The Journal Entry - Winter 2024

VOL 4 · WINTER 2024

THE

JOURNAL ENTRY THE UTAH ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS

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CONTENTS President’s Message........................................................................................... 4

WINTER 2024 Utah Association of Certified Public Accountants 15 W. South Temple, Suite 1625 Salt Lake City, UT 84101 801-466-8022 mail@uacpa.org www.uacpa.org Managing Editor Amy Spencer as@uacpa.org 2023 – 2024 UACPA Executive Board President: Dustin Wood, CPA President-Elect: Jason Tomlinson, CPA Vice President: Dan Frei, CPA Treasurer: Mark Anderson, CPA Secretary: Shalaun Howell, CPA Member-at-Large: Annette Andersen, CPA Member-at-Large: Marci Butterfield, CPA Emerging Professionals: Ariane Gibson, CPA Immediate Past President: Ray Langhaim, CPA AICPA Council: Stacy Weight, CPA CEO: Susan Speirs, CPA UACPA Staff CEO: Susan Speirs, CPA CPE Director: April Deneault Communications & Marketing Director: Amy Spencer Financial Director: Tom Horn, CPA

CEO's Message.................................................................................................... 5

Cover + Articles CPA Power Couples............................................................................................ 6 By the Numbers: Compensation by Profession..........................................13 Legislative Update.............................................................................................14 When Audit Meets AI........................................................................................16 CTA and BOI Reporting.....................................................................................19 Building Your Personal Digital Fortress.........................................................23

Membership New Members and Student Affiliates............................................................26 Members in the News......................................................................................27 Meet the Board...................................................................................................28 UACPA Staff Chat..............................................................................................29 Board Brief..........................................................................................................29 Comic: Generally Excepted..............................................................................30 Meet a Member: Peter Owen, CPA.................................................................31

UACPA Statement of Policy The Journal Entry is published four times a year by the Utah Association of Certified Public Accountants (UACPA). The opinions, views and articles expressed in this magazine are those of the authors and not necessarily those of the UACPA. This magazine should not be deemed an endorsement by the UACPA or its committees or editorial staff of any views, opinions or positions contained herein. Copyright © 2024 Utah Association of Certified Public Accountants

Photos: Leadership Academy, Business & Industry Tour..........................32 Photos: Annual Conference.............................................................................33 UACPA Mission .................................................................................................34 100% Firms.........................................................................................................34 In Memoriam......................................................................................................35 Classifieds...........................................................................................................35

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PRESIDENT’S MESSAGE DUSTIN WOOD, CPA

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hey say time flies when you are having fun. I have truly enjoyed my time serving as UACPA president, and I have been grateful for the opportunity. I feel fortunate to have served during a time where there has been moving and shaking, with pipeline considerations being all encompassing, and discussions at the UACPA and AICPA levels with the hope of affecting meaningful change.

I was afforded the opportunity to serve in this capacity because I first chose to get involved in my local chapter.

I answered the call when asked to get the Cache Chapter functioning after it had not been functioning for quite some time. In my 19 years in the accounting profession, I have been blessed and have appreciated this opportunity to give back. If you asked me what my favorite part of serving was, without hesitation, it was visiting chapters throughout the state and meeting and talking to others and answering questions.

During the AICPA Spring Council in May 2023, we had the chance to meet with some of our state representatives in Washington D.C. During a conversation with Rep. Chris Stewart, he indicated that if there are issues of concern to the accounting profession, we need to voice those concerns.

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I would echo that as it relates to all of you. The UACPA and AICPA can advocate for and improve the profession, but they need volunteers and voices to help them identify the issues. I am likely preaching to the choir, as those reading may already be making an effort to be involved, but please know that volunteers are needed at the local chapters, committees, and through all UACPA levels, and can make a difference.

Personally, my biggest concern continues to be the negative narratives that we often perpetuate or fail to eliminate. We need to give hope to those in the profession, and those looking to enter the profession, and let them know there are reasons why we do what we do.

Accountants are problem solvers and trusted business advisors and have a key role in society. I have had some ask me about AI and whether it is a threat, and frankly, I see such tools as being valuable resources to improve our efficiency and effectiveness, but I do not see any way that AI can fully replace the human mind and our processing and decision making ability.

