AZ CPA November/December 2020

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AZ CPA November/December 2020

Distressed Businesses: On the Road to Recovery It’s a Brave New Bankruptcy World — Enter Subchapter V 11

Simple Tools to Stop Unethical Conduct How You Can Fight


The Arizona Society of Certified Public Accountants y


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AZ CPA The Arizona Society of Certified Public Accountants President & CEO Oliver Yandle Editor Patricia (Gannon) Rife Advertising

Heidi Frei

Board of Directors Chair Chair-Elect

Ginny DeSanto Tom Duensing Secretary/Treasurer Rachael Bertrandt Directors Keith Cowan Kelly Damron Jessica Estrada Tabitha Fox David Gephart Ross Grainger Jessica Iennarella Andrea Levy Anthony Lorenzo James McGettigan Lauren Murro Gidget Schutte Immediate Past Chair Jared Van Arsdale AICPA Council Members Rob Dubberly

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Chapter Presidents Southern Chapter Clark Goding Northern Chapter James Shankland Southwest Chapter Helen Greenwell North-Central Chapter Gidget Schutte

AZ CPA is published by the Arizona Society of Certified Public Accountants (ASCPA) to provide information, news and trends to the accounting profession. It is distributed six times a year as a regular service to ASCPA members. The ASCPA, its members, board of directors and administrative staff assume no responsibility for advertisements herein. The ASCPA and the above people also assume no liability for business decisions made by readers in reference to statements and/or claims in articles or advertisements within this publication. Opinions expressed by contributors are not necessarily those of the ASCPA.

Arizona Society of CPAs 4801 E. Washington St., Suite 180 Phoenix, AZ 85034-2040 4


Telephone (602) 252-4144 AZ Toll-Free (888) 237-0700

Volume 36 Number 7


November/December 2020



Cindie Hubiak writes a message to members, and we share some pictures to celebrate her commitment to the profession.


“It Always Starts With Picking Up the Dry Cleaning” — How Unethical Conduct Metastasizes

Columns & Departments Chair’s Message by Virginia E. DeSanto, CPA


Member News


ASCPA 100 Percent Club


Classifieds 30 Quick Quiz

ASCPA President & CEO Cindie Hubiak, CPA, CGMA Retires

Jennings provides simple tools to stop unethical conduct before it becomes a bigger problem. by Marianne M. Jennings


Distressed Businesses: On the Road to Recovery


It’s a Brave New Bankruptcy World — Enter Subchapter V 11

Steps you can take now to help your business in these trying times. by Josephine Giordano


Find out the benefits of this new streamlined bankruptcy option. by Lamar Hawkins


4801 E. Washington St., Suite 180 Phoenix, Arizona 85034-2040

CPAs, Hackers Are Targeting You – It’s Time to Fight Back Cybercrime is on the rise. See these easy ways you can prevent becoming a victim. by Michael W. Cocanower



ASCPA Chair’s Message

Changing Times

Virginia E. DeSanto, CPA, CGMA Chair, Arizona Society of CPAs CFO & Treasurer, ASU Enterprise Partners

I believe change brings opportunity and opportunities bring success. The staff of the Society, along with Oliver, may make some changes over time, but their focus will remain on membership and members’ success.

Change is constant. I think that’s become a fact. But some changes are more significant than others. With Cindie Hubiak’s retirement announcement, I find myself reflecting on the history of the ASCPA and the leadership that Cindie provided so seemingly effortlessly. Cindie was instrumental in bringing the Society to where it is today. Her hard work, team leadership and mentoring abilities have made the Society a respected organization. But more than that, Cindie has been an exemplar for our members to trust and to follow. The number of careers and lives that she has touched is nothing short of miraculous. I know this from personal knowledge, because I have been one of the recipients of her talents. She always gives excellent counsel and inspiring ideas. I aim to model my leadership skills and techniques after hers, knowing that I’ll likely fail to reach her level of leadership. The Society and I will miss her daily efforts, but hope that she’ll stay active with us in the years to come. The Executive Committee of the ASCPA Board of Directors has spent the last few months determining who the new leader of the Society will be. We worked with a recruiting firm that searched across the nation for prospective candidates. Over 150 candidates were considered and more than 70 had telephone interviews with the recruiting firm. The recruiting firm narrowed the field of candidates to 12 for the Executive Committee to narrow further for Zoom interviews. Six individuals were selected to interview and five were actually interviewed by the Committee. One individual stood out among the field of candidates, and we were able to hire him. By now, you have probably seen the announcements about Oliver Yandle. I am looking forward to working with Oliver and seeing him take the Society on its next tour of duty. I believe change brings opportunity and opportunities bring success. The staff of the Society, along with Oliver, may make some changes over time, but their focus will remain on membership and members’ success. It will remain the premier organization for CPAs to access for education, advocacy for the members and the profession, and networking with peers. I’m excited to see where we can all go together. Please join me in congratulating Cindie on all she’s accomplished and wishing her well in her retirement. Please also join me in welcoming Oliver, as he gets to know our members and stakeholders and his staff. l




Member News Kenneth Udenze, CPA, was appointed managing partner at Deloitte’s Arizona office. Edward K. Zollars, CPA, was quoted in the Wall Street Journal in an article about tax deductions: “Zollars says the deduction should pass the ‘smirk test.’ If you tell the IRS something is a business property, the agent shouldn’t smirk.” Haynie & Company has combined all four Phoenix area Haynie & Company offices together in one location. Their address is 1230 West Washington St., Ste., 401 Tempe, AZ 85281. Inside Public Accounting (IPA) has recognized Haynie & Company as both a Top 200 Firm for 2020 and a 2020 FastestGrowing Firm. Congratulations to Stacy L. Thompson, CPA, CFE, of Keegan Linscott & Associates, PC, who has not only passed the Certified Insolvency & Restructuring Advisor (CIRA) certification exam, but also ranked in the very top of the nation, earning a distinguished performance award in the process. Alicia White, CPA, from the firm has joined the Board of Directors for Greater Tucson Leadership (GTL) for a threeyear term. She formerly participated in GTL’s leadership program and graduated in the 2016 class. Steve Harnden, CPA, CFP, a private wealth advisor with Affirm Wealth Advisors, a private wealth advisory practice of Ameriprise Financial Services, LLC, was listed in the Wall Street Journal as being named to both the Barron’s and the Forbes Best in State Wealth Advisors in Arizona. He was also recently recognized as “The Best of Peoria” for his team’s involvement within the community. Troy Griffith, CPA, CCIFP, has been promoted to audit partner at Price Kong & Co., CPAs, P.A. David M. Damron, CPA, a partner at Ernst & Young, has been named to the Northern Arizona University’s W.A. Franke College of Business Hall of Fame.

