disclosures sept/oct 2012

BROUGHT TO YOU BY THE VIRGINIA SOCIETY OF CPAs SEPTEMBER/OCTOBER 2012 I VOL. 25 NO. 5 I WWW.VSCPA.COM

18

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8Ethics education

The race to female partnership

New hire training

IN VIRGINIA

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INSIDE this issue

FEATURES

THE CPA PIPELINE 12Virginia’s accounting employers need not worry: The supply of CPAs in the Commonwealth appears strong, despite changes to the CPA Exam.

ETHICS CLASS ACT 18It’s been 10 years since the Sarbanes-Oxley Act, if you can believe it. Are our students any more prepared to tackle ethical challenges?

THE RACE TO FEMALE PARTNERSHIP 22Do women face more challenges trying to attain partnership at accounting firms? One VSCPA member tries to find out.

THE PERSISTENT PATRIOT: A PROFILE 28After Dawn Halfaker lost her arm serving in Iraq, she turned her passion for serving her country into a successful government consulting business.

ARTICLES CHALLENGES OF NEW-HIRE TRAINING 8You’ve got the great new hire. Now don’t screw it up!

ADVERTISERS INDEXAon p. 11 • Audimation Services Inc. p. 10 • Beth A. Berk, CPA p. 7 • Digital Benefit Advisors p. 24 • CPE Link p. 17 • Camico Mutual Insurance back cover • PNC BANK inside cover • Poe Group Advisors inside back cover

SECTIONS

BACKTALK 2

LINE ITEMS 4

DATA DRAFT 6

SELF-ASSESSMENT 32

FOR STUDENTS 34

VSCPA NEWS 36

MEMBER NEWS 38

VSCPA FINANCIALS 42

VSCPA EDUCATIONAL FOUNDATION 44

CLASSIFIEDS 47

I AM 48

disclosuresis published bimonthly for members of the Virginia Society of CPAs. Our mission is to enhance the success of CPAs.

DISCLOSURES • SEPTEMBER/OCTOBER 2012 1

COVER STORY >>

In the past eight years, the CPA Exam has undergone significant changes, from moving to computer-based testing to revisions in scheduling and new requirements to sit for the Exam. Luckily, data show that the CPA pipeline in Virginia is as full as ever.

VIRGINIA SOCIETY OF CPAs

4309 Cox RoadGlen Allen, VA 23060Ph. (800) 733-8272Fx. (804) 273-1741www.vscpa.com

disclosures http://disclosures.vscpa.com

EDITORIAL STAFF

Jill EdmondsManaging [email protected] HansenCommunications [email protected] Lambert, CAEVice President, Member & Public [email protected]

EDITORIAL TASK FORCE

Joan D. Aaron, CPALindsay S. Andrews, CPAAdam G. Chaikin, CPADavid L. Cotton, CPAGary D. Dittmer, CPAElizabeth M. Helle, CPAClare K. Levison, CPAGeorge D. Strudgeon, CPAThomas L. Visotsky, CPA

DEADLINES

Articles and advertising for future issues are due by 5 p.m. on the following dates:

Jan./Feb. 2013 Oct. 15, 2012Mar./Apr. 2013 Dec. 15, 2012May/June 2013 Feb. 15, 2013July/Aug. 2013 Apr. 15, 2013Sept./Oct. 2013 June 15, 2013Nov./Dec. 2013 Aug. 15, 2013

Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers, members or editorial staff.

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BACKTALK you said it

2 DISCLOSURES

Get in touch At the Virginia Society of CPAs, we love to hear from you. Whether it’s a quick email to a staff member, chat on the phone, Disclosures letter to the editor, tweet, blog comment or something different altogether, let us know what you’re talking about, how you feel about different issues affecting CPAs and how we can help.

BACKTALK you said it

FROM A VIRGINIA BUSINESS OP/ED >>

Federal Budget Crisis Puts Virginia’s Fiscal Future in Peril Virginia’s dependence on federal spending goes way beyond the $10 billion in direct aid. When federal contracts, and direct payments to employees, and retirees are taken into consideration, the federal government accounts for over one third of the Commonwealth’s GDP. Even a small reduction in federal spending and support could have a devastating impact on revenues.

JOHN B. MONTORO, CPA Cherry, Bekaert & Holland, LLP, Richmond

VIA EMAIL >>Photo on Disclosures magazine [July/August 2012] — We really have a beautiful Capitol building — Great photo.

CRAIG R. STEVENS, CPA, Aronson LLC, Rockville, Md

FROM A CPA CAFÉ BLOG COMMENT >>Given the large number of CPAs in Northern Virginia and the significant travel times between seemingly nearby locations, I believe active exploration of this question is more than appropriate. By “active” I mean, gather information, determine what any problems and/or opportunities might exist, identify alternatives, determine costs and benefits of each alternative, and make a decision. I do not mean, talk about it a lot without actually doing something.

WILLIAM BROWN, CPA Holland & Brown, LLP, Richmond

CGMA is spreading. Virginia ranks fourth in number of credential holders. — @MAUREENDINGUS

Had a wonderful final night in St Louis with our awesome and dedicated VSCPA staff. — @STEPHPETERS

Great personal finance advice from @FinancialFit. Don’t miss out on free stuff and great bargains: http://t.co/q0sBeXZY — @CALCPA STUDENTS

Get in touch At the Virginia Society of CPAs, we love to hear from you. Whether it’s a quick email to a staff member, chat on the phone, Disclosures letter to the editor, tweet, blog comment or something different altogether, let us know what you’re talking about, how you feel about different issues affecting CPAs and how we can help.

BLOG: www.cpacafe.comCONNECT: http://connect.vscpa.comTWITTER: @VSCPANews, @FinancialFitLINKEDIN: http://tinyurl.com/VSCPALinkedInGroupFACEBOOK: www.facebook.com/VSCPA

From theTWITTERSPHERE >>

Still need to fulfill your 2012 Virginia ethics requirement? Save yourself some time and do it from the convenience of your own computer! Choose from:

Webcast replays — View a taping of a live broadcast from 9 – 10:40 a.m. on any of the following dates: •Sept.19 •Oct.25 •Nov.27 •Dec.19

Online, Self-Study — Take the ethics course at your own pace any time beforeDec.31,2012,whereveryouhaveInternetaccess.

*Bothonlineoptionscost$60/membersand$75/nonmembers.

Online Learning: Ethics 2012 — Your License Depends on It!

Formoreinformation,includingdiscounted groupwebcastoptions,call(800)341-8189 or visit www.vscpa.com/Ethics

4 DISCLOSURES • SEPTEMBER/OCTOBER 2012

LINE items

For those of us living in the Commonwealth, it comes as no surprise. But now we have proof: Virginia is the most livable state, according to the U.S. Chamber of Commerce.

In its “Enterprising States: Policies That Produce” report, Virginia ranks No. 1 nationally in median family income and concentration of jobs in science, technology, engineering and math. Among other things, the report attributes Virginia’s high ranking to its low tax and regulatory environment, educated work force and potential as a transportation and industrial hub.

“Virginia’s low tax and regulatory environment, coupled with its proximity to the nation’s capital, have made the state one of the most attractive locations for both domestic and international firms,” the report states. It also calls the Commonwealth “the emerging East Coast economic superstar.”

Virginia Gov. Bob McDonnell responded, “This report confirms what we already knew: that Virginia is the best state

in which to make a living and pursue the American Dream.”

See more on Virginia’s ranking and all states’ results at http://tinyurl.com/EnterprisingStates, or click on the QR code with your smartphone. n

WELL, WE LIKE IT HERE >>

Virginia is most livable state

Learn all about your Society’s past year, including community service accomplishments, legislative activity and much more. The VSCPA’s 2011–2012 membership year ended April 30, 2012, so check out the State of the VSCPA Report at www.vscpa.com/2012AnnualReport.

NICHE SPOTLIGHT >>

Forensics, valuation still top CPA practice areasFraud pays — at least for some. The CPAs engaging in niche areas like fraud and forensic accounting, business valuation and litigation services are seeing a strong demand for their services, according to a study from the American Institute of CPAs (AICPA) Forensic and Valuation Services Section. Insights from the study show these specialized areas are hot:

>> TECHNOLOGY: 83 percent of respondents expect to see a greater demand for computer forensic investigations in the next three to five years.

>> DIVORCE: Among those respondents who handle divorce cases, roughly half had seen a spike in demand in the past year.

>> BANKRUPTCIES: 53 percent expect more pre-packaged bankruptcies in the next two to five years.

>> ECONOMIC DAMAGES: CPAs are seeing increased demand for their services in cases involving breaches of contract, business torts and intellectual property.

>> FINANCIAL STATEMENT FRAUD: Respondents expect a strong future focus in engagements on revenue recognition and valuation of assets carried at fair value.

Other hot areas include shareholder/partner disputes, contractual disputes, family law, gift and estate issues and insolvency and reorganization. n

>> STATE OF THE VSCPA REPORT


LINE items

Nearly 9,000 businesses are celebrating this year as the Accelerated Sales Tax Program is phased out. Under the program, businesses with at least $1 million in taxable sales were required to make an additional sales and use tax payment in June, as well as their regular sales tax payment collected in May.

“I have long said that I want to eliminate this anti-business program as soon as possible and not require any business to make this additional payment,” Gov. Bob McDonnell said.

The “Caboose Budget Bill,” signed May 25, piggybacked off 2011 legislation that began phasing out the program by raising the accelerated sales tax payment threshold to $26 million. Since 2010, the number of businesses required to pay the tax has decreased by 96 percent. The Caboose Bill included a $50 million reduction in general fund revenues to account for the loss of tax revenue. n

Bye-bye, accelerated sales tax

CPAs do so much for the Commonwealth’s citizens and communities. That’s why you deserve one week to shine! This year’s “Virginia Certified Public Accountants Week” is Sept. 16–22, 2012. Here’s how you can join in:

>> VOLUNTEER: CPA Day of Service is Sept. 21, and it’s not too late to participate! Organize your firm or office, or take time out of your day to volunteer for your favorite organization alone. Be sure to let us know what you did so we can include your activity in statewide communications. Visit www.vscpa.com/DayofService for details.

>> EDUCATE: Do you serve on nonprofit boards with colleagues who could use a tutorial in nonprofit finances? Do you have clients who could benefit from receiving money management tips? Let them know about the VSCPA’s Nonprofit Finance Seminar on Sept. 19 or Financial Fitness Workshops during CPA Week; just send them to www.vscpa.com/CPAWeek for more info.

>> SPREAD THE WORD: Download a special CPA Week graphic from www.vscpa.com/CPAWeek to add to your website, Facebook page, email signature or elsewhere! Your colleagues and clients will see your CPA pride.

>> ALERT THE PRESS: Download a press release template and send to local media to generate buzz for CPA Week.

>> RECOGNIZE YOUR CPAS: Hold special events at your firm or company to recognize the CPAs on staff and thank them.

>> WEAR YOUR PRIDE: Check out cool CPA-themed brandwear you can sport all week long at www.cafepress.com/vscpa.

>> GIVE BACK: Make a financial contribution to the VSCPA Educational Foundation or CPA Political Action Committee (PAC) of Virginia in honor of CPA Week. Just visit www.vscpa.com.

Check out www.vscpa.com/CPAWeek for more information and ways you can celebrate, or scan the QR code with your smartphone for instant access. n

VIRGINIA CPA WEEK >>

You deserve the recognition!


ACROSS THE POND >>

CPA Exam gains international popularityThe National Association of State Boards of Accountancy (NASBA) recently released statistics on the worldwide popularity of the Uniform CPA Examination, which was offered in foreign countries for the first time in August 2011. Here are a few stats:

>> More than half of the sections taken internationally have come from Japan (2,823 sections out of 4,827).

>> The next-highest country was the United Arab Emirates with 1,078 sections.

>> Japan has the highest average age of Exam takers at 35.5 years old.

NASBA and the American Institute of CPAs (AICPA) began offering the CPA Exam in Bahrain, Japan, Kuwait, Lebanon and the United Arab Emirates in August 2011. The Exam debuted in Brazil in February.

Survey says: Economy strong in VirginiaThe Washington, D.C., area, including the suburbs in Northern Virginia, was ranked as having the strongest economy in the country in Policom Corp.’s 2012 Economic Strength Rankings; three other areas in the Commonwealth cracked the top 50. The rankings compiled data on 366 metropolitan statistical areas in the United States, and ranked all urbanized areas with populations of at least 50,000. Here are the Virginia areas included on the list and their rankings:

1. Washington-Arlington-Alexandria (No. 1 last year)

25. Hampton Roads (Virginia Beach-Norfolk-Newport News, moved up 17 spots)

28. Charlottesville (up one spot)

35. Richmond (up one spot)

121. Winchester (up 17 spots)

173. Harrisonburg (up 28 spots)

197. Roanoke (up 20 spots)

278. Blacksburg-Radford (up 23 spots)

295. Bristol-Kingsport, Tenn. (up 26 spots)

>> BY THE NUMBERS

Future looks bright for class of 2012Research from the National Association of Colleges and Employers found that 2012 graduates have a leg up in the job market:

• 2012 grads outpaced the class of 2011 in gaining jobs: More than one-quarter of those who had applied for jobs already had one by May, up slightly from the year prior.

• The median salary for 2012 grads is up 4.5 percent over last year, to $42,569.

