Partner Featured in “The Trusted Professional”

D’Arcangelo & Co., LLP Partner Debra Marello, CPA was featured in the December 2012 issue of The Trusted Professional under the CPA Roundtable section. The CPA Roundtable is a monthly feature where the publication asks CPAs from around New York State to weigh in with their thoughts on an issue relevant to the profession.

This month’s question was “what was the most significant development in the CPA profession this year and why?”

Debra’s response was:

“The Clarity Project, absolutely. The Clarity Project was undertaken by the AICPA to reformat the standards and try to bring them more in accordance with international auditing standards. It has forced us to take a look at everything we do because some of the requirements for auditing are changing with the new clarity standards, and it’s going to result in basically having two sets of auditing standards for 2013. If you’re doing an audit of an entity with a fical year-end in, say, October or November, you have to use the old standards, but when you’re working with someone who has a December 31 year-end, you have to use the new standards. You may be using both at some point, and you’ve got to remember which client you’re working for and which standards are applicable.

It also changes the format of the auditor’s report, which means we’re going to need to sit down with our clients and communicate to them what the changes are. It also requires us to get our staff familiar with the report, because the way we made modifications to it in the past is changing.

The part of the clarity standards that will need the most attention, I think, is the aspect of supervision – especially when it comes to what they now call group financial statements – because we need to be familiar with and supervise the work of other auditors. There have been instances that I’ve heard about where, for example, you hire an auditor in another country, they don’t speak English and their workpapers are all done in their own language. So, how do you review the papers? I think that’s one of the considerations and something that people need to be aware of with group financial statements.”

Feel free to contact Debra Marello, CPA with questions, comments, or concerns by email at dmarello@darcangelo.comor by phone at 914-694-4600.

Debra Marello, CPA