Today's CPA May June 2024

YEAR IN REVIEW

Responsibilities Relating to Accounting Estimates

Congratulations, you have successfully completed another busy season. Whether you celebrate with a round of applaus e, a round of drink s, or a round of golf, Goodman Financial applauds you, the CPA, and stands by, ready to assist you and your clients in navigating their financial future.

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Delivering Value to Match Your Needs

We’re ending another year of serving our amazing community of 28,000 members! Thank you for the trust you place in TXCPA year after year.

To ensure we are responsive and nimble in the delivery of the services and benefits members value most, TXCPA conducts ongoing member research. Over the past year, when asked to rank the reasons members belong to TXCPA, they prioritize as follows:

• To protect their license;

• For education;

• To stay up to date on professional issues.

These three core areas are where we consistently focus on delivering value and

CHAIR

Tim Pike, CPA, CFE, CGMA

PRESIDENT/CEO

Jodi Ann Ray, CAE, CCE, IOM

EDITORIAL BOARD CHAIR

Jennifer Johnson, CPA

STAFF

MANAGING EDITOR

DeLynn Deakins, MBA

ddeakins@tx.cpa

972-687-8550

800-428-0272, ext. 8550

“Trends and sentiments from Texas were shared with the National Pipeline Advisory Group for their work identifying possible solutions and opportunities.

they are the foundation of our messages as we strive to grow our professional community.

In 2023-2024, TXCPA protected your license with advocacy on issues like supporting a delay in the implementation of Beneficial Ownership Information (BOI) requirements and with responses to every professional standards exposure draft that was released.

We also had a seat at the table over the last year for the national discussions around growing the CPA pipeline and helping members and their organizations manage the talent shortage and ensure the future of the profession. Trends and sentiments from Texas were shared with the National Pipeline Advisory Group for their work identifying possible solutions and opportunities.

TXCPA’s education options for members continued to thrive in 2023-2024, with more than 15 conferences, free quarterly professional issues and Texas tax update webcasts, the continued offering of the free four-hour on-demand ethics course, the addition of timely content to the TXCPA Passport, and hundreds of technical and non-technical webcasts offered every day.

As we receive updates on late breaking news, it is our first priority to commu-

COLUMN EDITOR

Don Carpenter, MSAcc/CPA

WEB EDITOR

Wayne Hardin, CDMP, PCM® whardin@tx.cpa

CONTRIBUTORS

Melinda Bentley; Kenneth Besserman; Kristie Estrada; Holly McCauley; Craig Nauta; Kari Owen; John Ross; April Twaddle

CHIEF OPERATING OFFICER

Melinda Bentley, CAE

CLASSIFIED

DeLynn Deakins

Texas Society of CPAs 14131 Midway Rd., Suite 850 Addison, TX 75001

972-687-8550

ddeakins@tx.cpa

EDITORIAL BOARD

Arthur Agulnek, CPA-Dallas; Shivam Arora, CPA-Dallas; Derrick BonyuetLee; Aaron Borden, CPA-Dallas; Don Carpenter, CPA-Central Texas; Melissa Frazier, CPA-Houston; Rhonda Fronk, CPA-Houston; Aaron Harris, CPA-

nicate to members and help you stay up to date on professional issues. We post real-time updates on tx.cpa, as well as on our social media channels. Members receive regular email updates and useful content in Today’s CPA. And Chair Tim Pike visited with many of you personally as he delivered presentations in chapters across the state.

Be sure to read the cover story in this Today’s CPA issue to learn more about how TXCPA connected, protected and advanced our members and the profession over the past year. We look ahead to 2024-2025 with much anticipation for the great work we know we’ll accomplish with the support and commitment of our members and volunteers.

Thank you for your membership!

Jodi Ann Ray TXCPA President and CEO

How can TXCPA help you in 2024-2025? Drop me a note at jray@tx.cpa.

Dallas; Baria Jaroudi, CPA-Houston; Elle Kathryn Johnson, CPA-Houston; Jennifer Johnson, CPA-Dallas; Joseph Krupka, CPA-Dallas; Lucas LaChance, CPA-Dallas, CIA; Nicholas Larson, CPA-Fort Worth; Anne-Marie Lelkes, CPA-Corpus Christi; Bryan Morgan, Jr, CPA-Austin; Stephanie Morgan, CPA-East Texas; Kamala Raghavan, CPA-Houston; Amber Louise Rourke, CPA-Brazos Valley; Barbara Scofield, CPA-Permian Basin; Nikki Lee Shoemaker, CPA-East Texas, CGMA; Natasha Winn, CPA-Houston.

DESIGN/PRODUCTION/ ADVERTISING

Media By Design, LLC Design: Sherry Gritch

With ASU 2023-08,

FASB Moves to Address Accounting for Certain Crypto Assets

In the last issue of Today’s CPA, we highlighted the struggle regulators face in categorizing crypto assets within the regulatory framework. (Please see “The Wild West: The Lasso is Out for Crypto,” March/April 2024 Today’s CPA). As these issues continue to evolve, FASB has taken steps to bring transparency to certain classes of crypto assets that will give stakeholders improved visibility into their impact on reporting entities.

Under the FASB framework, crypto assets are categorized as intangible assets. As such, they have been included in the accounting framework as indefinite-lived assets subject to impairment testing. Increases in value or recovery of prior impairments are not reported. By requiring fair value reporting of certain crypto assets, ASU 2030-08 moves away from this framework. This approach is not without precedent, as fair value reporting has been required for other assets under industry-specific guidance such as for investment companies for some time.

The guidance only applies to crypto assets that do not provide the holder with enforceable rights to, or claims on, underlying goods, services or other assets. As described in the prior article, this would include “payment tokens” but presumably not apply to “security” or “utility” tokens.

The crypto asset must be created or reside on a distributed ledger such as blockchain and be secured through cryptography. In addition, it must be fungible, therefore allowing for an objective indication of its fair value. And finally, the asset cannot be created or issued by the reporting

CARPENTER, MSACC/CPA, is clinical professor of accounting at Baylor University. Contact him at Don_Carpenter@baylor.edu.

entity or its related parties. FASB clarified that the mining or validation of crypto assets does not make the entity the creator as defined in the ASU. For crypto assets within the scope of the ASU, both annual and quarterly reporting must include:

• The name, cost basis, fair value and number of units for each significant crypto asset, and the aggregate fair value and cost basis of those not deemed individually significant.

• Contractual sale restrictions applicable to any reported crypto asset, the duration of such restrictions and the circumstances that would cause those restrictions to lapse.

In addition, annual reporting must include:

• A rollforward, in aggregate, of activity in the reporting period for crypto asset holdings, including additions (with a description of activities that resulted in the additions), dispositions, gain, and losses.

• The difference between price and cost basis for any dispositions as

DON

KEY TERMS:

CRYPTO ASSET

ASU 2030-08

DISTRIBUTED LEDGER

PAYMENT TOKENS

“Crypto

assets will be required to be reported separately from other intangible assets on the balance sheet. Related CPE:

Accounting & Auditing for Cryptocurrency Webcast

Multiple Dates

Multiple Dates

well as a description of the activity that resulted in the disposition.

• If not reported separately on the income statement, the line item that includes such amounts.

• The method of determining the cost basis of the asset.

Crypto assets will be required to be reported separately from other intangible assets on the balance sheet. The gains and losses from remeasurement will be included on the income statement and presented separately from other similar amounts. For cash flow reporting, any crypto asset received as payment in the ordinary course of business will be reported as operating cash flow if converted nearly immediately into cash (defined as within a matter of days). Otherwise, the conversion will be reported as cash from financing activities.

In reaching its conclusions, the Board noted that crypto assets differ from other categories of intangibles in several significant ways. Crypto assets are frequently traded while most intangibles are not typically marketable. Frequency of trade facilitates the establishment of fair value for many categories of crypto assets while at the same time complicating the requirement for impairment testing required under prior guidance. In addition, it is not uncommon for holders of significant value in crypto assets to voluntarily report fair value on at least an annual basis to investors.

The Board considered several alternatives to its final guidance. In lieu of fair value measurement, a modified

impairment model was considered that would require impairment testing only once annually, eliminating interim factbased testing. Reporting assets at net realizable value rather than fair value was also considered. The first alternative was rejected as it ignored increases in value and the latter would have resulted in different measurement basis between reporting entities.

In addition, the Board considered the treatment of transaction costs to acquire crypto assets such as commissions. A majority of the Board supported expensing transaction costs, as it would provide greater transparency to gains and losses arising from price changes and reduce differences between entities. However, some comments noted that this is a divergence from guidance in the treatment of transaction costs in other areas of GAAP.

Ultimately, the Board did not provide any specific guidance on transaction costs noting that regardless of whether these costs were capitalized or expensed at acquisition, the effect on income in the initial period would be unchanged.

The ASU is effective for all reporting entities for the first fiscal year beginning after December 15, 2024 (2025 for calendar year reporters). Early adoption is allowed but must be applied from the beginning of the fiscal year of adoption.

As is evident from these two articles, crypto has presented new challenges for regulators on several fronts. But equally true is the fact that reporting structures remain flexible enough to respond and adapt to the evolving business practices of a technology driven economy.

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New Data Privacy Law in Texas Takes Effect July 1

The Texas Data Privacy and Security Act (TDPSA) was signed into law in June 2023, with enforcement scheduled to begin on July 1, 2024. Texas joined five other states in passing a major data privacy law last year.

This comprehensive legislation aims to regulate how businesses handle the personal data of Texas residents, covering collection, usage and protection. CPAs should take note of this new law for their own business practices and when advising clients.