• Hiring for the class of 2012 is up 10 percent over 2011.

DATA draft

78,320The number of households receiving food stamps (public assistance) in Virginia in 2011, according to the Virginia Auditor of Public Accounts.

>> DID YOU KNOW?

The percentage of audits with deficiencies has more than doubled since 2009, according to the Public Company Accounting Oversight Board.

Attention CPAs:

Whether A Decision Maker Looking To Upgrade Your Talent, Or A CPA Looking to Upgrade Yourself/Your Skills, Ask Yourself:

Who really chose who in joining your company?

Are you/your professional staff really at the right level where

you should be/you need them to be?

Are you/your staff in a position that truly suits your/their personality,

values, and professional and personal needs?

Why leave your future to chance?

If you’re seriously interested in making the “right” move for your next hire, I can help you.

I am an actively licensed CPA in Maryland and Virginia with over 20 years of experience

including public accounting (E&Y) and consulting (KPMG), financial accounting (American

Cancer Society), internal audit (Moneyline Telerate), and recruiting (Acsys, formerly Don

Richards). As a networker who truly enjoys helping others and sharing my career experiences

to guide fellow professionals, here is how I can help you:

Decision Makers:

Ask you questions, and most likely ask many more questions than other recruiters

about your company, duties involved, skills required, corporate culture and more

Work with you on finding the “right” professional that is the “right fit”

Provide you with valuable information about the professionals I work with,

the marketplace, what your competitors pay, and more

Career Seekers:

Guide you on career paths available in public accounting and industry

Enable you to capitalize on your strengths

Coach you on how to put your best foot forward to find the “right fit”

Advise you when to stay in your current position if that is the right move

If you’re interested in working with a recruiter who understands your background, skills, and

is genuinely interested in helping you find the “right fit”, then I welcome meeting you!

BETH A. BERK, CPA Independent Recruiter Specializing in CPA Firm, Accounting & Finance Positions

in Metropolitan DC & Nearby Suburbs/Baltimore/Richmond/Tidewater

Connecting You To Your Next Hire TM

Contingency & Retained Staffing Solutions

matching skills, experience & values with needs

CPA Ambassador for the state of Maryland, sponsored by the AICPA and Ethics Instructor for VSCPA

Serving clients and professionals as an Independent Recruiter since March 2005

Phone: 301-767-0670

Email: [email protected]


PRACTICE management

Challenges of New-Hire Training Make the most of your new staff by getting them off to a great start.BY MATTHEW D. GEEL, CPA

Early in my accounting career, a series of relocations meant I had to continually adapt to new workplaces. While soft skills like eagerness and sociability greatly eased the transition, a key factor in adapting to new jobs was one over which I had no control: on-the-job training.

The training a new hire receives, both from formal sessions with trained instructors and informal sessions huddled around a manager’s computer, is essential to fitting into the new organization. It may be even more important, dare I say, than meet-and-greet sessions with staff and one-minute speeches at department meetings. From my experience, many companies tend to make a number of common and correctible errors when training new hires.

PITFALL 1: TAKING EXPERIENCE FOR GRANTED

Instructors training new hires often take their own knowledge and experience for granted. The instructor assumes that his student understands more about the subject than the student actually does.

Alternatively, a task that the instructor has performed for months or years appears simpler than it actually is. As a result, he will assume that an understanding of it is intuitive and will be baffled when the student does not grasp it immediately.

Much of the instruction received at a new job is conducted in informal sessions with an experienced staff member teaching the new hire. Sessions are often one-on-one and cover topics like entering sales transactions into

an accounting application or running computer-generated reports. Sometimes the instructor moves too quickly or skips important steps.

I recall sitting with my notebook, struggling to write down the instructions and steadily fall behind. I often came away from these lessons with sparse, hastily written notes and an incomplete understanding of the process. Often, I was too embarrassed to ask the instructor to slow down or explain key parts.

The result? When asked to perform the task on my own, I often had to go back to the same person and ask questions about particular steps. The instructor sometimes became frustrated. After all, he had been doing the task for months and found it simple. In addition, he just finished explaining the task to me. He began to think that either this new employee cannot keep up or was not paying attention. Neither is true. In the end, neither party was happy.

The solution is to never take one’s own knowledge for granted. If there is any doubt about whether a new hire fully grasps a concept it is better to over-explain rather than under-explain. The worst-case scenario is an employee leaving a training session with incomplete notes and a limited understanding of why the task is performed. He or she will be back later with questions.

2: POOR PLANNING

The second mistake is poor planning. This is an issue particularly common with informal training sessions. Again, a veteran employee assumes that since

they have performed a task for years, explaining it to someone else will be as simple as merely performing it one more time. As a result, they do not prepare. It shows when they begin.

I once received a lesson on data entry for a particular accounting program. The instructor spoke little while performing the task in front of me and lacked confidence when asked questions. He knew what to do but had trouble explaining why. Taking 10 minutes to prepare allows the instructor to think through the procedure. Typing a set of instructions beforehand can also reduce the new hire’s reliance on note taking. As a result, he or she will pay closer attention rather than frantically jotting down everything that is said. In addition, preparation reduces poor presentation habits like mumbling and poor eye contact.

PITFALL 3: BREAKS IN THE SEQUENCE OF STEPS

All tasks contain a number of steps that must be performed in some kind of sequence. The third error that many instructors make is to omit key steps, explain steps out of order or rush through steps before the student has time to understand them. A break at any point means that the task as a whole cannot be accomplished.

During an instruction session, I was being taught how to prepare audit documentation and upload it into the firm’s software. This required that I pull data from files saved in various places on the company’s computer drives. The instructor failed to give me the file


PRACTICE management

path for the various source documents. However, to complete the task I needed to access these files.

What good was my knowledge of the subsequent steps if I could not complete step No.1? This is a simple example, but it illustrates how a single omission can bring the entire task to a grinding halt, costing the company time and the employees a bit of frustration that could have been avoided. This is true whether the instructor skips steps or explains them out of order, or if the new hire does not understand them before the instructor moves on.

PITFALL 4: THEORY AND PRACTICE

Since at least as far back as Descartes, there has been a supposed gap between the mind and body or, to put it another way, the theoretical and the practical. The most common expression of this concept

is the statement: “That works in theory, but not in practice.” An instructor has no excuse for uttering this phrase. It is his job to explain both the theory and practice behind the lesson to the new hire.

Many instructors often lean too heavily to one side of the spectrum or the other. Overly theoretical lessons do not appear as relevant in performing day-to-day tasks. Overly technical lessons are rigid and create employees (like the instructor mentioned before) who can explain how they perform tasks but not why. This will often lead to embarrassment during audit interviews when the employee cannot answer broader theoretical questions about why they perform their tasks a certain way or how they could be improved. The non-theoretically inclined will have no idea about either.

A friend of mine (a CPA and senior member of staff) once confided to me his frustration at a subordinate’s inability

to “see the big picture.” The employee could perform technical procedures, but failed to see how these fit into the firm’s operations and objectives. This employee needed continual supervision and was not able to work autonomously. How could such an employee ever rise through the ranks? I had no answer.

The ability to link theoretical concepts with day-to-day operations will be particularly helpful for any new hire with ambitions of rising to a management role. This can be done during training simply by beginning the lesson with an explanation of why every task is done before launching into the how. This may seem intuitive, but of all the errors I’ve witnessed during my new-hire training, this is the most common. Managers attempting to check items off a to-do list may forego explaining the concepts behind them in order to have the job completed quickly.

PRACTICE management


audimation.com


PITFALL 5: TIME VS. EFFORT

Senior staff will often skimp on effort during training to save time. In the end, however, they are likely to spend more time and effort explaining the lesson over again. Every employee will require a certain amount of time in order to grasp a new task. The question for the trainer is whether they want to put in the time during the training session or afterwards, when the same employee comes back with more questions. The latter is a situation to be avoided if at all possible. As a new hire, it was stressful having to go back to the manager or staff senior asking for further explanations.

For the manager, it was a source of frustration.

GET TRAINING RIGHT

Beginning a new job is always stressful, whether the transition is smooth or not. However, the experience doesn’t need to be a constant trial by fire. Putting time and effort into training now will reduce stress later associated with overseeing work, answering redundant questions, rehashing old discussions and (most importantly) correcting errors.

To put it more concisely, those hoping to save time by saving effort will save neither. n

MATTHEW D. GEEL, CPA, works for Buchanan & Company PLLC in Rosslyn. He received his master’s degree in accountancy with honors from Rider University in New

Jersey and has worked in internal accounting and outsourced accounting services. Contact him at [email protected].

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ACCOUNTING education

BY PAUL A. COPLEY, CPA, PH.D., AND KIMBERLEY A. FOREMAN, CPA

After decades without any significant modification, the CPA Exam requirements for Virginia candidates have changed three times since 2004. The first of these three modifications was the nationwide change to an on-demand format for the CPA Exam. The other two changes are specific to Virginia and involve the educational requirements necessary to quality for the CPA Exam in the Commonwealth.

The CPA Pipeline: The Supply of Accounting Graduates in Virginia Virginia’s accounting employers can be optimistic regarding the supply of accounting graduates.

Have these changes affected the supply of accounting graduates from Virginia colleges? Information on CPA Exam candidates from the National Association of State Boards of Accountancy (NASBA) and statistics from the State Council of Higher Education for Virginia (SCHEV) show what effect these changes have had upon the accounting graduate supply.

CPA EXAM ON DEMAND

Prior to 2004, the CPA Exam was offered only twice a year and required large testing venues. The Exam is now computer-based and administered daily through commercial testing centers that are available across the state. These

centers are not solely dedicated to CPA Exam candidates but also provide graduate school admissions tests and other professional registration exams. Together with the computer-based format, the Exam was changed so that questions vary among the candidates. Scores are evaluated using test-equating procedures, a statistical process for determining comparable scores when candidates are given different forms of an exam. Because candidates receive different exams, it is no longer necessary to offer them on the fixed, twice-a-year schedule.

Since 2004, candidates schedule individual parts of the Exam within a two-month window offered each quarter

throughout the year. A candidate can take one to four parts in a given window, but may only take a given part once in each window. The Exam is not offered in the final month of each quarter, during which time grading is completed and candidates receive their scores.

Following the change, conventional wisdom held that candidates were postponing taking the Exam. Illustration 1 depicts the number of first-time candidates for the CPA Exam in Virginia since the change to the on-demand format.1 The dashed horizontal line represents the number of first-time candidates for the last year of paper exams. Although the number of candidates taking the business environment section (BEC) was essentially the same as the previous year, data suggests that candidates were postponing both the financial (FAR) and regulation (REG) portions of the Exam. This was not possible under the paper exam, since first-time candidates were required to take all four portions in their initial sitting.

While there is evidence that some portions were more likely to be postponed, the ability of candidates to defer individual segments of the Exam is limited by the “18-month rule.” If a candidate fails to pass all four sections within this period, credit is lost for any section passed more than 18 months earlier and that section must be retaken. As the illustration suggests, candidates frequently start with BEC because it is the shortest of the four parts (three


0

200

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2005 2006 2007 2008 2009 2010

BEC

REG

FAR

AUD

ILLUSTRATION 1:Number of First-Time CPA Exam Candidates in Virginia



hours in length) and had the highest pass rate during the early years of the computerized Exam. The apparent spike in BEC in 2006 is likely the result of candidates seeking to pass one part of the Exam prior to the advent of the 150-hour requirement in July of that year. Passing a single part of the Exam would permit the candidate to grandfather under the previous educational qualifications.

EDUCATIONAL QUALIFICATIONS

Two additional changes affected candidate eligibility in Virginia. Beginning in 2006, first-time candidates were required to complete 150 credit hours of education before sitting for the CPA Exam in the Commonwealth. In May 2009, the requirement was changed so that the 150 semester hours were required for licensure, but a candidate

could take the Exam with 120 credit hours. Under both laws, candidates must have 24 upper-level accounting credits and an additional 24 credits in business.

150-HOUR REQUIREMENT

Although the 150-hour requirement was not formally established until many years later, the American Institute of Certified Public Accountants (AICPA) has championed post-graduate education for CPA candidates since 1959. In 1988, AICPA bylaws were formally amended to require 150 hours of education for new members after 2012. With a higher level of education, the AICPA believed CPA candidates would be better prepared to deal with the intricacies of globalization and complexity of accounting transactions.2

The AICPA’s action officially laid the groundwork that led to each state’s adoption of the requirement. Florida was the first state to enact the 150-hour

requirement in 1979, well ahead of any other state. Twenty years later, in 2006, Virginia was among the last handful of states/jurisdictions to enact the legislation requiring 150 credit hours to sit for the CPA Exam and be licensed in the Commonwealth. (See http://tinyurl.com/150StateReport for a list of when all states enacted 150-hour legislation.)

The 150-hour requirement garnered the support of NASBA, American Accounting Association and Federation of Schools of Accountancy. However, many in the profession felt the requirement would discourage students from majoring in accounting, and there was evidence to support this concern. By 1999, 17 states required 150 hours. Fifteen of those went into effect between 1994 and 1999. An AICPA study during that period reported a decrease of more than 20 percent in the number of students enrolled in accounting programs.3 If this was the result of the cost of an additional year of college, many accounting employers feared a similar effect could be expected in Virginia.