Oliver Yandle Named President & CEO The Board of Directors of the Arizona Society of CPAs is pleased to announce the appointment of Oliver Yandle, JD, CAE, as the new President & CEO of the ASCPA. Yandle joined the Society as its new leader on Oct. 12, succeeding Cindie Hubiak, who announced her retirement this year (see page 9 Celebrating Cindie!). The Board is excited to have Yandle lead the organization, bringing his wealth of experience in professional associations, knowledge and skill in technology solutions, and passion for bringing professionals together to find the power in community and connections. Yandle previously served as Executive Director of the Association of Legal Administrators (ALA), the largest international organization providing support to people in the legal management profession. He has held CEO-level positions for a number of other professional service and trade associations. He is active in both the American Society of Association Executives (ASAE) where he holds the Certified Association Executive designation, and the Association Forum of Chicagoland, where he served as Chair of the Board of Directors. He has been recognized by Crain’s Chicago Business as a member of the first class of Chicago’s Notable LGBTQ Executives. Yandle is a native of Louisiana and holds a BA in journalism from Loyola University of the South in New Orleans, and a JD from Washington College of Law at The American University in Washington, D.C. “I am thrilled to be joining the ASCPA and look forward to working with the membership and staff to build on the Society’s strong foundation.” says Oliver Yandle, JD, CAE. Learn more about Oliver in the January/February issue of AZ CPA and join us on Zoom on Nov. 18 to meet Oliver (see page 30 for more information). l



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Celebrating Cindie!

ASCPA President & CEO Cindie Hubiak, CPA, CGMA Retires After more than 20 years in her position as President & CEO, Cindie Hubiak ends her career at the ASCPA. Here is a message from Cindie, followed by well wishes from members. You, the members and staff of the Arizona Society of CPAs, make this organization essential. Your financial and intellectual support creates opportunities for members to maximize their potential. Serving as your President & CEO for the last 20 years allowed me to support you. Forty years ago, the managing partner of my employer, Coopers & Lybrand, challenged me to become the board chair of the ASCPA. It took time, and when I became board chair in 1994-95, I was no longer with C&L. It’s an understatement to say the members of this organization have been a big part of my life. Like many of you, I majored in accounting, becoming a CPA because a CPA encouraged me to take this path. While in high school, I worked part-time at the Town of Clarkdale when the Town’s external auditor shared the opportunities an accounting degree provides. His insights opened the door to my career, including working part-time at a small CPA firm during college and a full-time position with one of the Big 8 firms after college. While working with two different manufacturing companies, I achieved my dream of living overseas. I worked in Europe and later in Asia, using my CPA foundation in each position. One of the most powerful actions we can take as CPAs is talking with students about this profession. I remember speaking with high school students about the variety of work offered by our profession, sharing the differences CPAs make with college students and assisting those who passed the CPA exam to navigate through the system to become a CPA. Advocating for CPAs is a significant part of the ASCPA’s purpose. Whether collaborating with the Accountancy Board or educating lawmakers, the ASCPA has your back. Our advocacy for CPAs and this profession evolved significantly over the years. As a volunteer, I participated in the selection of the ASCPA’s first lobbyist. As a staff member, I worked with our contract lobbyists supporting



reasonable regulation of CPAs, advocating against taxation of our services, assisting the Accountancy Board with its work protecting the public and passing federal income tax conformity as quickly as possible each year. Now the ASCPA supports a staff member who leads these activities in coordination with our contract lobbyists. Contributions to our PAC have gone from a few hundred dollars to almost $60,000 annually, because you recognize the importance of our voice in government. With your investment in the profession, we open doors and share our message with lawmakers. Recalling how members support each other within the ASCPA community brings tears to my eyes. Many of my joys come from connecting members to government officials to resolve issues, supporting members to find jobs and matching members with volunteer positions, within the profession or in the community. Maximizing members’ growth is among the highlights of my time with the Society. It makes my heart sing when I read posts in our Connect Communities, attend in-person or virtual CPE programs, and hear your comments about an event that provided you access to a variety of interesting and unusual venues. Two of my favorite holidays include Thanksgiving and New Year’s Day. In



this spirit, thank you for the opportunity to make a difference for our profession. As the New Year begins, I look forward to spending more time hiking in our beautiful state and listening to my inner voice, guiding me to ways I can best support our world. When I left public accounting, a partner reminded me that I would gain new friends in the next part of my career, while keeping my current friends. When I announced my retirement earlier this year, I knew I was ready to move to the next part of my journey. My intention is to stay connected with you, my colleagues, as my journey continues. — Cindie Hubiak

Comments and Well Wishes From Members and Colleagues: It would be easy to focus on your positive attitude, endless smiles and our wonderful friendship, but the real key is the impact. You have driven change in Arizona and have been a huge part of the evolution of the CPA profession nationally. Reflecting on how the profession is today compared to when you started as CEO in Arizona shows the incredible partnership we have enjoyed. For that I say thank you. On behalf of all of the CPAs in our country, I say your legacy is secure, and your outcomes both recognized and appreciated. — Barry C. Melancon, CPA, CGMA, AICPA President & CEO What started as a professional relationship during my service on the ASCPA Board of Directors grew quickly into a friendship that I will treasure forever. I’ve learned countless lessons, both professionally and personally, from Cindie. I am a better professional because of the opportunity to work alongside her during my work with the Society and the Accountancy Board. I am a better person because she is my friend. Cindie, the CPAs in Arizona owe you a debt of gratitude for all you’ve done to protect and advance this profession in our state. You deserve the absolute best that this next phase in your career has to offer, and I’m so excited to see where you go from here. — Julie S. Klewer, CPA, CGMA, MBA, LUDWIG KLEWER & RUDNER PLLC



I admire her honesty, intelligence and ability to fully focus on lifting up those she served. —Victoria C. Harris, CPA, Hunter Hagen & Company, Ltd. Cindie is probably the most effective CEO of any trade organization I am aware of. She’s been at it for decades, and to navigate these waters and keep everyone happy along the way is quite remarkable. She takes genuine interest in her constituency. I’m quite happy to consider Cindie my friend. She will be missed, and we’re very fortunate as a profession to have had her leadership. — Dan Nahom, CPA During my three-year term on the AICPA Governing Council, I met CPA Society CEOs from all over the country and U.S. territories. They all knew Cindie, they all loved her, they all RAVED about her and told me how lucky we are in Arizona that we have her. I agree 100%. Cindie, Arizona’s CPA profession will miss you! Thank you for your dedication to our profession! — Armando G. Roman, CPA/PFS MBA One of my favorite memories of Cindie was her expression and surprise after the



screening of the movie “The Accountant” by the ASCPA. I don’t think she was expecting the guns! Thank you again for the movie. — Debra L. Zarbock, CPA Since she first took over as President & CEO, Cindie has shown true professionalism, integrity and honesty. Cindie cares deeply about the membership and the CPA profession. ... Cindie, thank you for your distinguished service and hope you have a wonderful retirement. — Barbara Bond, MBA, CPA I’ve always enjoyed following Cindie’s travels and have been proud to call her my friend. She has done much for the CPA community in Arizona, and we all can be thankful for her leadership. — Brendan J. Kennedy, CPA/ABV/CFF, CVA, ASA You have proven to be an extraordinary leader with great vision. You have a true understanding of what it means to apply the concept of servant leadership. The needs of others have always been your first priority. I believe this to be much of the reason you and the Society have achieved so much success. — Mike Allen, CPA l