Scope. The TDPSA applies to businesses that operate in Texas, offer goods or services to Texas residents, handle any amount of personal data, and are not classified as a small business according to the U.S. Small Business Administration’s definition.

The TDPSA does not apply to nonprofits, state agencies and political subdivisions, financial institutions subject to the Gramm-Leach-Bliley Act, covered entities and business associates governed by HIPAA, and institutions of higher education.

The TDPSA also specifically exempts electric utilities, power generation companies and retail electric providers.

Consumer Rights. Consumers are given the right to confirm data processing, accessing, correcting and deleting personal data, obtain a portable copy, and opt out of targeted advertising, data sale or profiling. They can appeal a controller’s refusal to act on these requests.

The TDPSA mandates consumer consent for processing sensitive personal data and requires specific notices for the sale of such data. Businesses must conduct assessments for certain data processing activities.

The

Act requires controllers to implement opt-out preference signals by January 1, 2025.

Enforcement authorization is given to the Texas Attorney General, who can impose civil penalties up to $7,500 per violation after a 30-day cure period. An online portal for complaints and information on rights is provided on the AG’s website.

Impact and Benefits. Some potential impacts of the TDPSA include:

• Increased compliance costs;

• Adjustments to data collection practices;

• Changes in marketing and advertising approach.

Potential benefits include:

• Improved customer trust and brand reputation;

• Enhanced data security posture;

• Alignment with the evolving data privacy landscape.

BY KENNETH BESSERMAN, Director of Government Affairs and Special Counsel

The TDPSA’s effects on businesses will depend on factors such as size, nature and current data security measures. Compliance requires effort and resources, but also offers opportunities to enhance data management, strengthen customer trust and adapt to evolving privacy standards. Go to our website for more details about some of the key provisions of the TDPSA and implications for CPAs.

TXCPA Passport: Unlock Flexibility with On-Demand CPE

Renew Your TXCPA Membership!

Don’t let your TXCPA membership lapse! Stay connected to the valuable resources and support TXCPA offers by renewing your membership today. By renewing, you not only protect your CPA license, but also receive benefits designed to enhance your professional growth and career. Enjoy access to an extensive range of learning opportunities, including at least 20 hours of FREE CPE. Stay informed with frequently updated news and information tailored to your interests and needs. Plus, connect with a diverse network of CPA members across the state, fostering valuable relationships and opportunities for collaboration.

CPE

New this year, the TXCPA Insurance Trust is providing CPA members with access to complimentary Identity Resolution services for a full year upon your 20242025 membership renewal. This coverage provides members with direct access to Scam Assist specialists who can help identify fraudulent communication and phishing schemes before you click to help keep your identity safe.

Renewing is quick and easy – simply log in to our website to complete the process online. Please reach out to our member service team if you need assistance. Don’t miss out; renew now to continue enjoying your exclusive benefits!

Look no further than TXCPA’s Career Center for all your hiring and job search needs! Tailored specifically for accounting and finance professionals, our Career Center is the ultimate resource for employers and job seekers alike. Enjoy exclusive member discounts on job postings, career coaching,

résumé writing and reference testing services, with complimentary internship postings available. Job seekers can browse listings and submit applications online, as well as create a free Job Seeker Profile for employers to review. Log into the TXCPA Career Center with your TXCPA credentials to begin!

On the hunt for a convenient way to rack up those crucial CPE hours? Look no further than the TXCPA Passport, a one-year subscription to ondemand courses that can help you easily manage your time and meet your CPE requirements.

TXCPA members can access one course individually for $79 or 125 hours of CPE for only $199, while non-members pay $329. Organizations participating in Professional Group Membership receive a 25% discount on the subscription price.

Purchase your TXCPA Passport today!

Find Your Stress Relief: The Powerful Link Between Exercise and Mood

You are only one workout away from a good mood! Exercise in almost any form can act as a stress reliever. Discover the connection between exercise and stress relief in this article from Mayo Clinic

If you’re struggling with addiction, substance abuse or mental health issues, TXCPA Peer Assistance is here to help. Join a weekly support group, send a confidential message and find more resources at tx.cpa/resources/acan.

TXCPA TXCPA

In What’s Happening Around

Texas, we give you highlights of events and activities happening around the state in the TXCPA chapters.

The TXCPA Dallas Business & Industry Committee hosted Behind the Scenes at BuzzBallz on March 25. Members had the privilege of listening to Merrilee Kick, CEO of BuzzBallz, as she shared information about the company’s origins, the intricate crafting process and future plans. The event also included a tour of the facility and samples of BuzzBallz cocktails.

TXCPA East Texas teamed up with the UT Tyler Writing Center to host a valuable Scholarship Essay Workshop on February 1. Attendees worked on refining and enhancing their essay writing skills, received valuable guidance and broadened their professional network.

On March 26, a group of curious students, new licensees and longtime members connected for the TXCPA Fort Worth “Yappy Hour.” During lively conversations, ideas were exchanged and bonds were forged, as contented canines comingled with members.

On March 2, TXCPA Houston members and their guests volunteered at Rescued Pets Movement in Houston. Volunteers of all ages rolled up their sleeves, engaging in a flurry of activities from dog-walking to kennel cleaning, and even penning heartfelt donor thank-you notes.

TXCPA Permian Basin hosted a beneficial CPA2B Bootcamp at UTPB on February 2. Accounting students immersed themselves in the one-day program, gaining insights on crafting dynamic resumes, mastering interview etiquette and navigating the intricate path toward sitting for the CPA Exam.

On March 26, TXCPA San Antonio organized an exclusive members-only hard hat tour at 300 Main in collaboration with Weston Urban. This unique event provided members with an insider’s perspective on downtown development. Then on April 1, a dedicated group of volunteers from TXCPA San Antonio participated in a Habitat for Humanity event, giving back to their local community.

TXCPA Fort Worth

TXCPA Fort Worth

TXCPA Fort Worth

TXCPA Fort Worth

TXCPA Dallas

WHAT’S HAPPENING AROUND TEXAS

TXCPA Permian Basin

TXCPA East Texas

TXCPA Houston

TXCPA Houston

TXCPA San Antonio

TXCPA San Antonio

TXCPA San Antonio

Introducing TONI L. JOYNER, Madison County’s Dynamic Auditor and Dedicated TXCPA Member

Toni L. Joyner, CPA-Brazos Valley, is the County Auditor of Madison County, Texas, and a dedicated member of TXCPA. With a passion for leadership, Toni has left her mark on numerous committees, most recently with TXCPA’s Strategic Planning, CPAPAC Steering and Legislative Advisory committees. Today’s CPA had the honor of connecting with Toni, delving into her interesting career journey and her commitment to propelling the accounting profession forward.

You are the County Auditor for Madison County in Madisonville. Tell us about your background and career. When did you make the move to governmental accounting?

It has been a winding road with a few detours. I was recruited on my college campus (go SHSU Bearkats!) and started working in downtown Houston on the Monday following graduation. After circling Houston for a few years, I found the exit to the Brazos Valley and made it my home.

I have spent my entire career in industry or government accounting. In industry, my first position was an entry level Gas Revenue Accountant. In my last industry role, I served as the CFO/VP of Administration of an independent oil and gas exploration company. In the middle, there were stints in the real estate, manufacturing and agriculture industries.

It took me several years after college to travel the CPA journey. Most industry employers do not require it, so I started the licensure process at one company. By the time I passed three parts, I had moved to an employer that did not support the effort and those three parts expired. I went back to a previous employer that appreciated a CPA in the top financial position, so I did the whole process again, becoming licensed in 1995, 11 years after graduation! I don’t know of any other CPAs who did it nearly twice!

After 20+ years in industry, my oil company sold their assets to an investor based in Dallas. I was not interested in making that move. The District Judges over Madison County began recruiting me to take the County Auditor position. I am closing in on my 16th year, having been appointed in 2008. It is a two-year appointment and was supposed to be a two-year-only detour before I hurried back to industry. When the end of that first term came around, I realized that I was enjoying the path I was on and have continued to be reappointed every two years.

What are your responsibilities as County Auditor?

The County Auditor plays the vital role of Fiscal Officer of the County with oversight responsibility of all financial books and records of all county offices. As the auditor of a small county, my scope of duties ranges from accounting to interpretation of state statutes and rules that change with each legislative term. As in most small counties, I am the only officer with an accounting background, and it is my responsibility to verify the data being entered in our General Ledger follows GAAP and GAAS. The state requires that every claim for payment is approved by the County Auditor before the County Treasurer can disburse the funds.

Another large part of my year is spent on facilitating the construction of the annual budget. A county cannot operate without a budget approved by Commissioners Court prior to the beginning of each fiscal year. A lot of CPAs have “tax season” in the spring; county auditors have “budget season” in the summer. I gather data from each elected official and department heads, compare projections for each proposal, analyze the proposed budget on the departmental level and on the countywide level, and then disburse all this information in one neat package to the five members of Commissioners Court. This process goes through multiple revisions. Then I make sure Commissioners Court is prepared to vote on it before October 1.

What advice would you give students who would like to pursue the CPA license?

Do it! But don’t do it like I did! Make it a personal goal and not an employer goal. Take advantage of the prep classes at your university and start sitting for the Exam as early as you can. With the recent change from 150 to 120 hours for Exam eligibility, a student can get the Exam road traveled before the new-employee stresses get added to the daily agenda. Full-time employment days are vastly different from college days. Join your university accounting organizations. Find a mentor, either through your university or through TXCPA. (Just call; we are here for you.) Find more than one. Ask questions about areas you might be

interested in. Every business, profession, enterprise, and government needs accountants.