I want to give a shout out and thank you to the wonderful UACPA team, Susan, April, Amy, and Tom. We are fortunate, as a state society, to have a tremendous group that works tirelessly to support the accountants in our state. They are not the type of people who bring attention to themselves, but they are great, and I appreciate all they have done to support me, the UACPA board, and all of you. n

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CEO’S MESSAGE SUSAN SPEIRS, CPA

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023 was the year of the pipeline. Regardless of the profession or industry, we often hear about pipeline challenges. Recruiters often look at the pipeline as a way to visualize the hiring process; the pipeline corresponds to the job. Candidates enter the hiring process from one end, and interview by interview, they progress through the pipeline until one person is hired. What happens when there are no candidates for the job? Not having candidates for the job is the very challenge the UACPA has been laying groundwork to overcome.

In January 2023, our Leadership Council had the opportunity to listen to viewpoints on 120 vs. 150 hours education for licensure from AAA (American Accounting Association), AICPA and NASBA (National Association of State Boards of Accountancy). They were tasked with discussing the education requirements, possible alternatives to obtain the 150 hours needed to license, as well as implications of changing 150 to 120 hours education to license.

Of concern is how substantial equivalency and mobility could be impacted if states pass legislation that would provide alternative paths to licensure. Today, most CPAs can provide services in other states because their resident state education, examination and experience requirements are substantially equivalent to other states.

However, there are different types of mobility. If you have automatic mobility (Alabama, Nebraska, Nevada, and North Carolina), your CPA license from your resident state is treated like a CPA license from the host state (the state in

which a CPA seeks to practice). The CPA can practice in the host state without any further action; they do not have to gain an additional license. As of this point in time, Hawaii is the only state that does not permit mobility. If you wish to hold out as a CPA in Hawaii, you must have a license in Hawaii.

At question, is whether mobility will need to be redefined as states consider passing legislation that will create alternative paths to licensure. Pipeline challenges are posing the question as to why CPAs don’t have alternative paths to licensure. Public safety is also asking the same questions, as the profession does not have audit staff to complete required audits for clients and governmental entities.

As we move forward into 2024, the UACPA will be taking members’ insights and opinions into consideration as we will have to make public where we stand on 120 vs.

150. Barriers to entry are top of mind at a legislative level.

Employers continue to struggle hiring people, and the enrollment cliff is knocking on our door. We appreciate the insights you all have shared with us. If you haven’t already shared your insights, please drop me a note by emailing me at ss@uacpa.org. n

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FEATURE

COUPLES WHO EXCEL

BY AMY SPENCER, UACPA STAFF

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t’s been said that opposites attract, but often same attracts same, which may include finding a partner who shares a similar career choice. Finding a CPA married to another CPA may sound like the beginning of a joke involving light bulbs and numbers, but when it comes to finding a perfect match, these CPA-licensed couples wouldn’t want to file their taxes with anyone else.

The 2018–2019 American Community survey revealed that common jobs may be an indicator for the types of people who match well together. Among the most common jobs where pairs can be found are teachers, sales representatives, physicians and lawyers. It’s no surprise that accountants and auditors rank within the top 10 careers that attract these likeminded professionals to one another.

A few months back, we asked in the eNetwork to let us know if you are one of those couples who report a combined 160 hours every other year. In this issue, you’ll find out what it’s like to be a CPA married to another CPA.

DUSTIN AND ALYSSA JENSEN

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ustin Jensen, an audit manager, and Alyssa (Kohler) Jensen, a manager, met while working at Eide Bailly, where they both still work. “There was never any real dating interest in each other from work,” they say, adding that they mostly ignored each other. “What really got us interested in the other was when a co-worker invited us both individually to go to a boating activity.” Whether the group activity on July 4, 2020, was a set-up or not, this gave Dustin and Alyssa a chance to see each other in a new light.

Their first date was December 17, 2020, which Dustin says, “Alyssa only agreed to because she thought it was a group activity, not a date. She had a rule about not

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dating co-workers.” Alyssa agrees, “It’s true! Looking back, Dustin was clearly asking me on a date, but in the moment, I did not realize it.” The two were married in the summer of 2022 and became parents in December 2023.

someone who understands the reality of a demanding job and can relate to busy season hours, deadline stress, and work requirements.” She adds, “We also have each other to bounce ideas off of.”

As newlyweds, the Jensens have not fully combined their finances. “We both divide the bills in half and cover it that way. Every other house payment someone covers groceries, the other covers fuel, etc.”

The worst part is that it can be harder to leave work at work and have a cutoff between home and work life, the Jensens said. “We do have to sometimes tell the other, ‘no more work talk’ so that we have better boundaries.”