Illustration 2 provides data depicting the number of bachelor’s and master’s degrees earned in Virginia from 1996 through 2011.4 After the law was passed, many were concerned that the number of accounting undergraduates would decline due to the 30 additional hours of education required to sit for the CPA Exam. Indeed, the number of bachelor’s degrees awarded in the Commonwealth had been dropping steadily from 1999 until 2003. Yet, at the effective date of July 1, 2006, the number of students graduating with an undergraduate degree in accounting was on the rise (identified as “A” on the graph).


ILLUSTRATION 2:Accounting Degrees from Virginia Colleges and Universities

Master’s

Bachelor’s

0

200

400

600

800

1000

1200

1996

-97

1997

-98

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

A

B

Num

ber

of

deg

rees


Environmental factors were at work, particularly with the passage of the Sarbanes-Oxley Act (SOX). The Act introduced major changes to the regulation of financial practice and

corporate governance, emphasized corporate responsibility and called for enhanced financial disclosures. Additional oversight provided by the Public Company Accounting Oversight

Board (PCAOB) was expected to help quell public concerns about corporate and accounting fraud and restore confidence in the market.

The most contentious aspect of SOX was Section 404, which required management and the auditor to report on the company’s system of internal control. The effort required to document and test internal controls generated demand for entry-level staff. It was a good time to be an accounting major, as employers aggressively competed for graduates from Virginia’s colleges and universities. After periods of decline and to the surprise of many, the number of accounting graduates in Virginia actually increased following the 150-hour requirement.

120 HOURS TO SIT

In May 2009, Virginia changed the education requirements needed to sit for the CPA Exam back to 120 hours. Qualified candidates could once again graduate with their undergraduate accounting degree and sit for the CPA Exam. The licensing requirement, however, would only occur once the CPA candidate earned 150 credit hours. Educators were particularly concerned with this change. Substantial resources had been directed to developing coursework to satisfy the additional 30 hours. Directors of graduate accounting programs felt the change would result in lower enrollments in Virginia’s master’s programs.

This has proven to be the case. From the effective date of May 2009 through 2011, the number of accounting master’s degrees awarded began to decline (identified as “B” in Illustration 2). The number of bachelor’s degrees, however, has risen only slightly during this period.


0

200

400

600

800

1000

1200

1400

2005 2006 2007 2008 2009 2010

ILLUSTRATION 3:Number of Accounting Graduates and First-Time CPA Candidates (REG) in Virginia

# CPA REG

# graduates

FAR AUD REG BEC

2008

2010

2009

ILLUSTRATION 4:Pass Rates for First-Time Candidates Taking the CPA Exam in Virginia

48

50

52

54

56

58

60

62

64

Perhaps it is too soon to tell, but the evidence so far suggests that the change back to 120 hours has not increased the supply of accounting graduates overall and has reduced the number of master’s-qualified candidates.

The Virginia Board of Accountancy’s (VBOA) decision to return to 120 credit hours to qualify for the CPA Exam was puzzling to many. Just three years earlier, the Commonwealth had begun to require 150 hours. In a public meeting attended largely by educators, the VBOA explained that the decision was in response to similar changes made in other states. Candidates may take the CPA Exam in any approved testing center and there is no requirement that the center be located in the state for which they are sitting. Because relatively few state boards require residency to qualify to take the CPA Exam, Virginia was losing CPA Exam fees to other states where candidates could qualify for the Exam with fewer educational credits.

Illustration 3 supports the VBOA’s explanation. The number of first-time candidates taking the regulation part of the CPA Exam began to fall after 2008 as candidates chose to take the

Exam through other state boards. In 2010, following the change permitting candidates to take the Exam in Virginia with 120 credit hours, the number of candidates taking the regulation portion of the Exam in Virginia returned to the previous level. As can be observed in Illustration 1, larger increases occurred for the other parts of the Exam in 2010.

It is one thing to qualify to take the CPA Exam and an altogether different thing to pass the Exam. It only stands to reason that candidates who take an extra year of classes, particularly graduate accounting classes, should be better prepared to pass the Exam. Illustration 4 depicts the first time pass rate among CPA Exam candidates in Virginia since 2008. The final year, 2010, reflects the pass rate following the VBOA’s decision to permit candidates with 120 hours to take the Exam.

Because the VBOA’s decision was made late in 2009, many of the 2010 Exam candidates had completed 150 credit hours before sitting for the Exam. Nevertheless, the pass rates on all four parts fell following the change in educational requirements. The VBOA’s decision to return to 120 credit hours, therefore, would appear to be doubly effective

in generating Exam fee revenue: More candidates are registering in Virginia for the Exam and more candidates are taking the Exam several times. More time will be required to evaluate whether the lowering of educational qualifications has additional consequences related to the Board of Accountancy’s mission to protect the public.

DISCUSSION

We examined statistics from SCHEV over a 15-year period to determine whether changes in the CPA eligibility requirements have limited the supply of accounting graduates from Virginia colleges and universities. Contrary to expectations, we found that the number of students majoring in accounting increased at the same time that the Commonwealth raised the educational requirements to become a CPA.

It seems the decision to major in accounting is influenced more by the opportunities for employment than by the cost of education. The advent of the 150-hour requirement in Virginia coincided with unprecedented demand for accounting graduates brought about by SOX. The employment prospects were so good that students were willing to invest in an additional year of education. In more recent years, there has been no decline in accounting majors because students view that even during economic recessions, the profession offers greater opportunities for employment than most other majors.

The VBOA’s decision in 2009 to again permit candidates with only 120 credit hours to take the CPA Exam has had little effect on the supply of accounting graduates from Virginia colleges and universities. However, the number of



Even during an economic recession, students believe the CPA profession offers greater opportunities for employment than most other majors.


PAUL A. COPLEY, CPA, PH.D., is the KPMG professor and director of the School of Accounting at James Madison University. Contact him at [email protected].

KIMBERLEY A. FOREMAN, CPA, is the associate dean for Human Resources and Administration in the James Madison University College of Business. Contact her at [email protected].

1. Candidate Performance on the Uniform CPA Examination. NASBA 2006–2011.

2. See http://tinyurl.com/150HourRequirement3. The Supply of Accounting Graduates and the Demand for Public Accounting

Recruits. AICPA 1997, 1999.4. See http://tinyurl.com/SCHEVReport. State Council on Higher Education

in Virginia 1996–2011.

candidates taking the Exam in Virginia has increased: The VBOA has apparently been successful in attracting candidates from other states to take the Exam under Virginia statutes. However, it is unclear whether this change back to 120 credit hours will result in more individuals with Virginia licenses. The pass rates for 2010 (the first year full year of the return to 120 hours) are lower for all four parts of the Exam.

Virginia’s accounting employers have every reason to be optimistic regarding the supply of accounting graduates. The Commonwealth has an abundance of colleges and universities with outstanding accounting programs. It is also reassuring to observe that college students select their major based on the long-term opportunities rather than the cost of an additional year of college. It is unusual to find a student with a passion for accounting who feels he or she cannot realistically consider the profession because of the educational requirements. However, in such cases, members of the profession can ease the financial burden of deserving candidates by supporting the accounting scholarship fund of their alma mater or through contributions to the scholarship program of the VSCPA Educational oundation. n

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BY PHIL UMANSKY, CPA, PH.D., AND GABRIELE LINGENFELTER, CPA

Accounting ethics was pushed into the consciousness of the accounting profession as a result of the Enron and WorldCom scandals and the Sarbanes-Oxley Act of 2002 (SOX). Both the accounting profession and educators reacted immediately with additional emphasis on ethics. After a decade, how is ethics now incorporated into the accounting curriculum? Is ethics being effectively taught?

Ethics Class Act Ethics in accounting education 10 years after Sarbanes-Oxley



MANDATES FOR ETHICS EDUCATION

The Association to Advance Collegiate Schools of Business (AACSB), a primary business school accrediting agency, published recommendations related to ethics education in 2004. The report identified four themes that should be addressed in ethics education: (1) the responsibility of business in society; (2) ethical decision making; (3) ethical leadership; and (4) corporate governance. The report, however, did not prescribe a specific curriculum. It also recommended questions school leaders should ask about ethical conduct within the domain of institutional policies and practices.

In the mid-2000s, the National Association of State Boards of Accountancy (NASBA) made a number of attempts to investigate and propose adding ethics courses into the business and accounting curriculum as a requirement for sitting for the CPA Exam, but none made it the final recommendation of the Uniform Accountancy Act. At one time, it was proposed that the 150-hour curriculum include two three-hour, stand-alone courses on ethics — one on business ethics and a second on accounting ethics. Instead, the Model Act specifies that 24 hours of accounting courses be offered, some of which infuse ethics, and another 24 semester hours of business courses, some of which also infuse ethics.

Each state can, of course, decide which courses to require for CPA Exam candidacy. Some states, including West Virginia, Texas, California and Maryland, have or will be requiring separate courses on ethics for CPA Exam candidacy. Texas has had the requirement since 2005. Currently, Virginia does not have such a requirement.

The American Institute of CPAs (AICPA) issues content specification outlines (CSO) that detail CPA Exam sections and weights. Since January 2011 and for the Exam in 2013, the Auditing and Attestation section focuses 16 to 20 percent on professional responsibilities, ethics and independence. Specific areas identified include not only the AICPA Code of Professional Conduct but also the Code of Ethics for Professional Accountants promulgated by the International Federation of Accountants (IFAC). The Regulation section also includes ethics as it relates to tax practice, licensing and disciplinary systems, and auditor’s legal duties and responsibilities. These weights are different from the CSOs before Dec. 31, 2010, when ethics was 15 to 20 percent of the Regulation section, and included the AICPA Code of Professional Code but not the IFAC Code of Ethics. The change reflected a move to internationalize the CPA Exam.

CHALLENGES IN ETHICS EDUCATION

FITTING IT IN

Higher education, in general, is a zero-sum game in terms of coursework and time — students need to be out in 120 hours, but knowledge increases at an exponential rate. The accounting curriculum needs to offer a certain number of hours in order to include enough requirements for students to sit for the CPA Exam, but curricula also must fit into each university’s business school and university-wide credit hour parameters. With the advent of new technical knowledge and standards, both in auditing and accounting and the potential for more sweeping changes with the incorporation of International

Financial Reporting Standards (IFRS), schools are challenged to get it all covered.

For ethics education, schools face the dilemma of whether to infuse ethics throughout existing courses, incorporate it in a stand-alone course or both. If a stand-alone ethics course is used, schools must decide whether it should be an accounting course, a non-accounting business course or even a non-business course.

Traditionally, ethics has been covered relatively less in traditional technical courses other than auditing. Just in terms of a course perspective, as an example, a well-known traditional intermediate accounting textbook covers professional responsibilities of CPAs, the Enron and WorldCom scandals and SOX, and presents an analytical model for ethical decisions along with an ethical dilemma. However, the material only represents five pages in a book of more than 1,300.

Ethics education is certainly more established in auditing courses, where several chapters are devoted to ethics, professional responsibilities and legal liability, as well as fraud auditing.

MEASUREMENT

Educators face challenges in measuring the effectiveness of ethics education in accounting. Unlike the traditional technical knowledge of accounting, in which close to 100 percent of the student’s knowledge at the time of graduation is received via the college curriculum, students’ ethical perspectives are formed even before they even arrive at college through a complex interaction of parenting, peer interaction, religious training and socialization.


And unlike technical knowledge that can be measured through traditional testing like the CPA Exam, ethical behavior and decisions, while they can be tested, are subject to a social approval effect in which students will provide the answer they deem appropriate. Will the student do what is right when “no one is looking” and there are entrenched forces that provide counterbalancing headwinds in terms of doing what is right? It is easier to be a whistleblower on a paper test.

RULES VS. PRINCIPLES

One of the more well-known models related to ethical decision-making is Kohlberg’s six stages of moral development. Level 1 is an obedience punishment orientation, Level 2 a self-interest orientation, Level 3 an interpersonal accord and conformity orientation and Level 4 a rule/law/authority-obeying orientation. It is not until Levels 5 and 6 are reached (termed the “post-conventional phase”) that a more principled view of ethics is reached — one that is based upon social contracts, values, conscience and justice.

Some professionals believe that ethics education tends to spend much more time on the rules aspects of ethics as opposed to the application of principles, and that students gravitate toward accounting because of the rules orientation. But unfortunately, a rules-based approach to ethics may create scenarios in which a person’s actions are structured to get around the rules — to be, in essence, in conformity with the letter of the law but not the spirit. Is

this not the basis of some tax practice, accounting and legal compliance?

With the shift from a rules-based approach in accounting to a more principles-based approach under IFRS, there may be an opportunity for accounting students to have a similar approach toward ethics. Ethics is more than just knowing ethical rules and standards, but also involves applying ethical principles to new and novel situations that may contains shades of grey (through case studies or short vignettes.) This would involve that same type of analytical skills needed for accounting and move students to higher levels on the Kohlberg scale.

PERFORMANCE

From an empirical perspective, there is no question that the results are mixed (some positive, some neutral and some negative) in terms of the broad hypothesis of whether ethics education in college for accounting students is working at the time of exposure. Some studies have actually shown that college students’ moral sensitivity actually decreases immediately after ethics intervention, a counter-intuitive argument that may suggest that some instructors may not be properly trained, that the content is not as well-established as more technical courses or some other factor. Certainly the argument is evident that things done badly, even with the best of intentions and supporting a noble goal, may cause more harm than good. The one apparently consistent factor related to moral development, but in a more general

context, is that persons exposed to more college education of any type have higher moral development. This would certainly support the importance of the 150-hour requirement.

