives.

• Managing Partners Roundtable – Dave Masters

*Ed Fund and YCPAs are additional volunteer opportunities that don’t fit into the above structure. n

As part of its strategic plan, the SCACPA Board of Directors evaluated the association's more than 80 distinct programs and services including committees and task forces. As a result, the board reengineered a number of committees and task forces in order to engage more members for shorter-term, project-based opportunities.

Following is a list of current opportunities.


Accounting Careers & Academic Relations Accounting Careers & Academic Relations Task ForceTask ForceSherri Lynn Freudiger, CPA - Sherri L. Freudiger, PA - ChairTimothy L. Baker, USC -Darla Moore School of BusinessSteven N. Blanton, Norman Johnson & Co., PAWilliam L. Byrd, William Levan Byrd, CPA, PCLindsay R. Campbell, AVX CorporationBenjamin Cartwright, Dixon Hughes Goodman, LLPClarence Coleman Jr., Winthrop UniversityMatthew Thomas Foreman, ScanSource, Inc.Amanda T. Hallman, CMAC, Inc. D/b/a Logan's Roadhouse *Christopher Joy, The Hobbs Group, PACharles P. McSwain Jr., M & H, LLC

Audit CommitteeAudit CommitteeRobert M. Tilton, WebsterRogers LLP - ChairTimothy L. Baker, USC - Darla Moore School of BusinessWilliam R. Barefoot, WebsterRogers LLPJohn Bratton Fennell, Burroughs & Chapin Company, Inc.Sharon E. Mann, General Information Services Inc.Michael Joseph Targia, Moore Beauston & Woodham, LLP, CPA & Consultants *

Awards Task ForceAwards Task ForceRebecca A. Kerr, University of SC, Darla Moore School of Business - ChairPhyllis B. Buie, SC Public Employer Benefit AuthorityLillian E. Gonzalez, Wofford CollegeJ. Louis Grant, Robinson Grant & Co., PACheryl Ottinger Lang, Tindall CorporationH. McRoy Skipper Jr., WebsterRogers, LLPMark E. Vinson, HopeHealth, Inc.Beth T. Zamorski, Todd, Bremer & Lawson, Inc. *

Behavioral Standards CommitteeBehavioral Standards CommitteeLewis E. Dutton, Cherry Bekaert & Holland, LLP - ChairEllen K. Adkins, WebsterRogers LLPGeorge W. DuRant, DuRant, Schraibman & Lindsay, LLCJohn Bratton Fennell, Burroughs & Chapin Company, Inc.Roger W. Fountain, Endeavor Insurance Services, IncKevin S. Light, Palmetto Brick Co.A. David Masters, Derrick Stubbs and Stith, LLP *Lamar J. Rabon, Rabon & Rabon, CPAs, LLCWilliam Ashley Thiem, Thiem & McCutcheon, CPAs, PAHendrikus E. Van Bulck, Van Bulck & Company, CPAsCarolyn L. Williams, Carolyn L. Williams, CPA, LLC

Benefits CommitteeBenefits CommitteeJames W. McIlrath, Duncan, Farmer, Munden, McIlrath & Co. *- ChairWilliam L. Byrd, William Levan Byrd, CPA, PCKendall F. Erickson, Robinson Grant & Company, PADanny M. Holcombe, Holcombe & Associates, LLCWalda C. Wildman, Walda C. Wildman, LLC

THANK YOU to Our 2012-13 SCACPA VolunteersBoard of Accountancy Autonomy Task ForceBoard of Accountancy Autonomy Task ForceJohn Bratton Fennell, Burroughs & Chapin Company, Inc.* - ChairKenneth Todd Dailey, Derrick Stubbs and Stith, LLPHarry B. Gregory Sr., Harry B. Gregory & Associates, CPAsKathryn Greene Heeney, Greene Heeney & AssociatesMark T. Hobbs, The Hobbs Group, PADouglas A. Snyder, SC Office of Rural HealthJason C. Sweatt, Ernst & Young, LLPCharles L. Talbert III, WebsterRogers LLP

Business Valuation and Forensic and Business Valuation and Forensic and Litigation Task ForceLitigation Task ForceHendrikus E. Van Bulck, Van Bulck & Company, CPAs - ChairGeorge W. DuRant, DuRant, Schraibman & Lindsay, LLCColleen M. Fellows, CMF Advisors LLCCharles Arden Gatchell Stephen A. Graham, A. Dowl Knight, CPA, PCSuzanne M. Harnois, Bernard N. Ackerman, CPA, PA *Larry A. Ramsey, Larry A. Ramsey, CPA/ABV, CVAChristopher G. Samellas, 11th Circuit Solicitor's OfficeCatherine B. Stoddard, Dixon Hughes Goodman, LLPAbner Calhoun Witham Jr., Witham Financial Advisors

CPE CommitteeCPE CommitteeChristina R. Kelly, The Hobbs Group, PA - Co-chairRebecca Monroe Lee, Sheheen Hancock & Godwin, LLP – Co-chairGary Scott Austin, Austin Business Consulting Group, LLCCharles E. Brown, SwaimBrown, PA *Lesley H. Kelly, McGregor & Company, LLPSheila S. Morgan, McAbee Talbert Halliday & CompanyEthel C. Pettigrew, Whitener, Pettigrew and Company, LLCDavid Reid Rosenberg, David R. Rosenberg, CPA, LLC

Editorial Board Task ForceEditorial Board Task ForceCharles E. Alvis, Winthrop University - ChairTimothy L. Baker, USC, Darla Moore School of Business *John B. Brantley, Central Electric Power CooperativeRobert Cagney CharlesAmanda S. Colgate, Godshall & Colgate, LLCLisa S. Cooke, John Shell Associates, Inc.Lesley H. Kelly, McGregor & Company, LLPMargaret L. Lattimore, SC Education LotteryA. David Masters, Derrick Stubbs and Stith, LLPDerrick B. Stark, MiraVista LLC

Educational FundEducational FundAngela W. Hamilton, Lee Broome MacBay & Associates, LLC - ChairPatrick P. Carey Jr., Carey & Company, PA *Jeffrey L. Deason, York County Natural Gas AuthoritySheryl McAlister, GSESCWilliam C. Robinson, Robinson Grant & Company, PACharles L. Talbert III, WebsterRogers LLP

Finance CommitteeFinance CommitteeJohn Bratton Fennell, Burroughs & Chapin Company, Inc. - ChairTimothy L. Baker, USC, Darla Moore School of BusinessCharles E. Brown, SwaimBrown, PA *Sharon E. Mann, General Information Services Inc.Michael R. Putich, Robinson Grant & Co., PARobert M. Tilton, WebsterRogers LLP

Financial Literacy Task ForceFinancial Literacy Task ForceKenneth L. Newhouse Jr., Moore Beauston & Woodham, LLP, CPAs & Consultants - ChairSylvia Cora Jean Wood Amaya, Roper Saint Francis HealthcareZoe M. Davis, Hubbard Davis CPAs, LLP *Anne Poag Harty, City of Rock HillCynthia Lousie Johnson, Burroughs & Chapin Company, Inc.Ryan Andrew Johnson, Wofford CollegeRenita M. Owens, Renita M. Owens, CPA, LLCUvette Pope Rogers, The Childrens Trust of SCLynn R. Sherlock, PricewaterhouseCoopers, LLPCatherine B. Stoddard, Dixon Hughes Goodman, LLPPamela P. Turner, Francis Marion University School of Business

Information Technology CommitteeInformation Technology CommitteeKeith M. Vincent, Keith M. Vincent, CPA - ChairScott Robert Abrams, Toshiba America Nuclear EnergyTimothy L. Baker, USC - Darla Moore School of Business *Mathew Alan Nesbett, IH Services Donald P. West, Donald P. West, CPA, LLC

Investment CommitteeInvestment CommitteeValerie E. Rumbough, Baptist Foundation of S.C. - ChairJohn Bratton Fennell, Burroughs & Chapin Company, Inc. *Sheryl McAlister, GSESC

Legislative & Advocacy CommitteeLegislative & Advocacy CommitteeJason C. Sweatt, Ernst & Young, LLP - ChairJohn F. Camp, Camp Moring & Cannon, LLCStephanie L. Denham, Pathology Service Associates, LLCNancy W. Drummond, Elliott Davis, LLCHarry B. Gregory Sr., Harry B. Gregory & Associates, CPAs,Kathryn Greene Heeney, Greene Heeney & AssociatesSamuel Hunter Howard Jr., Scott & Company, LLCJames E. Lollis, James E. Lollis, CPASharon E. Mann, General Information Services Inc. *Linda L. MayJ. Patrick McDermott, The Beach CompanyKenneth L. NewhouseJr., Moore Beauston & Woodham, LLP, CPAs & Consultants


Legislative & Advocacy Committee, con’t Legislative & Advocacy Committee, con’t Steven Charles Rau, Moore Beauston & Woodham, LLP, CPAs & ConsultantsCharles W. Schulze, Elliott Davis, LLCDouglas A. Snyder, SC Office of Rural HealthMarshall Stein, Elliott Davis, LLCCharles L. Talbert III, WebsterRogers LLPWilliam Ashley Thiem, Thiem & McCutcheon, CPAs, PAMaria Ekaterina Walls, Beaufort CountyJames Manly Ward, James M. Ward, CPA, PCCarolyn L. Williams, Carolyn L. Williams, CPA, LLC

Long Range Planning Task ForceLong Range Planning Task ForceA. David Masters, Derrick Stubbs and Stith, LLP * - ChairRoxanne Rich Caldwell, Dixon Hughes Goodman, LLPTimothy L. Baker, USC - Darla Moore School of BusinessSamuel Wilds Howle, Elliott Davis, LLCChristina R. Kelly, The Hobbs Group, PASharon E. Mann, General Information Services Inc.Charles M. Redfern III, Charles M. Redfern, CPA

Managing Partners Task ForceManaging Partners Task ForceA. David Masters, Derrick Stubbs and Stith, LLP * - ChairBernard N. Ackerman, Bernard N. Ackerman, CPA, PAJoseph T. Argo, Argo and Associates, LLPRobert M. Baldwin, Baldwin & Associates, LLCMark E. Ballew, Grant Thornton, LLPKenneth H. Bauknight, Bauknight Pietras & Stormer, PAJohn B. Beauston, Moore Beauston & Woodham, LLP, CPAs & ConsultantsMichael R. Bookhout, Smith Sapp Bookhout Crumpler & Calliham, PAKerry R. Brown, Brittingham, Brown, Prince & Hancock LLC, CPAsRoy F. Burch Jr., Burch Oxner Seale Company, CPAs, PADonald H. Burkett, Burkett, Burkett & Burkett, CPA, PAJ. Bradley Campbell, Cherry Bekaert & Holland, LLPR. Jason Caskey, Elliott Davis, LLCRoger B. Clinkscales, Bradshaw Gordon & Clinkscales, LLCRichard E, Davis, Elliott Davis, LLCEdward M. Farmer, Duncan, Farmer, Munden, McIlrath & CoTerri Grayson-Caprio, KPMG LLPMelonie H. Hammond-Trace, Elliott Davis, LLCMark T. Hobbs, The Hobbs Group, PAJames Scott Keim, SwaimBrown, PADick W. King, Pope Smith Brown & King, PAStephen D. Kirkland, Kirkland, Thomas, Watson & Dyches, LLCTerry D. Knause, Deloitte & Touche, LLPDonald J. Mobley, Scott & Company, LLCShelia D. Pace, Pearlstine Family CompaniesMichael R. Putich, Robinson Grant & Co., PAJulian Hartridge Roberts Jr., Welch Roberts & Amburn, LLPAnnette H. Ross, J.W. Hunt & Company, LLPTerry K. SchmoyerJr., Schmoyer and Company, LLCCharles W. Schulze, Elliott Davis, LLCGerald D. Skipper, McGregor & Company, LLPPhilip R. Snipes, Ernst & Young, LLP