How is working in governmental accounting different than other areas of the accounting profession?

This was a big one for me. Coming from the industry sector, I was used to a specific, corporate, profit motivated, CEO/ Chair type operation. In governmental, there are so many more protections of public funds put into place by state laws, codes, attorney general opinions, agency regulations. The corporate structure is replaced by elected officials with limited authority granted by the state. This is to ensure the authoritative balance stays in the voters’ possession. Private enterprise can effect changes and business decisions with much more expediency than governmental entities can.

The corporate world tends to keep more long-range goals in their plan where governments can sometimes

“As CPAs, we are continually learning, growing our knowledge bank, and what better way than to engage with fellow CPAs? ”

You’ve actively served in numerous leadership roles and committees in your chapter and for TXCPA. Why is volunteering and/or committee service so important to you?

I first became active with my local chapter as soon as I received my license. As the Controller of a small local oil company at the time, I had a staff of accountants, but I was the sole CPA.

be restructured every two years after the election cycle. In my county, I am the longest serving official currently. Governmental accounting is more focused on public transparency than private enterprise is. Nothing is private in governmental. It’s not our money and we must prove that we are being good stewards of public funds.

As a new CPA, I knew there were others who had gone before me and knew things that I needed to know if I wanted to continue growing in my corporate leadership role.

As CPAs, we are continually learning, growing our knowledge bank, and what better way than to engage with fellow CPAs? There was no such thing as listservs or other electronic exchanges between peers at that time. (TXCPA Exchange rocks!) The more I get involved, the more opportunity there is to be a positive influence for the profession. I thoroughly enjoy making the CPA profession strong, respected, publicized, and protected. I work with the legislative

group both here and with my county auditor’s group and let me say this: The politicians NEED us!

We have a membership of around 28,000 and I am proud to serve with TXCPA. I am that way in everything. If I am a member, I want to be a contributor. I want to be aware of current events that impact my profession. I want to encourage growth and interaction. Volunteering my time is a small way that I can contribute.

Tell us about your family. What do you like to do on the weekends?

My family made it to many Annual Meetings and met many of the TXCPA volunteers over the years. I love to travel and passed that along to my kiddos. I have two daughters, now 26 and 21. My life outside of accounting is a bit off the beaten path of most CPAs. I live a rural lifestyle on 90 acres in an unincorporated area, with horses, dogs, cats, no streetlights and a variety of wildlife. The county population is less than 15,000. My weekend life is mostly spent on dirt. My daughters and I traveled all over Texas and a few other states, rodeoing and running in other types of barrel races. I grew up on a horse and never grew out of it. Now that they have grown up, I am usually riding by myself at home and making the trips with three horses and a little fluffy dog. Another hobby, or requirement, in the country involves a big green tractor, lots of manual labor and basic fix-it skills.

I also get to enjoy my 91-year-old father who is still living independently in Arkansas. I make that trip regularly and am so thankful for the privilege. I began recording a living library of his stories and tall tales as I become more and more aware of their importance to our family heritage.

Becoming a CPA opened doors for me professionally and personally. The peerto-peer relationships and the friendships I experience are invaluable and I am honored to have these letters after my name.

2023-2024

Year In Review

WBY DELYNN DEAKINS, TODAY’S CPA MANAGING EDITOR

hat a remarkable year it has been for TXCPA, your professional community! Under the leadership of our 20232024 Chair Tim Pike, CPA-Dallas, CFE, CGMA, TXCPA has worked to empower members to lead and succeed by offering a diverse range of professional resources, information and education opportunities. Additionally, we have remained steadfast in our commitment to defending and promoting the CPA profession.

WHY DO YOU BELONG?

“ TXCPA remains dedicated to assisting future CPAs as they navigate the path to licensure.

TXCPA’s continuous member research helps us respond and offer what’s most important and valuable to our community. In 2023-2024, members told us the three most important reasons they belong to TXCPA are: (1) to protect their license, (2) for education, and (3)to stay up to date on professional issues. You’ll see that we aimed to provide additional value to members in all these areas and more in 2023-2024.

PROTECTING YOUR CPA LICENSE

Our commitment to advocacy defines our service to members. No other organization matches our dedication or breadth of advocacy efforts for CPAs in Texas.

The Texas Legislature convenes every other year, providing TXCPA with opportunities to prepare and focus on any priorities we want to pursue. Our three roles are to:

•Pursue legislative changes that would benefit the profession;

•Defend against legislative changes that would be detrimental to the profession; and

•Ensure we develop strong relationships with legislators and their staff teams to serve as a resource and have open lines of communication.

In the 2023 session, our advocacy efforts achieved significant successes in addressing critical issues affecting the CPA pipeline.

Between June 1, 2023, and March 28, 2024 …

EXCHANGE:

Total discussion posts across our four open communities (All Member Forum, Tax Issues, Non-Profit Accounting and CPA Practice Management): 2,237

TOP 5 MOST SEARCHED TERMS:

1. ERC

2. BOI

3. WISP

4. 1099

5. ERC Amended

Number of members who logged into Exchange at least once: 3,878

Number of TXCPA members who participated in Exchange discussions: 509

FACEBOOK:

Total number of followers: 4,672

Number of followers gained: 139

X:

Total number of followers: 3,491

Number of followers gained: 48

LINKEDIN:

Total number of followers: 8,408

Number of followers gained: 1,087

INSTAGRAM:

Total number of followers: 1,386

Number of followers gained: 128

Legislative wins included the passage of SB 159, enabling students to take the CPA Exam after completing 120 semester hours, and the expansion of the Texas State Board of Public Accountancy’s scholarship program through HB 2217.

Post-legislative session, TXCPA remained actively engaged, providing input on State Board rules throughout the summer and fall of 2023. In November 2023, the State Board adopted permanent rules regarding SB 159 and eligibility criteria for taking the CPA Exam upon completion of 120 hours. Working closely with the State Board, TXCPA proposed clarifications regarding the makeup of the 21 hours of upper-level accounting coursework needed to begin to take the Exam.

These rule changes, along with other revisions made by the State Board, promise to enhance clarity regarding the educational pathway to testing and licensure for students and educators. The changes became effective in early 2024 commensurate with the new CPA Exam launching.

TXCPA supported and promoted the Applicant Reassessment Program, collaborating with the State Board, NASBA, AICPA and other state societies. This program aims to allow over 18,000 candidates nationally, including over 1,900 in Texas, to reenter the CPA testing regime if they faced hardships between 2020 and 2024. Approved applicants will receive an additional 18 months to complete the CPA Exam, providing a second chance for candidates who fell out of the pipeline for no fault of their own.

The Applicant Reassessment Program is currently operational in Texas. As of this writing, 142 applicants have had their Exam credits reinstated and 32 states have adopted a similar initiative known as the Credit Relief Initiative.

TXCPA continues our collaboration with AICPA and other state societies to lobby for federal legislation regarding the CPA pipeline. A key issue gaining traction in Congress is the expansion of 529 plans to cover credentialing, testing and licensing expenses, in addition to traditional higher education costs. As of this writing, there are 128 co-sponsors in the House and 22 Senate co-sponsors.

On the federal regulatory front, there’s a key focus on Beneficial Ownership Information (BOI) under the Corporate Transparency Act, overseen by FinCEN. Significant concerns surround awareness of the requirement and the details required for filings.

Our objectives are to:

•Continue to advocate for a delay in implementation;

•Raise awareness with members and the business community in general; and

•Serve as a resource for members as they navigate the issue.

We’ve been addressing this issue through the work of the Federal Tax Policy Committee (FTP). The FTP

TXCPA’s 2023-2024 Goals

85% of Leadership Council Supporting the TXCPA PAC

Actual: 73%

5% of CPA Members Supporting the TXCPA PAC

Actual: 3.3%

100% Chapters Participating in TXCPA Month of Service

Actual: 100%

actively advocates for members by reviewing federal tax legislation, regulations and administrative pronouncements, providing essential feedback and representing your interests.

The FTP expressed concerns about BOI filing deadlines, urging a one-year extension until 2025 for all existing entities, making the 90-day deadline for new entities permanent and extending the reporting period for subsequent events to at least 90 days. In April, TXCPA, AICPA and other state CPA societies issued a letter to the Department of the Treasury and FinCEN expressing concerns that small businesses need more time to understand and comply with the rules.

The Professional Standards Committee (PSC) also plays a crucial role for members and the profession by responding to matters of interest to the TXCPA membership. They review every professional standards exposure

draft released. As of this writing, the PSC has issued eight comment letters during the 2023-2024 year.

OPPORTUNITIES FOR LEARNING

At TXCPA, a top priority is delivering exceptional Continuing Professional Education (CPE). Our extensive selection of live and online courses allows members to customize their CPE experience. Programs this year covered hot topics, such as federal and state tax updates, BOI reporting, mergers and acquisitions, business management, AI and machine learning trends, emerging technologies, and more.

Plus – your membership gives you access to a minimum of 20 hours of complimentary CPE! These sessions cover a variety of topics, including Texas taxes, ethics and other professional issues.

Today’s CPA magazine also offers a one-hour self-study CPE opportunity. The online CPE quiz was revamped this year starting with the January/February issue and offers a fresh and immersive experience.

As of this writing, nearly 4,000 people have taken TXCPA learning programs this year.

YOUR CENTRAL SOURCE OF INFORMATION

TXCPA keeps members informed and educated about critical professional matters.