Dustin says the best part about being married to a CPA is that they are both conservative in finances. “We are both conscientious of how much things cost, saving for retirement, having emergency savings, etc. But also living our lives and using money to enjoy life. It’s great to have someone on the same page as you. We are not worried what the other does with a credit card.” Alyssa says, “It’s nice to have

The Jensens strive to find work-life balance by taking time to do small activities during busy season like a quick 20-minute episode on TV before bed. “We also schedule events ahead of time, such as Jazz games or plays, so that we already have committed breaks in advance.” n

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CLEON AND MARCI BUTTERFIELD

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leon and Marci Butterfield met through Marci’s mom who worked with Cleon at Utah Housing Finance Agency. “I had just graduated from BYU in accounting and started my first job,” Cleon says. “I was dating a girl from Provo, and Marci’s mom asked if I would take Marci out on a date to run interference for her — she didn’t like the guy Marci was dating,” adds the senior vice president and CFO of Utah Housing Corporation.

Marci, an associate professor at the University of Utah, adds that her mom gave Cleon a picture of her and told him that I was free on Friday night. “I guess my mom was quite the matchmaker and saw some great qualities in him.”

Their first date was June 23, 1979. They were engaged six months later on January 9, and then married on April 11, 1980.

Nearly 45 years later, the Butterfields are proud to say that three of their six children have accounting degrees

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(with two working towards becoming CPAs). Their second oldest son works in industry, their oldest daughter is in tax and their youngest daughter is in audit. Their other three children didn’t stray too far from the accounting path with degrees in economics, information systems and sports science. While growing up, the kids wanted to be anything but an accountant, Cleon says. “They were sure being an accountant meant long days and sitting at a desk. I tried to explain how fun it was to sit at a desk and be inside out of the rain,” he says. “I grew up on a farm and put up hay every year for decades.”

Not only do they have a family full of accountants, “it seems that where we live, we are surrounded by CPAs.” Marci Says, “There is another couple across the street who are also, both CPAs.” One might believe the Butterfields have frequent conversations related to the profession, and Marci jokes with her students that they have “very stimulating and exciting conversations about accounting” at home. But

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Cleon says accounting is the last thing they talk about. “We talk about sports, family and travel, or I ask Marci where to be and when,” Cleon says.

“With 16 active grandchildren, I have learned to just show up.”

When it comes to the couple’s finances, the duties are split. Marci pays the bills and Cleon does the investing and banking. “Neither of us balance the household checkbook,” Cleon adds, “other than to assure we recognize the activity.”

Although they chose to go through life together, the Butterfields did not earn their CPA licenses at the same time. Marci remembers, “[Cleon] sat for the CPA Exam when we were first married, which was definitely a challenging time.” Marci went to school after having five children and had her sixth while attending college. “[Cleon] was a strong support as I had to navigate my way to becoming a CPA. He is one of the most detail-oriented people I know, and he loves being a CPA, and always encourages anyone who is willing to listen to go into accounting.”

When thinking about the best and worst parts about being married to a CPA, Cleon jokes that she got a better score on the CPA Exam than he did, but he says the best part of being married to a CPA is being married to Marci. “She is the love of my life and what she is doing is what I want to do.”

With their careers, there is some juggling. The Butterfields know how to strike a balance between work and life. Marci says they prioritize what matters most. “Sometimes work issues need to be taken care of … We have been fortunate to be able to travel to some incredible places and look forward to doing more of that with our family.”

Cleon finds that working hard and efficiently during working hours is how he finds balance.

“I utilize a to-do list and before I leave the office, I make sure I know what I will do first the next day.” This allows him to manage problems and deadlines and although he describes his life as very busy he says “it is very balanced.” n

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MATT AND CAROLINE KLEIN

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aroline initially met Matt Klein in 2004 at their LDS Institute class at the University of Utah. At that point, she had not settled on a major, but now they are both well into their careers as accountants. Caroline has a private tax practice and Matt is the finance director at Lifetime Products.

The Klein’s married in 2006 and were dedicated to homework and establishing careers. Matt remembers one busy season where he was working with a client and the deadline was a few days away. “The team worked until 2 a.m. I got home at 3 a.m. and remembered that Caroline’s Excel was messed up on her computer. She was working on her master’s at this point. So, at 3 a.m. I was fixing her program and went to bed at 4 a.m. I slept in the guest room so I wouldn’t disturb her. At 8 a.m., she opened the door to the guest room and asked what I was doing.” With barely four hours of sleep, Matt responded, “I had to fix your Excel.”