Charles L. TalbertIII, WebsterRogers LLPDaryl W. Taylor, Sheheen Hancock & Godwin, LLPMichael D. Trammell, Dixon Hughes Goodman, LLPDebra A. Turner, WebsterRogers LLPDennis Vick, Dixon Hughes Goodman, LLPRaymond E. Warco, WebsterRogers LLPPatricia B. Wilson, Dixon Hughes Goodman, LLPMargaret G. Young, PricewaterhouseCoopers, LLP

Members in Business & Industry Task ForceMembers in Business & Industry Task ForceStacy L. Daniel - ChairJason Bassham, Nucor Corporation Vulcraft Group - Florence DivisionSusan J. Cribbs, Wesley CommonsRobert D. Capell Jr., ZF Transmissions Gray Court, LLCJeffrey Fitzharris, Environmental Express, Inc.Ryan D. Foster, UCI Medical AffiliatesTanya Green Greenlee, Burroughs & Chapin Company, Inc.Amanda Brooke Koehler, Turner Padget Graham & Laney, PACheryl Ottinger Lang, Tindall Corporation *Robert Alan Leichtle II, General Information Services Inc.Michael J. Osmundson, Bearing Distributors, Inc.Rebecca F. Richardson, Palmetto Health

Membership CommitteeMembership CommitteeWilliam Harold Jarrard, Jarrard, Nowell & Russell, LLC - ChairPenny Lewis, Penny A. Lewis, CPA, PA *Larry B. Mack, Mack Consulting, LLCCarolyn L. Williams, Carolyn L. Williams, CPA, LLC

Nominating CommitteeNominating CommitteeJ. Patrick McDermott, The Beach Company * - ChairTimothy L. Baker, USC , Darla Moore School of BusinessCharles E. Brown, SwaimBrown, PASylvia L. Kitchens Charles M. Redfern III, Charles M. Redfern, CPA

PAC CommitteePAC CommitteeDouglas A. Snyder, SC Office of Rural Health - ChairJohn F. Camp, Camp Moring & Cannon, LLCSteven M. Mann, Sumter School DistrictJ. Patrick McDermott, The Beach Company *Michael R. Putich, Robinson Grant & Co., PAVictor C. Webster, WebsterRogers LLP

Peer Review CommitteePeer Review CommitteeC. Thomas DeWitt, Robinson Grant & Co., PA - ChairJoseph Stanton Beck II, Jones Pounder & AssociatesMatthew A. Brown, Brown, CPA, LLCThomas D. Childers Jr., Elliott Davis, LLCKaren A. Currin, Phillips,Currin & Company, CPA's, LLCThomas E. Fitzsimmons, WebsterRogers LLPDennis L. Gore, Dennis L. Gore, CPA, LLCBrandon J. Hoffman, Hoffman & Hoffman, CPA, PACarol S. Hubbard, Hubbard Davis CPAs, LLP

Gary J. Johnson, Norman Johnson & Company, PARobert P. Jordan, Hill & Jordan, LLC, CPAsChristina R. Kelly, The Hobbs Group, PARebecca Monroe Lee, Sheheen Hancock & Godwin, LLPSusan B. McCracken, Dixon Hughes Goodman, LLPSheila S. Morgan, McAbee Talbert Halliday & CompanyHoward M. Nichols, Howard Nichols, CPAMichael R. Putich, Robinson Grant & Co., PA *David G. Phillips, Greene Finney & Horton, LLPDean L. Richardson, McGregor & Company, LLPMonica L. Rockwell, Cox, Cauley & Rockwell, LLCJames M. Stewart Jr., Waring & Associates, CPAs, PATerry K. Schmoyer Jr., Schmoyer and Company, LLCRandolph B. Thomas, McAbee Talbert Halliday & Company

Personal Financial Planning Task ForcePersonal Financial Planning Task ForceMarsha G. LePhew, Marsha G. LePhew, CPA, PC - ChairNeil A. Brown, Burkett Financial Services, LLCMeyer Drucker John J. Leahey, WebsterRogers LLPPenny Lewis, Penny A. Lewis, CPA, PA *Kevin Mark Tomas, Greene Finney & Horton, LLPNancy R. Waring, Waring & Associates, CPAs, PA

Taxation CommitteeTaxation CommitteeCharles M. Ayers, McDowell-Pearman, LLC - ChairWilliam R. Barefoot, WebsterRogers LLP *Donna Lee Bordeaux, Bordeaux & Bordeaux, CPAs, PAWilliam L. Byrd, William Levan Byrd, CPA, PCMichelle Comeaux, Blue Cross Blue Shield of SCJames M. Cudd, James M. Cudd, CPA, LLCKenneth Todd Dailey, Derrick Stubbs and Stith, LLPMichelle K. Florine, Derrick Stubbs and Stith, LLPRichard A. Gregory, Harry B. Gregory & Associates, CPAsBrandon J. Hoffman, Hoffman & Hoffman, CPA, PAW. Edward Howard Jr., W. Edward Howard Jr., Attorney at LawBrian Loftis Johnson, Suggs Johnson, LLCHarold W. Jones, Jones Pounder & AssociatesKenneth L. Newhouse Jr., Moore Beauston & Woodham, LLP, CPAs & ConsultantsSara B. Penn, Sara B Penn, CPAJames M. Stewart Jr., Waring & Associates, CPAs, PACaroline D. Strobel, USC - Darla Moore School of BusinessGayle H. Wenzel, Gayle H. Wenzel, CPAMaurice A. White, Maurice A. White, CPA

Technical Standards CommitteeTechnical Standards CommitteeJoseph Stanton Beck II, Jones Pounder & Associates -

ChairEllen K. Adkins, WebsterRogers LLPThomas D. Childers Jr., Elliott Davis, LLCBrandon J. Hoffman, Hoffman & Hoffman, CPA, PAJay J. Jacobs, Jay J. Jacobs, CPAPenny Lewis, Penny A. Lewis, CPA, PA *Gregory P. McLain, Benefitfocus.com, Inc.

* Denotes board liaison

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The 2013 Spring AICPA Council was held in Washington, D.C. May 19-21 and featured a full agenda. As the South Carolina elected member

to council, I had the opportunity to attend along with SCACPA Board Chair Michael Putich, Chair-elect Sharon Mann, Vice Chair Bratton Fennell, SCACPA CEO Erin Pate and COO Reva Brennan.

As is the case when council meets in Washington every other year, many of the speakers we heard from were politicians or political media personalities, who shared their perspective on the political landscape in 2013. Of particular interest were two of the newest members of the House who are both CPAs - South Carolina Rep. Tom Rice and Rep. Patrick Murphy of Florida.

Three items required a vote, all of which passed unani-mously. They included: a vote on the new definition of attest services; a vote to allow AICPA credentials to be offered internationally; and approval of the 2013-14 AICPA budget, which includes a nominal dues increase across all membership categories.

Spring 2013 Meeting of AICPA Councilby Pat McDermott, CPASCACPA member since 1982

At the conclusion of the meetings on Tuesday, we were asked to make visits to Capital Hill to meet with our sen-ators and congressmen and present the AICPA message on topics of interest. Erin and Reva had arranged meet-ings at four of our congressmen’s offices and both of our senators’.

We presented information on the topics of: Tax Return Due Date Reform (S.420 & HR 901); the Mobile Workforce State Income Tax Simplification Act of 2013 (HR1129), and Municipal Advisor Oversight Improvement Act of 2013 (HR797). We also made staff aware of AICPA’s availability for providing informa-tion with regard to Comprehensive Tax Reform. We had very positive feedback from all the congressional staff members we met with.

After our meeting with Rep. Rice, who was headed to the House floor for a vote, Michael, Sharon, Bratton and I were asked to have a seat in the House gallery while the congressman voted. After recording his vote on the bill, Rep. Rice joined us in the gallery for a brief period where he explained many items of interest to the four of us. To have a sitting member of Congress sit with you and explain the inner workings of the body is truly education-al, and not something this small-town guy gets to do very often. It truly was the highlight of my visit this year. n

J. Patrick McDermott, CPA, CGMA, serves as controller/treasurer of The Beach Company , Charleston. He is a member of the SCACPA Board of Directors and the Legislative and Advocacy Committee.

“To have a sitting member of Congress sit with

you and explain the inner workings of the body is

truly educational, and not something this small-

town guy gets to do very often. It truly was the

highlight of my visit this year.”

Pictured left: Chair-elect Sharon Mann, Vice Chair Bratton Fennell, Senator Tim Scott, AICPA Elected Council Member Pat McDermott and SCACPA Board Chair Michael Putich.


CPAYoung

Welcome to the YCPA sec-tion of the CPA Report. This quarterly feature section is designed to keep you informed about upcoming events, news and articles of interest that impact young CPAs. It is truly a work in progress, spear-headed by SCACPA’s YCPA Leadership Cabinet.

In 2012, we launched the Young CPAs Network. The network is designed to bring young CPAs together to exchange ideas, network, and advocate and encourage individual and professional growth. The Young CPA section of the magazine is just the first step in communicating directly to SCACPA’s young professionals. In the coming months we will also be launching a quarterly e-newsletter for net-work members, designed by young CPAs. Melissa Barbour, CPA, of WebsterRogers LLP, Charleston, is chairing the newly-formed communications com-mittee.

As you can see from the committee reports that follow, the cabinet has been hard at work. All of our committees have been actively involved in the Emerging Leaders Conference, our largest event of the year. The conference is a great opportunity to earn 16 hours of CPE, all of which are geared toward young CPAs. The curriculum includes both “technical” and “soft-skill” courses to help young CPAs acquire the competencies to excel as a CPA and as a leader.

If you are a CPA under the age of 35 and have not yet done so, I encourage you to join the YCPAs. With the substantial benefits you will receive, the membership fee of $30 is a great investment in your professional growth.

Remember, this is your network. If you have story ideas, suggestions for CPE or an idea for a social event, please contact me or one of the committee chairs. n

From the Chair

Harris Darver, cPAYCPA ChairSCACPA member since 2008

cOMMiTTee rePOrTs

cPe cOMMiTTeeThe 2013 Emerging Leaders Conference is set for Aug. 22-23 at the Marriott Columbia. If you are looking to grow and develop the essential skills to further your career in the CPA profession, then this is the event for you! The YCPA CPE Committee and SCACPA have worked extremely hard to make this a successful and valuable event for today’s rising leaders. The conference offers both technical and leadership skills that will help you become a stronger and more effective CPA and leader. We encourage all young CPAs to attend the conference and also take part in our networking event on Aug. 22. This is a great opportunity to meet CPAs from around the state and exchange ideas. We look forward to seeing you there!