TXCPA Chair Tim Pike visited several chapters over the last year and delivered Professional Issues Update presentations and other topics. In addition, whenever

significant developments occur, TXCPA promptly shares the latest insights and perspectives with the membership.

We refreshed the layout and design of Today’s CPA magazine, giving a publication with over a century of history a more modern and contemporary look and feel. TXCPA Exchange continued to thrive with ongoing member-to-member questions and discussions. Additionally, TXCPA maintains its connection and engagement with members through various communication platforms, including social media channels, webcasts, e-newsletters, the tx.cpa website, and more.

GROWING THE PIPELINE OF CPA TALENT

Our commitment to expanding the CPA pipeline addresses challenges in talent recruitment and retention. We are in the second year of our CPA Pipeline Strategy. In addition to the legislative advocacy efforts discussed above, TXCPA focused on the following initiatives.

TXCPA President and CEO Jodi Ann Ray, CAE, represents your interests as part of the 22-member National Pipeline Advisory Group (NPAG). This group has been meeting since July 2023, and is scheduled to present a draft report and recommendations to AICPA Council in May.

In January, we launched our new podcast series, Destination CPA. Featuring conversations with leading voices across the profession, the podcasts provide insights and guidance for aspiring CPAs. You can subscribe on Apple, Spotify, Google or your preferred platform, and please share on social media to expand our reach.

We created a new resource for students outlining CPA Exam changes and offered complimentary Mock CPA Exams in November and March. The Mock CPA Exam allows participants to simulate the Exam experience with questions pulled directly from the CPA Exam Blueprints.

In May, we’re hosting “FORE! The Future,” an interactive statewide fundraising event at three Topgolf locations across Texas. Live simultaneous competitions will take place in Austin, Dallas and Houston.

Our Accounting Opportunities Months have been a great success. Partnering with 44 states and AICPA, we have taken a proactive approach to outreach. For the November Accounting Opportunities Month, 52 member volunteers visited 31 schools, reaching 1,741 students. As of this writing, a spring outreach is planned for April.

The Accounting Education Conference featured top speakers discussing trending topics relevant to educators and the profession’s future. This year, high school educators were invited to help spark student interest in pursuing accounting education and careers.

We continued and grew our successful faculty and student ambassador program, enhancing TXCPA’s presence on Texas campuses. You can learn more in the Be An Ambassador section of tx.cpa.

CONNECTION TO YOUR PROFESSIONAL NETWORK AND COMMUNITY

As a member of TXCPA and your local chapter, you’re connected to a vast network of CPAs statewide. Each year, we organize our Month of Service event. Last November, 100% of TXCPA’s chapters participated, achieving a cohesive and collaborative public outreach.

Getting involved in a committee is a great way to maximize your TXCPA membership. With a range of committees available, there’s something to suit your personal and professional goals, as well as your time commitments.

We also expanded the programs available through the TXCPA Insurance Trust, offering insurance coverages tailored to professionals and their families. Enjoy exclusive rates from reputable carriers you know and trust.

WHAT’S COMING UP

Get ready for an exciting year ahead as we unveil our new Strategic Plan in 2024-2025. Also, mark your calendar now for TXCPA’s Annual Meeting of Members on June 28-29, 2024, at the Omni Frisco. Join us for a keynote by AICPA Chair Okorie Ramsey, CPA, CGMA, PMP, NACD.DC, and engage in shaping the future of TXCPA and your profession. Reserve your room now and we’ll see you there!

Thank you for your membership and support of the many programs and services TXCPA offers. We can’t wait to see what we do together in 2024-2025.

BIG TAX RELIEF IN TEXAS

BY MARVIN J. WILLIAMS, MBA, JD, CPA, CMA, CFM, CGMA

TEXAS OFTEN TOUTS ITSELF ON BEING BIG AND DOING BIG THINGS. This notion is fully evident in recent tax legislation passed by the Texas Legislature and signed by Governor Greg Abbott. The tax legislation resulted in the single largest tax relief in the history of the Lone Star State. It took two special sessions of the Texas Legislature to make this happen, but it indeed has happened.

Governor Abbott announced during his reelection campaign and prior to the beginning of the 2023 biennial session of the Texas Legislature that he planned and pledged to sign into law the biggest tax relief in the history of the state of Texas. This bold assertion by the governor was fueled by Texas having a $33 billion surplus for the most recent budget period. This is the biggest budget surplus ever for the state.

For many years, Texas has proven to be a consistently good steward in the management of its financial resources. The state has a huge Rainy Day Fund that it has never dipped into. A solid Texas economy and very robust business culture have allowed Texas to generate substantial revenues to meet state appropriations. These consistent financial measures have allowed for such a very large

budget surplus. Accordingly, the governor firmly believed that it is only appropriate to share this surplus with the taxpayers.

The leaders of the Texas Senate and Texas House initially could not reach agreements on how to return a large portion of this extraordinary surplus to residents. Different philosophies and alternate points of view were persistent in denying immediate agreements on the type of tax relief to give to taxpayers. The first regular session of the 2023 Texas Legislature ended without an agreement, with both parts of the legislature at strong disagreements. However, the governor was adamant on his pledge to taxpayers.

A special legislative session was immediately convened by the governor after the regular session ended. Both bodies of the legislature remained at odds on how to achieve tax relief, which at times became somewhat contentious and public. The first special session ended without an agreement.

The governor immediately convened a second special session. Through much debate and discussion, and perhaps less publicity, the bodies were able to reach a compromise and agree on the largest tax relief in state history. On July 22, 2023, the governor signed this legislation into law.

Although the legislation required voter approval in the November 7, 2023 general election (House Joint Resolution 2), its passage was a foregone conclusion. The legislation was overwhelmingly approved by voters. The new legislation went into effect for the most part on October 12, 2023 (although certain provisions took effect later in 2023 or beginning January 1, 2024, January 1, 2025 or January 1, 2027).

PROPERTY TAX RELIEF

The centerpiece of the $18 billion tax relief measure is property tax relief (Senate Bill 2 – Property Tax Relief Act). As in most states, Texas itself does not directly impose a property tax on property owners in the state. Property taxes are levied by local governments only (cities, counties, school districts and municipal utility districts (MUDs)). The levying of property taxes is often the major source of revenue for these local governments.

For many years, Texas has had some of the highest property taxes in the United States. The property taxes that are imposed on property owners (individuals and businesses) are influenced by several factors, including the value of the property, the tax rate and

Tax Relief –By the Numbers

Record budget surplus: $33 billion

Tax relief: $18 billion

School property taxes lowered for all property owners: $12.6 billion

School property tax rate reduced by: 10.7 cents per $100 valuation for all homeowners and business properties

Homestead exemption: More than doubled from $40,000 to $100,000

Annual tax savings for the average homeowner: $1,300 or $2,500 over the next two years

Additional tax savings for senior citizens and property owners with certain disabilities: Approximately $170 per year

Non-homestead property: Cap of annual property tax increases (appraisal values) of 20% for the next three years; applies to non-homestead properties valued at $5,000,000 or less

Businesses with a Texas franchise tax due of less than $1,000: Continue to be exempt from paying the franchise tax

Annual no tax threshold increased from: $1,230,000 to $2,470,000, more than doubling the previous annual amount

Additional businesses exempt from the Texas margin tax: Approximately 67,000

the exemptions (homestead and others) that are available to property owners. The Texas Legislature grappled with these factors in determining how to dramatically reduce the property tax burden of property owners.

In the tax relief package, $12.6 billion of the $18 billion goes toward lowering school property taxes for all property owners. The state will spend $12.6 billion to pay school maintenance and operation costs through the use of state sales tax revenues. The $12.6 billion payment will reduce (“compress”) the school property tax rate by 10.7 cents per $100 valuation for all homeowners and business properties. In effect, this shifts a portion of schools’ maintenance and operation costs to the state, which in turn enables school districts to lower their property tax rate, effectively lowering property taxes for all property owners.

In addition, the homestead exemption for the primary residence of homeowners increases from $40,000 for school property taxes to $100,000. This provision accounts for $5.3 billion of the $18 billion tax relief package. In addition, non-homestead property now has a cap of annual property tax increases (appraisal values) of 20% for the next three years. This cap applies to non-homestead properties (such as second homes, vacation properties, rental properties, commercial retail and other business properties) valued at $5,000,000 or less. Prior to this new legislation, there was an annual cap of 10% for homestead property but no cap for non-homestead property. On average, this tax relief reduces property taxes more than 40% for the 5.7 million homeowners in Texas, as well as reducing property taxes for owners of other

properties. The reduction is achieved through a combination of the increased homestead exemption and lower property tax rates. The relief will equate to approximately $1,300 in annual tax savings for the average homeowner or $2,500 over the next two years. The actual savings will vary by school district.

Additional tax savings of approximately $170 per year are also awarded to senior citizens and property owners with certain disabilities. The property tax relief is much welcomed by property owners who have consistently been burdened with some of the highest property taxes in the United States.

FRANCHISE TAX RELIEF

Texas has imposed a form of business taxation for many years. Technically and statutorily, this tax is the Texas franchise tax, which has been imposed since 1907 but is more commonly known since 2008 as the Texas margin tax. This unique tax (since its significant modification in 2008) has been very generous towards small businesses doing business in Texas. The recent relief has made this tax even more favorable for small businesses doing business in the state.