Obviously, once a student passes the CPA Exam and enters public accounting, he or she will face a whole new set of ethics requirements through CPE credits and firm requirements, as well as actual experience making real-life ethical decisions that affect a number of parties. Ten years after Sarbanes-Oxley, CPAs are still considered to be one of the most ethical groups of professionals, according to a Gallup survey.

ETHICS IN THE VIRGINIA ACCOUNTING CURRICULUM

At the recent VSCPA Educators’ Symposium held at the Society’s offices in Glen Allen, representatives from the Virginia Board of Accountancy explained the educational requirements for sitting for the CPA Exam in Virginia. During the discussion that followed, an attendee asked why Virginia does not require an ethics course as a requirement to take the Exam.

While the Symposium was not the appropriate forum to discuss the pros and cons of having an ethics course requirement, we wanted to see if Virginia universities require accounting students to take a separate ethics course as part of their accounting degree or offer an ethics course as an accounting elective.

The AACSB has long insisted that business schools include ethics in their curricula. Most schools imbed ethics discussion in numerous business and accounting


Few schools offer a separate accounting ethics course and even fewer have made it mandatory.

courses. I (Professor Lingenfelter) use short ethic vignettes from the textbook in my accounting principles classes. My auditing students are required to complete two to three ethics case studies. While many of us teach ethics in our current accounting classes, some business schools have a separate accounting ethics course, either as a required course or offered as an elective.

Virginia Tech offers a class called “Auditing, Governance and Professional Ethics,” Old Dominion University has a graduate course called “Professional Ethics and Legal Issues in Accounting,” and William & Mary’s Mason School of Business offers “Business Ethics” as an elective to its accounting students.

While Virginia and most other states do not require an ethics course as a condition for taking the CPA Exam, California, Maryland, Texas and West Virginia require or will soon require ethics as part of the educational requirements.

LEARNING FROM SHEPHERD UNIVERSITY

We contacted Cindy Vance, an assistant accounting professor at Shepherd University in West Virginia, to find out more about her stand-alone ethics course. Professor Vance has been with Shepherd University since August 2011, where she teaches an undergraduate and graduate accounting ethics course and a business ethics course. Her accounting ethics course has the following course description:

“An in-depth study of the ethical issues faced by the accounting professional. Through case studies,

the student will gain the ability to analyze the issues faced by the accounting professional and determine why or why not the action taken was appropriate under the circumstances. Studies will include the need for independence, objectivity and integrity of the accountant.”

Professor Vance describes her format for teaching the ethics course: “I use a textbook which has a lot of cases. The class I taught last fall was a graduate-level course that was partially taught online. Some of the discussions were conducted online. For the business ethics course, I used ‘EthicsGame,’ an online program which has simulations and includes a self-evaluation of students’ ethical inventory. I use a separate case book for business ethics and we apply ethic theory to these cases.”

Professor Vance said she believe ethics can certainly be taught, and teaching with case studies can help students make better judgments. “I am shocked that ethics in not required. Businesses fail because of unethical people. We have to get students to understand what it means to be ethical. Analyzing case studies may prevent future students to go down the same road. We need to fix the root of the problem. We need to take a proactive approach and I think everybody should have an ethics course. Taking an ethics course would assist CPA candidates with taking the AICPA ethics exam.”

THE FUTURE OF ETHICS EDUCTION

Accounting research points to two opposing viewpoints when it comes to

the potential outcome of teaching ethics. One group believes that ethics cannot be taught and a separate class in ethics will not matter. The other believes that students can and should be taught ethical values.

While accounting programs have incorporated ethical issues in most of their accounting classes, few schools offer a separate accounting ethics course and even fewer have made it mandatory. At the same time ethics, professional responsibility and independence are major components of the CPA Exam and all CPA candidates are eventually required to take the AICPA ethics exam. All licensed CPAs in Virginia are required to take two hours of ethics training a year.

Maybe requiring our accounting students to take an accounting ethics course would give them a head start. n

PHILIP UMANSKY, CPA, PH.D., is an associate professor of business at the Sydney Lewis School of Business at Virginia Union University and chairman of the Accounting and Finance Department, and a former member of the VSCPA Editorial Task Force. Contact him at [email protected].

GABRIELE LINGENFELTER, CPA, teaches accounting and auditing for the Luter School of Business at Christopher Newport University in Newport News. She is a former member of the VSCPA Editorial Task Force. Contact her at [email protected].




PRACTICE management

Passing the Baton: The Race to PartnershipBY BETH A. BERK, CPA

Who has really crossed the finish line to female partnership? For more than 13 years, I have lived in the metropolitan Washington, D.C., area — an area within the United States that seems to have not only a high concentration of educated professionals of all ethnicities, but also a high concentration of professional women, including CPAs.

During the past seven years, I have focused on placing CPAs and CPA candidates in various sizes of CPA firms. And despite being active within many CPA-related organizations, I still have not come across as many women partners in CPA firms as one might expect.

Many of the female partners I have met seemed to have either started their own firms or businesses, or joined smaller to mid-size local firms that enabled them to find partnership within their reach. For purposes of this article, the words “partner” and “partnership” (singularly and plural) are used to refer to partners at CPA firms, sole proprietor CPAs and CPA business owners who provide accounting and tax-related services.

I have known women who left voluntarily from firms, just as I did. I have also met women who left their positions involuntarily, including partners, due to either downsizing (possibly they were a non-equity partner), forced retirements or some other reason (politics included).

To assist me with writing this article, I created an informal survey (see page 25) and waited to receive some responses before I even attempted to write an outline. The VSCPA helped by emailing women identified as partners in the membership database, and I also sent the survey to female partners I know who are not VSCPA members.

Over the years, I have had conversations with fellow CPAs at varying levels, including senior managers and partners/ex-partners. Some of those senior managers didn’t see crossing the finish line to partnership as a reality for them. For some, it is by choice, because of the very same challenges cited by those who did cross the finish line.

As I started to think about the answers I received from the survey and from talking to CPAs, it became clear to me:

The underlying skills and personality characteristics required to cross the partner finish line, as well as the many challenges one faces as a partner in a CPA firm, seem to be similar, if not the same, for both women and men.I arrived at this conclusion based upon my focus within the CPA firm world since 2005, talking to and meeting male and female CPAs in public accounting, attending numerous industry-related

conferences and reading industry-related articles too. The survey responses also helped to support these conclusions.

One female partner said: “I was not challenged or frustrated in path to partner. My firm recognized my work and especially my potential to do well for the firm.”

CHALLENGES ON THE PARTNERSHIP PATH

Let’s consider some responses to the question: “What was the most challenging (or frustrating) aspect of working towards being promoted to a partner before you became a partner with a firm?”

One respondent said, “In general, the biggest challenges I face are work/life balance issues. Did I spend enough time with my kids when they were little? Did I miss too many school activities, trips, etc.? Are those unique to women? No. Are those unique to this profession? No. I am also responsible for my mother and, prior to his passing the year after I made partner, my father. Juggling all of that responsibility has left little time for me. I have thrown myself into work to provide for everyone, but I do feel overwhelmed at times. I look at some of our senior partners and they at least give the appearance to everyone of having everything together and not having to deal with these issues. I don’t know


PRACTICE management


if it is an age thing or a gender thing (most of them are male). One of the other surprises I had when I made partner was coming to realize that they all didn’t get along or that they were struggling with some of the same issues with staff or at home that I was dealing with. I think we do our staff and ourselves a disservice by pretending it is all good — it makes those of us who reach this milestone and don’t have it all perfect think we are failing in some way. But at the same time, I understand that, as leaders, sometimes we have to hide the gory details in the best interest of everyone. It’s the old issue of liking bologna or hot dogs until you know what’s in it. Walking that fine line is part of being a leader and [what] being a partner is, but default if nothing else, leading to some level.”

Balancing home and work was a consistent theme among respondents:

“The most challenging thing for me is juggling the demands of being a business owner with the demands at home and trying to excel at both. I do have good support at home but find myself in

the age-old scenario of being the one who keeps things running at home. So I of course find it challenging to have administration functions in both aspects of my life and do them well. Especially when getting started, trying to make sure my authority at work is respected even if I have to leave to respond to a family issue.”

“The commitment and dedication required — the job is very demanding and requires around-the-clock dedication and commitment, often at a personal sacrifice.”

Another partner describes her frustrations with attaining a high level:

“The most frustrating aspect of reaching the status of partner is realizing that a lot of what goes into the decision is out of your control. You can do all the right things, do a good job, have good realization on your jobs, effectively manage people and just generally do a really good job, but the bottom line is the bottom line. What this can ultimately mean is if there isn’t a place for you when you think it is time, you are going to have

to wait. Comparing yourself to others will drive you crazy. They may have reached the milestone before you because of a pending retirement in another office or an expertise that you don’t have. This doesn’t mean that you are really good at what you do or that you won’t ultimately get there, but you may not get there when you want it. Playing politics may not come naturally to you, but if you don’t at least pay attention to them, you won’t understand why this happens. Having a good mentor to help you learn the politics and guide you through the process is critical.”

SURPRISES ALONG THE WAY

When asked “What is/was the most surprising aspect of being a partner with a firm and/or solo practitioner that you did not expect?,” responses included:

“I have only been a partner for 4 ½ years, but I am surprised everyday by how much like an employee I still feel. This is likely a factor of the size of our firm. I do have a sense of leadership and partnership with those in my office/region, but so much

PRACTICE management

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SOME WOMEN REPORT NEGATIVE EXPERIENCES

While I came to the conclusion that many challenges one faces as

a partner in a CPA firm, and the difficulties in becoming partner,

seem to be similar if not the same for both women and men, I did

receive some responses to my survey showing gender bias women

have encountered.

One sole practitioner stated: “I had no desire to be partners with

some of the men partners due to their behavior towards women,

part time, their employees, management style.”

Another said:

“I started in public accounting in the early 1980s. Apparently

there were audit engagements where women would not

be considered or welcome and I was told I could not be

considered for an assignment because I was a woman.

In my earlier days and when I was affiliated with what is

now one of the Big 4 firms, a flexibility program was being

developed and pushed out. Among other considerations was

a longer pathway to partner for individuals choosing a work/

life balance lifestyle that included time away from the firm for

childrearing activities. I had never missed a day of work for

health reasons and/or sickness in the nine years I was in public

accounting, except to deliver my daughter, and I returned to

the office in less than four weeks. My billable and total annual

hours were consistently significant.

I was upset and offended when a national partner visited our

office and met with me to offer this benefit/consideration [the

longer pathway to partnership]. I do not recall he met with any

men in the office.

Partners and managers met together annually to discuss

and agree upon compensation packages in a firm I was

working for. In the late 1980s and during one discussion of

the compensation for a high-performing female, a partner

mentioned we did not have to pay her as much because her

husband also had a job.”

Mind you, both of these women are not new to the profession.

However, I also have spoken to women who didn’t respond to the

survey who seemed to have expressed similar sentiments, and

they joined the workforce after me.

What else can we all learn from this? I only asked female CPAs

about their experiences climbing the corporate ladder as a CPA,

so I have no data or evidence from women in other fields. These

experiences may be similar to those of women in all areas of

corporate America over the last few decades. However, as I stated

in my article, there are many other challenges besides gender

issues. — Beth Berk, CPA

>> GENDER BIAS?

PRACTICE management

of the management and decision making is out of my hand that at times I feel like a glorified employee.”

“The most surprising aspect of being a partner is the inter-personal connections with clients. I have talked to many other practitioners about the counseling aspect of our job. Not just with money matters but with familial relationships, personal crises and personality issues. A second degree in counseling or psychology would be very helpful in this career.”

“The cachet that goes along with the position of being a partner — being recognized for achieving that status and assumed level of competency that goes with this.” In a follow-up conversation, this same partner shared more, including “partner status makes the assumption that you are going to be competent and good — easier to go into the marketplace and get the work.”

This respondent reported very positive aspects of the partner track:

“I have had a great experience working in public accounting. The amount of responsibility, autonomy and flexibility I have has kept me in the profession. I feel that I am able to make decisions and move forward with ideas. It is certainly a challenge and a balancing act to be a partner in a large firm whereby we have to have rules/processes/procedures to keep our work and performance consistent, and the ability to make decisions and not stifle creativity/motivation. I think that public accounting can give you a great base for whatever you choose to do in the later part of your career and I feel lucky to have had so much success. Which I attribute to great leaders and mentors who took a personal interest in my career and me.”

If I were to ask male CPA partners of varying ages the same questions as I did in my survey, I believe I would get similar responses.

TODAY’S PARTNERSHIP ENVIRONMENT

Despite the positives of being a female partner, in 2012, more than 30 years out from the beginning of the feminist movement, article headlines make me wonder how far we have really come. A large international corporation has launched a campaign to help girls with self-esteem problems. Articles still appear geared toward single females on what they should be doing differently to keep their men.

If one were to go back and read articles written in the past 30 or more years related to women in the accounting profession, one may see the words “obstacles” and “advancement” or “obstacles” and “upward mobility” in the same sentence. One may also see articles about how women may not be taken as seriously since at times they may quit or scale back to put their careers goals on hold for their families.