Allyson DeHart, CPA - [email protected]

cOMMUNiTY serVice cOMMiTTeeThe Community Service Committee of the YCPA Cabinet is in charge of organizing an event every year for the YCPA Cabinet members to participate in to benefit the community. In prior years we have assisted various charitable organizations such as Lowcountry Orphan Relief in North Charleston and Project Host Soup Kitchen in Greenville. In the future, the committee plans to work with other charities throughout the state to provide support for those in need.

Members of the YCPAs will receive updates on community service activities of the YCPA Cabinet as well as other community service opportunities in their area. SCACPA is currently working to organize a community service initiative for all CPAs to participate in throughout South Carolina. YCPA members will receive information on what fellow young CPAs are doing in their region in regards to this initiative.

Joel A. Gibbons, CPA - [email protected]


2013-14 YCPA Leadership Cabinet executive committeeHarris Darver, CPA - ChairAlan Leichtle, CPA - Vice Chair/Promotions & Social Activities Committee Chair Allyson DeHart, CPA - Continuing Professional Education Committee ChairJoel Gibbons, CPA - Community Service Committee ChairMelissa Barbour, CPA - Communications Committee Chair

class of 2013Beth Blackwell, CPA, ElliottDavis LLC, CharlestonCharles Coleman, CPA, UCI Medical Affiliates, ColumbiaErica Dawgert, CPA, Athene Annuities, GreenvilleStephanie Estrada, CPA, Goodwill Industries of Upstate, GreenvilleThomas Godwin, CPA, Dixon Hughes Goodman, LLP, GreenvilleTrevor Hartley, CPA, McGregor & Company, LLP, ColumbiaMorgan Smith, CPA, Dixon Hughes Goodman, LLP, CharlestonKevin Wise, CPA, WebsterRogers, LLP, Myrtle Beach

class of 2012Melissa Barbour, CPA, Streetman, Jones & Powers, LLC, CharlestonHarris Darver, CPA, McGregor & Company, LLP, ColumbiaAllyson DeHart, CPA, The Hobbs Group, PA, ColumbiaStephanie Denham, CPA, Pathology Service Associates, LLC, FlorenceAlan Leichtle, CPA, General Information Services, Inc., ChapinDoug Torchio, CPA, Johnson Lambert & Co., LLP, CharlestonDamon Hilton, CPA, College of Charleston, Charleston

class of 2011Courtney C. Cribb, CPA, WebsterRogers, LLP, Florence Valarie Davis, CPA, Bauknight Pietras & Stormer, PA, ColumbiaJoel A. Gibbons, CPA, WebsterRogers LLP, CharlestonRussell D. Gladden, CPA, The Springs Company, LancasterSamuel W. Howle, CPA, Elliott Davis LLC, ColumbiaCrystal L. McGuire, CPA, MBA, LS3P Associates, Ltd., CharlestonDana E. McMurry, CPA, Dixon Hughes Goodman, LLP, CharlestonJames B. Reese, CPA CITP, CISA, J.D. Shirley LLC, ColumbiaPatrick C. Thomasson, CPA, Scott & Company, LLP, GreenvilleMolly G. Waring, CPA, Elliott Davis, LLC, Charleston

PrOMOTiONs AND sOciAL cOMMiTTeeThe Promotions and Social Committee has the responsibility of creating networking events at various meetings and promoting the events to raise attendance.

All young CPAs are invited to attend the next event which will be held in conjunction with the Emerging Leaders Conference. The social will take place on Aug. 22 at the Carolina Ale House in the Vista. If you are unable to attend the conference, I would still encourage you to attend the social event. This is a great opportunity for you to network with your peers and learn more about the YCPAs and the YCPA Leadership Cabinet.

We are also looking for new locations around the state to hold meetings, social events or just enjoy a meal together. If you have ideas for future events, or suggestions to improve our events, please contact me.

Alan Leichtle, CPA - [email protected]

Class of 2011courtney c. cribb, cPAWebsterRogers LLP, Florence

samuel w. Howle, cPA Elliott Davis LLC, Columbia

James B. reese, cPA ciTP, cisA, J.D. Shirley LLC, Columbia

Patrick c. Thomasson, cPA Scott & Company, LLP, Greenville

Class of 2010roxanne r. caldwell, cPA, MPADixon Hughes PLLC, Greenville

Kirby L. coker, cPA WebsterRogers LLP, Georgetown

cory Ouellette, cPAElliott Davis, LLC, Greenville

william A. “Ashley” Thiem, cPA Thiem & McCutcheon, CPAs, PA, Charleston

Congratulations YCPA Leadership

Cabinet Graduates


CPAYoung

Leadership is Changing - Do You Have What it Takes?

When my son was in preschool his teacher told me he was a natural born leader. While I interpreted the state-

ment as perhaps my son was a bit bossy, I still remember how that moment filled me with pride – out of all his classmates he was the “chosen one.”

I share this story to demonstrate that as recently as 20 years ago leadership was viewed as a position, and power lay within that position. Even Merriam-Webster defines leadership as the office or position of a leader. While there are still some that hold to this phi-losophy, leadership is changing.

According to the Center for Creative Leadership, there is a growing movement toward collective leadership, meaning away from leadership as a position and toward leadership as a process. In its research on how to develop a leadership strategy, the center states:

“We must understand leadership culture, as

defined by the collec-tive actions of formal and informal leaders acting together to influence organi-zational success. It is not simply the number or quality of

individual leaders that determines organiza-

tional success, but the

ability of formal and informal leaders to pull together in the support of organizational goals that ultimately makes the difference. “

Taken a step further, leadership is about the relationships within an organization and lever-aging those relationships to achieve a common goal. What have not changed are the traits of an effective leader – communication, influence and collaboration – however, this is no longer a top down process. Instead, all three now occur up, down and across every organization.

So, what does all this really mean and more importantly why should you care? For young CPAs there is an abundance of opportunities to lead within your organization, your profession and your association. And, these leadership op-portunities can be long-term processes, such as the path to partner, or short-term such as leading a firm project. Within SCACPA you can commit to serving on a task force or take advantage of an ad hoc opportunity including serving on a quick action team, writing an article for the CPA Report or serving as an on-site coordinator for a confer-ence. You can also apply to the Young CPAs Leadership Cabinet where you will receive train-ing on leadership traits – communication, influ-ence and collaboration. Regardless of which you choose, you are gaining exposure to formal and informal leaders and learning how to cultivate these relationships to achieve a common goal. n

by Maureen TaylorSCACPA Director of Marketing & Members Services

SAVE THE DATE!SAVE THE DATE!2013 Emerging

Leaders Conference

Aug. 22-23, 2013Marriott City Center

Columbia, SC

C L I C K

Leadership is a process. Are you ready to take the next step?

Take the next step in leadership and register for the Emerging Leaders Conference – www.scacpa.org/emergingleaders. For more information on SCACPA volunteer opportunities visit www.scacpa.org/getinvolved. To read more about collective leadership visit the Center for Creative Leadership at ccc.org.

“What have not changed are the traits of an effective leader – communication, influence and collaboration – however, this is no longer a top down process.”


Finding value and personal grati-fication, along with professional success in a career is a priority

for today’s graduates - entry-level accounting professionals included. Entry-level accounting professionals desire a different kind of value from their profession than what has been expected by earlier generations.

Where older generations are more likely to emphasize productivity and billable hours, today’s young pro-fessionals find value in community involvement and service, which offer intrinsic as opposed to monetary rewards. Those entering this profes-sion may be challenged by inflex-ible expectations of production and hours that are characteristic of the traditional accounting firm structure.

Additionally, new entrants will be challenged to persuade their supervi-sors to invest in opportunities that allow this younger generation to grow leadership skills and develop a community presence. Again, this challenge is rooted in a difference of opinion as to wherein value lies. Young professionals will be chal-lenged to demonstrate to their super-visors the value of this non-billable time.

More so than earlier generations, today’s entry-level staff are seeking a balance between work demands and their personal time. Entry-level staff are likely more willing to sacrifice salary in exchange for reduced working hours. This does not mean that they do not desire professional advancement, but they are less willing to sacrifice family and per-sonal time to do so. This presents a challenge to entry-level staff that are evaluated for advancement by members of an older generation who view sacrifices of personal time as an expected necessity to achieve a level of production that warrants advancement. This is particularly true of those

supervisors who have achieved their success through sacrificing personal and family time.

A sense of individuality and personal identity is important to our society’s younger generation. This will chal-lenge young professionals to maintain their individuality in an occupation whose work product lends itself to little creativity and is strictly regu-lated. Additionally, while some young professionals may be fortunate to be given meaningful responsibilities early in their career through which they begin to develop niche practice areas early on, this is not the case for many. Young professionals will face the challenge of finding meaningful work and developing an area of ex-pertise with supervisors who invest in that employee’s future. This younger generation will also be challenged to concern themselves more with the quality of their work product than how quickly the product was pro-duced. This generation is often more results-driven, which will prove to be a challenge in this profession, particu-larly when detailed careful analysis and follow-up is extremely important.

Technology plays a major role in chal-lenges that will be faced by younger professionals. While this generation is well-versed in technological skills compared to older generations, these professionals may have less ability to communicate with or manage staff. In particular, younger profession-als may not understand the value of face-to-face communication. Too often young professionals attempt to address complex topics or conflict using short-hand communication when a more productive form of com-munication may be over the phone or an in-person conversation. Given the common-place nature of email or text messages in this generation’s

Key Challenges Facing Entry-level Accounting Professionalsby Harris Darver, CPA SCACPA member since 2008

“This younger generation will also be challenged to concern themselves more with the quality of their work product than how quickly the product was produced.”

continued on page 42


SCACPA members gathered in Columbia on May 1 to make their voice heard during CPA Day at

the State House.

The annual event featured updates on legislative and regulatory issues as well as an opportunity for SCACPA members to interact with legislators and discuss issues of concerns to both CPAs and their clients.

Cynthia Lund, vice president, state society affairs, AICPA offered a na-

SCACPA Members Make Their Voice Heard at CPA Daytional perspective on the most pressing topics facing the profession. Attendees also received an update on SCACPA’s legislative agenda from Copper Dome Strategies, SCACPA’s lobbying team and Legislative, Regulatory and Advo-cacy co-chairs Jason Sweatt and Todd Dailey.

SCDOR Director Bill Blume, CPA, shared what the agency is doing to be-come more accountable and taxpayer friendly. The program also featured a panel discussion on South Caro-

lina’s initiatives on regulatory review, facilitated by Chuck Bundy, deputy director of Small Business and Exist-ing Industry at the S.C. Department of Commerce.

Well over 100 were also on hand to welcome 34 new CPAs into the profes-sion. Sponsored by Dixon Hughes Goodman, Webster Rogers LLP and Bernard N. Ackerman, CPA, PA, Bill Blume administered the oath during the New CPA Oath Ceremony. n

Pictured top left: McRoy Skipper Jr., WebsterRogers LLP and Meyer Drucker Top right: Marie Spearman, Allison Ludwig, Bernie Ackerman, Jeannette Campbell and Jason Ackerman all with Bernard N. Ackerman, CPA, PA Bottom left: Chair Michael Putich Bottom right: Tim Duncan, Duncan, Farmer, Munden, McIlrath & Co.; John F. Camp, Camp Moring & Cannon, LLC; and John F. Hamilton, Hamilton McKinney & Moss, CPA.