“It Always Starts with Picking Up the Dry Cleaning” — How Unethical Conduct Metastasizes by Marianne M. Jennings

We think of the dedicated public servants who have helped us, and we are grateful for their work. However, those dedicated public servants often find themselves in difficult ethical dilemmas. Confronting government officials about violations of policies, rules and laws is a tall order. Not confronting them means ethical lapses blossoming into more lapses and eventually into a scandal that provides no one with a face-saving solution and always results in harm to more people than we could have anticipated. The simplest forms of unethical conduct often metastasize because no action was taken when that conduct began or because the right tools were not being used to detect the conduct. The following three issue areas illustrate the problem. “It Always Starts With Picking Up the Dry Cleaning” Those are the words of Lisa Gilbert of Public Citizen (a Washington, D.C. advocacy group). Gilbert was referring to the ethical downfalls of so many public officials, a downfall that begins with high-ranking officials asking members of their security detail or staff to pick up their dry cleaning. The act of having someone else pick up your clothes at the dry cleaners seems to be the gateway drug to misuse of public resources and funds. Errand-running seems like such a small thing, but it constitutes, in the words of Robin Thicke (or Marvin Gaye, depending on how copyright law is applied), a “blurred line.” John Conyers (formerly D-Michigan), Scott Pruitt (former head of

the EPA), David Shulken (former head of the VA), Mike Pompeo (Secretary of State), and many more have faced misuse of staff issues, resulting in inspector general investigations and headlines. (See Carl Hulse, “Why Clean Shirts Become the Stuff of Dirty Laundry,” New York Times, May 20, 2020) Addressing ethical issues from an angle of equality strikes a nerve with government officials. The staff member cannot do errands on government time. They would be disciplined for doing so. Yet demands by their bosses are asking staff members to violate government rules. The little request looks different from this perspective. Government officials and staff members should also be given ethics training on the effective use of options. Instead of staff members just saying “Okay,” and rolling their eyes as they walk away to the dry cleaners, they can offer options, e.g., “I am sure that we could have your dry cleaning delivered.” That option should be offered with consequences other government officials have experienced because they began asking staff for such simple requests. Most importantly, staff members need training to understand and accept the significant role they play in sharing their experiences with their bosses to keep them, their agencies and themselves out of the headlines. There is also an issue of human dignity that is not included in most ethics training. Educated and trained staff members were not hired for their ability to run errands. Nor do members of the public expect that their salaries would go to such purposes. There is one more piece of training that should focus on the trump card. Staff members actually wield the ultimate power when they are forced to succumb to these simplest of requests. They now have information that officials do not want to be known publicly. So, the moral of the story and the basics of this new ethics training is to use caution in how we treat those who we perceive cannot harm us. They can, in fact, hold the trump card. When this type of small “stuff” is managed, the blossoming stops. Pick up the



Governmental Accounting Conference Feb. 5, 2021 Location: Desert Willow Conference Center Available In-Person or via Webcast Recommended CPE Credit: 8 hours Hear the latest on GASB, fraud and cybersecurity at the 2021 ASCPA Governmental Accounting Conference on Friday, Feb. 5, 2021 at the Desert Willow Conference Center. Your favorite speakers, including David Cotton, Marianne Jennings and David Bean are back, along with other local and national experts to assist you in discovering insights and understanding on new developments in governmental accounting and auditing.

Conference Agenda The Ethical Issues We Miss, Rationalize Away, or Fail to Report Marianne Jennings, Arizona State University GASB Update David Bean, Governmental Accounting Standards Board Performance Auditing Made Easy David Cotton, Cotton & Company, LLP Implementing GASB 87 — Leases Michael Stelpstra, Arizona Auditor General’s Office Defeating the Hackers — The Top Five Things to Stop Them in Their Tracks Michael Cocanower, IT Synergy Economic Changes and What It All Means Jim Rounds, Rounds Consulting Group, Inc. GASB - Deep Dive David Bean, Governmental Accounting Standards Board



Single Audit Update Brittney Williams, Heinfeld Meech & Co., P.C. Data Analytics for Your Government Organization Kevin Bach, Henry+Horne The Government and Not-for-Profit Super Bowl David Cotton, Cotton & Company, LLP

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dry cleaning and the staff member slowly becomes a travel concierge (which is what happened with Dr. Shulken at the VA). Once the staff member succumbs, those in power push, and the gateway drug does its thing and the lapses grow bigger, sometimes even roping the staff members into illegal conduct along with their public official bosses. Clear lines drawn early stop the metastasizing.

Those Invoice and E-Mail Identity Checks Sometimes ethical lapses metastasize because the simplest of internal controls are not used. For example, a former lawyer at the FBI, Kevin Clinesmith, has entered a guilty plea to altering an e-mail in order to provide the support needed for obtaining a search warrant. That e-mail came from another federal agency. The original e-mail did not support granting the warrant. No one took the time to check with the other agency to verify the information and its sender. If that simple check had been done, the warrant request would not have been granted. The e-mail was altered to say exactly the opposite of what the alterations changed it to read. That search warrant blossomed into three years of investigations and hearings, not to mention a serious breach of the privacy of the warrant’s subject and likely prison time for the former FBI lawyer. In curbing misuse of government funds, placing a few calls, visiting a few sites and verifying a few e-mails may stop the embezzlement. For example, one government contractor was submitting fake invoices for work that was not done. He had set up shell companies and even stolen a friend’s identity to have e-mails with invoices sent for processing. One auditor cracked the years-long scheme simply by calling the friend and checking on the e-mails. The friend was stunned. In Iraq, the empty warehouses in the field were the first clues that started the investigations into government contractors who were billing for shipments that were never sent or were turned over to Iraqis for sale for a way to double their takes.

The Latest Issue: Third-Party Stuff The former mayor of Baltimore is in prison because she was selling her self-published children’s health books to hospitals and other nonprofits who, in turn for supporting the mayor’s book sales, were awarded contracts or grants from the city. Other elected officials have a way around campaign contribution limitations: Create a nonprofit organization run by a former campaign aide and accept donations from businesses and individuals. Government contracts and grants seem to flow to the nonprofit donors. Sometimes there are independent nonprofits that find paths to public officials. For example, a large nonprofit organization in Canada was paying members of Prime Minister Trudeau’s family thousands for speaking fees. The nonprofit was awarded a major Canadian gover nment contract following a meeting in which the Prime Minister participated. There was no review of the nonprofit’s proposal by staff.

In curbing misuse of government funds, placing a few calls, visiting a few sites and verifying a few e-mails may stop the embezzlement.

In Los Angeles, investigators are cross-checking contract and grant awards with donors to nonprofits created by public officials. In some cases, the donors are awarded no-bid contracts. In other cases, their performance on their contracts, from failure-to-complete to use of substandard materials, has proven costly for the city. This third-party issue is a new one, one that can be tracked simply by matching nonprofit donors with contracts and awards. A nonprofit in the middle does not mean that virtue is in the air.