And today there are many obstacles we all face in the work world, either directly or indirectly, that may affect one’s advancement or upward mobility. To name a few, aging and/or sick parents, sick children or our own illnesses; turnover including less loyalty in the workplace; and scaling back hours for better work/life balance.

If today’s partners wish to relay their partnership batons to continue the CPA firm partnership race, maybe firms need to be more “inventive,” “versatile,” “compliant,” “flexible” and “evolved” — the same words that the female partners

used when asked, “If you had one word to describe yourself in terms of your career as a CPA, what word would you use?” One partner described herself as “dedicated.” Maybe it is time that firms are more “dedicated” with respect to creating different paths to the finish line and different types of races, no pun intended!

It’s Virginia CPA Week Sept. 16–22, 2012, and we should be celebrating our profession as CPAs — all types of CPAs — and have leadership that clearly reflects today’s working world. And for those whose dream it is to be a partner at a CPA firm, which I hear a lot when I speak to many job seekers, let us all encourage and support those who wish to cross that finish line. n

AUTHOR’S NOTE: I would like to thank the VSCPA for putting me in contact with fellow CPAs, and also thank those CPAs who responded to my survey. Two respondents specifically asked that their responses be anonymous, and because several respondents would have had to clear their responses with firm management, I decided to make all quotes anonymous for the sake of clarity.


BETH A. BERK, CPA, is an independent recruiter based in the metropolitan D.C. area

who focuses on placing CPAs and CPA candidates, although she also places other professionals, including IT-related/network engineers, administrative and more. Contact her at [email protected] or (301) 767-0670.

PRACTICE management

Get connected today at http://connect.vscpa.com.

When you’re a member of the VSCPA, you’re instantly connected to Virginia’s premier community for CPAs! That’s more than 10,000 active members, partners and leaders across the state — right at your fi ngertips!

Build partnerships that advance your career and make new friends through VSCPA social media, like Connect — our new, interactive members-only directory!

Plus, as a member, you’ll enjoy exclusive, members-only benefi ts:

• 18+ hours of high quality, FREE CPE• Access to our online Career Center• Discounts on CCH tax guides and access to the new tax law e-book and mobile app• Continued advocacy on your behalf• Access to RSS feeds, podcasts and e-newsletters• And much more

Make The Connection

Watch our members in action!

The Persistent Patriot A profile of Dawn Halfaker, owner of Halfaker & Associates


BY GORDON BERNHARDT, CPA

PRACTICE development

Dawn Halfaker (left) served in 2004 in Iraq with Gary Hall.


Sometimes the best way to gain inspiration for your career, or improve your firm or office, is to study the career paths and work ethics of others. To that end, we have printed a few profiles of Virginia-based executives and CPAs this year in Disclosures.

>> FROM THE EDITOR

One of her patrols had been ambushed, and a firefight ensued. When her vehicle was hit with a rocket-propelled grenade, the shrapnel had splintered through her right shoulder, and that’s where the memories stopped. In her comatose state, she had not been awake to see the helicopter airlift her from the scene. She had been unconscious for the trip back to Washington, D.C., and she had been unconscious during the amputation of her arm. When Dawn awoke in that hospital room, she knew her life would never be the same. She was 24 years old.

The road to recovery was not an easy one for Dawn, and her progress was further frustrated by the inevitable sense of denial that swept over her. Unable to see past her current condition, she would try to pretend it hadn’t happened. She suffered from a profound sorrow until one day, when her physical therapist led her down to a room where several

soldiers were undergoing rehabilitation for their injuries. The first person she saw was a staff sergeant who had lost both his legs and had suffered severe facial burns. As the man wobbled hopefully on his new prosthetic legs, his wife and children chanted, “Go, Daddy, go!”

From that moment on, Dawn’s perspective changed completely. “I learned that I was really lucky for what I had and shouldn’t be dwelling on what I didn’t have, and I got really focused on my future,” she says.

Six years later, one would hardly imagine that the intelligent, poised and successful young woman had ever had a moment of self-doubt. After the incident, she knew she wanted to maintain her strong military connection, especially the leadership aspects of her position. After attending several job interviews where nothing really clicked for her,

she happened to meet an army colonel who had just started working with the Defense Advanced Research Projects Agency (DARPA) and needed a research program manager. He was looking for someone with recent combat experience who could envision the potential for research to save lives by leveraging technology on the battlefield.

Halfaker worked in a consultant capacity for the Army colonel as she gained experience and developed a company of her own, which began to take form in January 2006. Drawing on her unique skill set and nuanced knowledge of the national security community, she served on DARPA contracts investigating new strategies and materials that could be developed, commercialized and deployed to the armed forces to strengthen national security. She worked on these projects for two years while building Halfaker & Associates in the

When Dawn Halfaker first opened her eyes in the sterile hospital room, she was stunned. She let her shaken memory sift through what had transpired. A captain in the U.S. Army, she had been deployed to Iraq five months before. Her platoon had been assigned to live and work in the city of Baqubah, where they had participated in raids, patrols, reconnaissance missions, forced protection, convoy escorts and police training.



background and attending Georgetown University at night to receive her master’s degree in international security. The United States has undergone “a very transformative era throughout the last decade,” Dawn reports, “and I felt that I had unlimited potential to contribute in different areas.”

A COMPANY IS BORN

As Dawn took on subcontracts with DARPA, she hired people with similar backgrounds and experiences — namely, veterans hoping to continue serving the mission who possessed valuable skill

sets. In this way, Halfaker & Associates continued on a track of organic growth through the end of 2007, when it began winning larger contracts and adding critical mass to its staff. The company developed departments for human resources and finance, gaining a self-awareness that was strategic rather than tactical.

While Halfaker & Associates originally focused on national security policy, homeland security and defense solutions, it has since branched off into program management, consulting, project management office support, acquisitions support, IT solutions and software development and integration. Though they have diversified their revenue streams, the majority of their business still comes from U.S. military contracts.

It makes sense, then, that the company remains very mission-driven. In fact, the mission element of their service model accounts for much of their uniqueness as a company. “Personally, this company is a vehicle for affecting change in areas where I’ve been passionate,” Dawn says. “It is powerful that we can address an issue.”

From a business perspective, they have established themselves as a trusted partner to their clients through this mission orientation, allowing them to invest in clients both personally and professionally. Through sharing a common mission and vision with their clients, Halfaker & Associates is able to offer service that tailors solutions to best fit the needs of each individual client.

Looking back at her business’s evolution, Dawn points out that little things happened all along the way that

cumulatively define the journey. She can, however, put her finger on one notable turning point for the company — a time when it was enjoying success and growth, but without a means to advance to the “next level.”

“Developing a long-term strategic plan turned us into a real business overnight,” she says. When the fledgling group won a considerably hefty contract with the U.S. Army Recruiting Command, they were forced to put infrastructure in place. In the end, they had more than 50 employees on the contract, successfully supporting the mission and recruiting soldiers to enter the military. It was indisputable that Halfaker & Associates had come of age, truly developing into a notable force in its field.

KEYS TO SUCCESS

Because Dawn embarked upon her professional journey at such young age, she relied upon the mentorship of several key individuals to make up for the business and consulting background that she lacked at the time Halfaker & Associates was started.

“Sometimes it takes people looking in from the outside to see what the possibilities are,” she remarks. She would advise a young entrepreneur to identify their mentors early on — individuals who have your best interest at heart and can answer the “dumb questions” to help you understand how to leverage what you have and what is possible.

Now that the company has been operational for four years, she’s looking inward at herself and how she can repay the favor by advising and mentoring


"Developing a long-term strategic plan turned us into a real business overnight,” says Dawn Halfaker.

others. Focusing her energies on wounded veterans transitioning out of the military, she now knows what questions to ask to help people identify their own unique paths in life.

Consequently, one other defining aspect of Halfaker & Associates that renders it so unique is the fact that it is a service-disabled veterans company, with veterans making up more than 70 percent of its employee base. The company is part of the Wounded Warrior Hiring Program, setting aside jobs for injured veterans and working to train, mentor and develop those individuals to assume careers with the sense of purpose that so many of them lost when they left the service.

“That was what was so hard for me,” Dawn reflects, referring to the mission orientation she lost when she was force to resign from the military. The company was a means for Dawn to regain her footing in a new life following her injury, and her efforts in turn now provide similar opportunities to people facing the same obstacles.

Dawn’s current responsibilities at Halfaker & Associates include, first and foremost, the long-term success and strategic growth of the company. By laying out the path to success and honing the primary goals of the enterprise, she aims to set the gears in motion so that her employees can, in turn, act. She also identifies the responsibility she wields for the lives of others — a duty which she takes with the utmost seriousness. To Dawn, running a company is so much more than making sure the nuts and bolts are in place. More importantly, it is ensuring that her employees are receiving the tools they need to be successful and to reach their

goals. Additionally, Dawn is constantly considering the company’s role in the community. Through her service on the advisory boards of a number of nonprofit organizations, she extends the boundaries of both the company and of herself.

Reflecting back upon the past several years, Dawn is most proud of the team she’s assembled. “They can do anything,” she marvels, “and that is a powerful thing. Whether it’s focusing on Wounded Warrior, or a charitable event, or getting a proposal out the door, they will get it done.” To achieve this level of success, she warns young entrepreneurs against a mentality of finality. As people enter the workforce, they tend to believe that their entire lives will be locked into the first field they go into. This mindset is misleading and can often be paralyzing. “Just go for it,” she advises. “Take risks. Take chances. This will eventually lead to the path that was meant for you.” If one never goes out on a limb, one never discovers their talents, preferences and passions.

This process of self-discovery coupled with hard work and determination go hand-in-hand with Dawn’s leadership philosophy, which is focused around constant learning and evolution. Not only does this involve the acquisition of wisdom and knowledge, but also learning about your teammates. “Whether it’s a combat mission or a business mission, you must look to people,” she says. “Treat them well, know them well, know their strengths and know how to pull the best out of them.”

When it comes to passion for the mission, it is readily apparent that Dawn’s enthusiasm and commitment


Submitted and reprinted with permission by local financial advisor Gordon J. Bernhardt, CPA, PFS, CFP®, AIF®, author of the book “Profiles in

Success: Inspiration from Executive Leaders in the Washington D.C. Area.” The book was developed in conjunction with interviews conducted on Executive Leaders Radio, and highlights personal stories and words of wisdom from a diverse group of business leaders in and around D.C. To purchase a copy of “Profiles in Success” ($24.99), contact Gordon Bernhardt at (888) 356-4380 or visit http://tinyurl.com/6nee25w.

GORDON J. BERNHARDT, CPA, PFS, CFP®, AIF®, established Bernhardt Wealth Management, an investment advisory firm in McLean,

in 1994. For more information, visit www.bernhardtwealth.com or read Gordon’s blog at http://gordon-bernhardt.blogspot.com. Contact him at [email protected].


are representative of her entire team’s sentiments. “They know it’s more than just a job; more than just getting a paycheck,” Dawn confirms. Indeed, it is a cause, a vision and a lifestyle that truly unites her team in mission and purpose, allowing for a degree of commitment to their clients’ success that is as sincere as it is rare and as powerful as it is poignant. n


VSCPA self-assessment

1. BETWEEN 1994 AND 1999, 15 STATES ENACTED LEGISLATION REQUIRING 150 HOURS TO SIT FOR THE CPA EXAM. AT THE SAME TIME, THE NUMBER OF STUDENTS ENROLLING IN ACCOUNTING PROGRAMS:a. Did not change significantly.b. Increased by 10 percent.c. Decreased by 20 percent.d. Decreased by 5 percent.

2. WHAT EFFECT DID THE VIRGINIA BOARD OF ACCOUNTANCY’S ACTIONS HAVE ON FIRST-TIME CPA EXAM CANDIDATES BEGINNING IN MAY 2009?a. First-time candidates were required to complete 150 credit hours of education

before sitting for the CPA Exam in Virginia.b. First-time candidates were required to complete a minimum of 30 upper-level

accounting credits before sitting for the Exam in Virginia.c. First-time candidates were required to sit for the CPA Exam in Virginia if they

planned to be licensed in Virginia.d. First-time candidates with 120 hours of education could once again sit for the CPA

Exam in Virginia, but 150 hours continued to be required for licensure.

3. WHICH OF THE FOLLOWING OCCURRED AFTER THE VIRGINIA BOARD OF ACCOUNTANCY’S ACTIONS IN MAY 2009?a. The number of first-time candidates sitting for the Exam in Virginia continued to

decline.b. The supply of master’s degree-qualified accounting graduates from Virginia

colleges and universities declined.c. The pass rates for 2010 were higher for all four parts of the CPA Exam in Virginia.d. The number of candidates taking the Exam in Virginia decreased significantly.

4. THE PRINCIPAL FINDING OF THE AUTHORS OF “THE CPA PIPELINE” IS THAT:a. The decision to major in accounting is influenced more by the opportunities for

employment than by the cost of education.b. The 150-hour requirement (2006) resulted in a decrease in the number of students

graduating in accounting from Virginia colleges and universities.c. Pass rates on the CPA Exam in Virginia have climbed steadily in the years 2008

through 2010.d. Virginia was among the first states to adopt the 150-hour requirement.