Jason AckermanThomas Adams Jr.Jenifer AkersLaura Amick *Oyebukunola AndeDwight BaileyDeanna Barabas *Brett BartonRichard BeasonMagdalyn BellLeigh BethmannCheryl Bohlen *Dawn BondarMargaret Bost *Elizabeth BrighamLouise Brodie *Angela BrownJared BrysonRyan Byrd Deeann Cain Jeannette Campbell *Cody Carter Andrew Chalupa Elizabeth Chapman *Andrew ChernickCi Chu Dean Cochenour Jessica Coker Nicholas Crandall Margaret Creech * Gabriel Creech Ashley Cribb Henry Crider Jr. *

Hilary Davenport Kseniya Davis Leroy Dixon III *Megan Duffy *Bradley Ebenhoeh Philip Falzone Eric Farmer Jr. Benjamin Farthing Ian Ferguson *Lindsey Fisher * Brian Ford *Shannon Fortenberry *Stanislava Fowler *Wendy Fuhrmaneck Thomas Gaffney Aarpm Galloway Nathan Gillow *Jessica GlenneyJohn Goldstein Valerie Gray *Kendall Green James Gregory Lauren GuthrieQuincy Halliday IVAdam HardestyRichard HargraveKatherine HartTrevor Hartley *Trent HawkEdwin Henry *Tamara HicksKaleb HoeflerAdam Hoey *

Katherine Hoey *Roy Holland Jr.Jonathan Hood*William Howland *Kenneth HugendublerBrian Jordan *Jens KaufmannShaun Kazemian Richard KenyonJohn KingShane Kirkley *Elaine KovaksKelly-Jean Kwiatkowski Spencer LewisBarry Long *Allison Ludwig James Mackintosh IVPhilip Maiberger Pearl Marodis Vanessa McCutchen Brannon Medley Nathaniel Melsom Melynda Meyer Helen Michael *Brittany MilesCraig Miller *Scott Montgomery * William MorganZachary Mueller *Robert MullerCharles MyersMichael O’Brien Holly Oglesbee

2012-2013 New CPAsWesley PaulJason Pflug *Andrew Preston *Joseph Reese *Heather Rhinehart *Kayla RiceRachel Rines-Leach Ally Rivers *Megan Shoenbauer Kevin Shantz Chelsea Shoolbred *Elizabeth Shull *Richard Sines *Marcia Smeenk *Morgan Smith *Daniel Smoak *Constance M. Spearman *Mallory StampsGreg StribosChristine Strople *Alison Swaggard *Gregory ThompsonGlenn Thornburg Laura Varn *Katherine Von Ruden Gerald Walker *David WeddingJeremy Whitaker *Philip Williams *Marla WomackPatricia Yount *Piet ZanerXiaojun Zhang Marina Zimiceva *

*Reflects SCACPA member at time of Oath Ceremony.


Technology

Managing and retaining data has emerged as the top priority for CPAs, according to the 2013 North America Top Technology

Initiatives Survey. That’s a departure from results in the United States last year, when IT security led the list – a spot it had claimed for nine of the past 10 years.

The survey, a joint effort between the American Institute of Certified Public Accountants (AICPA) and the Chartered Professional Accountants of Canada (CPA Canada), was based on responses from members of both organizations interested in information technology. While survey respondents see data as a key differentiator for businesses, they are less confident in their organizations’ ability to successfully address several underlying technology priorities than they were a year ago.

The Top five U.s. concerns Are:1. Managing and retaining data 2. Securing the IT environment 3. Managing IT risk and compliance 4. Ensuring privacy 5. Managing system implementations

In this special section, SCACPA members share some of their technology concerns and lessons learned.

Technologyn Selecting a Cloud Accounting Strategy for a

Public Accounting Practice

n Thriving (Hopefully) in a New Environment

n Going Paperless….Not as Easy as 1, 2, 3

n Tools You Can Use On the Go

n What is BYOD and Do I Want One?

n Reducing Fraud with Technology

FOCUS ON TECHNOLOGYCloud Computing (94113) August 22

Identity Theft: Preventing, Detecting, and Investigating Identify Theft (90913A) August 26

Fraud Conference co-sponsored with Palmetto Chapter of ACFE (411213) September 26

Using the iPad as a Business Tool (99113) December 13

Paperless Office (99313)December 17

Visit www.scacpa.org to learn more.

C P E


Cloud accounting – by now, most of us have heard the term. What is it? Should I be

doing it? What are the issues?

wHAT is iT?The term may be new, but the concept is as old as computers themselves. When computers came into vogue in the 1950s, it was predicted that computing services would end up being sold just like electricity or other utilities. Customers would own “dumb” terminals, devices without storage or computing capacity, and buy storage and computing services from a handful of providers. Many of us in the accounting profession witnessed the “technology boom” of the 80s and 90s. During that time, the prices for personal computers

and network servers became more affordable for small business. There-fore, enterprises brought their data processing in house, purchased their own hardware and hired information technology professionals to keep it all working properly. SMEs did the same with their accounting services. They brought their accounting ser-vices in-house and invested heavily in hardware, accounting software and accounting personnel. But a few years ago, the status quo for in-house computing and accounting was given an alternative. The alternative was to forego the increasing costs in hard-ware, software and personnel and to once again outsource those services. Providers of web-based accounting, computing and storage services were popping up on the scene. Cloud ac-

Selecting A Cloud Accounting Strategy for a Public Accounting Practice

by William R. Barefoot, CPASCACPA member since 1998

“But a few years ago, the status quo for

in-house computing and accounting was given an alternative.

The alternative was to forego the

increasing costs in hardware, software

and personnel and to once again outsource

those services.”


counting is the term for providing accounting, computing and storage services through Web-based applica-tions.

A couple of years ago, the AICPA and CPA2biz began a campaign to get firms to move to providing ac-counting services “in the cloud.” Our firm decided we wanted to explore offering cloud accounting services to our clients. There are several points to consider before deciding if cloud accounting services are right for your firm.

Find a champion – Do you have someone willing to take the lead in championing this service, both exter-nally and internally? This probably needs to be someone in senior man-agement or owner/partner level. The person(s) needs to be an early adopter of change and be willing to take criti-cism as the challenges of doing things differently are being experienced.

Explore your options – There are many third-party vendors now who will partner with CPAs to provide accounting services. The AICPA has preferred providers that you should check out. However, you should not overlook those not listed with the AICPA. In any case, you will want to perform due diligence for security, reliability, service, backup procedures and maintaining client confidentiality.

Partner “buy-in” - You will be more successful if you have the support of all your partners. There may be some resistance to changing the way ac-counting services are provided to your clients. If possible, you should try to address their concerns before launch-ing cloud accounting services.

How will my clients react? – Obvious-ly this is very important. Some clients are more than happy to change the way they provide and receive infor-

mation; others may not be so willing. Do you force everyone to change to the “new and improved” method, or do you allow them to choose? Is it a gradual change or do you give a dead-line for making the switch? In talking with other CPAs that are providing cloud accounting services I learned that it is being done different ways.

Can I do this profitably? - Another concern is pricing engagements. One of the reasons SMEs took their accounting back in house is they determined they could do this cheaper themselves. In order to earn back these services, we

Technology

have to show them an economic ad-vantage to do so without losing money ourselves. This can be challenging. I once heard someone say that if the fees for outsourcing services are three-fourths what it cost to perform in-house, then maybe it should be done in-house. What is not always considered are the hidden costs of per-forming a function. Discovering those hidden costs is critical in being able to properly price outsourced services and, perhaps more importantly, selling those services to your clients.

Staff training – How long will it take to get staff trained on new procedures and software? Do you have the right staff for cloud accounting services? You should allow enough time for staff to get trained and in some cases certi-fied with the new applications. The learning curve may lead to lower real-ization numbers for a while. This is an investment in the future of your firm you should be willing to make in order to be successful. If you do not provide the necessary training and support, your staff may become unhappy and leave the firm.

“The learning curve may lead to lower realization numbers for a while. This is an investment in the future of your firm you should be willing to make in order to be successful.”


These are some of the main things to consider before adopting a cloud accounting services niche. Next are some initial concerns I had of cloud accounting services.

WHAT SHOULD I BE CONCERNED ABOUT?A chief concern I have is whether the cloud applications and/or providers deliver what I promise. There are two ways to provide cloud accounting services – cloud accounting applica-tions and hosted services. With cloud accounting applications you log into the application directly. An example of a hosted service is when a third party provides a network you access on the web and hosts an application on their network. With either service, you have to depend on that provider to deliver so it doesn’t reflect negatively on your reputation.

Security – Will your client’s infor-mation be safe? The conventional wisdom is that your data will be safer than on your local server because the companies providing the service can afford better security. I hear about data breaches too often it seems, so it is still something to consider.

How reliable is their application/network? - I don’t want calls from clients telling me they cannot access their information. Most cloud ac-counting companies can provide you with statistics for down-time. You should ask about it.

Portability – Most cloud accounting providers have proprietary technolo-gy. So, if your client becomes dissatis-fied with XYZ and decides to switch providers, their data may not import into another cloud accounting service. Maintaining and accessing historical data may be a challenge.

Competition for clients – Some cloud accounting service providers may be

competing directly with you for new clients and possibly for other services with your existing clients. Be sure you discuss what is acceptable before agreeing to terms.

Disclosure and engagement letters – Disclosing your use of third party vendors and covering everything in the engagement letter is very impor-tant. You should indicate what you are providing for your client and what you are not providing. For example: we want to make it clear that we are not providing information technology consulting and only are providing consulting services for the account-ing applications or processes we are engaged.

We have been providing cloud ac-counting services to our clients for a little over two years. It may not be right for everyone. We have faced challenges and learned lessons along the way. It has helped us collaborate with clients more efficiently and more clients are interested in the advantages and features of cloud accounting. I think it is the right way for the profes-sion to provide efficient accounting services to our clients and it can open the door for other tax and audit ser-vices. n

William Barefoot, CPA, is business advisory services manager with WebsterRogers’ Florence office. He currently serves on the SCACPA Board of Directors and the Audit Committee.

At WebsterRogers, we’ve been providing peer review services since the AICPA required them to be mandatory for those in public practice. We are dedicated to enhancing the quality of accounting, auditing and attestation services provided by AICPA members. Our professionals regularly provide peer review services to small and large public accounting firms across the eastern United States.

Please contact Tom Fitzsimmons at 843.665.5900 or Chuck Talbert at 843.577.5843 for more information

Do you need a peer review?

Charleston . Columbia . Florence . Georgetown . Hilton HeadLitchfield . Myrtle Beach . Summerville . Sumter


Technology

I wasn’t alive when calculators were invented. I can only imagine that they took the world by storm. I

was working in public accounting when the idea of working in a largely integrated and digital environment came around, and it’s still taking our profession by storm.

My firm decided to reduce our use of paper in 2006 by scanning client back-up instead of adding it to existing files. We finally shredded the last paper file five years later in 2011. However, we told clients we were paperless at that time, and we were to a large degree, just not completely, I suppose.