The simplest of responses and audit tools can get to the heart of the ethical and legal problems in government. They key is to use them early before the ethical lapses metastasize. l Marianne M. Jennings is Professor Emeritus at W.P. Carey School of Business Arizona State University. She will be presenting at the Governmental Accounting Conference on Feb. 5, 2021. She can be reached at

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After Dec. 16, 2020 r Members of ASCPA, Phoenix Tax Workshop, State Bar of Arizona or Enrolled Agents: $95

Order online and learn more about the guides at

Name ______________________________________________ Company ___________________________________________ Address ___________________________________________ City _____________________State ______ Zip ____________ Phone _____________________ Fax ____________________ Email ______________________________________________

r CPA r Attorney r EA r Other: _____________________

Pre-Order by Dec. 16, 2020 r Members of ASCPA, Phoenix Tax Workshop, State Bar of Arizona or Enrolled Agents: $85

r Nonmembers: $105

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r Members of ASCPA,

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Method of Payment: r Check r VISA r MasterCard r American Express Name on Card ______________________________________ Card Number _______________________________________ Exp. Date ____________ Amount $ _____________________ Signature of Cardholder_______________________________

Please return this form and payment to:

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Fax credit card orders to: (602) 252-1511 NOV./DEC. 2020

Sales tax, standard shipping and handling prices are included.

*The ASCPA will be processing checks submitted in payment as an Electronic Funds Transfer (EFT) transaction. Funds may be withdrawn from your account as soon as the same day we receive your payment.

Business Value and Premise of Going Concern

Distressed Businesses: On the Road to Recovery by Josephine Giordano, MBA, CPA, ABV, CFF, CFE, CBA, ASA, CDBV, CIRA, CICA The Arizona economy and our local businesses are suffering significant distress in these uncertain times. A business’ going concern premise is compromised as growth and cashflows decline and risk increases. Financial distress is a condition in which a company or individual cannot generate revenue or income resulting in challenges in paying its financial obligations. This is generally due to high-fixed costs, illiquid assets or revenues sensitive to economic downturns. According to a report from the Federal Emergency Management Agency (FEMA), 40% of businesses do not reopen following a disaster, 25% fail within one year. The U.S. Small Business Administration found that over 90% of companies fail within two years of being struck by a disaster. The long-term recovery of businesses can be affected by numerous factors, including the industry in which it operates, how long it has been in business and its financial health before a disaster or economic downturn. Although we cannot predict how long the road to recovery will take, we can take steps to overcome some obstacles along the way.

As businesses begin to reopen, particularly through a phased-in approach, additional challenges requiring attention will begin to emerge that could adversely affect the reinstated operations. Under a going concern premise, the business is assumed to continue operating going forward. Ultimately, that is the road we are diligently working toward. In moving in that direction, we need to address some of the specific company risks that typically exist for distressed businesses: Key supplier dependence — Small companies typically depend on a single supplier for a product or service. Increased financial pressures could occur if key suppliers reduce credit terms and demand payment in full. Risks can be minimized by researching other suppliers and anticipating alternative credit arrangements. Customer risk — Customer perception is paramount during the partial/ complete reopening of businesses, particularly individual consumers. Clearly delineating and communicating steps taken to keep consumers safe is crucial in mitigating concerns. For commercial customers, establishing strategic plans to address quality of product/service and continued reliability will help to reduce risk. Workforce reduction risk — Crosstraining employees helps to alleviate the risk of decreased production or inconsistent quality of services provided. Litigation risk — Litigation risk is typically heightened during distressed situations. Proactive legal consultation is prudent to assist in managing contingent liabilities/litigious claims. Regulatory risk — Consider any proposed regulatory changes in the industry in which the business operates. Proposed changes could positively or negatively impact business operations. Forecast bias — Strategic planning involves cashflow forecasting which could tend to be overly optimistic or overly pessimistic in uncertain times. Setting baseline expectations that are reasonable is challenging. Periodically



monitoring forecasts will help to minimize forecast variances.

Business Interruption and Lost Profits

Business Valuation and Forensic & Litigation Services Virtual Conference November 20, 2020 Webcast Only Recommended CPE Credit: 8 Hours Get up to speed on considerations, methodologies and rulings on a variety of business valuation, forensic accounting and litigation services topics. Join us for a day of informative, progressive and dynamic sessions on both subjects from national and local speakers. Current practitioners and those interested in knowing more about the practice are encouraged to attend.

There are numerous instances where business operations are interrupted that result in minimal impact. In other instances, for example, a building fire or major equipment failure, there may be long-term waiting periods in resuming operations. Companies attempt to mitigate these risks by establishing disaster recovery plans to address high-risk scenarios. It is generally recommended that business insurance policies be reviewed at least on an annual basis to ensure adequacy of coverage.

Fraud Deterrence and Detection

Conference Agenda The CPA’s Role in Distressed Business Litigation Josephine Giordano, BeachFleischman PC Economic Damages: Evaluating Reasonable Certainty and Causation When Calculating Lost Profits in COVID-19 Environment Michael A. Fahlman, Berkeley Research Group, LLC Testifying War Stories Moderator: Brendan James Kennedy, ATLAS CPAs & Advisors PLLC Panelists: Lynton Kotzin, Kotzin Valuation Partners, LLC and Frank Pankow, Pankow Company, P.C. Business Interruption Loss – Sniffing Out Misrepresentations Michael Haugen, J.S. Held Reports of CPA Litigation Experts – What Attorneys Are Looking for in Expert Reports and in Their Direct and Cross-Examination of Experts Jeffrey G. Pollitt, Jeffrey G. Pollitt, P.C. Capital Market Outlook – During and After the Pandemic Michael J. Carlin, Henry+Horne Wealth Management M&A COVID Effects Moderator: Lance A. Meilech, IBG Fox & Fin Financial Group, LC Panelists: Jonathan Ariano, Kotzin Valuation Partners, LLC and Michael R. Metzler, Henry+Horne Unique Aspects of Gift and Estate Tax Valuations Cindy Andresen, Kotzin Valuation Partners, LLC

Register online at or call (602) 252-4144.



In a recent survey conducted by the Association of Certified Fraud Examiners, 90% of the anti-fraud professionals reported an increase in consumer scams due to COVID-19. Of those surveyed, 75% said they already have encountered an increase in phishing through government impersonation, and 71% report seeing an increase in charity fraud. They also have experienced an increase in fraudulent vaccines, cures or tests for the coronavirus (66%); third-party seller and buyer scams on legitimate online retail websites (64%); business email compromise scams (62%); and cyberbreaches (61%). Analysts anticipate massive frauds on the horizon. Business owners/management should be educated about possible red flags and continue to provide oversight to even limited operations of a business.

Turnaround & Restructuring Most businesses heading toward financial distress require detailed attention to addressing operating deficiencies as well as strategic changes to the structure of the business. Turnaround is typically used to mean the process of solving the operation problems of a business. Restructuring is typically used to mean the process of developing a financial structure that will provide the basis for turnaround.