Communication came easy to Matt and Caroline. “We were both in public accounting [before having] kids, so we could work whatever hours were needed and we understood what the other was doing,” Matt says. And it was easy to communicate “with a short call with mutally understood lingo.” He shares an example: “I’ll be home late, I need to review the report and issue the opinion before the bank LOC deadline.”

Matt jokes that they didn’t have kids for a long time “because we were worried about them being too nerdy if they were raised by two nerds.” Jokes aside, Matt says there have been several times “where we have excitedly shared with the other one some new feature we learned in Excel or asked the other for help on a spreadsheet.”

Caroline says that Matt handles the bills and banking and “provides me with a bi-weekly spending summary and quarterly net worth statement for me to review, analyze and ask questions.” Matt adds that Caroline signs off on the files once she reviewed them.

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With three children between the ages of 6 and 9, Matt and Caroline hope that their kids will follow in their footsteps.

Caroline says that she doesn’t think the kids know what they do for work, and Matt says, “They don’t even understand money, so we’re failing there!” As for the kids, Caitlin, who is 6, wants to be a teacher; Jack, who is 7, says he wants to be an adult and live with mom and dad, or maybe a famous baseball player; and Ryan, who is 9, says he wants to be a football player for the Utes.

Caroline says the best part about being married to a CPA is after work when they can talk about their days and understand what the other is talking about. “We also enjoy talking about Excel formulas.” The worst part is when they both have work deadlines at the same time. “Some

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date nights consist of sitting next to each other at the kitchen counter on their own laptops,” Matt says. “At least we’re together!”

With the kids in school now, Caroline has enjoyed growing her tax practice and finding some time for herself. “I was in the kid trenches for a long time. This is the first year I’ve got a ski pass since college. I’m looking forward to going once a week this winter/ spring.”

Matt tries to leave work at work, but “it’s nice to be able to handle some things at home that free up my time during work hours,” he says. “I work internationally, so I can handle emails and phone calls after the kids go to bed and still have enough time for us to watch a Hallmark movie together on the couch.” n Are you married to a CPA? We want to hear your story and share it. Send an email to Amy Spencer, as@uacpa.org.

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These numbers reflect compensation numbers shared at Winter Leadership Council from the U.S. Bureau of Labor Statistics (2022/2023) and the National Association of Colleges and Employers: Winter 2023 Salary Survey.

BY THE

NUMBERS COMPENSATION BY PROFESSION

$98,000

ANNUAL MEDIAN SALARY FOR ALL LEVELS OF STEM PROFESSIONALS

$78,000

ANNUAL MEDIAN SALARY FOR ALL LEVELS OF ACCOUNTING AND AUDITING PROFESSIONALS

$50,000 $75,000 $62,000

MEDIAN AVERAGE COMPENSATION FOR NEW PROFESSIONALS IN ACCOUNTING MEDIAN AVERAGE COMPENSATION FOR NEW PROFESSIONALS IN ENGINEERING MEDIAN AVERAGE COMPENSATION FOR ALL NEW BUSINESS GRADUATES

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LEGISLATIVE UPDATE

TAX POLICY AND PROFESSION AL LICENSURE ARE ON THE DOCKE T AT THE 2024 LEGISL ATIVE SESSION.

BY CRAIG PETERSON AND RYAN PETERSON

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anuary 16 marks the beginning of the 45-day Utah legislative session. This session is gearing up to be a very interesting one, with the battle lines already being drawn between the super majority Republicans and the Democrats.

It is expected that the new House speaker, Rep. Mike Schultz (R-Hooper) and his leadership team will support sweeping legislation dealing with the issue of diversity, equity, and inclusion (DEI). There have already been multiple bills filed which, if passed, would clarify what can and cannot be done or asked about in Utah’s public schools, universities, and in general government. The bills would require those entities to remain neutral on political issues, protect all freedom of speech, and would ban them from having any discriminatory practices based on “personal identity characteristics.” It would also ban the use of any DEI questions or statements in hiring or admissions.

Other bills that have been filed would require that access to private areas, including bathrooms and locker/changing areas, be based on birth-assigned biological sex. These are obviously hotly debated topics, and we expect there to be significant debate between the two parties.