Over time, we explored moving our stored data to the cloud for quicker, remote access. We now utilize a host-ing service for our QuickBooks Pro client files. In recent weeks, we decided it was time to transition away from natively installed tax preparation soft-ware and look to a cloud-based (SaaS) solution. As with any software ap-plication change or systems change, the

transitions are never easy. Knowing the desired end result of the change is critical and something we had to learn the hard way.

We learned a lot on our journey to become a digital and integrated CPA firm. For instance:

You must have a documented system for everything you do. We had no systems for anything…we only had technicians doing those things. You cannot successfully shift from paper and native software to a cloud-based/digital environment without setting up systems for everything you currently do. The idea here is to replicate the system throughout your firm and teach your team, and with no system that is impossible. We are currently work-ing on a documented system for every function in our firm.

You must know why you want to make a change from your current system. We made the call to go paperless before we knew why we wanted to

Thriving (Hopefully) in a New Environmentby Jonathan Godwin, CPASCACPA member since 1999

do it. So, when we decided to explore cloud-based tax preparation software, we took two years to analyze every reason why this change would benefit the firm. Now, we are ready and I have confidence it will work. Blowing things up and starting over takes time, so we decided to do things right the first time.

You must explain the changes to your clients so they’re comfortable with them. In our case, some were open to changes in our technology and some were very nervous. We didn’t roll out our ideas in a comforting way, and we paid for it with push-back, hours of questions, frustrated emails and confusion. Clients don’t care how things get done as long as they are done correctly, in a timely manner as promised, and with as little inconvenience to them as possible. When you make a change such as introducing portals, make sure to ease your clients’ minds about potential problems and security.

We continually look for ways to be more effective for our clients, even if we sacrifice efficiency in the short-term. Moving to a more digital environment was the right move for us because it allowed us to serve our clients better. What is your next move? n

Jonathan Godwin is the president of Godwin & Associates, CPA, specializing in assisting small businesses with tax structure matters and planning/advisory/preparation. Visit www.godwincpa.com to learn more.

“Knowing the desired end result of the change is critical and something we had to learn the hard way.”

SCACPA has scheduled these unique, 8-hour seminars where the materials will be presented on an iPad, provided for your use during the day or you can choose to use your own device!


When my CPA firm decided to move from having a room devoted to filing cabinets of client backup to digital copies stored on an in-house

server, it was a monumental day. One day, we filed paper; the next day, we scanned it. It sounded so easy.

As any firm owner who has attempted to “go paperless” knows, it’s not that easy. The challenges are going to come both in setting up a paperless system and in maintaining one. Here are a few things to consider in your paperless journey:

Why do you want to go paperless? What are the problems and hang-ups with the current paper system? Will having less paper make your life better? Will it be easier to share information with your team and with clients if that infor-mation is in digital form? Will it be more cost effective? Identify exactly where you want to be so you’ll recognize it when you get there. And no, being cool and tech-savvy isn’t a good enough reason.

Do you have a system in place for being paperless? I know, you think that being paperless IS your new system. It’s not. One simple and critical thing that we didn’t think about initially was the importance of naming PDFs in a consistent manner. In our case, we went paperless and then had to build the system. Walking to a file cabinet and pulling a file is simple. Browsing through your entire server for a client’s 2010 tax return that has been titled in an inconsistent manner isn’t easy. Before going paperless, you need to develop a system that is focused on every item of detail, including a consistent method for naming your scanned documents.

Are your clients ready? My firm is, for all intents and purposes, paperless. My 76-year-old individual tax client is nowhere near paper-less. So, you need to think through the processes now that you want to live in a digital world and some of your clients don’t even own a computer. We spent a great deal of time thinking through this aspect of our firm, and while we love working with clients who use technology, we also love our clients who keep accordion folders of tax documents. I know practitioners who have stopped working with clients who won’t adopt their paperless policies. You need to determine where your firm stands on this issue.

by Jonathan Godwin, CPASCACPA member since 1999

250 N. Trade Street, Suite 207 | Matthews, NC 28105Tel: 704.845.9490 | www.jerrymeek.com

A tax lawyer with courtroom savvy.Jerry has more than 14 years of courtroom experience, having litigated cases in 18 states and scored several multi-million dollar verdicts. He graduated with distinction from Georgetown’s Tax LL.M. program, after receiving his J.D. and A.B. from Duke University.

Jerry represents North and South Carolina clients in U.S. Tax Court proceedings, federal refund actions, tax collection actions, and state income and sales tax proceedings.

When it’s time for your client to call in a tax lawyer, Jerry Meek is courtroom ready.

It’s a rare combination:

Does your firm’s culture support being paperless? If I had it to do over again, I would wait on becoming paperless because my firm wasn’t ready. Nothing will derail build-ing a new system than doing it before the players are ready for it, and more importantly, before you can describe it and replicate it. Talk to your team, heed the feedback of key team members and build this new system slowly. It will be with you for a long time to come, so do it right the first time if possible. n

Jonathan Godwin is the president of Godwin & Associates, CPA, specializing in assisting small businesses with tax structure matters and planning/advisory/preparation. Visit www.godwincpa.com to learn more.

“Walking to a file cabinet and pulling a file is simple. Browsing through your entire server for a client’s 2010 tax return that has been titled in an inconsistent manner isn’t easy.”

Going Paperless….Not as Easy as 1, 2, 3


Technology

The age of the mobile device is upon us. Every day we hear about a new app or portal that

can help our clients, or us, gain access to the tools we use every day. But what about the other uses for your tablet or mobile phone? Let’s review a few practical apps that might make your business life a little easier when on the go. We will review three differ-ent areas, and discuss different apps in each.

MeeTiNG Or cONfereNce APPLicATiONsDo you use applications such as Citrix Online’s GoToMeeting or Microsoft’s Skype to communicate with co-work-ers and clients? These same apps are available for several mobile operating systems and allow you to take that call from virtually anywhere you have connectivity.

Citrix Online’s service, GoToMeeting, ( www.gotomeeting.com) is a sub-scription service that many companies utilize. The service allows up to 25 callers on a single call, and handles audio and video. The calls may be recorded, if the host desires. Mul-

tiple user accounts are also available. GoToMeeting has conferencing apps for the iPhone, iPad, and Android Operating Systems.

Microsoft’s Skype offering (www.skype.com/en/) is used by many indi-viduals and businesses. Skype allows video and audio connections with other Skype users at no charge. Group video calls with up to 10 individuals, or calls to cell phones or land lines require a subscription. Skype has apps for iPhone, Windows, and Android phones. Supported mobile device environments include Android, iPad, Kindle Fire, and Windows 8.

OrGANiZATiON APPLicATiONsDo you ever wonder what you did with that piece of paper or sticky note? Do you need your notes at home, when they are at work or vice versa? Then you may be a candidate for an organization application, such as Evernote or Microsoft’s OneNote.

An organization application helps you bring together your various notes about a number of different topics and organize them all in one place.

Evernote (www.evernote.com/ ) is an application that allows you to store text, pictures, sounds, or just about any object you want. You are able to index the objects with keywords, so finding things is very simple. Evernote allows for storage of these different items on the Web, so that they can be accessed from virtually any device. File storage above the entry level 500 MB incurs a monthly fee. The application has clients for Windows or Mac computers on the desktop, or iPhone, iPad, Android, Windows phone and Blackberries at the mobile device level.

Microsoft’s OneNote (www.office.microsoft.com/en-us/onenote/) allows you to take notes and other items in a similar format to Evernote. OneNote can be used locally. In order to share OneNote you will need to be working on a network, or have a subscription to Microsoft’s Office Web Apps. OneNote operates with Microsoft Windows on a PC, and Android, iPhone, iPad, and Windows devices.

fiLe sHAriNGFile sharing is something that always has a use. There are several commonly

Tools You Can UseOn the Go

by Timothy L. Baker, CPA, CITP, CMASCACPA member since 1995

“An organization application helps you bring “An organization application helps you bring together your various notes about a number of together your various notes about a number of

different topics and organize them all in one place.”different topics and organize them all in one place.”

continued on page 29


To accompany the article on productivity apps for mobile devices, we thought it a

good idea to cover some essential security concerns. But let’s start with some key terms first.

BYOD stands for bring your own device. Many of SCACPA’s practi-tioners never had this opportunity, as laptops were called portables, weighing approximately 40 pounds each, and the only cell phones came in bags. Those were the days!

Today’s proliferation of devices and connectivity has led us to people having the capability and desire to access data anytime, anywhere. It can be an enabling technology for staff and clients, allowing for quicker access to information, decision making and response.

Let’s discuss a scenario with a hypothetical staff member named Fred. He is the star in your audit department. His use of technology has propelled the practice. Fred is

in the Atlanta airport waiting for a flight. He leaves his bags and laptop sitting in a chair while getting a cup of coffee. Someone picks up the firm laptop and his phone. The laptop has been secured with a password

What is BYOD and Do I Want One?by Timothy L. Baker, CPA, CITP, CMASCACPA member since 1995

utilized apps for this purpose. A few of the applications are Dropbox (www.dropbox.com), Microsoft’s Skydrive (http://skydive.live.com), and Google Drive (www.drive.google.com).

These applications allow you to store a limited amount of data at no charge (from two to 15 MB), then charge a base subscription fee after that. You are able to add users (typically one) to

share the files with. The ability to share with a group and add group folders typically is available with the paid model.

File sharing should be used with great care. Please see the article on BYOD security for more information.Meeting, organization and file sharing are just a few of the general utilities that we can use on devices to be more productive. Utilizing apps like these, in conjunction with firm and platform

portals and apps, can help us to be more productive, without regard to our location. n

Timothy L. Baker, CPA, CITP, CMA, is a lecturer at the University of South Carolina Moore School of Business. He is past president of the SCACPA Board, chair of the Accounting Careers and Academic Relations Committee and a member of the Long Range Planning Task Force and Editorial Board Task Force.

and has remote shutdown ca-pabilities installed by your out-sourced IT provider. Now the bad news. Fred’s personal iPhone has company email, credit card, firm portal and file sharing applications on it, all of which is accessible with merely the swipe of a finger. Fred found the device level password to be cumbersome, and didn’t have time to set up the Find My iPhone app that comes with the device. Get the picture?

Your firm should take a look at understanding who uses what on BYOD. Are files being shared with clients? Does your firm have policies on BYOD usage? What about policies for reporting loss or theft of a device to your firm, with disclosure on what was on the phone? These are just a couple of the risks to think about. A good place to start is a firm census, to help in understanding who is using what technology. You would then be able to start a policy on usage, and provide training and remedia-tion as needed. n

continued from page 28


Technology

by Thomas G. Stephens, Jr., CPA, CITPK2 Enterprises

The statistics are everywhere and they are startling – fraud continues to run at epidemic levels, not only in the United States, but also across virtually all countries. In fact, according to the Association of Certified Fraud Examiners 2012 Report to the Nations on Occupational Fraud and Abuse, the

typical organization loses approximately 5% of its gross revenues each year due to fraud, with the median loss pegged at $140,000. However, this need not be the case, because you already own some very effective tools for preventing and detecting fraud and they reside on your computer. In this article, I will provide some guidance for using tools that you already own – namely Microsoft Office Excel and Access – to help you detect fraud and to reclaim some of your profits that may be walking out the back door.

the formulas, the results can be filtered to identify specific transactions of interest.