There is approximately $10.1 trillion in corporate debt currently outstanding of which $934 billion is distressed, compared with $6.6 trillion in 2008, of which $184 billion was distressed. During challenging economic times, management needs to develop strategies to safeguard assets and maximize cashflows. Options to consider include debt restructuring, sale of non-operating assets, and investment of new capital from outside sources. Company management should consider a SWOT analysis pre-COVID-19 to assess the business’ strengths, weaknesses, opportunities and threats, and then consider the short- and long-term potential effects of COVID-19 on that analysis. What steps can be taken to mitigate risks? How can you leverage your strengths against the weaknesses? Businesses should consider creating a think tank of opportunities that could be initiated even in the short-term.

Josephine Giordano is a director in BeachFleischman’s Financial Forensics and Valuation Services Group. Giordano has extensive experience as a financial professional, with a diversified background that encompasses internal audit, banking, tax, business valuation, fraud investigation and forensic accounting, bankruptcy and restructuring, turnaround management, court-appointments and other litigation support services. Contact her at jgiordano@ or (602) 792-5981.

Endnotes financial_distress.asp 2 ACFE Insights, April 26, 2020. 3 St. Louis Fed; Bloomberg; New York Times; American Bankruptcy Institute’s webinar: Litigation Finance: Lessons from the Last Financial Crisis for the COVID-19 Downturn, May 6, 2020. 4 5 temporary-and-permanent-changes-made-tonew-small-business-reorganization-act-2019


Bankruptcy Relief The Small Business Reorganization Act of 2019 (“SBRA”), effective February 19, 2020, provides that a small business debtor may elect at the time of filing to proceed under a new Subchapter V of Chapter 11 of the Bankruptcy Code. The U.S. Trustee’s Office website provides details regarding the provisions of the new law, including the legal rights and duties of the debtor and other parties, and the new responsibilities of the United States Trustee. The CARES Act temporarily raised the eligibility debt ceiling from $2,725,625 to $7.5 million for new cases filed between March 28, 2020 and March 27, 2021. By simplifying the plan confirmation process, lowering costs, and raising the debt ceiling, SBRA can provide another option for small businesses seeking reorganization Although we cannot predict the post-COVID future, preparing for the business challenges ahead is prudent and takes careful planning and perseverance. l

Arizona companies and CTSO:

A powerful partnership that changes lives! In low-income families, many bright, deserving students are shut

out of college simply because their families can’t afford it...and high school dropout rates are often over 50%.

But with the help of companies across Arizona, many of these children are getting an exceptional education that is changing their lives! Over the past 20+ years, CTSO has given over 70,000 children in low-income families over $124 million in scholarships. 99% of those students are graduating high school! 98% are college bound! We’ve helped so many, and yet the need for corporate support has never been greater. So many children desperately need help! If your client’s company might want to help, we’d love to talk!

If you have a client whose company might like to join us in changing children’s lives, please give Bill Osteen a call at 520.838.2573 or Gracie Marum at 520.838.2571.We’d love to meet with you!



It’s a Brave New Bankruptcy World — Enter Subchapter V 11 by Lamar Hawkins “I know I need to file bankruptcy for my business, but I have heard a Chapter 11 is just too expensive.” — Worried Business Owner

The Subchapter V 11 involves: meetings with the United States Trustee’s office; a creditors meeting; having budgets approved if a creditor has an interest in the cash, inventory, and accounts receivables and other “first day” motions; a Plan of Reorganization; and ultimately a payment to creditors over time so that the debtor can obtain a discharge. If the debtor’s Plan is “consensual” with the creditors, the debtor can achieve their discharge on the same date as the Court confirms the Plan. Confirmation can occur within five months of the bankruptcy filing. Which means that in a Subchapter V 11, it is possible for an individual to obtain a discharge almost as fast as they would obtain one in a Chapter 7 proceeding! Compare the three- to five-year delay in a Chapter 13 or the extensive delay in a Classic 11. Subchapter V Trustee A special feature of a Subchapter V 11 is the appointment of a Subchapter V trustee. “Wait! I’ve heard that trustees are terrible to deal with!” The “V trustee” is not anything like a trustee in any other form of bankruptcy. The V trustee really should have a different name like “assistant” or “helper” or “negotiator.” The V trustee does not run anything – not the business, not the checkbook, not even the plan filing. The V trustee’s job is to help the debtor through the process, to negotiate as needed with creditors and to help make sure the debtor gets its Plan confirmed.

Enter the federal government: In rare form, the federal government did businesses and individuals a solid by creating a new form of Chapter 11, called a Subchapter V Chapter 11. It is like a “classic” Chapter 11, but the Subchapter V 11 has streamlined features, which result in significant savings. Consider this, businesses and individuals could potentially save 50% of legal fees for processing a Subchapter V 11, over a classic Chapter 11. Combining an Individual and Business Having confirmed the first consensual Subchapter V 11 Plan in the state of Arizona, let me guide you through the process. Qualification The debtor needs to have less than $7.5 million of debt and the debts need to be primarily (more than 50%) business debts rather than consumer debts. These parameters encompass most small businesses and even some rather large businesses, and most individuals that wouldn’t want or be able to qualify for a Chapter 7 or Chapter 13. The Subchapter V Process Like all bankruptcy types, a Subchapter V 11 involves the automatic stay, which puts creditors on hold. The administrative steps are very similar to a classic Chapter 11, except that everything is on the fast track. A debtor needs to move through the process quickly. Fortunately, moving quickly also means savings.



Subchapter V 11 Often a troubled business has owners that have guaranteed much of the debt. The business’s problems cause family problems. It is common to jointly administer the bankruptcy of individuals that own the business and the business itself together at the same time. This can result in significant savings over filing separately run cases. Cost Savings A Classic 11 can indeed be very expensive depending upon the complexity of the business and the hostility of the

creditors. Since the Subchapter V 11 is streamlined and moves quickly, the savings in legal fees alone could be 50% over a Classic 11. Complicated Legal Issues Now is when your eyes may glaze over. A Classic 11 deals with complicated bankruptcy concepts like: (1) the absolute priority rule (neither absolute, nor priority, nor really a rule), and (2) needing a consenting impaired class. If someone were to explain these esoteric concepts to you, first you would yawn, then you might understand them for a few minutes, but later you wouldn’t likely remember a thing that they said. Welcome to Classic 11. In a Classic 11, these concepts are critical, hence hiring a bankruptcy attorney may help you. But in a Subchapter V 11, these concepts are OFF the table. In the Subchapter V 11, all that must be proven is that the Plan is “fair and equitable”. Yes, there are various tests for what that means for various types of creditors, but that proof is much easier than the Classic 11 requirements. Requirements of the Subchapter V Plan The Plan Subchapter V 11 must include (a) a brief history of the business operations of the debtor; (c) a liquidation analysis; and (c) projections with respect to the ability of the debtor to make payments. Presently, just about every debtor’s history will have some reference to the problems caused by COVID-19. Plus, whatever else caused the debtor to get to the bankruptcy court steps. A liquidation analysis shows what creditors would get if the debtor had filed a Chapter 7 (liquidation). Commonly, this analysis shows that in a Chapter 7, unsecured creditors would receive little to no return, so that the reorganization effort is best for everyone. The debtor’s projections show how the debtor can operate profitably and pay its creditors over time, including a likely nominal return to unsecured creditors. The Subchapter V 11 Plan classifies creditors into classes similar to a Classic 11. Creditor claims are treated consis-

Take the Steps Toward the Retirement You Deserve Grow Your Practice by Double Digits as You Have Prepared! Stand Up for Arizona and Plan the Future of Our Profession! Remember 2020 as the year we stepped up! Experience shows that combining and strengthening practices has a lot of value and benefit during periods of economic uncertainty. We have practices preparing to sell in 2020 and the partners are anxious to work with buyers for a strong transition, assist with training staff, maintain client confidence and satisfaction. Financing has been confirmed as available. Now is the time for sellers and buyers to plan their future optimistically and contact Able Tax and Accounting Practice Sales for a confidential/no obligation discussion about Stepping Up in 2020.