5. WHICH OF THE FOLLOWING STATEMENTS IS NOT TRUE?a. The Enron and WorldCom scandals and the Sarbanes-Oxley Act renewed the focus

on ethics.b. Ethics education in accounting has always been shown to be effective based upon

empirical studies.c. The CPA profession continues to been seen by the public as one of the most ethical

professions.d. Currently, Virginia does not require a stand-alone ethics course as part of the

educational requirement to sit for the CPA Exam.

SUBMISSION INSTRUCTIONSYou may submit this self-assessment and make the exam payment online at www.vscpa.com/September2012DisclosuresExam.

You may also circle your answer to each question and mail this paper exam to:

CPE TeamVirginia Society of CPAs4309 Cox RoadGlen Allen, VA 23060

Fax submissions are acceptable to (804) 273-1741.

Name _________________________

Address _______________________

_______________________________

Email Address __________________

Date __________________________

Method of Payment

• Check (payable to the VSCPA)

• Credit card

Credit Card Number

_______________________________

Expiration Date ________________

Signature _____________________

Date _________________________

SUBMISSION DEADLINE: Sept. 30, 2012. Exams received after this date will not be graded and your money returned.

COST: $15 for VSCPA members / $30 for nonmembers.

Please note that this exam will not be live online until Sept. 1, 2012.

Complete this 12-question test and submit to the VSCPA for 1 CPE credit. Exams will not be graded until after the submission deadline. A 75 percent or better pass rate is necessary to receive credit. After your exam is graded, you will receive either a certificate of completion via email for your records or an email notification that the 75 percent grade was not met.


6. BASED UPON KOHLBERG’S STAGES OF ETHICAL DEVELOPMENT, THE HIGHEST LEVEL OF ETHICAL OR MORAL DECISION-MAKING IS A:a. Law-based orientation.b. Principles-based orientation.c. Punishment-based orientation.d. Social conformity-based orientation.

7. WHICH OF THE FOLLOWING IS TRUE REGARDING ACCOUNTING ETHICS COURSES IN VIRGINIA?a. Most business schools in Virginia require an accounting ethics course as part of

their undergraduate accounting degree programs.b. Accounting ethics courses are not offered at all in Virginia.c. Most accounting courses include ethics topics to meet the requirements of the

Association to Advance Collegiate Schools of Business.d. Virginia Tech offers a course called “Professional Ethics and Legal Issues in

Accounting.”

8. WHICH OF THE FOLLOWING IS NOT A CHALLENGE REGARDING ETHICS EDUCATION?a. Measuring the effectiveness of teaching ethics.b. Determining how and when to offer ethics to students.c. Getting accounting students to understand the importance of ethics.d. Deciding which approach to teaching ethics is most effective.

9. USING SURVEY RESULTS AND PERSONAL EXPERIENCE, THE AUTHOR OF “PASSING THE BATON” CONCLUDES: a. Skills and characteristics to become a partner in a CPA firm/be a solo practitioner

seem to be very different for women and men.b. Skills and characteristics to become a partner in a CPA firm/be a solo practitioner

seem to be the same or similar for women and men.c. So much of partner management and decision-making is out of one’s hands.d. It is a challenge and a balancing act to be a partner.

10. WHICH OF THE FOLLOWING WAS NOT DESCRIBED AS A CHALLENGE FACING FEMALE PARTNERS: a. Balancing work and life.b. The dedication and commitment required.c. Paying attention to office politics.d. Getting to the office on time.

11. A TURNING POINT IN THE SUCCESS OF HALFAKER & ASSOCIATES WAS:a. Developing a long-term strategic plan.b. Hiring more staff.c. Writing a mission statement.d. Offering software development and integration.

12. DAWN HALFAKER BELIEVES KEYS TO HER SUCCESS INCLUDE:a. Relying on mentors.b. Employing injured veterans.c. Constantly learning and evolving.d. All of the above.


STUDENT MEMBERS: BENEFITS ABOUND!

>> WE LOVE OUR FUTURE CPAs

>> CONGRATS, SCHOLARSHIP WINNERS!

>> Stay up to speed with the VSCPA’s professional publications, including Disclosures bimonthly magazine and the eDisclosures and Footnote monthly e-newsletters.

>> Apply for the VSCPA Educational Foundation’s accounting scholarships. (Visit www.vscpa.com/ScholarshipInfo for information.)

>> Plug in to the VSCPA website, www.vscpa.com, where you can get great accounting tips and news, view accounting internship opportunities, search for future employers and more.

>> Connect with accounting students just like you, as well as all VSCPA members, through the Society’s social networking portal, Connect, at www.vscpa.com.

>> Network with more than 10,000 VSCPA members across

the state who can offer you real-world advice — and maybe even a job!

>> Access the current accounting salary guide published annually by Accountemps.

>> Apply for jobs posted to the VSCPA Career Center and LinkedIn.

>> Find volunteer opportunities including the CPA Day of Service and Financial Literacy Month.

>> Sign up for a mentor, who can answer your questions and help you make smart academic and career decisions, through the CPA Connection program.

>> Put money back in your pocket with incredible discounts. Save:

• $300 on Becker CPA Exam review courses• 25 percent on any of 175 tax and accounting titles

from CCH• 30 percent on ExamMatrix CPA Exam review materials• 30 percent on CPA Exam prep courses from Kaplan• Up to 8 percent on GEICO car insurance• Up to 50 percent on select supplies from Office Depot• Up to 30 percent on select UPS mailing services• And more!

>> Plus, list VSCPA membership on your résumé to indicate your professional commitment and involvement to potential employers. n

As a VSCPA student member, you’re entitled to helpful resources, discounts, networking opportunities and much more. Make sure you’re using your VSCPA membership to your full advantage! Check out the following resources:

Get the Most From Your Membership

The VSCPA Educational Foundation awarded nearly $44,000 in scholarships for the 2012–2013 academic year. For a full list of scholarship recipients, visit the “Scholarships & Grants” section of www.VSCPAFoundation.com.

STUDENT section


The VSCPA held the sixth Leaders’ Institute for Virginia’s brightest accounting students June 22–24, 2012, at Virginia Tech in Blacksburg. With a gift from accounting and consulting firm Baker Tilly Virchow Krause, the VSCPA established the first-ever Leaders’ Institute in 2007.

Specifically designed for the top college accounting students in the Commonwealth, The Leaders’ Institute provides a hands-on workshop program for young aspiring CPAs. The Institute is the only development program of its kind in Virginia and provides rising college seniors the opportunity for vital leadership training and real-life skills to successfully transition into the competitive marketplace.

More than 75 accounting students who have displayed exceptional academic achievement and a keen interest in business and professional services

attended the event, which focused on career-building skills and tools of the accounting trade, offering insightful perspectives from seasoned professionals.

“Students gain technical knowledge in the classroom, but successful careers are built on one’s ability to communicate concisely, write persuasively, mentor and be mentored, build networks and relationships, and finally assume leadership roles in their future organizations,” said John Montoro, CPA, chair of the VSCPA Board of Directors. “The Leaders’ Institute is a wonderful forum for the VSCPA to develop these talents in our students.”

Interested in attending the 2013 Leaders’ Institute? Apply for a VSCPA Educational Foundation scholarship or speak with your professors about the nomination process. For more information, visit www.VSCPAFoundation.com. n

Auditor of Public Accounts

Baker Tilly Virchow Krause

Cherry, Bekaert & Holland

Cotton & Company

Deloitte

Dixon Hughes Goodman

Ernst & Young

Johnson Lambert & Co

Kearney & Company

KPMG

National Association of Black

Accountants (NABA) Richmond

Chapter

PBGH

RyanSharkey

U.S. Government Accountability

Office

VSCPA Educational Foundation

Wall, Einhorn & Chernitzer

Wells, Coleman & Company

Yount Hyde & Barbour

>> THANK YOU, LEADERS’ INSTITUTE SPONSORS

Rising accounting stars attend sixth Leaders’ Institute

Leaders’ Institute attendees file in to a conference session.

Tres Brackens, CPA (left), a young CPA, spoke at the Leaders’ Institute.

STUDENT section


A Big Four partner and an executive at a small firm. One spent his entire career in the field; the other moonlights in academia. VSCPA members Larry Samuel, CPA, and Dian Calderone, CPA, brought different experiences to the Virginia Board of Accountancy (VBOA), but both attacked their assignments with the same sort of professional vigor.

Samuel and Calderone, both former board chairs (with Samuel chairing the board twice), wrapped up their terms on the VBOA at the June 26 meeting, where they were honored by their colleagues and other representatives of the profession.

“The VBOA regulates over 24,000 CPAs in Virginia and 1,200 firms,” Calderone said. “It is imperative that the makeup of the board represent those they regulate. We were fortunate over my eight years on the board to have small, medium and large firms represented, as well as industry and education. The issues of each of these are unique and need to be considered in the decisions of the board.”

Samuel echoed his colleague’s thoughts, making reference to his own varied career experiences and the perspective they brought.

“My Big Four experience definitely broadened my experience and was a tremendous help in dealing with BOA issues,” he said. “However, I believe it was my total career experience which was so invaluable. Prior to college, I had worked in private company accounting reporting to the CFO; during my public accounting career I worked at both large international accounting firms as well as a smaller firm (Gary, Stosch, Walls & Co.). Even my Army experience as a military policeman added to the wide variety of skills needed to address the diversity of matters which come before the VBOA.”

IMPROVED REGULATIONS >>

Both members cited the comprehensive rewrite of the Virginia accounting statutes and regulations as one of their proudest achievements from their tenure, along with the launch of the VBOA’s new website. Calderone also said she was proud of the establishment of the Education Committee, which develops the outline for Virginia’s annual ethics course.

Samuel and Calderone also mentioned the VBOA’s reorganization as a major success. Samuel says the pair is leaving the board in good hands under Executive Director Wade Jewell, who was hired in 2009.

“Having outstanding day-to-day leadership at the VBOA cannot be underestimated,” Samuel said.

While the board’s last reorganization went well, Samuel cautioned against the potential to cut costs by combining the VBOA with other state agencies. “The biggest challenge the VBOA faces is the potential risk of attempts to consolidate the VBOA with other state agencies under the premise that it will be more efficient and reduce costs,” he said. “This would be a mistake, and as we have observed in other states which have consolidated agencies, the quality and level of service to CPAs goes down, the effectiveness of compliance and enforcement declines and costs increase.”

Calderone performed a great deal of outreach during her term as a member of the Enforcement Practices Committee of the National Association of State Boards of Accountancy, which reviews the enforcement policies of all the states’ boards of accountancy and compiles best practices. “By reviewing what other states are doing in the areas of publication of violations, fines, consent orders and administrative processes, I was able to compare Virginia enforcement processes and refine them,” she said. “Fortunately, Virginia is one of the model states and many of our enforcement practices were incorporated into the manual.”

Samuel echoed Calderone’s words in his remarks at his final meeting, saying the VBOA “shouldn’t just do what’s right. We need to set an example for other boards and agencies and be that shining light on the hill, and I think we’ve done that.” n

EIGHT YEARS OF SERVICE >>

Calderone, Samuel wrap up VBOA terms

VSCPA news

Larry Samuel and Dian Calderone

Support the Future of the CPA Profession

Contributions to the Virginia Society of CPAs (VSCPA) Educational Foundation and the VSCPA Political Action Committee (VSCPA PAC) make it possible for the Virginia accounting community to thrive. With your help, we can help safeguard your future as a CPA and attract the brightest students who will become tomorrow’s CPAs.

Educational Foundation

VSCPA

The VSCPA Educational Foundationsupports students and educators in Virginia through scholarships and grants. The Foundation strives to improve awareness and perceptions by educating students, educators and the public about the exciting, challenging opportunities available to CPAs.

Donate online at www.VSCPAFoundation.com.

The VSCPA PAC is a bipartisan commit-tee that fi nancially assists candidates and legislators who support CPA interests — people we need in offi ce to support the CPA profession. VSCPA PAC contributions, in concert with strong advocacy efforts from the VSCPA, safeguard your future by giving you a voice in the profession.

Make sure your interests are represented. Contribute today at www.vscpa.com/PAC.

Support the Future of the CPA Profession

Contributions to the Virginia Society of CPAs (VSCPA) Educational Foundation and the VSCPA Political Action Committee (VSCPA PAC) make it possible for the Virginia accounting community to thrive. With your help, we can help safeguard your future as a CPA and attract the brightest students who will become tomorrow’s CPAs.

The VSCPA PAC is a bipartisan commit-tee that fi nancially assists candidates and legislators who support CPA interests — people we need in offi ce to support the CPA profession. VSCPA PAC contributions, in concert with strong advocacy efforts

VSCPA news

PROMOTIONS >>

HUGH BARLOW, CPA, has been named office managing partner and LESLIE

ROBERTS, CPA, has been named partner in Dixon Hughes Goodman’s Newport News office.

Updegrove, Combs & McDaniel has promoted LISA CHICCEHITTO, CPA, to manager in its Warrenton office and BRENDA ELEFANTE to firm administrator in its Leesburg office.

MICHAEL LARROWE, CPA, has been promoted to president and CEO of the Bank of Floyd.

Williamsburg Landing has hired CHESTER TELLIS, CPA, as chief financial officer.

SHANNON BLEVINS, CPA, and TERRI

O’BRIEN, CPA, were named principals of Kositzka, Wicks and Company in Alexandria.