Prior to the recent relief, businesses that had gross receipts for the year below certain amounts were exempt from the Texas margin tax. This gross receipts limit (more specifically known as the “no tax due threshold”) is adjusted annually for inflation. The no tax due threshold for the 2023 year (and 2022) before the passage of the most recent tax relief package was $1,230,000 (increased from $1,180,000 for the year of 2021 and 2020). Thus, if the taxable margin (income) was less than $1,230,000 for the 2023 year (and 2022), no Texas margin tax was due.

As a result, numerous small businesses (and not so small businesses) were not subject to the Texas margin tax. Businesses with a Texas franchise tax due of less than $1,000 were, before the enactment of the new legislation, exempt from paying the franchise tax and continue to be exempt.

The most recent tax relief package has greatly extended the exemption of the Texas margin tax for numerous small businesses (and not so small businesses), which will now include many more businesses. After the voter approval of the new tax relief package in the November 7, 2023 general election (Senate Bill 2 for property tax relief), the annual no tax threshold increased from $1,230,000 to $2,470,000, more than doubling the previous

annual amount. (Senate Bill 3 provided for this amendment for franchise tax relief.)

As a result, approximately 67,000 additional businesses doing business in the state are exempt from the Texas margin tax. This increase in the no tax threshold took effect on January 1, 2024.

SUMMARY

This article highlights the enormous tax relief that the governor and Texas Legislature handed to taxpayers. Major tax relief is being afforded to property owners, both homeowners and business property owners. The property tax relief is the signature piece of this legislation in which a very large portion of school maintenance and operation costs will be paid from sales tax revenues, which in turn require school districts to significantly reduce their property tax rates. This significant reduction provides immediate tax savings to property owners.

In addition to a lower school tax rate, homeowners will benefit by a significant increase in the homestead exemption from school property taxes. The homestead exemption more than doubled from the previous $40,000 to $100,000.

Non-homestead property (such as second homes, vacation properties, rental properties, commercial retail and other business properties) valued at $5,000,000 or less receives a first of its kind cap of annual appraisal value increases for a temporary three-year period. This new and innovative relief for non-homestead property is limited to a 20% per year increase in the appraised value of the property. Prior to this provision, nonhomestead property owners had no protection from exorbitant annual increases in appraised value of their properties.

Modest property tax relief is also provided to senior citizens and property owners with certain disabilities.

Finally, the already generous Texas franchise tax (Texas margin tax) protection for small businesses has become even more favorable. For the 2023 year (and 2022), businesses with gross receipts of $1,230,000 were exempt from paying the franchise tax. Beginning January 1, 2024, the gross receipts amount is raised to $2,470,000, more than doubling the previous $1,230,000. This large increase in the gross receipts floor removes approximately 67,000 small businesses from the franchise tax payroll. Before the enactment of the new

legislation, businesses with a Texas franchise tax due of less than $1,000 were exempt from paying the franchise tax and continue to be exempt.

Texas is noted for doing big things in very big ways. This $18 billion tax relief package, the largest in state history, very vividly continues this notion. A record budget surplus of $33 billion enabled this large tax relief package, with more than half of the budget surplus being returned to taxpayers through the large tax savings in property taxes and franchise taxes that immediately materialized. With property taxes in Texas traditionally being among the highest in the United States, this relief is not only very timely, but addresses a true need of the property owners.

Bibliography

1. Texas Senate Bill 2 (2023 88th Legislature 2nd special session)

2. Texas Senate Bill 3 (2023 88th Legislature 2nd special session)

3. House Joint Resolution 2 (2023 88th Legislature 2nd special session)

4. The Texas Tribune (July 25, 2023)

5. Houston Chronicle – Austin Bureau (July 11, 2023)

Related CPE:

Summit - August (18) 19-20 - San Antonio and Webcast

Free for Members - Texas Taxes: 2024 Quarterly Update Q2 - July 25 - Webcast

CPE by the Sea - June 11-13, 2024League City

JD, CPA, CMA, CFM, CGMA, is a Professor of Accounting and Taxation at the University of Houston-Downtown. Contact him at williamsm@uhd.edu.

MARVIN J. WILLIAMS, MBA,

CURRICULUM:

Accounting and auditing

LEVEL:

Basic

DESIGNED FOR:

CPAs in industry and public practice

OBJECTIVES:

To explain and summarize the provisions of the Auditing Standards Board’s Statement on Auditing Standards No. 143, which relate to the application of the current auditing guidance when estimates are involved in the engagement.

KEY TOPICS:

Examples of accounting estimates; understanding the entity and its environment; specialized skills and knowledge; assessing the risk of material misstatement (RMM); testing controls; management bias; reasonable estimates vs. misstatements; and required communications and documentation

PREREQUISITES:

None

ADVANCED PREPARATION:

None

TAKE THE ONLINE CPE QUIZ

Today’s CPA offers the self-study exam for readers to earn one hour of continuing professional education credit. The questions are based on technical information from the following article. If you score 70 or better, you will receive a certificate verifying you have earned one hour of CPE credit in accordance with the rules of the Texas State Board of Public Accountancy (TSBPA).

Take the CPE quiz online on TXCPA’s website at https://www.tx.cpa/resources/ todays-cpa

BY JOSEF RASHTY

. SAS 143: New Guidance on Auditor’s Responsibilities Relating to Accounting Estimates

BY STEVE GRICE, PH.D., CPA, AND AMANDA PAUL, CPA

In July 2020, the Auditing Standards Board issued Statement on Auditing Standards No. 143 entitled Auditing Accounting Estimates and Related Disclosures (SAS 143). The provisions of SAS 143 relate to the application of the current auditing guidance when estimates are involved in the engagement.

This new guidance supersedes AU-C Section 540, entitled Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures, and amends various other AU-C Sections. SAS 143 is effective for audits of financial statements for periods ending on or after December 15, 2023.

GENERAL NATURE AND EXAMPLES OF ESTIMATES

Estimates are necessary when monetary amounts that are required for financial reporting purposes are not directly observable. Estimates require the use of various estimation methods (e.g., the Black-Scholes optionpricing model) and may be highly subjective or highly complex. Exhibit 1 lists the examples of estimates shown in the application and other explanatory material in SAS 143.

AU-C Section 315, entitled Understanding the Entity and Its Environment and Assessing Risks

of Material Misstatements, indicates that a risk of material misstatement (RMM) exists when there is a reasonable possibility of a material misstatement. A relevant assertion is defined as an assertion with an identified RMM before consideration of any related controls (i.e., based on inherent risk). For estimates, the susceptibility of an assertion to a misstatement may be affected by the following:

•Estimation uncertainty, which is the susceptibility to an inherent lack of precision in measurement. For example, the cost of a recognized amount cannot be precisely measured through direct observation.

•Inherent complexity in the process of determining the estimate before consideration of controls. For example, inherent complexity may arise when many assumptions are required to determine the estimate.

•Inherent subjectivity in the process of determining the estimate before consideration of controls. For example, there may be inherent subjectivity in the management’s selection of the appropriate valuation techniques.

•Other inherent risk factors such as changes resulting from events or conditions that affect management’s assumptions and judgments related to accounting estimates.

The new guidance requires the auditor to evaluate whether management has included disclosures beyond those specifically required by the AFRF that are necessary to achieve the fair presentation of the financial statements.

UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT, INCLUDING INTERNAL CONTROL

AU-C Section 315 requires the auditor to obtain an understanding of the entity and its environment, including internal control. SAS 143 indicates that the auditor should obtain an understanding of certain matters related to an entity’s estimates. Exhibit 2 provides a list of those matters (and examples) that should be included in the auditor’s understanding.

SAS 143 also describes certain matters that should be included in the auditor’s understanding as it relates to the entity’s internal control. Exhibit 3 provides a list of those matters and related examples.

PREVIOUS ACCOUNTING ESTIMATES

SAS 143 states that the auditor should perform a retrospective review, which is a review of the outcome of previous estimates (or the subsequent reestimation). A retrospective review is not intended to call into question judgments about previous-period estimates, but rather to assist the auditor in identifying and assessing the RMM when previous estimates have an outcome in the current period (e.g., re-estimated for the current

period). Other points related to the retrospective review discussed in the application and other explanatory material section of SAS 143 are as follows:

• A retrospective review may be performed for estimates in the prior period’s financial statements only, over several periods if deemed necessary (e.g., outcome of the estimate is resolved over a longer period) or a shorter period (e.g., semi-annual or quarterly).

• A retrospective review may be performed in conjunction with the review of significant estimates required by AU-C Section 240, entitled Consideration of Fraud in a Financial Statement Audit.

• The auditor may judge a more detailed retrospective review is required based on the auditor’s previous assessment of RMM (e.g., inherent risk assessed as high).

• The auditor may deem that the application of analytical procedures as a risk assessment procedure is sufficient for estimates that arise from routine/ recurring transactions.

• For estimates that are based on current conditions at the measurement date (e.g., fair value estimates), the auditor may focus the review on obtaining information that may be relevant to identifying and assessing RMM. For example, audit evidence may be obtained by understanding the outcomes of certain assumptions such as cash flow projections.

• When a retrospective review reveals a difference between the outcome of an estimate and the amount recognized in the prior period’s financial statements, the auditor should consider whether the difference represents a misstatement. The difference may represent a misstatement if it arises from information that was available when the prior period’s financial statements were finalized. Additionally, the difference may cause the auditor to call into

EXHIBIT 1 - ACCOUNTING ESTIMATES

Inventory obsolescence

Depreciation of property and equipment

Valuation of infrastructure assets

Valuation of financial instruments

Outcome of pending litigation

Provision for expected credit losses

Valuation of insurance contract liabilities

question management’s process of making the estimate (e.g., steps followed for gathering information when making the estimate).