Gary W. Hankins, CPA • Able Tax and Accounting Practice Sales • • (817) 738-3287



tent with what rights the creditor might have to collateral, priority status, and special circumstances. The Subchapter V 11 Plan can change the terms of prebankruptcy contracts; such as the debt on a residential property can be written down to the value of the collateral, the loan payment terms can be modified to be consistent with the market place, and even due dates can be extended. Even taxes can be paid over time. A standard Subchapter V 11 Plan is for three years, but can be shorter or longer depending upon the facts and circumstances of the case and negotiations with creditors. Ultimately, the unsecured creditors are only going to receive the liquidation value of the assets of the estate. A number that is commonly very low, and at the appropriate time, the debtor receives a discharge just like every type of bankruptcy; the “fresh start� of the process. The standard confirmation requirements of a Classic 11 are in play, but with competent counsel, those elements can be achieved. In the Subchapter V 11, several of those elements go away, such as the absolute priority rule, a consenting impaired class, and special requirements for individuals in a Classic 11. The debtor establishes a separate Plan Fund that if the Plan is consensual, the debtor itself administers to make payments to creditors, and if the plan is not consensual, the debtor uses the V trustee to administer the payments.

Year 2020

$1,183 for individuals $2,365 for married couples


Please Sir, May I Have Some More? To the fearful business owner or individual quoted at the beginning, welcome to the brave new world of Subchapter V 11. You can save your business. You can restructure your debts to a payment that you can afford. You can cause significant unsecured debt to be discharged, all thanks to the new Subchapter V 11 process. Keep a connection with a good bankruptcy attorney, so you can ask the tough questions when problems arise. l Lamar Hawkins is a bankruptcy attorney at and shareholder of Guidant Law, PLC. He can be reached at (602) 888-9229..



CPAs, Hackers Are Targeting You – It’s Time to Fight Back by Michael W. Cocanower

Will 2021 be the year you're hacked? Or were you hacked in the past 12 months, but you haven’t realized it yet? Out of all the unpredictable and unprecedented events we experienced in 2020, a breach at your CPA firm would be routine. Based on the statistics, you should expect it. The Odds Are Not in Your Favor Analysts don’t regularly predict pandemics, but people in the cybersecurity industry have enough data on the prevalence of cyberattacks to show it’s likely you’ll be targeted – if you haven’t been already. Consider these stats compiled in August 2020 by Fintech News: • 80% of firms reported an increase in cyberattacks in 2020 • Phishing attempts jumped 600% since the end of February • Cloud-based attacks were up 630% between January and April 2020 • March 2020 saw a 148% increase in ransomware attacks • Six weeks after a lockdown went into effect, attacks on home workers rose five-fold Don't worry, it gets worse.



Cybercriminals Think You’re a Lucrative Target, They Are Right Hackers can infiltrate a network in minutes. When the criminals break past security measures, they’re looking for highly valuable data to resell on the Dark Web. Like any business, cybercriminals want the biggest ROI – and CPA firms are a trove of valuable information. “Basic” information about a person is sold on the Dark Web for about $1. Bank account information is worth anywhere between $3 and $24. Credit cards can command $110. Your firm holds this data, alongside other highly personal, incredibly valuable information like social security numbers and W2s for all of your clients. After a few minutes of work, a cybercriminal who hacks your network could have a massive payday. If you exchange



any of this data via email, password protected PDFs or online file-sharing sites, you’re giving cybercriminals another opportunity to strike. Email poses other problems.

Every Member of Your Team is a Potential Threat A controller receives an email from the boss. It looks suspicious, her boss is asking her to transfer money. She emails back and forth a few times with questions like, “Are you sure?” and “Why are you asking me to do this?” After continuous assurances from her boss, she follows through with the money transfer. Only it wasn’t her boss. His account was hacked. Supervisory Special Agent Joseph Hooper of the FBI shared this story during a webinar we held this summer. It’s one instance of a common event.

Storing credentials in browsers is another frequent security issue. I was recently called into a large organization to assess their security. During the evaluation, I ran a tool and scanned every computer in their environment to look for passwords saved in browsers. Across the entire organizations, there were literally thousands of unencrypted passwords saved in browsers – a cache of information any cybercriminal wants to obtain. Don’t make it easy for hackers to break into your accounts.

Password Best Practices • • •

Make passwords long and random Use a different password for every account Don’t save passwords in your browser

Manage passwords using a password-management tool like LastPass

The Best Way to Start Protecting Your Business is Free Better password practices and management is one tool at your disposal. A phone call is another. Think back to the unfortunate controller. Her instincts were right, but her way of verifying the unusual request was flawed. She was communicating directly with the hacker. Had she picked up the phone, called her boss and said, “Do you really want me to wire this money?” he would have asked her what on earth she was talking about.

Picking Up the Phone Doesn’t Cost Anything Directly talking to the sender quickly authenticates the request or confirms your suspicions. Today’s phishing campaigns regularly use fake invoices, hacked accounts or legitimate-sounding organizations. A simple phone call to a previously established number to verbally confirm emailed requests foils the would-be hacker.

By the Way, Hackers Hope You Do This Over 70% of hackers said traditional antivirus software and firewalls are obsolete. In other words, cybercriminals know how to breeze past both defenses and gain access to your network. At itSynergy, we liken only defending the perimeter to fortifying a castle. The high walls, moat filled with alligators, guards standing on the towers ready to throw tar on invaders are good to have, but what happens when a trojan horse full of soldiers gets inside?

External Defenses Can’t Fully Protect You Errant clicks by employees, accidental replies to phishing emails and poor password policies are all ways a cybercriminal can blow past your outer defenses. Will they encounter additional layers of security and detection once inside your network, or can they

continue unimpeded and collect data, infect your systems with malware or hold you ransom? There are ways to detect, isolate and remove viruses and hackers from your environment. You’ll also want a robust backup and disaster recovery plan in place, so you have a way to restore systems and data without paying ransom to a hacker.

An Easy Way to Deter Hackers Two-factor authentication was identified by hackers in the same poll as a major impediment to accessing accounts. Two-factor, or multi-factor, authentication requires you to provide an additional code before you can log into an account. Since the code is sent to a device you have physical possession of, it keeps hackers out.