APPOINTMENTS & AWARDS >>

CHUCK BARTLETT,

CPA, received the American Heart Association’s (AHA) 2012 Earl B. Beagle Award for Staff Excellence, the

organization’s most prestigious staff leadership honor. Bartlett is the AHA’s senior vice president of health strategies.

BRIAN CARLTON, CPA, of Dixon Hughes Goodman, served as a chair of the 2012 March for Babies in Arlington.

The event raised $1.8 million to support research, education and local grants for programs that offer pre- and postnatal support to underprivileged women.

BARRY CHEATHAM, CPA, with Sherman, Spero & Safarino, Ltd. in Virginia Beach, was re-elected to the Franklin City Council.

Danville Community College’s Alumni Association honored JERRY FOSTER,

CPA, partner at Harris, Harvey, Neal & Co., LLP, as one of four 2012 outstanding alumni.

ROBERT MOWERY, CPA, a sole practitioner in Stephens City, was elected chair of the executive committee of the Blue Ridge Hospice Board of Directors.

BOB SOMERVILLE, CPA, a partner with Glen Allen firm Keiter, was named chairman of the Board of Directors for the Greater Richmond ARC, which provides services for individuals of all ages with developmental disabilities.

FIRM NEWS >>

Alexandria firm BOND BEEBE will host its second annual Bond Beebe Charity Kickball Tournament. Proceeds from the event, set for 9 a.m. – noon on Sept. 8 at Meadowbrook Fields in Chevy Chase, Md., will benefit Neediest Kids,

which provides at-risk children with basic essentials to help them succeed in school.

VSCPA STAFF NEWS >>

Membership Services Coordinator JANE

HAYES celebrates her ninth anniversary with the VSCPA on Sept. 22.

Executive Assistant PAMELA ROBERSON

marks three years with the VSCPA on Sept. 14.

The VSCPA welcomes Member Relations Specialist LAURA COBB, who began Aug. 6. Welcome to the team!

Marketing Director JENNIFER HARRIS has left the VSCPA. Good luck, Jennifer!

NEW HIRES >>

ROBERT OWEN, CPA, has joined Aboristry Associates as controller. n

Congratulations to the following members!

PAMELA ROBERSONJANE HAYES

VSCPA CPE & NETWORKINGVisit the CPE Catalog at www.vscpa.com for the latest VSCPA seminars, conferences, webcasts, networking events and more!

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2012Disclosures_FullPage.indd 1 8/8/12 10:48 AM


VSCPA news

Virginia Chamber honors Sen. StoschThe Virginia Chamber of Commerce released its 2012 Legislative Report Card in April, ranking Virginia lawmakers based on their voting records on bills of interest to the state’s business community. Sen. Walter Stosch (R-Henrico), chair of the Virginia Senate Finance Committee and a VSCPA life member, earned the inaugural honor as the Chamber’s Legislator of the Year.

Stosch was one of seven senators, along with five members of the Virginia House of Delegates, to earn a perfect 100 score. The Chamber cited his work on proposals it backed, notably HB 33, the Fair and Open Competition in Government Contracting Act.

“The recognition is as a result of a commitment to ensure that Virginia is the best state in the nation to locate and conduct business,” Stosch said in an email. “As a CPA and chairman of the Senate Finance Committee, I understand and aggressively promote the relationship of business success to personal success in the Virginia legislature.”

Watch a video of Stosch’s response to the honor at www.vscpa.com/WalterStosch. n

Do you know a Virginia CPA who deserves to be honored for outstanding work or for their civic or charitable activities? Have you met an up-and-comer? One of the best young CPAs in Virginia? Don’t let exceptional work in Virginia to go unnoticed. Nominate a worthy CPA for a VSCPA Distinguished Award:

TOP 5 MEMBERS UNDER 35Nominate a young VSCPA member (35 or younger as of April 30, 2013) who has shown excellence in one or more of the following: professional achievement, VSCPA or local VSCPA chapter accomplishment, community contribution or dedication to the CPA profession.

OUTSTANDING MEMBER OF THE YEARNominate a VSCPA member who has provided outstanding service to the profession through participation in VSCPA activities, civic engagement and charitable activities that further a positive image of accounting and the CPA profession.

Nominations are due by Friday, Dec. 7, 2012. Nominate online at www.vscpa.com/Awards or email VSCPA Member Relations Specialist Laura Cobb at [email protected]. n

NOMINATE TODAY >>

Do you know an exemplary colleague?

The VSCPA mourns the loss of: ROBERT MARSHALL, CPA, a VSCPA life member from Lynchburg. He was a retired partner with Cherry, Bekaert & Holland and worked for the firm for 40 years. He graduated from the University of Virginia and served as a Second Lieutenant in the U.S. Army during the Korean War. He was a member and former vestryman of St. John’s Episcopal Church.

GERALD “JERRY” STRONG, CPA, of Fredericksburg. A former partner at Coopers and Lybrand, he attended the University of Scranton and the Catholic University of America and worked as a sole practitioner after retirement.

M. BARDIN THROWER JR., CPA, of Norton. A graduate of the University of Tennessee, he began his career with Commerce Union Bank before joining his father’s firm, Thrower & Thrower (now Thrower, Blanton & Associates). He was a member of Norton Presbyterian Church and Lonesome Pine Country Club, coached youth sports in Norton and was active with the Kline Foundation.

STEPHEN COMBS, CPA, of Round Hill, a partner with Updegrove, Combs & McDaniel, PLC. A graduate of West Virginia University, he served as president and Paul Harris Fellow of the Purcellville Rotary Club. He was honored with the J. Hamilton Lambert Exemplary Leadership in Education and Community Service

Award and was an honorary member of the Purcellville Volunteer Fire Company No. 2. He served on numerous boards, including the Loudoun Technical Career and Technical Foundation, Purcellville Library, Loudoun Valley Community Center, Loudoun County Fire and Rescue and Middleburg Bank.

STEPHEN COMBS


VSCPA 100% Member Firms VSCPA 100% Member Firms show their commitment to their employees, the profession and the association. A 100% Member Firm is simply a Virginia CPA firm or company that has all of its CPAs enrolled as members in the VSCPA.Interested in being listed as a 100% Member Firm? Contact VSCPA Member Relations Director Brenda Fogg at [email protected] or (804) 612-9409.

THANK YOU FOR YOUR COMMITMENT, 100% MEMBER FIRMS!Anderson & Reed, LLPAnderson, White & Company, PC, CPAsBarnes, Brock, Cornwell & Heilman PLCBeale & Curran, PCBeck & Company, CPAs, PCBennett, Atkinson & Associates, PCBiegler & Associates, PCBlackHeath Company, PLCBowling, Franklin, & Co., LLPBoyce, Spady & Moore PLCBritt & Peak, PC, CPAsBurdette Smith & Bish LLCBurgess & Co., PC, CPAsCameron, Moberly & Hamrick, PCCharles S. Pearson, Jr., CPACharles W. Snader, PCCherie A. James, CPA, PLCChesapeake Accounting Group PCCole & Associates CPAs, LLCColey, Eubank & Company, PCCorbin & Company, PCCraver, Green and Company, P.L.C.Creedle, Jones and Alga, PCCST Group, CPAs, PCDalal & CompanyDavid L Zimmer CPA PCDiane Y Smith CPA PCDidawick & Company, PCDigital Benefit AdvisorsDonald W. Coleman, CPA, Inc., PCDouglas L. Thompson, CPA PLLCDuvall Wheeler, LLPEggleston & Eggleston, PCElmore, Hupp & Company, PLCEverett O. Winn, CPA, PLCFirst Capital BankFrank Edward Sheffer & CompanyFritz & Company, PCGarland & Garland, CPAs, PCGarris and Company, PCGL Roberson CPA, PLLCGregg & Bailey, PC

Gregory & Associates, PLLCGurman & Company, PLLCHantzmon WiebelHarris, Harvey, Neal & Co., LLPHenley & Henley, PCHenry R. Hortenstine III, CPA, PCHogan & Reed, PC, CPAsHolland & Brown LLPHomes, Lowry, Horn & Johnson, Ltd.Honeycutt & McGuire CPAsHughes & Basye, PCHunt & Calderone, PC, CPAsJay E. Reiner CPA PLLCJohn M. Watkins, CPAJohnson, Equi & Co., PLCJones, Adams & Delp, PCJones, Madden & Council, PLCJones & McIntyre, PLLCJS Morlu, LLCKeiterKositzka, Wicks & CompanyL.P. Martin & Company, PCLane & Associates, PCLarry D. Greene CPA PCLauren V. Wolcott, CPA, PCLent & Hawthorne, PCM. Lee Winder & Associates, PCMallard & Mallard CPAs, LLCMartin, Beachy & Arehart, PLLCMcPhillips Roberts & Deans PLCMichael B. Cooke, CPA, PCMichael R. Anliker, CPA, PCMiller Foley GroupMitchell, Wiggins & Company, LLPMoss & Riggs, PLLCMurray, Jonson, White & Associates, Ltd., PCPBGHR.T. McCalpin & AssociatesRenner & Company, CPAs, PCRoger L. Handy, PCRubin, Koehmstedt & Nadler, PLCRussell, Evans & Thompson, PLLCRutherford & Johnson, PC

Salter & Associates, PCScheulen, Patchett & Edwards, PCSells Hogg & Associates CPAs, PCSpencer, Hager & Mosdell, PCSpitler, Stephens & Associates PLLCStephen Merritt CPA, PCSteve Guy & Associates, PCSteve Walls & Associates, PLLCStrickland & Jones, PCSullivan, Andrews & Taylor PCTerry L. Jones, CPA, LLCThomas E. Fraley, CPAThompson, Greenspon & Co., PCTongelidis Consulting, LLCUpdegrove, Combs & McDaniel, PLCValderas & Fishel, PCVerus Financial PartnersWalkerChaney, CPAsWall, Einhorn & ChernitzerWells, Coleman & Company, LLPWilkinson Consulting & CPA PLCWilliam B. May, Jr., CPA, PCWitt Mares, PLCYancey, Miller & Bowman, CPAs PLLCYount, Hyde & Barbour, PC

The above list was compiled July 9, 2012. Check http://www.vscpa.com/100Percent for a complete, up-to-date list. n

>> WE WANT TO HEAR ABOUT IT!

Email [email protected] if you have exciting news to share. The VSCPA prints news of members’ awards, appointments and promotions as well as new hire and job change announcements. Firm news, as well as mergers and acquisitions, is also welcome.

VSCPA news

VSCPA financials


VSCPA financials

APRIL 30, 2012 2011

ASSETS

Current AssetsCash and cash equivalents $ 1,281,102 $ 1,835,828Trade accounts receivable 33,269 62,987Due from VSCPA Educational Foundation 6,000 9,000Investments 1,032,472 189,153Prepaid expenses 153,083 196,516

Total current assets 2,505,926 2,293,484

Property and Equipment, Net 1,455,564 1,439,466

$ 3,961,490 $ 3,732,950

LIABILITIES AND NET ASSETS

Current LiabilitiesAccounts payable $ 17,784 $ 50,681 Accrued expenses 199,715 165,953 Pledges payable 3,000 3,000 Deferred revenues 424,262 422,394Accrued retirement 124,944 111,223

Total current liabilities 769,705 753,251Long-term LiabilitiesPledges payable 3,000 6,000

Total liabilities 772,705 759,251

Net Assets Unrestricted:Invested in property and equipment 1,455,564 1,439,466Board designated for facility and technology 474,436 555,488Board designated for operating expenses 902,921 701,653Undesignated 228,576 175,260

3,061,497 2,871,867Temporarily restricted (CPA PAC) 127,288 101,832

Total net assets 3,188,785 2,973,699$ 3,961,490 $ 3,732,950

The following Statements of Financial Position and Statements of Activities reflect the VSCPA’s and CPA PAC’s financials for the 2011–2012 fiscal year. The full audited financial statements are available online in the “For Members” section of www.vscpa.com. More information on the VSCPA’s 2011–2012 programs and initiatives is available in the 2011–2012 “State of the VSCPA” report, also available at www.vscpa.com.

Statements of Financial Position & Statements of Activities


YEARS ENDED APRIL 30, 2012 2011

Change in Unrestricted Net AssetsRevenue: Program: Continuing education Seminars $ 1,423,475 $ 1,409,865 Conferences 539,730 493,169 Ethics 472,382 462,582 In-House 122,250 154,951 Peer review 181,777 161,174 Membership 1,985,399 1,944,195 Public relations 167 724 Student and educator outreach 103,124 107,360 Net assets released from restriction, CPA PAC 44,767 27,560

4,873,071 4,761,580 Other: Royalties 145,333 173,500 Investment income 11,519 13,382 Realized gain on investments 3,449 8,884 Unrealized gain/(loss) on investments (13,137) 23,238 Rental income 77,265 73,262 Gain/(loss) on disposal of fixed assets (1,006) 1,400 Miscellaneous 3,959 90

Total support and unrestricted revenues 5,100,453 5,055,336Expenses:

Program Services: Continuing education 2,043,305 1,981,558 Leadership 325,919 312,945 Peer review 152,970 154,585 Membership 632,568 598,125 Communications 281,129 199,119 Student and educator outreach 185,254 194,771 Public relations 189,376 228,376 Legislative 158,575 149,025 CPA PAC 44,767 27,560 Supporting Services: Administrative and general 896,960 891,600

Total expenses 4,910,823 4,737,664 Change in unrestricted net assets 189,630 317,672

Change in Temporarily Restricted Net Assets Contributions to the CPA PAC 70,223 68,810 Net assets released from restriction, CPA PAC (44,767) (27,560)

Change in temporarily restricted net assets 25,456 41,250Change in net assets 215,086 358,922

Net Assets — Beginning of Year 2,973,699 2,614,777Net Assets — End of Year $ 3,188,785 $ 2,973,699

VSCPA financials


VSCPA educational foundation

An accounting education isn’t just a path to a rewarding career. It’s training in how the world works. But Matt Richards is already pretty well set in that regard.