Note the formulas used to identify transactions of interest in Figure 1. One formula uses the WEEKDAY function to iden-tify the day of the week that the journal entry was recorded. Transactions entered on Saturday or Sunday evaluate to "7" and "1" respectively. The other formula uses the MOD func-tion to calculate the remainder of the debit amount divided by 1,000. Transactions entered in even $1,000 amounts generate a result of "0".

UNcOVeriNG fiNANciAL sTATeMeNT frAUDOne of the more expensive types of frauds committed is that of financial statement fraud. These frauds can be com-mitted using any number of techniques, including record-ing fraudulent journal entries. Common characteristics of fraudulent journal entries include those in round dollar amounts and those entered on weekends. In the example shown in Figure 1, selected fields from the Journal table have been extracted into an Excel Table from a company’s accounting database. Two calculated fields are used to identify transactions in round dollar amounts and those transactions entered on Saturday or Sunday. After creating

figure 1 - Identifying Suspicious Journal Entries

Reducing Fraud With Technology


fiNDiNG DUPLicATe PAYMeNTsAnother way that fraudsters may commit a billing scheme fraud is to make multiple payments on a valid invoice. Generally, when a legitimate vendor receives a duplicate payment, the vendor notifies the customer and asks how the duplicate payment is to be handled. In these cases, the person committing the fraud will request a refund and then intercept and negotiate the refund check. Identify-ing and investigating duplicate payments becomes an important part of the fraud prevention and detection process.

Microsoft Access has a query wizard for identifying duplicate values in a field or across multiple fields. From a fraud detection standpoint, this feature can be very effective in identifying poten-tial duplicate transactions, such as duplicate payments of the same invoice. To begin the process, select Create, Query Wizard from the ribbon. In the New Query dialog box, select Duplicate Query Wizard and then click OK, as shown in Figure 2. figure 2 – Find Duplicates Query Wizard in Microsoft Access

Next, select the source data to query. Once the data source has been chosen, select the field or fields con-taining possible duplicate values, and then select any additional fields to be displayed in the query results. In this case, select Name and Amount as the fields that contain the possible duplicates, and then choose to display all fields in the results. Finally, name the query for future recall and click Finish to view the results, as shown in Figure 3.

figure 3 – Duplicate Payments Identified with Access Query

UsiNG THe AcTiVeDATA ADD-iN fOr eXceLActiveData is an add-in for Excel that uses pre-defined automated processes to overcome the general lack of user knowledge and skill required to perform sophisticated fraud analysis in Excel. Priced at $249 per user, most potential users of ActiveData will not find the acquisition cost to be a barrier to obtaining the functionality embedded in this tool.

For example, ActiveData can be used to stratify data easily. Stratifying data is an effective tech-nique for identifying areas of risk. Select Strata from the ActiveData tab, define the stratification bands, and then click Stratify. Click Finished to write the results along with a chart to a new sheet in the workbook, as shown in Figure 4. In this case, though 55.89% of all transactions are below $1,000, 91.67% of the financial risk is borne by transactions in the $1,000 to $20,000 strata.figure 4 – Stratification Results and Chart in ActiveData


Technology

In the dialog box, select InvoiceAmount as the Column to Analyze and set the Confidence Level to 95.00%. Check Chart Results, First Digit Test, Second Digit Test, and First 2 Digits Test, as shown in Figure 5. Click Finished, and ActiveData will com-plete and display the analysis on a new worksheet. The results of the First Digit Analysis are displayed in Figure 6.

Note that "8" and "9" are significantly oversampled, as indicated by the magni-tude of the Z Statistic. An examination of the results of the First 2 Digits Test(not shown) indicates that "83," "88," "95," and "97" are significantly oversam-pled. The auditor should concentrate his examination on those transactions whose invoice amounts begin with the oversampled numbers

figure 6 – Results of First Digit Analysis Performed in ActiveData

sUMMArYFar from an exhaustive listing of all the ways you can use desktop technology to identify potential instances of fraud, the three examples presented above – 1) identifying poten-tially fraudulent journal entries with Excel, 2) testing for duplicate payments with Access, and 3) using Benford’s Law to identify potentially fraudulent transactions – should be “eye-openers” with respect to how we can use technology to curtail fraud. Remember, with fraud running at epidemic

levels, using technology to prevent and detect fraud can provide an immediate positive impact on your bottom line.

Thomas G. Stephens, Jr., CPA, CITP is a shareholder in K2 Enterprises, where he develops and presents continuing professional education programs to accounting, financial, and other business professionals across North America. You may contact him at [email protected].

PerfOrMiNG A BeNfOrD’s LAw TesT wiTH AcTiVeDATABenford's Law is a powerful tool in detecting fraud because it allows examiners to test numbers against recognized norms. In doing so, sig-nificant deviations from these expected values can be investigated to

determine if there is evidence of fraud. Benford's Law is especially useful at identifying bogus transactions and at spotting transactions manip-ulated to avoid authorization and approval. For accountants and auditors faced with the suspi-cion of bogus or illegal transactions entered by employees, Benford's Law provides an excellent means of highlighting transactions that do not fit expected norms.

ActiveData provides an automated process for applying Benford's Law. Begin the analysis by selecting ActiveData, Digital Analysis to open the Digital Analysis Using Benford's Lawdialog box.

figure 5 – Setting Options for Benford's Analysis in ActiveData


Why did you decide to become a CPA?After a career in industry that included everything from plant controller to chief financial officer, to director of manufacturing, I had the opportunity to move into management consulting. I felt that a CPA was the professional certification that best reflected my experience and education, and that would provide support for this new direction in my career.

Why did you pursue the CITP credential?During my time in industry, I was involved in and responsible for the information technology (IT) area in a variety of industries. I developed a keen understanding of the relation-ship between IT and accounting. IT is the primary provider of transactional data and accounting is a primary user of transactional data. For me, the CITP certification was a natural next step after the CPA itself.

How did you transition into business and industry?I began my accounting career with a regional accounting firm in Charleston. I found tax and audit work unfulfill-ing, and after one tax and audit season, I left to work for a multinational firm opening a manufacturing company in Summerville. The company was a joint venture producing multi strike film for the “new PC industry.” In fact, we had one of the first Apple Computers in South Carolina. I have remained in

industry ever since, working for three multinationals, as well as public and private companies in the U.S.; manu-facturing everything from airplane parts to zippers.

How have you integrated your accounting background with IT?During my career in manufacturing I was involved in many IT implementa-tion projects, including production and inventory control, material resource planning, enterprise resource plan-ning, general ledger, accounts payable, accounts receivable, payroll, etc. Each system had a direct interface to the accounting system, and each system was a source of transactional data used by the accounting system. For me, the integration between accounting and IT was an integral part of the overall management system. In my opinion, it is impossible to separate one from the other.

What do you consider to be the top technology issues facing CPAs in business & industry today? What general advice would you offer CPAs dealing with these issues?I think that the greatest challenge and opportunity for the accounting IT pro-fessional is to understand the difference between what we call infor-

mation technology and the strategic use of information. We all tend to become obsessed with the how - what system do I use, what server, what operating system etc. and overlook the value of, and how to use the in-formation we create. We also forget to think about how it will all fit together, strategically. The IT process is as simple or complex as the following: data is processed in a secure, reliable and appropriate environment where it is recorded, categorized, stored, retrieved, shared and analyzed on a timely basis; the output of which is information that drives competitive advantage.

It is important to have a strategic information plan that supports the goals of the organization. Technology is not the answer in itself, but support for the strategic information plan. Technology changes rapidly, but the strategic information plan should only change when the goals of the organi-zation change.

What is one thing your colleagues would be surprised to learn about you?I am a student of history; ancient Greece and Rome and Western Europe from the 14th century to our time. n

charles O. Blackmon, ciTP, PMP, cGMcompany: Pacolet Milliken Enterprises, Inc., SpartanburgscAcPA Member since: 2009

Member ProfileCITP a Natural Next Step for this CPA

“I developed a keen understanding of the relationship between IT and accounting. IT is the primary provider of transactional data and accounting is a primary user of transactional data.”


focus on Membership

Member News Brittany L. Jones, Moore Beauston & Woodham LLP, Charleston, has been promoted to a senior accountant.

Ken Newhouse, CPA, CITP, Moore Beauston & Woodham LLP, West Columbia, has been promoted to manager in the tax and business consulting practice.

Barrett E. Sammons, CPA, has joined Moore Beauston & Woodham LLP’s Charleston office as a senior accoun-tant.

Michael J. Targia, CPA, Cr.FA, Moore Beauston & Woodham LLP, West Columbia, has been promoted to senior manager in the audit and assurance practice.

Jamie L. Ziembo, Moore Beauston & Woodham LLP, West Columbia, has been promoted to senior accountant.

Firm NewsWebsterRogers LLP has merged the practice of Charles Talbert III, CPA, into the firm. Talbert joined the firm as a partner effective May 1. Prior to the merger, he was a shareholder and director at McAbee, Talbert, Halliday & Co. in Spartanburg, S.C.

WebsterRogers LLP is pleased to an-nounce the acquisition of the Hilton Head practice of Cherry Bekaert LLP effective June 3. As part of the acquisi-tion WebsterRogers welcomes new partners Raymond E. Warco, CPA and Steven E. Miller, CPA along with a full-time staff of seven.

South Carolina accounting firm Moore Beauston & Woodham, LLP with offic-es in Charleston, Greenville, Columbia and Hartsville was the host firm for a meeting of the 64 leading accounting

firms that were represented at BKR International’s 2013 Americas Regional Meeting in Charleston, May 17-21.

CondolencesRobert Alexander Carswell, CPA,of Camden, died May 8. Born in Morganton, N.C., he was a graduate of Catawba College and was a retired CPA and senior partner of Carswell, Cantey and Associates. A lifetime member of SCACPA, he joined the association in 1964.

Gary R. Logan, CPA, of Lexington died March 29. Born in Savannah, Ga., he joined SCACPA in 1986, the same year he received his license.

Langdon James Smith, 22, of Florence died April 27. A student member of SCACPA, he was in his senior year at Francis Marion University.

WELCOME NEW MEMBERSAFFILIATE MEMBER/NON-CPAAlison S. BrownRoebuck, S.C.

Teresa HawkCharlotte, N.C.

Mary HigginsCharlotte, N.C.

Amanda IngramCharlotte, N.C.

ASSOCIATEJames K. Andreen, CPAColumbia, S.C.

Shelley S. Carlson, CPAFlorence, S.C.

Kirk Dull, CPASomerset, Pa.

Robert J. Vodzack, CPABluffton, S.C.

CPA CANDIDATEKenneth R. Burton Jr.Gaston, S.C.

Jessica E. Hales, Esq, LL.M.Charlotte, N.C.

Hayes HollandWest Columbia, S.C.

Melynda MeyerSummerville, S.C.

FELLOW MEMBERDevon H. Brown, CPANorth Charleston, S.C.

Harry R. Brown, CPAColumbia, S.C.

Robert M. Burch III, CPACamden, S.C.

Christine M. Byrne, CPAAiken, S.C.

DeeAnn M. Cain, CPACamden, S.C.