Don’t Make Two-Factor Authentication Your Ultimate Defense Use two-factor authentication on as many accounts as possible, but don’t think it’s the only additional layer of security you should employ. The measure is a deterrent – like home security systems. If a burglar is walking down the street looking for a house to rob, they’ll bypass the house with the security system sign and barking dog in the front yard. It’s too much effort. They want the easy target, the darkened house with newspapers piled up in the driveway because the owners forgot to pause their subscription while on vacation. Adopting two-factor stops you from being an easy target, but remember, it’s not fool-proof.

Five Steps Every CPA Firm Can Take to Protect Themselves You may know what to look for, use all the right precautions and protect accounts with generated passwords from tools like StrongPasswordGenerator. com. Unfortunately, all your efforts can be undone by a single person or lax internal defenses. Everyone at your organization needs to know what to look for, follow best practices and implement layers of security. Here are

five ways to get started right now: 1. Pick up the phone 2. Adopt a password-management solution 3. Turn on two-factor authentication 4. Encrypt your data 5. Assume you’ll be breached Each point listed above is accessible and affordable. Picking up the phone to verify suspicious email requests is free. Password managers, like LastPass, are affordable and the best way to safely save and manage complex passwords. Plus, with the browser extension, it can function like all those saved passwords you rely on, only in a secure way. If you use Microsoft 365, you probably already have access to two-factor authentication and can encrypt data. When you assume you’ll be breached, your goal shifts from preventing cyberattacks (because it’s impossible) to having tools in place to detect and respond to threats. An IT expert can help you incorporate each point into your overall technology strategy.

Cybercrime is More Profitable Than the Global Illegal Drug Trade — Don’t Be a Part of the Payday As long as cybercrime pays (and right now, it definitely does), cybercriminals will relentlessly stage attacks. Some companies, like accounting firms, are more lucrative than others. With their wealth of client data, the cards are stacked against CPAs, but you have options. It starts with being aware of the threats and putting reasonable measures in place to mitigate the risk. Join me on February 5, 2020, at 11:15 a.m., when I will be speaking at the ASCPA Governmental Accounting Conference about the latest threats and what every responsible organization should be doing to protect client data and prevent cybercrime. l Michael W. Cocanower is the founder and president of itSynergy. He can be reached at



ASCPA 100 Percent Club It is an honor to feature the following organizations who have demonstrated their commitment to the CPA profession, community, and to maximize their CPAs’ growth by ensuring that all eligible CPAs are members of the ASCPA. Thank you for your continued support and many contributions.

100% Club Members (as of September 18)

A F and P CPAs PLLC Abbott Company, Ltd. Accounting Services Group PLC Adam T. Cary, CPA PC Addington & Associates, PLLC Allen L. Nahrwold CPA PC Alyx Cohan CPA, PC Andersen & Sarnowski, P. C. Anthony Choi, CPA Arevon Energy Baldwin Moffitt PLLC Ball & McGraw, PC Bashas’ BeachFleischman PC Benjamin H Field CPA, PC Black & Soli PC, CPA Boudreau Consulting LLC Busby Sanford Brady, CPAs, PLC Butler Hansen, PLC CBIZ MHM, LLC Chaffee Traasdahl Crockett, PC Charles Hummel, CPA PC CHS Tax & Business Services, PLLC CliftonLarsonAllen LLP Colby & Powell, PLC Concierge Consulting and Accounting, PLLC Conover Asay CPAs, PLLC Cordova & Jones, PC CPA Financial Advantage, PC Darin Guthrie, CPA, PLLC David Lipinski, CPA, PC DeBenedetti & Co., PLLC Delores I. Nance CPA, PC Dickman & Company CPAs PC Dobridge & Company, P.C.

Eaton & Kasprzyk CPAs, PC Eaton-Cambridge CPA P.C. Edward M. Osinski, Jr., CPA, PC Edwards, Largay, Mihaylo & Co., PLC Eide Bailly LLP Emelia Mensa, CPA Epstein Schneider, PLC Evers Robinson Ltd. EY Fenix Financial Forensics LLC Fester & Chapman, PLLC Flowers Rieger & Associates, PLLC Four Leaf Financial & Accounting Frost, PLLC Fulcrum LLC Gary L Williams, CPA, CGMA Ginsburg & Dwaileebe CPAs, LLP Gosney & Company, P.C. Greg Patel, CPA PLLC Hammond Travers & Tuttle, PC Hanagan CPA, PLLC Haynie & Company, CPA’s HBL CPAs PC Heinfeld, Meech & Co., P.C. Henry+Horne Herb Anderson CPA, LLC Holdsworth Chadd Fuller CPAs PC Hopkins Tameron Hostal PLLC Horne & Company, LLC Howard S. Simon, CPA Hunter Hagan & Co Ltd International Tax & Accounting Jaffa Simmons, PLLC Jansen & Company CPAs, PLLC Joanne M. Elsen CPA, PC Johnson Goff PLLC Judith M Meduna, CPA Koivisto Adams Kvittem-Barr PLLC Karpinski, Bernstein & Adler, P.L.C. KeatsConnelly

Keegan Linscott & Associates, PC Kenon Group Consultants Kent O. Utter, CPA KML CAP LLC Koeller Thompson CPAs PLLC Koivisto and Koivisto, P.C. Laura S. Leopardi, CPA, PLLC Leonard F. Baker, CPA PC Lisa M. Smith, CPA Lohman Company, PLLC Ludwig Klewer & Rudner, PLLC Lumbard Consulting, LLC Mansperger, Patterson & McMullin, PLC Mark J. Mitchell, CPA, PLLC Marley Management Company Martinez & Shanken, PLLC Mary Beth Wifler, CPA McGrath Nothman, PC Mesquite Tax LLC Metzger Klawon & Fox, PLC Michael S. Patinella, PLLC Minniti CPA, LLC Moffitt & Company PC Monheit Frisch CPAs PLC Monica J. Stern, CPA, PLLC Morrison, Clark & Company CPAs, PLLC Moss Adams LLP Mukai Greenlee & Company, P.C. Ng Accounting, PLLC Nordstrom & Associates, P.C. O’Malley & Berberich CPAs PC On-Call Controller Pace & Company, P.C. Pescatore-Cooper, PLC Pioneer Title Agency, Inc. Preston CPA, P.C. Price Kong & Co., CPAs, P.A. R & A CPAs

Your organization may qualify for the ASCPA 100% Club. To learn more visit or contact to opt-in and gain immediate access to exclusive 100% Club benefits. We make every effort to ensure the accuracy of this list. If your organization’s name does not appear in this list or is incorrect, please contact our membership department at