Richards, the 2012–2013 recipient of the VSCPA Educational Foundation’s Wall, Einhorn & Chernitzer Scholarship, is enrolled in the College of William & Mary’s accounting master’s degree program. Before that, he spent four years in the U.S. Navy, ending his service with the rank of Master-at-Arms 2nd Class.

“I joined the Navy for the opportunities that it offered, especially the travel and my fascination with the military,” he said. “And I must say that at least for me, I was able to collect on those promises. I traveled the world, which led me to meeting my wife, and I earned the

support of the [Department of Veterans’ Affairs] as I have made a 180 in my career path.”

Richards graduated from Old Dominion University (ODU) in May with his bachelor’s degree in accounting, marking the end of a successful return to academia. After graduating from high school in Minnesota, he attended the University of Minnesota’s Carlson School of Management, but left after two years, deciding that “school wasn’t in my heart.” He worked as a rental car representative at Minneapolis-St. Paul International Airport for a year before joining the Navy.

He served on Mobile Security Squadron 6 out of Norfolk Naval Shipyard, providing force protection for high-risk assets. His assignments included protecting oil platforms off the coast of Iraq, anti-piracy protection for U.S. ships off the coast of Somalia and port security in the United Arab Emirates (UAE).

Richards didn’t give up on school during his military career. He earned his associate’s degree from a Saint Leo University online program with the intent of earning his bachelor’s and becoming a commissioned officer. However, after meeting his wife in the UAE, he decided on a more stable career path, and accounting fit the bill nicely.

He transferred to ODU, where he earned a 3.98 grade point average and claimed spots in the Golden Key International and Beta Alpha Psi honor societies. Now he’ll work toward his master’s degree an hour up the road at William & Mary, with a little help from the Foundation and Wall, Einhorn & Chernitzer.

“I view my selection as a confirmation to the value of persistent and diligent effort,” he said. “Old Dominion University demanded a lot from me, and I like to believe that I rose to every challenge with passion, concern and integrity. I intend to carry these values with me as I continue my journey into professional accounting.”

Richards worked as a business tutor at ODU, served as vice president of programs for Beta Alpha Psi and attended the VSCPA’s 2011 Leaders’ Institute at Virginia Tech. He’s currently interning at Dixon Hughes Goodman and hopes to remain in his adopted home of Hampton Roads after graduating.

“I genuinely enjoy the diversity of work in public accounting and the opportunities to gain insight into many different businesses and industries,” he said. “The Hampton Roads area is an interesting and active region of the state, and I feel that public accounting is a great way to become more involved within that community.” n

SCHOLAR PROFILE >>

Back to school

Brad Nicklin, CPA, took over the reins of the Foundation at the VSCPA’s annual meeting in May. He’ll build upon the hard work of his predecessor, Sean O’Connell, CPA, and work toward accomplishing the Foundation’s new top strategies. To contact Brad, email him at [email protected], find him on Connect, the VSCPA’s new social networking portal at www.vscpa.com, or check him out on LinkedIn at www.linkedin.com/pub/brad-nicklin/0/62/168.

>> CONTACT THE CHAIR

“I like to believe that I rose to every challenge with passion, concern and integrity. I intend to carry these values with me as I continue my journey into professional accounting.”

— Matt Richards



Andrew Martin, CPA, and Holly Martin, CPA, met at the College of William & Mary and got married a few years after graduating. They haven’t been apart for very long since.

The Martins work together at Corbin & Company, a Chesapeake-based firm founded by Holly’s father, VSCPA member Pat Corbin, CPA. While the arrangement has provided a neat succession plan for Corbin, it’s also worked to the advantage of his daughter and son-in-law, who gained job security and an accomplished mentor.

Andrew and Holly understand that not every aspiring CPA has those advantages. That’s why they give to the Foundation.

“Based on what I’ve seen of the appreciative recipients of the scholarships, if they don’t have that family structure that can help them — someone that’s been in the profession — it really helps them get connected to people who can help guide them,” said Andrew, a 2011–2012 member of the Foundation Board of Directors and a

current member of the VSCPA Board. “It takes a really, really dedicated person to start it all from scratch. By getting them inroads through the Foundation, through scholarships and helping them develop those mentor-mentee relationships, they have something to build off of instead of having to create it for themselves.”

Despite their current family situation, neither Andrew nor Holly originally planned to become CPAs. Holly hoped to work in finance in New York, while Andrew planned to major in business. But after they met at William & Mary, where they played on the respective golf teams, they eventually came around to the idea of joining the family business — literally.

“[Pat Corbin] didn’t push it,” Holly said. “I think he recognized that we were kind of business-minded. That’s what I always knew I wanted to do when I went to college. He said that if you’re going to do business, an accounting degree is going to serve you well in any business. He was open-minded, but there was never any

pressure to join the family business or anything.”

The pair originally settled into a long-distance relationship, with Holly in New York and Andrew in Washington, D.C. That was before Pat approached them with the idea of moving home and setting up a succession plan for Corbin & Company, which has since added Holly’s younger sister, Shelly, a CPA candidate.

“When we tell outsiders I work with my father, my husband and my sister, we get a lot of strange looks,” Holly said. “That would not be an ideal setup for everybody, but it works for us.”

The two maintain their personal space by working in different practice areas — Holly works in business valuation and litigation, while Andrew specializes in assurance and small-business consulting. And they’ll let their children (their second daughter is on the way) make their own career decisions, just like they had the chance to.

Andrew and Holly want to help future accountants get the same chances they got in their careers. To them, it’s good for future CPAs and helps ensure the future of the accounting profession in Virginia.

“We like to let them know that there’s a vibrant, active professional organization out there that you can really leverage in your career,” Andrew said. “It’s getting them tied into the VSCPA from the beginning. I really see the benefit of that, getting people involved in the profession in Virginia so we don’t have a brain drain problem of people leaving to go to bigger financial centers." n

DONOR PROFILE >>

Keeping it in the family


The VSCPA Educational Foundation awarded $44,000 in scholarships for the 2012–2013 academic year:

VSCPA UNDERGRADUATE SCHOLARSHIP ($1,000)Christopher Chin, Virginia Commonwealth UniversitySarah Watson, Virginia Commonwealth UniversityBrittany Wood, Virginia Tech

VSCPA MINORITY SCHOLARSHIP ($1,000)Adrienne Essiaw, College of William & MaryApril Jung, University of VirginiaFatima Zohra Sbai, George Mason University

VSCPA GRADUATE SCHOLARSHIP ($1,000)Sean McCabe, James Madison UniversityNasser Mikdadi, Virginia TechMary Scott, Virginia Commonwealth University

VSCPA PH.D. SCHOLARSHIP ($2,500)Eric Negangard, Virginia Tech

VSCPA PAST PRESIDENTS/CHAIR SCHOLARSHIP ($1,000)Candice Owens, Longwood University

VIRGINIA TECH DOCTORAL SCHOLARSHIP ($2,500)Owen Brown, Virginia Tech

CST GROUP SCHOLARSHIP ($2,500)Michael Ly, George Mason University

DIXON HUGHES GOODMAN SCHOLARSHIP ($2,500)Marietta Medrana, Old Dominion University

H. BURTON BATES JR. SCHOLARSHIP ($1,750)Carmen Witmer, Mennonite University

KEARNEY & COMPANY SCHOLARSHIP ($2,500)Courtney Dobbs, Virginia TechBrian Lapierre, College of William & Mary

MICHAEL E. MARES SCHOLARSHIP ($1,250)Lauren Wilcox, Lynchburg College

MURRAY, JONSON, WHITE & ASSOCIATES SCHOLARSHIP ($3,000)Tina McNulty, George Mason University

THOMAS M. BERRY JR. SCHOLARSHIP ($3,000)Jenna Moehring, University of Richmond

VERUS FINANCIAL PARTNERS SCHOLARSHIP ($1,500)Michael Thiele, James Madison University

WALL, EINHORN & CHERNITZER SCHOLARSHIP ($2,500)Matthew Richards, College of William & Mary

WILLIAM T. MCDERMOTT SCHOLARSHIP ($1,000)Alex Borgardts, Virginia TechBrad Griffith, Liberty UniversityAnthony Helms, Radford University

YOUNT, HYDE & BARBOUR SCHOLARSHIP ($2,500)Phillip Stucki, Virginia Tech n

CONGRATS, SCHOLARSHIP WINNERS!



GROWTH, SALES & ACQUISITIONS

SELLING? CONTACT BRANNON POE with Poe Group Advisors, an affiliate of Accounting Practice Sales-North America’s Leader in Practice Sales. To learn more, please visit www.PoeGroupAdvisors.com or contact us at [email protected] or by calling 1.888.246.0974. Our goals for every sale:

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Outer Banks, NC: $660,000 — Well managed, established practice located in wonderful coast community. Most of the clients are owners of various, good, stable businesses in the community. Systems in the practice are also top-notch, with cloud computing and paperless office. Very good fees, with average return at $375, no audits!!

SALE/MERGER OPPORTUNITY — Well established and diversified small Northern VA CPA firm seeks sale/merger opportunities. Practice clientele includes reviews, compilations, write-up services and three nonprofit audits. The firm has a significant

individual income tax practice as well as a variety of business tax returns. The firm enjoys a long-standing on-site and unqualified or pass peer review history. The firm is that of a sole practitioner seeking retirement or semi-retirement over the next two years. Growth and referral opportunities are excellent. Reply in confidence to VSCPA CC # 74, 4309 Cox Road, Glen Allen, VA 23060 or [email protected].

Small Newport News tax practice for sale. 75% tax, 25% bookkeeping and payroll. Good average fee structure. Gross billings for first half of 2012 $100,000. Reply in confidence to VSCPA CC #86, 4309 Cox Road, Glen Allen, VA 23060 or [email protected].

OFFICE SPACE

CPA OFFICE SPACE AVAILABLE IN FAIRFAX, VA — A quality CPA firm in Fairfax City has office space available. Sharing of administrative staff and conference room possible. Offices have large windows and are partially furnished. More furniture available if needed. This would be a perfect fit for a sole or small CPA practitioner/firm. Great opportunity for possible future association and for a retirement-minded practitioner. Reply in confidence to VSCPA CC # 85, 4309 Cox Road, Glen Allen, VA 23060 or vscpa@vscpa.

POSITIONS AVAILABLE

INCOME TAX PREPARER — Large, local CPA firm is looking for experienced tax preparer to help with income tax returns during busy season. Prior professional tax preparation experience is a requirement. This is a seasonal position from January – April. We offer excellent compensation and flexible hours as well as a relaxed friendly work environment. Resumes may be sent to: Foti, Flynn, Lowen & Co., attn: Tax Preparer Position, PO Box 12765, Roanoke, VA 24028 or emailed to [email protected].

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>> ADVERTISE IN CLASSIFIED!

Reach more than 10,000 VSCPA members and place your

classified ad today! Contact Jill Edmonds at jedmonds@

vscpa.com or visit www.vscpa.com for advertising rates.

Your connection to success

FROM THE PIPELINE >>

Two minutes with Sam HicksAs associate professor of accounting in the Virginia Tech Pamplin College of Business in Blacksburg, Hicks is dedicated to passing important knowledge along to his students and learning from them in return.

A retired CPA, he began teaching accounting courses at Virginia Tech in 1979, after spending four years at The University of Alabama. “I like the ever-changing environment of academia,” Hicks says. “You’re always learning and relearning.”

With that spirit in mind, Hicks is passionate about ensuring the accounting curriculum at Virginia Tech is inclusive of major changes in the CPA profession.

The faculty is always trying to be on the cutting edge, he reveals.

“We teach courses, not textbooks,” he says. “I care about the students and want them to go out there prepared.”

Hicks teaches a variety of courses, mostly in taxation and technology, including information systems auditing. His favorite course, family tax planning, covers estate taxes, gift taxes, financial planning and more. “The course deals with individuals and how people handle their money,” Hicks says. “CPAs can truly improve people’s lives by helping them handle their money well.”

Hicks firmly believes CPAs are essential resources, helping people and businesses handle their finances in a way that is both fair and beneficial. “Never underestimate the value of a CPA,” he says. “The CPA can really add values to peoples’ lives and business affairs. They’re good people to have around … If you have a successful business, you have successful CPAs around. People need to know that accounting is important. It’s more than printing a report from QuickBooks.

When he’s not in the classroom, he enjoys watching movies and reading mysteries, especially stories about Virginia and Washington, D.C. He also enjoys spending time with his wife, Ruth Ann, two children and three grandchildren. n

I AM the vscpa


SAM HICKS, PH.D. >>

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disclosures sept/oct 2012

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