Timothy P. Cherry, CPA, CGMAMarietta, S.C.

Jessica L. Coker, CPASpartanburg, S.C.

Stacy B. Coleman, CPAFlorence, S.C.

Nick J. Crandall, CPAGreenville, S.C.

Roger K. Elliott, CPAPort Royal, S.C.

Shannon L. Fortenberry, CPASummerville, S.C.

Erik M. Glaser, CPAMount Pleasant, S.C.

Lori C. Hair, CPALexington, S.C.

Benjamin S. Halligan, CPAColumbia, S.C.

William D. Huber, CPAGreenwood, S.C.

Tyler M. Keisler, CPAGreenville, S.C.

David A. McKinley, CPALexington, S.C.

Christina R. Miller, CPAGreenville, S.C.

Bradley D. Page, CPAPiedmont, S.C.

Matthew V. Phillips, CPAGreenville, S.C.

Jessica M. Pruitt, CPAColumbia, S.C.

Jay L. Reitzes, CPAIndian Land, S.C.

Megan Schoenbauer, CPAMount Pleasant, S.C.

Susanna C, Sharpe, CPABlythewood, S.C.

Craig A. Smith, CPACary, N.C.

Lauren E. Smith, CPAGreenville, S.C.

James J. St. Jean Jr., CPALexington, S.C.

David A. Starkey, CPAChapin, S.C.

FELLOW – GOVERNMENTAndrew T. Chernick, CPALexington, S.C.

Tonia L. Morris, CPASt. Helena, S.C.

Laura K. Veronie, CPASt. Helena, Ga.

FIRM ADMINISTRATORDebra M. DowningHigh Point, N.C.


SCACPA administered its first peer review in 1989, under the American Institute of Certified Public Accountants (AICPA) program. At that time, the program was only

available to AICPA member firms and in South Carolina almost 40 firms with auditing practice had reviews in 1990. Today, peer review is mandatory for all CPAs in South Carolina if the firm provides accounting and auditing services as part of its public accounting practice.

As a result of the law passed in 2006, the S.C. Board of Accountancy modeled its program after the American Institute of Certified Public Accountants (AICPA) program. SCACPA serves as the administering entity for the AICPA Peer Review Program and also administers the S.C. Peer Review program for those firms not eligible to enroll in the AICPA program. According to Peer Review Manger Glenna Osier, the SCACPA Peer Review Committee anticipates performing 168 reviews in 2013.

Peer review is designed to be educational for firms in public accounting to further enhance the quality in their performance of accounting and auditing work. It also allows firms to communicate with their fellow peers on the objectives of the accounting profession.

We thought it would be interesting to take a look at how South Carolina firms are doing. n

Peer Review by the Numbers

The chart to the left shows the total number of engagements reviewed and the number identified as “not performed and/or reported on in con-formity with applicable professional standards” from peer reviews per-formed during 2011. The Standards state that an engagement is ordinarily considered to have not been per-formed in accordance with profes-sional standards when deficiencies, individually or in aggregate, exist that are material to understanding the report or the financial statements accompanying the report, or represent an omission of a critical accounting, auditing, or attestation procedure required by professional standards. n

AE Program AICPA Program

Sole Practioners 56 138

2 to 5 50 212

5-10 5 52

11-19 19

20-49 8

50-99 1

No A&A 8 22

Total Enrolled Firms 119 452


System Reviews:

Pass 5 74

Pass with deficiency(ies) 1 4

Fail 1 1

Subtotal - System 7 79

Engagement Reviews:

Pass 17 58

Pass with deficiency(ies) 5 8

Fail 1 4

Subtotal - Engagement 23 70

TOTALS 30 149

Number of Enrolled Firms by Number of Professionals*

* Professionals are considered all personnel who perform services, for which the firm is responsible, whether or not they are CPAs. The number of enrolled firms is 571 as of 12/4/12.

Results of Peer Reviews Performed During the Year 2011

Note: Data reflects peer review results as of 12/4/12. Approxi-mately 0 of 2011 reviews are in process and their results are not included in the totals above.

Compiled by SCACPA Staff


Number of Engagements Number of Engagments

Engagement Type Reviewed

Not Performed in Accordance with Professional Standards Reviewed

Not Performed in Accordance withProfessional Standards

Audit - Single Audit (A-133) 28 2

Audits - Governmental - All Other 27 3

Audits - ERISA 34 3

Audits - FDICIA

Audits - Other 8 2 90 3

Reviews 12 1 107 7

Compilations with Disclosures 5 1 85 5

Compilations without Disclosures 36 6 222 14

Financial Forecasts & Projections 5

Other SSAEs

Agreed Upon Procedures 22

TOTALS 61 10 620 37


South Carolina

CPA

CATAWBADues: $90 (18 months), includes discounted registration to CPE seminars and free family/networking event.

• Aug. 19: Professional Issues and South Carolina Ethics (8 hours CPE) - Baxter Hood Center

• Oct. 29: Federal Income Tax Update (8 hours CPE) Art Werner - Baxter Hood Center

• Dec. 3: FASB/Forensic Accounting (8 hours CPE) Mark Hobbs - Baxter Hood Center

CENTRALDues: $75 (18 months), includes discounted registration to CPE seminars, free socials and business meeting dinner.

• Sept. 13: A Gift Bag of Individual Tax and Financial Planning Topics (8 hours CPE) Neil Brown - Doubletree by Hilton

• Oct. 7: Professional Issues Update (2 hours CPE) - Doubletree by HiltonNote: SCACPA will offer 2 hours Ethics and Professional Conduct for South Carolina CPAs on Oct. 7, before the PIU begins.

• Nov. 15: Annual Tax Update (8 hours CPE) William Grooms - Doubletree by Hilton

COASTALDues: $195 (18 months), includes free registration to CPE seminars (additional registration fee for Tax Update) and free registration to family/networking event

• Sept. 24: Technology Update and A Survey of Tax Law and Regulatory Changes, focused on S.C. (8 hours CPE) Randy Johnston (6 hours), Jason Sweatt (2 hours) – Embassy Suites, N. Charleston

• Oct. 3: Professional Issues and South Carolina Ethics (4 hours CPE) – Embassy Suites, N. Charleston

• Nov. 12: Surgent McCoy's Best Federal Tax Update (8 hours CPE) Jack Surgent – Embassy Suites, N. Charleston

FOOTHILLSDues: $60 (18 months), includes discounted registration to CPE seminars and three free social/networking events

• Sept. 25: Professional Issues and South Carolina Ethics (4 hours CPE)

• Oct. 28: Federal Income Tax Update (8 hours CPE) Art Werner

GRAND STRANDDues: $187 (18 months), includes free registration to CPE seminars, holiday party and student recruitment fair

• Aug. 27: Professional Issues and South Carolina Ethics (8 hours CPE) - Horry Georgetown Tech

• Sept. 24: CCU Meet & Greet - 5:30 - 7:30 p.m. (Registration at 5:00 p.m.) Logan's Roadhouse, Myrtle Beach

• Nov. 20: A&A Update (8 hours CPE) Russ Madray

PEE DEEDues: $75 (18 months), includes free registration to CPE seminars and free special events

• Aug. 26: Professional Issues and South Carolina Ethics (4 hours CPE) - SIMT

• Oct. 30: Federal Income Tax Update (8 hours CPE) Art Werner - SIMT

PIEDMONTDues: $50 (18 months), includes discounted registration to CPE and free social events. Note: The Piedmont Chapter is subsidizing a portion of the dues for 2013-2014 and the membership renewal will remain $50 (covers 18 months) for members.

• Sept. 23: Anderson - Professional Issues and South Carolina Ethics (6 hours CPE)

• Sept. 24: Greenville - Professional Issues and South Carolina Ethics (4 hours CPE)

SEA ISLANDDues: $202 (18 months), includes free registration to CPE seminars and special events

• Oct. 4: Professional Issues and South Carolina Ethics (8 hours CPE)

• Nov. 1: Federal Income Tax Update (8 hours CPE) Art Werner

• SecurityPolicies• RiskandVulnerability Assessments• PenetrationTests

Don West(803)315-1299•[email protected],CITP,eCPPT,CISA,CISSP

Member SCACPA, AICPA, ISACA, InfraGard, (ISC)²

Is YOUR Data Secure?

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CATAWBA CHAPTERPresident - Amy Homstead Rubin, CPAVice President - William L. Faris, CPA

Engine Power Source, Inc.Secretary/Treasurer - Glenn E. Savage, CPAChapter Representative - Beth T. Zamorski, CPA, CGMA,

Todd, Bremer & Lawson, Inc.

CENTRAL CHAPTERPresident - Russell Quattlebaum, CPA, Elliott Davis, LLCVice President - William James Stevens, CPA,

The Hobbs Group, PASecretary/Treasurer - Christopher Douglas Hinchee, CPA,

McGregor & Company, LLPChapter Representative - Lesley H. Kelly, CPA,

McGregor & Company, LLP

COASTAL CHAPTERPresident - E. W. Sanders, CPA, AIFA, QKA,

Presidium Retirement Advisers, Inc.Vice President - Betsy Y. Moseley, CPA,

Jackson & Gravesen, CPAs, PASecretary/Treasurer - Crystal Lynn McGuire, CPA,

LS3P Associates, Ltd.Chapter Representative - Zoe M Davis, CPA, CFE,

Hubbard Davis CPAs, LLP

2013-2014 CHAPTER LEADERSHIP 2013-2014 CHAPTER LEADERSHIP July 1, 2013 to June 30, 2014

FOOTHILLS CHAPTERPresident - Christopher Todd Holtzclaw, CPA,

William Barnet & Son, LLCVice President - Christina A. Braswell, CPA,

PricewaterhouseCoopers, LLPSecretary - Brandon S. Thomas, CPA,

PricewaterhouseCoopers, LLPTreasurer - Michelle Shadden Gneisig, CPA, CGMA, CBA,

Tindall CorporationChapter Representative - Cheryl O. Lang, CPA,CGMA,

Tindall Corporation

GRAND STRAND CHAPTERPresident - J. Burt Huggins, CPA

Smith Sapp Bookhout Crumpler & Calliham, PAVice President - Sharon D. Proctor, CPA, Smith Sapp

Bookhout Crumpler & Calliham, PASecretary/Treasurer - Deborah H. Armstrong, CPA,

Armstrong Accounting, CPA, PAChapter Representative - Amanda T. Hallman, CPA,

CMAC, Inc. D/b/a Logan's Roadhouse

PEE DEE CHAPTERPresident - Joseph L. Griffin IV, CPA, WebsterRogers LLPVice President - Lawrence S. Kennedy Jr., CPA,

McCall Farms

Secretary/Treasurer - Stephanie L. Denham, CPA CGMA, Pathology Service Associates, LLC

Chapter Representative - William R. Barefoot, CPA, WebsterRogers LLP

PIEDMONT CHAPTERPresident - Brad Ledford, CPA, CMA, CGMA,

Staffing Partners, LLCVice President - Stephen C. Stokes, CPA,

Stokes & Bales, CPAsSecretary - Arthur Russell Tompkins, CPA MBA,

CGMA, VistaBankTreasurer - James Frederik ten Pas, CPA, Dixon Hughes

Goodman, LLPChapter Representative - Philip R. Snipes, CPA,

Ernst & Young, LLP

SEA ISLAND CHAPTERPresident - Raymond H. Williams, CPA, MCCS-SCVice President - Christopher M Linkimer, CPA,

Carecore National, LLCSecretary - Amy Lou Graybill, CPA,

Robinson Grant & Co., PATreasurer - Amy L. Cavanaugh, CPA,

June & Associates, PA, CPAsChapter Representative - Patrick P. Carey Jr., CPA,

Carey & Company, PA














focus on cPe

NOVeMBer 4 – wesT cOLUMBiAcase studies—Older Americans’ Tax issues - resolving Planning issues with real-Life scenarios (91213AM) Small groups will work to resolve financial and tax planning issues using real-world scenarios. This comprehen-sive course will focus on the income and estate tax issues while helping the participant become a more effective guide for older clients. This course will provide cases where groups will iden-tify strengths and weaknesses in client scenarios as well as the effective strate-gies and techniques for helping clients achieve their financial goals.