R. Michael Beltran CPA R.C. Thornton & Associates, LLC Ralph Willett CPA, PLC Randy C. Kiesel, CPA, PC RC Acosta & Associates, CPAs REDW LLC Regier Carr & Monroe LLP Roger T. Bollard, CPA RSM US LLP Schmidt Westergard & Company, PLLC Schutte & Hilgendorf, PLLC Seby & Associates, Ltd., CPAs Sechler Morgan CPAs PLLC Secore & Niedzialek, P.C. Semple, Marchal, & Cooper, LLP Shaffer & Danker, CPA PC Sherri A. Fieber, CPA Shippen, Pope & Associates PLLC Simmons Tax and Accounting Services LLP Singer Tax & Accounting, P.C. Skinner Clouse Group PLLC Southwest Autism Research & Resource Center Splaver & Splaver, CPA, PLC Sportiqe Apparel Co. Springsteel Investment Advisors Sprowls and Company, PC Stephens & Company, PLLC Stocking and Heard, CPAs, LLC Stream Line Accounting Tess L. Ridgway, CPA The Royce CPA Firm PLLC The Ruboyianes Tax Company, PLLC Tull, Forsberg & Olson, PLC Ullmann & Company, P.C. Upworth, PLLC Urke & Stoller, LLP Valerie A Lubken PLLC Vearle M. Jones CPA Vincent J. Harder, CPA, PC Walker & Armstrong, LLP Wallace, Plese + Dreher, LLP Weech Financial, PLLC West, Christensen, DeGomez & Ignace, PLLC William J. Curosh, CPA, PLLC William M. Perius, CPA WS Weiss CPA PC YB Company LLC

Invest in the Future of the CPA Profession Donate to the Arizona CPA Foundation for Education & Innovation to Support Scholarships for Accounting Students

November is Member Appreciation Month at the ASCPA As we have done in previous years, November is a month to celebrate our members. It has been a challenging year, yet you remained a member or decided to join the ASCPA to be part of Arizona’s largest CPA community. Thank you for your support, contributions and resilience in times of adversity. The ASCPA is proud to be your connection to the CPA profession. To show our appreciation, we will be raffling special prices every Monday in November. Winners will be announced every Monday on the Connect site:



Classifieds Business Opportunities SALE/MERGER — Long established Tucson CPA sole practitioner nearing retirement is interested in transitioning with Tucson CPA to sell tax practice grossing $90,000. Time is of the essence. Current lease expires 10/31/2020. Call (520) 403-7716 or email: TEMPE CPA FIRM FOR SALE — $1.1 Million Revenue ($1.4 Asking Price) Tempe based CPA firm (started 12/2014) for sale. Firm provides tax preparation, write-up (preparation of financial statement engagements only) and payroll processing services. Approx. 47% tax, 45% write up, 8% payroll/1099 processing. No compilations, reviews, or audits. Owners will facilitate transition but will not transfer.

Active practice development program in place and available to continue with new owners. For additional information contact WANTED: TAX PRACTICE ON DRAKE PLATFORM — We are a small CPA firm located at 85016 zip and are looking to purchase a small book or two of tax return clients. Ideally they’d already be on the DRAKE software platform. If you prefer, we’d even consider employing you to help us prep these returns (or others). Our target fee per return is $450 plus. I know you care about your clients, and would like to show you how selecting our firm could be a win win win. Thank you and I hope to hear, Bill (602) 808-9200 bjohnson@ Website:

Meet Oliver via Zoom! Meet Your New President & CEO Nov. 18 — 3-4 p.m. Let’s give a warm, Arizona welcome to the new ASCPA President & CEO Oliver Yandle, JD, CAE. Join us for a Zoom call to share your thoughts about the ASCPA and the CPA profession, and bring your questions for Oliver. He is excited to learn more about you and hear your feedback on how the ASCPA team can support Arizona CPAs. Register at



Employment VICE PRESIDENT AND TREASURER — Arizona Water Company, an investor-owned water utility serving customers throughout Arizona, is seeking a Vice President and Treasurer to oversee its accounting and information technology functions. Essential Duties and Responsibilities Directs and oversees all aspects of the accounting and information technology departments. Leads, manages, and mentors department managers. Minimum Requirements — 10 years of progressively responsible management level accounting experience. Five years experience at a public utility as senior manager or executive. Certified Public Accountant. Expert knowledge of Generally Accepted Accounting Principles and practices, and federal, state, and local laws, rules, and regulations. Contact: Kevin Brown AWC-HR@AZWATER.COM. CPA OR EA NEEDED — Would be responsible for preparation of individual, corporation, and Partnership tax returns and planning. Would also be responsible for accounting clients and background in QuickBooks is a must. Would also be able to represent clients with the IRS and Arizona. We are seeking a professional to join a fast growing company and develop strong and lasting relationships with our clients (located in NW Arizona). Must have a minimum of 5 years of experience in tax preparation and accounting. Please send resume to Office Space EXECUTIVE OFFICE SPACE FOR LEASE — Beautiful garden-style office complex in a great office environment located in north Phoenix. Easy access to SR 51 and SR 101 just north of NWC of Tatum and Shea Blvd. Executive office $800. Ample parking, beautiful conference rooms and seminar room. Copier, telephone and internet ready. Includes Front Office service to greet your clients. Contact Clara or Mary at (602) 953-5000.

AZ CPA Quick Quiz You’ve Read It, Now Get Credit Take this quiz on AZ CPA content online or submit this hard copy. Receive a score of 70 percent or more and earn one hour of CPE credit in specialized knowledge. It’s that easy! Fees: Members: $25 Nonmembers: $40 Online Access Go to to access links to all active quizzes. Once a quiz is purchased, a link and password will be emailed to you. Your results will be sent immediately after completion, and certificates are emailed within two business days. Hard Copy Please select one answer for each question. Fill out registration/payment information below and mail or fax to the Society office. Quiz results and certificates will be emailed to the address provided on the registration form. *This quiz will be available until December 2022. Please note that users have three attempts to pass the quiz with at least a 70 percent score.

November/December 2020 Issue of AZ CPA* 1. In this month’s Chair’s message, who did Ginny DeSanto welcome as the new President & CEO of the ASCPA? m Gary Julien m Oliver Yandle m Alexandria Trebeck 2. Marianne Jennings referred to picking up an employer’s dry cleaning as what? m A good way to get a promotion m A gateway drug to the misuse of public resources and funds m A class one felony 3. According to Jennings, what simple things can be done to curb misuse or embezzlement of government funds? m Placing phone calls, visiting websites and verifying e-mails m Verifying all signatures m Checking a vendor’s driver’s license 4. According to a report from the Federal Emergency Management Agency (FEMA), what percent of

businesses do not reopen following a disaster? m 25% m 40% m 62% 5. In a survey conducted by the Association of Certified Fraud Examiners, what percent of antifraud professionals reported an increase in consumer scams due to

COVID-19? m 25% m 67% m 90%

6. A special feature of a Subchapter V 11 is the appointment of: m A Subchapter V Trustee m Bankruptcy Managers m Subchapter Tribunals 7. Since the Subchapter V 11 is streamlined, Hawkins estimates the savings in legal fees alone could be how much over a Classic 11? m 25% m 50% m 75% 8. According to Fintech News, cloud-based attacks were up 630% between January and April 2020. m True m False 9. What tactics can be used to thwart hackers? m Two-Factor Authentication and long passwords m A Follow-up Phone Call to Verify Suspicious Email Requests m All of the Above 10. Cocanower states that Cybercrime is more profitable than: m The Global Illegal Drug Trade m Winning the Lottery m Selling Your Amazon Stock

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