SPECIALIZED SKILLS AND KNOWLEDGE

In accordance with SAS 143, the auditor should determine whether the audit engagement team needs specialized skills or knowledge (SSK) to evaluate an estimate. SSK may be necessary to perform risk assessment procedures, to identify and assess the RMM, to design and perform audit procedures to respond to those risks, or to evaluate the audit evidence obtained.

The guidance also points out that many estimates do not require the use of SSK. For example, SSK may not be needed for an inventory obsolescence estimation but may be necessary for the calculation of expected credit losses for a financial institution.

SAS 143 lists several matters that may affect the auditor’s determination of whether SSK are warranted. For example, the nature of the accounting estimates for a certain industry (e.g., complex financial instruments) may affect the auditor’s determination. When a matter related to the estimate involves a field other than accounting or auditing, such as valuation skills, a specialist may be needed to assist the engagement team.

IDENTIFYING AND ASSESSING THE RMM

AU-C Section 315 requires the auditor to separately assess inherent risk and control risk for RMM relating to an estimate at the relevant assertion level. SAS 143 requires the auditor to take the following items into account when identifying the RMM and assessing inherent risk related to estimates recognized in the financial statements (including disclosures):

•The degree of estimation uncertainty that exists. For example, the accounting treatments require assumptions with long forecast periods that inherently have a high level of estimation uncertainty.

•The degree to which the selection and application of the method, assumptions and data are affected by complexity, subjectivity or other inherent risk factors. For example, the need for specialized skills by management may indicate that the estimation method is inherently complex.

•The degree to which the selection of management’s point estimate (i.e., the amount recognized or disclosed) is affected by

Warranty obligations

Employee retirement benefits liabilities

Share-based payments

Fair value of acquired assets/liabilities

Impairment of long-lived assets

Nonmonetary exchanges of assets/liabilities

Revenue recognized for long-term contracts

complexity, subjectivity or other risk factors. For example, an estimate is more susceptible to misstatement due to management bias when that estimate is subject to a high degree of subjectivity.

In accordance with AU-C section 315, the auditor is required to determine whether any of the assessed RMM are significant risks. A significant risk is an assessed RMM for which the assessment of inherent risk is close to the upper end of the spectrum of inherent risk (e.g., high). For example, higher inherent risk may arise when there is complexity in data collection to support account balances. When the assessed RMM is a significant risk, the auditor must evaluate the design and implementation of the related controls.

RESPONDING TO THE ASSESSED RMM

In accordance with AU-C Section 330, entitled Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained, the nature, timing and extent of further audit procedures should be based on the assessed RMM at the relevant assertion level. SAS 143 requires that the auditor’s further audit procedures include one or more of the following approaches.

One approach the auditor may include is to obtain audit evidence from events occurring up to the date of the auditor’s report. When using this approach, the auditor should evaluate whether such audit evidence is sufficient and appropriate to address the RMM relating to the estimate. For example, the sale of inventory shortly after the yearend may provide sufficient appropriate audit evidence. Alternatively, events occurring up to the date of the auditor’s report are unlikely to provide such evidence when the conditions relating to the estimate develop over an extended period.

Another approach the auditor may include is to test how management made the estimate. This approach may be appropriate when, for example, the auditor’s review of similar estimates in prior periods indicates that management’s current period process is appropriate. When using this approach, the procedures should be designed and performed to obtain sufficient appropriate audit evidence relating to:

•The selection and application of the methods, significant assumptions and data used in the estimation process.

•How management selected the point estimate and developed related disclosures about estimation uncertaint y; note - the

EXHIBIT 2 - UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT

Transactions, events or conditions that may necessitate changes in estimates or the determination of new estimates

Requirements of applicable financial reporting framework (AFRF)

Relevant regulatory factors or frameworks

Nature of the estimates and related disclosures based on the understanding of the items above

application and other explanatory material provide guidance to assist the auditor in this evaluation.

SAS 143 identifies numerous matters that the auditor’s further audit procedures should address related to methods, assumptions, data and management’s selection of a point estimate (including disclosures).

For example, the procedures should address:

• Methods – The calculations are in accordance with the method and are mathematically accurate.

• Assumptions – Judgments made in selecting the significant assumptions give rise to indicators of possible management bias.

• Data – The data used is relevant and reliable in the circumstances.

• Selection of a point estimate – Management has taken appropriate steps to understand estimation uncertainty within the context of the AFRF.

The final approach the auditor may include in the procedures is to develop an auditor’s point estimate or range to evaluate management’s point estimate and related disclosures about estimation uncertainty. The procedures should include steps to evaluate whether the methods, assumptions or data used are appropriate within the context of the AFRF.

Similar to the approach to test how management made the accounting estimate, the procedures should be designed and performed to address the matters with respect to methods, assumptions, data and management’s selection of a point estimate (including disclosures) as discussed above. When the auditor develops an auditor’s range, SAS 143 states that auditor should:

• Determine that the range includes amounts supported by audit evidence and that have been evaluated to be reasonable in the context of the AFRF.

Terms of transactions related to estimates may change

AFRF may prescribe specific recognition criteria for estimates

Regulatory framework may provide disclosure guidance for estimates

Understanding the estimates and related disclosures provides a basis for discussion with management regarding how management makes the estimate

The guidance also points out that many estimates do not require the use of SSK.

For example, SSK may not be needed

for an inventory obsolescence estimation but may be necessary for the calculation of expected credit losses for a financial institution.

• Design and perform further audit procedures to obtain audit evidence regarding the assessed RMM relating to the disclosures that describe the estimation uncertainty.

Importantly, when the auditor uses the approach to test how management made the accounting estimate and concludes that management has not taken the appropriate steps to understand and address estimation uncertainty, the auditor is required to develop an auditor’s point estimate or range to the extent practicable.

SAS 143 indicates that the auditor should consider whether the auditor’s point estimate can be developed without impairing independence (i.e., without assuming management responsibilities).

TESTING CONTROLS

In accordance with AU-C Section 330, the auditor should design and perform tests of controls when (1) the auditor intends to rely on the operating effectiveness of the controls or (2) substantive procedures alone cannot provide sufficient appropriate audit evidence (e.g., management makes extensive use of information technology).

SAS 143 suggests that testing the operating effectiveness of relevant controls may be appropriate when inherent risk is assessed as higher on the spectrum of inherent risk. The guidance indicates that testing the operating effectiveness of controls related to highly complex estimates may be more useful than testing the operating effectiveness of controls related to highly subjective estimates. That is, the need for significant management judgment results in inherent limitations in the effectiveness and design of controls; thus, the auditor may focus more on substantive procedures.

SAS 143 requires that the auditor obtain more persuasive audit evidence as the reliance on the effectiveness of controls increases. Further, tests

EXHIBIT 3 - UNDERSTANDING THE ENTITY’S INTERNAL CONTROL

Matter

Nature and extent of the oversight and governance in the financial reporting process related to accounting estimates

How management identifies the need for specialized skills or knowledge related to accounting estimates

Example

Understanding governance may assist in determining whether management has created a culture of honesty

Consider whether the complex nature of models increases the likelihood that management needs a specialist involved

How the risk assessment process identifies and addresses risks related to estimatesRisk assessment process should identify and address changes in the requirements of the AFRF related to estimates

Entity’s information system as it relates to estimates

Control activities relevant to management’s process for making estimates

How management reviews the outcomes of previous estimates and the related response

EXHIBIT 4 - AUDIT DOCUMENTATION

Consider how the information system addresses the completeness of estimates and related disclosures

Consider how management determines the appropriateness of the data used to develop the estimates

Consider how the processes address changes needed for previous estimates identified by management’s review of those estimates

Key elements of the understanding of the entity and its environment (including internal control) related to the estimates

Linkage of the further audit procedures with the assessed RMM, taking into account the reasons (e.g., one or more inherent risk factors) given to the assessment of those risks

The auditor’s responses when management has not taken appropriate steps to understand and address estimation uncertainty

Indicators of possible management bias related to estimates and the auditor’s evaluation of the implications for the audit

Significant judgments relating to the auditor’s determination of whether the estimates and related disclosures are reasonable in the context of the AFRF

of controls are required in the current period when the auditor plans to rely on those controls for significant risks related to an estimate. AU-C Section 330 requires that the substantive procedures include test of details (e.g., recalculation to verify mathematical accuracy) when the auditor’s approach to a significant risk consists only of substantive procedures. Other examples of tests of details include examination and agreeing assumptions used in supporting documentation.

OTHER CONSIDERATIONS RELATING TO AUDIT EVIDENCE

The auditor may need to evaluate the appropriateness of the work provided by a management’s specialist relating to estimates. SAS 143 suggests that one of the three approaches related to responding to assessed RMM previously discussed may be helpful to auditors when evaluating the appropriateness of the specialist’s work as audit evidence.

When the audit evidence has been prepared using the work of a specialist, AU-C 501, entitled Audit Evidence – Specific Considerations for Selected Items, requires the auditor to (1) evaluate the competence, capabilities and objectivity of the specialist, (2) obtain an understanding of the specialist’s work, and (3) evaluate the appropriateness of the specialist’s work.

SAS 143 discusses further audit procedures when external information sources are used when making the estimate. In general, the guidance indicates that the reliability of audit evidence increases when obtained from external sources.

The nature and extent of the procedures to consider the reliability of external sources may depend on a variety of factors. For example, when pricing-related data is from a single external source, the auditor may obtain similar data from an independent source for comparison. SAS 143 suggests that guidance in AU-C Section 402, entitled Audit Considerations Relating to an Entity Using a Service Organization, may be helpful when a service organization is used in making estimates.