NOVeMBer 4 – wesT cOLUMBiAestate Planning for Older Americans: Guiding Your clients to their Best Options (91213PM) Having the difficult conversation with clients about estate planning can be made easier. Attend this course to explore the various planning techniques available for older Americans to help guide them to the best option(s) for them. This course will present the strategies available for older Americans so as to identify the optimal technique for specific situations.

NOVeMBer 5 – wesT cOLUMBiAinvestment strategies for Older Americans - what are the Tax impacts? (91313AM) Discover why an individual’s risk tolerance is not constant throughout all life stages. This comprehensive course will explore a universe of investments ranging from most conservative to moderate risk with a special emphasis on investments chosen to supplement income in the post-retirement years. This course will provide details on timing choices to sell investments, asset allocation models, protective hedging strategies, time horizon benchmarks, active and passive investments, and the tax ramifications of these various investments.

Older American Series

ADDiTiONAL iNfOrMATiONArea: Taxes credits: 4Level: Advancedfees (per course): Early Bird (members only): $135, Members: $150, Non-members: $200, *Printed Manual: $15Location: SCACPA Learning Center, West Columbia

*Each course provides a PDF version of the materials for the exclusive use of the registrant.

NOVeMBer 5 – wesT cOLUMBiAcommunicating effectively with Older Americans- How to speak with Older Americans and Their Beneficiaries (91313PM) Discover the effective listening and speaking techniques that are important when working with older clients. This comprehensive course will delve into potentially sensitive issues arising when communicating with older clients and offers challenging and fun exercises for participants to use in bettering their communications with older clients. This course will provide ways to become a better communicator with all clients, and the older client in particular, and ways to make your office friendlier in order to fa-cilitate optimal communication between you and the older American.

ABOUT THe DiscUssiON LeADer: The discussion leader for this series is Carla Gordon, CFP, CSA, MSFS of Chicago, Ill. In addition to serving as a special consultant to the Examinations Division of the AICPA, Gordon has trained thousands of financial professionals to successfully complete rigorous examinations to become stockbrokers and Certified Financial Planners. She is the author of over 20 financial training and textbooks, including Pension Design for the Small Business, and Principles of Retirement Planning. She has completed a set of five continuing education courses for the AICPA. Gordon serves on the faculties of DePaul University and Kenneth Zahn Financial Planning classes (CFRS) exam reviews.


focus on cPe

2013 Conferences & WorkshopsAUGUsT 22-23, 2013emerging Leaders conference (417113)Marriott City Center, Columbiawww.scacpa.org/emergingleaders

• Professional and Executive Presence• Professional Issues Update• Forensic Accounting Interviewing Techniques• SC Tax and Property Tax Update• Creating a Career Path• Networking for Results• A&A Update• The New Normal of Estate Planning• Ethics and Professional Conduct

for SC CPAs• The Power of Positive Communication• Emotional IQ: Techniques for

Managing PeopleFees: Early Bird $280 (members only), Member: $305, Non-Member: $505

sePTeMBer 26. 2013fraud conference co-sponsored with the Palmetto chapter of Acfe (411213)SC Bar Conference Center, Columbiawww.scacpa.org/fraud2013

• Ethics• Sovereign Citizen Movement and

Redemption Schemes• IRS Criminal Investigation

Overview and UpdateFees: Member: $210, Non-Member: $335

OcTOBer 17, 2013 New! small firms conference (413213) SC Bar Conference Center, Columbiawww.scacpa.org/smallfirms2013

• Ethics and Peer Review• Data Security• Succession Planning• Aligning People and Culture

Fees: Early Bird $210 (members only), Member: $235, Non-Member: $335

OcTOBer 22, 2013financial Planning conference (418013)SC Bar Conference Center, Columbiawww.scacpa.org/financialplanning2013

• Reaching Your Financial Goals• Investment Strategy Techniques• Having Difficult Financial Conversations• Estate Planning Update


NOVeMBer 5, 2013 Governmental workshop (413013)Columbia Conference Center, Columbiawww.scacpa.org/governmental2013

• Fundamentals of Accounting for Government Contracts and Grants

• Benford's Law-A Valuable Audit Tool• Doing the Right Thing Especially

When it is Not Easy• Something Just Doesn't Smell Right

Down at the Sewer DistrictFees: Early Bird $210 (members only), Member: $235, Non-Member: $335

NOVeMBer 13-14, 2013 Annual summit (411013) DoubleTree by Hilton, Columbia www.scacpa.org/summit2013

• Implication of the Health Care Reform Act

• Federal and State Tax Credits for Small Businesses

• Estate and Gift Tax Hot Topics • Financial Reporting Framework

for SMEs • Collaborative Bookkeeping and

Cloud Accounting Solutions • How to Create the Virtual Office • Backup, Business Continuity, and

Disaster Recovery: Why All Three? • Ethics • A&A Update • FASB Update • Fraud Techniques • Identity Theft


DeceMBer 5-6, 2013 Accounting & Auditing conference (416013)Marriott Downtown, Charleston www.scacpa.org/A&A2013

• A&A Update • Analyzing Financial Statements

Including Cash Flow Analysis • Peer Review Deficiences • Fair Value and Disclosures • GASB Update • Technology Update • Financial Reporting Framework

for SMEs • Preparing for External Auditors • Group Audits • Analytical Procedures for Reviews

and Audits Fees: Early Bird $390 (members only), Member: $415, Non-Member: $615


Ask how you can get your On-site Training Program started today!Contact Reva Brennan, MPA, CAE at (803)791-4181 x103 or [email protected], or visit www.scacpa.org/onsitetraining.

S.C. Association of CPAs

Your staff deserves the best training available but providing it can be a challenge. Now you can bring top-quality programs directly to your office with the South Carolina Association of CPAs’ On-site Customized Training program. From technical topics to professional ethics to leadership and management courses, we can find a great fit for any organization and any budget.


focus on cPe

In this course, Walter will review current year developments and planning ideas affecting individual, corporate and business income taxation using a combination of humor and examples. He will emphasize tax developments that affect 2013 tax return preparation and 2013 tax planning for individuals, corporations, and non-corporate businesses. The course format is designed to update CPAs with various levels of experience.

The materials include:• A checklist of developments first effective in 2013.• A checklist of retroactive developments that may require

amended returns.• A detailed planning section, including important

individual and business planning ideas.• Selected new or modified Federal tax forms for 2013.

Five Convenient Locations To Choose From!Dec. 2 - Greenville – Embassy Suites Hotel & Golf ResortDec. 16 - Columbia – DoubleTree by HiltonDec. 30 – Myrtle Beach – Marina Inn at Grand DunesDec. 31 - Charleston – Marriott Downtown Charleston Dec. 16 - Webcast – www.scacpa.org/taxwebcast13

for event details or to register, go to www.scacpa.org/register

January 13,14 &15, 2014January 13,14 &15, 2014Beaver Run Resort & Conference Center in Breckenridge, COBeaver Run Resort & Conference Center in Breckenridge, CO

The 2014 Multi-state CPE & Ski Conference supported by nineteen state CPA societies is pleased to bring you the very best CPE & Ski Conference. The Conference features six 4-hour sessions on a wide variety of today’s most popular CPE topics. The instructors rank among the top CPE instructors in the United States. To receive an information packet containing detailed course descriptions and instructor biographies, please call K2 Enterprises at (888) 542-9390. Or you may register by faxing the registration form below to the Colorado Society at (303) 773-6344 or mail the form to the Colorado Society of CPAs, 7887 E. Belleview Avenue, Suite 200, Englewood, CO 80111.

Hotel Accommodations: Reservations can be made by calling Beaver Run Resort & Conference Center at 1-800-525-2253. Use group code CPA44X.

2013 Federal Tax Update With Walter Nunnallee

www.k2e.com/ski

Professional Issues Update & S.C. EthicsHear the latest on the issues and trends affecting the CPA profession and businesses of every size. SCACPA’s Professional Issues Update will be held in nine cities across the state. Register now to earn two hours of free CPE. Plus, you have an opportunity to earn additional CPE that can be applied to your ethics requirement.

Aug. 19: Baxter Hood Center, Rock Hill (8 hours CPE)

Aug. 26: Southeastern Institute of Manufacturing and Technology, Florence (4 hours CPE)

Aug. 27: Horry Georgetown Tech, Myrtle Beach (8 hours CPE)

Sept. 23: Hilton Garden Inn, Anderson (6 hours CPE)

Sept. 24: Hilton, Greenville (4 hours CPE)

Sept. 25: Marriott, Spartanburg (4 hours CPE)

Oct. 3: Embassy Suites, N. Charleston (4 hours CPE)

Oct. 4: Hilton Head Island Beach and Tennis Resort, Hilton Head (8 hours CPE)

Oct. 7: Doubletree by Hilton, Columbia (4 hours CPE)


those talented young profession-als who likely envision that they will have a number of employers throughout their careers.

While a number of challenges face entry-level professionals in our industry, through cooperation and open-mindedness, both younger and older generations can learn from one another while improv-ing the quality and diversity of our industry. n

Harris Darver, CPA, is a manager with McGregor & Company, LLP, in Columbia. He currently serves as chair of the YCPAs Leadership Cabinet and is a member of the YCPAs Network.

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lifestyle, they may be challenged to fully develop thoughts and concepts through email, letters and reports as opposed to sending short-hand communication.

Related is the challenge that the accounting profession itself faces in recruiting today’s young profes-sionals. Today’s educational system is trending toward more creativity and technology-driven careers. As a result, the accounting profession is challenged to rebuild and market its image in a way to attract creative-minded individuals who may po-tentially view this profession as one made up of stuffy employees using an abacus. In addition to recruiting talented graduates, the profession must concern itself with keeping

Key Challenges, con’t. from page 19

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the future the future

PRSRT STDUS POSTAGE PAIDPERMIT NO. 1146

Columbia, SC

south carolina Association of cPAs570 Chris Drive, West Columbia, SC 29169

Change is not just occurring – it’s accelerating. For CPAs, this means new challenges and new opportunities as technological, regulatory

and economic changes converge.

2013 Annual Summit | Nov. 13-14 | DoubleTree by Hilton, Columbia

take charge of your future at the 2013 Annual Summit.take charge of your future at the 2013 Annual Summit.

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cpa jason

cpa kenneth

cpa william