DISCLOSURES AND INDICATORS OF POSSIBLE MANAGEMENT BIAS

In general, SAS 143 requires that the auditor design further audit procedures to obtain sufficient appropriate audit evidence regarding the assessed RMM at the relevant assertion level for disclosures related to an estimate. As previously discussed, the auditor’s further procedures may use an approach that tests how management made the accounting estimate or an approach where the auditor develops an auditor’s point estimate or range. Under both approaches, there are specific requirements related to disclosures about estimation uncertainty. Specifically, the auditor is required to:

•Address whether management has taken appropriate steps to address estimation uncertainty by selecting an appropriate point estimate and by developing related disclosures when testing how management made the estimate.

•Design and perform further audit procedures to obtain audit evidence regarding RMM to disclosures that describe the estimation uncertainty when the auditor develops an auditor’s range.

SAS 143 requires the auditor to evaluate whether indicators of possible management bias exist for estimates. For example, the auditor may judge that possible bias exists when management’s selection of a point estimate reveals a pattern of optimism (i.e., consistently trend toward favorable outcomes). When indicators of possible management bias exist, the auditor is required to evaluate the implications for the audit, such as further questioning management’s judgments. Management’s intention to mislead financial statement users is an indicator that is fraudulent in nature.

CONSIDERATIONS FOR OVERALL EVALUATION

AU-C Section 330 requires that the auditor evaluate whether the assessments of the RMM remain appropriate prior to the conclusion of the audit. When applying this guidance to estimates, SAS 143 states that the auditor should evaluate whether:

•The assessments of the RMM remain appropriate, including when indicators of possible management bias exist. For example, the initial assessed RMM may have been based solely on the subjectivity involved in the estimate and further audit procedures subsequently identified a high degree of complexity. Thus, inherent risk may need to be reassessed at the higher end of the spectrum of inherent risk.

•Management’s decisions relating to the recognition, measurement, presentation and disclosure of the estimates are pursuant to the AFRF. For example, the auditor may evaluate whether the recognition criteria of the AFRF have been met.

•Sufficient appropriate audit evidence has been obtained. This evaluation should take into account all relevant audit evidence obtained, whether corroborative or contradictory.

REASONABLE ESTIMATES VERSUS MISSTATEMENTS

SAS 143 requires the auditor to determine whether the estimates (and related disclosures) are reasonable in the context of the AFRF. Reasonable means that the requirements of the AFRF are appropriately applied, including those that relate to:

•The development of the estimate (e.g., methods and assumptions used).

•The selection of management’s point estimate.

•The disclosures about the estimate (e.g., disclosures that explain the nature, extent and source of estimation uncertainty).

SAS 143 describes three scenarios related to evaluating the reasonableness of management’s point estimates:

•When the auditor’s point estimate differs from management’s point estimate, this difference represents a misstatement.

•When the auditor’s range for the estimate does not include management’s point estimate, the misstatement is the difference between management’s point estimate and the nearest point in the auditor’s range.

•When the auditor’s range for the estimate is multiples of materiality, this may indicate that it is important for the auditor to reconsider whether there is sufficient appropriate audit evidence regarding the reasonableness of the amounts within the range.

The new guidance requires the auditor to evaluate whether management has included disclosures beyond those specifically required by the AFRF that are necessary to achieve the fair presentation of the financial statements. For example, the auditor may determine that additional disclosures are necessary when an estimate is subject to a higher degree of estimation uncertainty. Management’s failure to include such disclosures may lead the auditor to conclude that the financial statements are materially misstated.

REQUIRED COMMUNICATIONS AND DOCUMENTATION

AU-C Section 260, entitled The Auditor’s Communication With Those Charged With Governance and AU-C 265, entitled Communicating Internal Control Related Matters Identified in an Audit, contain required communications with those charged with governance. SAS 143 requires the auditor to consider the matters to communicate related to estimates and take into account whether the reasons given to the RMM relate to estimation uncertainty or inherent risk factors (e.g., complexity or subjectivity) in making accounting estimates and related disclosures. For example, a significant deficiency in controls over the estimation process (e.g., selection and application of estimation methods) should be communicated to those charged with governance.

Exhibit 4 lists the items that should be included in the audit documentation related to estimates in accordance with SAS 143.

REVIEW THE GUIDANCE

Hopefully, this overview of SAS 143 provides a better understanding of the auditor’s responsibilities relating to accounting estimates. SAS 143 includes extensive application and other explanatory material that can assist with implementation. Practitioners should carefully review the guidance in its entirety when implementing the provisions.

STEVE GRICE, PH.D., CPA, is

Scholar-In-Residence

at Troy University. Contact him at sgrice@troy.edu.

PAUL, CPA, is Assistant Professor at Troy University

AMANDA

Annual Meeting

of Members and Leadership Council Meeting

Omni Frisco Hotel at The Star - Frisco | June 28-29

Join us at the Annual Meeting of Members and Leadership Council Meeting on Friday and Saturday, June 28-29, 2024, for a dynamic blend of networking, knowledge sharing and some fun! Come meet and learn from AICPA Chair Okorie Ramsey, CPA, who will deliver our keynote presentation.

The Omni Frisco Hotel is the cornerstone of The Star, a 91-acre entertainment district anchored by the Dallas Cowboys World Headquarters and the Ford Center, their 12,000-seat practice facility. Positioned in a premier location in North Dallas, the hotel provides outstanding access to an array of dining, nightlife and shopping experiences.

Omni Frisco Hotel at The Star 11 Cowboys Way | Frisco, Texas 75034 | 469-287-0000

Click here for room rates and to reserve your room

TXCPA thanks our title sponsor Goodman Financial and our awards luncheon sponsor CPACharge.

TXCPA’s 2024 Conferences and Clusters

Mark your calendar now and plan to attend TXCPA’s conferences and clusters this year!

2024 Conferences:

Energy Conference

May 13-14 | Webcast

Nonprofit Organizations Conference

May 20-21 | Richardson and Webcast

Practice Management Conference

May 29 | Dallas and Webcast

Texas School District Accounting and Auditing Conference

June 3-4 | San Antonio and Webcast

CPE by the Sea

June 11-13 | League City

Advanced Health Care Conference

July 15-16 | San Antonio and Webcast

Women’s Leadership Symposium

July 23 | Fort Worth

Summit

August 18-20 | San Antonio and Webcast

Single Audits and Governmental Accounting and Auditing Conference

Details available soon

Accounting Education Conference

October 18-19 | San Antonio and Webcast

Financial Institutions Conference

Details available soon

CPE Expo

November 14-15 | Dallas/Fort Worth

December 9-10 | San Antonio

2024 CPE Clusters:

Summer Cluster

June 24-26 | Virtual

San Antonio Cluster

July 15-17 | The Contessa

Galveston Cluster

July 22-24 | San Luis Resort and Spa

Free Education Opportunities

TXCPA is proud to offer timely, valuable and FREE education opportunities as a benefit of your membership! Professional Issues Update Webcast on May 16 | 10 a.m. to noon CT

Replay - Professional Issues Update Webcast on May 29 | 10 a.m. to noon CT

TXCPA Passport

The TXCPA Passport offers a one-year subscription with unlimited access to more than 125 CPE hours and a variety of topics. Hours and titles are constantly added and refreshed.

Cost: Members $199 | Nonmembers: $329

View the complete schedule and register now in the Education area of our website or call the TXCPA staff at 800-428-0272 (972-687-8500 in Dallas) for assistance.

PHOTO: JERRY BALLARD

Practices For Sale

$110,000 gross, North Dallas, 80% tax, 20% write up, owner will assist with transition. Contact ddeakins@tx.cpa.

ACCOUNTING BIZ BROKERS offers the following listings for sale:

Eastern Brazos Valley gross $730k (New)

NW Dallas County gross $1.16M (New)

Permian Basin area gross $248k (New)

S Amarillo area gross $400k (New)

Ark-La-Tex area gross $1.2M

North San Antonio gross $594k

Texas County, OK gross $385k (Reduced)

Contact Kathy Brents, CPA, CBI Office 866-260-2793 - Cell 501-514-4928

Kathy@AccountingBizBrokers.com

www.AccountingBizBrokers.com

Member of the Texas Society of CPAs Member of the Texas Association of Business Brokers

BUYING SELLING PRACTICES throughout Texas for over 40 years … Offering 95% conventional bank financing to buyers, so our sellers can cash out at closing! We only get paid for producing results! Confidential, prompt, professional. Practices available throughout Texas ... Contact Leon Faris, CPA ... PROFESSIONAL ACCOUNTING SALES ... 972-292-7172 … and visit our website: www.cpasales.com for the latest listings and information.

TEXAS PRACTICES CURRENTLY AVAILABLE THROUGH ACCOUNTING PRACTICE SALES

North America’s Leader in Practice Sales | Toll Free 1-800-397-0249. See full listing details and inquire/ register for free at www.APS.net.

NEW $555,000 gross. Tyler-Longview metro area CPA practice. Quality business clients provide opportunities for expansion. Revenues derived from 70% tax work and 30% accounting, half of which from businesses. TXN1629

NEW $299,000 gross. NW Houston CPA firm. Service mix is 81% tax and 19% accounting. Excellent cash flow with knowledgeable staff in place to support the buyer. Prime location with a reputation in the community that brings in constant referrals. Ideal opportunity for either an individual looking to get into practice ownership or an existing firm looking to add revenues. TXS5078

NEW $146,600 gross. Johnson County CPA practice. Revenues derived from tax services and caters to quality, loyal individual and business clients across a variety of industries. Has strong fees and minimal overhead yielding cash flow to owner above 50% gross. Officed at home with clients faxing, emailing

and mailing in info for easy transition for new buyer. TXN5075

NEW $831,000 gross. Bryan-College Station CPA firm. Owner looking to sell to focus on consulting business. 2023 gross revenue estimated over $900K! The service mix includes tax (57%), accounting (38%) and other (5%). Solid reputation in the community with growth opportunities. Knowledgeable staff in place for smooth transition. Buyer can lease or buy building. TXS5067

$840,000 gross. East Texas (Near I20) CPA practice for sale. First-rate client base of mostly businesses, business owners and high-net worth individuals. Exceptional cash flow to owner of 70%. Lots of room for expansion and flexible owner willing to aid in transition. TXN1630

$285,000 gross. Brazoria County CPA practice. Revenues derived from 94% tax work and 6% accounting. Knowledgeable staff in place for smooth transition with new owner. TXS1326

$1,303,000 gross. Midland-Odessa CPA practice. Revenues derived from 40% tax, 40% bookkeeping, 4% franchise reports and 16% payroll. Cash flow to owner 57% of gross. One owner is retiring. One owner is staying on full time and all staff will assist in transition. TXW1034

$486,000 gross. Amarillo CPA practice. Single owner CPA in vibrant community. Desirably made up of 67% tax preparation and 33% bookkeeping for year-round income. Cash flow is over 61% gross revenues and has knowledgeable staff ready to assist in transition. TXW1032

$209,600 gross. Plano CPA practice. Located in a desirable community. Nice mix of revenues for year-round cash flow. 80% tax prep, 10% accounting services, 10% consulting/payroll/other services. Seller assisted transition. TXN1624

$513,000 gross. Heart of Texas CPA firm. 80% tax (78% inv., 13% bus., 9% other), 11% bkkpng, 9% audits/ reviews, cash flow around 43%, staff in place, owner available to stay on as employee after sale if needed. TXC1078

$480,000 gross. Houston CPA firm. Service mix includes tax (57%), accounting (42%) and other (1%). Year-round cash flow with experienced staff in place to continue with new owner. Wonderful reputation in the community that brings in constant referrals. Ideal opportunity for either an individual looking to get into practice or an existing firm. TXS1315

$347,000 gross. Galveston County CPA. Service mix includes 67% tax, 14% audit/review and 6% other. Year-round work provides excellent cash flow. Prime location with loyal clients. TXS1287

$2,380,000 gross. West Texas firm. Highly motivated multi-owner CPA firm. Revenue mix is 14% accounting services, 29% tax preparation (49% individual, 41% business 10% other) and 57% attest services. Large tenured staff and long assisted transition by owner. TXW1030

$750,000 gross. West of Houston CPA firm. Primarily tax 88% with desirable year-round income from accounting and other work 12%. Great cash flow and knowledgeable staff ready for an owner assisted transition. TXS1319

$363,500 gross. Wichita Falls CPA tax and accounting practice. Revenues derived from 25% bookkeeping, 32% payroll and 43% tax work. Strong fee structure that yields cash flow to owner of 56% of gross. TXN1639

$354,500 gross. Corpus Christi area tax practice. Highly reputable firm with continued growth expected. 100% income from tax work, both individual and business. Staff and owner willing to transition sale of firm. TXS1318

$410,000 gross. Brownwood, TX CPA practice. High-quality client base made up of large businesses, providing room for growth. Balanced revenues of tax work (66%), accounting (14%) and other services (14%). TXN1638

$1,200,000 gross. East Texas CPA practice. Loyal client base of individuals and businesses. High referral rate to generate additional business and nice mix of services for year-round income. Strong, tenured staff and owner assisted transition. TXN1631

$354,000 gross. South Plains CPA practice. Single owner CPA firm with loyal clients. Revenues derived from 66% tax and 34% bookkeeping. Solid cash flow to owner of almost 60% gross. Full-time staff and leased office space available. TXW1033.

$517,000 gross. Ellis County, TX/South of Dallas CPA practice. Mix of high-quality, loyal individual and business clients. 85% rev from profitable tax preparation. Strong, experienced staff in place provides continuity in transition and capacity for growth. Ideal for start-up or expansion. AVAILABLE AFTER 4/15/24. TXN5096

$595,000 gross. Hurst, TX CPA practice. Highquality clients include businesses, business owners, loyal individuals. Rev is 64% tax work, 30% accntg and 6% review/comp/misc consulting. Experienced staff and strong fee structure make turn-key practice. AVAILABLE AFTER 4/15/24. TXN5103

Continued on page 30

CLASSIFIED

$1,208,000 gross. Heart of Texas CPA firm. Tax preparation is 85-90% of revenue each year and approx. 2/3 of this is individuals. The rest is business and trust returns. Bookkeeping is 10-15% of revenue. Owner’s discretionary cash flow is 48% of revenue, 5 employees staying and seller will transition for agreed time. AVAILABLE AFTER 4/15/24 TXC1077

$472,000 gross. Fort Worth CPA practice. Loyal client base. 70% tax work and 30% accounting services. Rapid, consistent growth combined with an experienced staff make this an exceptional opportunity. AVAILABLE AFTER 4/15/24. TXN1626

$800,000 gross. Northeast Dallas suburb CPA practice. Revenues nicely balanced between tax work (72%), monthly/quarterly/annual accounting services (22%) and payroll services (5%) providing steady, year-round income. About 60% revenue from businesses and strong fees yield solid cash flow to owner of about 50% gross. Experienced and dedicated staff in place and seller is willing to work after closing if desired. AVAILABLE AFTER 4/15/24 TXN5084

$460,000 gross. Frisco CPA practice. Clients are loyal individuals and mixture of businesses that should continue to provide referrals and offer plenty of opportunity for expanding services. Strong fees should generate cash flow to the owner above 50% gross. With no long-term lease and many clients accustomed to remote/virtual service, these clients would make a profitable addition to another firm around Frisco. AVAILABLE AFTER 4/15/24 TXN1642

ACCOUNTING PRACTICE SALES

For more information, call toll free 1-800-397-0249. See full listing details and inquire/register for free at www.APS.net

Classified Advertising in Today’s CPA

TXCPA offers opportunities to advertise in the Classifieds section of Today’s CPA magazine. For more information and to place a classified ad, please contact DeLynn Deakins at ddeakins@ tx.cpa or 800-4280272, ext. 8550, 972-687-8550 in Dallas.

Practices Sought

SEEKING CPA FIRM SELLERS

Selling in 2024? Accounting Biz Brokers has GREAT NEWS for you! Accounting Biz Brokers has been selling CPA firms for over 19 years and we know your market. Selling your firm is complex. We can simplify the process and help you receive your best results! Our “Six Steps to Success” process for selling your firm includes a personalized, confidential approach to bringing you the “win-win” deal you are looking for. Our brokers are the only Certified Business Intermediaries (CBI) specializing in the sale of CPA firms in the nation! When you are ready to sell, we have the buyers, financing contacts and the experience to assist you with the successful sale of your firm! Contact us TODAY to take the first step!

Kathy Brents, CPA, CBI

Office 866-260-2793 - Cell 501-514-4928

Kathy@AccountingBizBrokers.com

Visit us at www.AccountingBizBrokers.com

Member of the Texas Society of CPAs Member of Texas Association of Business Brokers

BUYING OR SELLING? First talk with Texas CPAs who have the experience and knowledge to help with this big step. We know your concerns and what you are looking for. We can help with negotiations, details, financing, etc. Know your options. Visit www.APS. net for more information and current listings. Or call toll-free 800-397-0249. Confidential, no-obligation. We aren’t just a listing service. We work hard for you to obtain a professional and fair deal.

ACCOUNTING PRACTICE SALES, INC.

North America’s Leader in Practice Sales

Miscellaneous

MICHAEL J. ROBERTSON, CPA

Texas Sales and Mixed Beverage Tax Solutions

Client audited, liability, needs a review, we have found errors and changed the liability. Does your client have a compliance issue or general question about sales tax? Call our team of sales tax experts. Our team provides over 100 years of experience with the Comptroller of Public Accounts as former auditors and supervisors. We work to ensure a fair audit. Should your client need a payment plan, we’ll negotiate with the Comptroller of Public Accounts.

Call 817-478-5788 or 214-415-4333

Texas Sales and Mixed Beverage Tax Solutions

CLARUS PARTNERS - NATIONAL SALES TAX COMPLIANCE AND ADVISORY FIRM

Do you have questions about sales tax? Need help with multistate compliance after Wayfair? Taxability issues? Audit defense? Refunds? Business registration and licensing compliance? Voluntary disclosure?

Let us be a resource for your firm and your clients. Clarus Partners is a national sales tax compliance and advisory firm. With offices across the U.S., our four partners have a combined 100+ years of experience in this arena.

Let us know any way we can help.

Steve Hanebutt, CPA

Clarus Partners | This firm is not a CPA firm 972-422-4530 | claruspartners.com | stevehanebutt@claruspartners.com

Left to right: Charlotte M. Jungen, CPA, CFP® • Diana Castro, CPA, CFP® • Lisa Francia, CPA • Chris A. Matlock, CPA, CFA Steven R. Goodman, CPA, CFP®

Wade D. Egmon, CPA, CFP

• Joni Eggleston, CPA

Albert P. Wagner V, CPA