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This session will also be different from the previous two sessions due to significantly less money being available for the budget. With the significant infusion of federal money during the post COVID-19 years, the state of Utah had more money to work with and was able to fund a number of different programs. This year, we are seeing far less money available for the Legislature to use on new programs. The Legislature was smart in their spending over the last few years, however, as they used tens of millions of dollars of ongoing money for one-time expenditures. This will ensure that even with less money available, the legislature shouldn’t need to reduce necessary programs in order to balance the budget. It is this type of financial prudence that lands Utah at or near the top of the list for best managed state year in and year out.

Peterson Consulting Group, in concert with UACPA leadership, will be following a number of bills dealing with general tax policy. We will ensure that the collective voice of the CPA profession is heard as the Legislature deals with different policy decisions that may have an impact on you and your clients’ business practices. We will also be watching any bills dealing with changes to professional licensure or any bills looking to implement a professional

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sales tax. We will be following how the newly created Office of Professional License Review (OPLR) looks at all professional licenses in the state and make sure that our voice is heard when they are ready to review the CPA license requirements.

Craig Peterson, senior partner of Peterson Consulting Group, has been involved in legislative processes for almost 40 years as a State Representative, State Senator, and Republican Senate Majority Leader.

During the past 20 years, he has been a lobbyist, successfully representing a broad spectrum of clients.

As is always expected, there will be issues that arise that we were not previously aware of. We will be on Capitol Hill everyday to make sure that every bill is seen and that we have time to get feedback from you and UACPA leadership in order to address each issue appropriately.

Ryan Peterson is the managing partner of Peterson Consulting Group.

He has been a contract lobbyist in the state of Utah for 12 years. He received a degree in economics from the University of Utah with a focus on statistics and econometrics. He is an avid golfer and resides in Salt Lake City.

It truly is an honor for us to represent the CPA community in Utah, and we appreciate how actively many of you participate in the legislative process. We are looking forward to a successful 2024 legislative session. n

STAY UP ON THE 2024 SESSION We want to keep you informed and ask for your expertise and support when it comes to important decisions.

Throughout the session, we will be posting updates on CONNECT and hope you will chime in.

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WHEN AUDIT MEETS AI

BY JOSHUA HERBOLD, PH.D.

THE IMPACT WHEN HUMAN AUDITORS TRUST — OR DON’T TRUST — THE MACHINES

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ince at least the Industrial Revolution, humans have been reluctant to fully trust machines. From John Henry’s race against a steam-powered hammer, to Neo’s rebellion against the Matrix, our folklore warns of the dangers of creating inventions that are faster, better, and smarter than their creators. But does that really apply to the accounting and finance world?

“It’s great that firms are spending time and resources to develop artificial intelligence (AI) systems that can help

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accounting and finance professionals, but it’s going to be a problem if auditors and accountants don’t want to use it,” cautions Jenny Ulla, Ph.D., CPA, an assistant professor of accountancy in the Gies College of Business at the University of Illinois Urbana-Champaign.

Large professional services firms are already ramping up substantial investments in technologies based on AI, machine learning, generative pre-trained transformers (GPT), and large language models — the underlying programming behind products like OpenAI’s ChatGPT and Google’s Bard.

In one of the largest such investments to date, KPMG has committed to invest $2 billion in Microsoft’s generative AI technology and expects this investment to lead to over $12 billion in incremental revenues over the next few years.

But as firms explore the potential for these new technologies, regulators have expressed concern about overreliance on them. The Public Company Accounting Oversight Board’s Standards and Emerging Issues Advisory Group recently announced that AI is one of its top three concerns and held an open meeting to “consider proposing for public comment amendments to existing standards addressing aspects of designing and performing audit procedures that involve technology-assisted analysis of information in electronic form.” United States Securities and Exchange Commission Chair Gary Gensler has even said that overreliance on AI by financial institutions could end up being the cause of the next financial crisis.

While regulators worry about overreliance on AI, new research from Ulla and her co-authors examines the opposite. In “Man Versus Machine: Complex Estimates and Auditor Reliance on Artificial Intelligence,” Ulla and researchers Benjamin Commerford, Sean Dennis, and Jennifer Joe explore the phenomenon known as “algorithm aversion,” which could lead to underreliance on the technology in which firms are investing so heavily. If users underrely on technology, the shift to AI may not yield the anticipated improvements in audit quality, for instance, especially when complex, subjective estimates are involved.

Algorithm aversion occurs when humans trust input and advice from other humans more readily than from

algorithms, even when the advice and the underlying situation are the same.

“Do people treat estimates that come from a human versus an AI system differently?” Ulla asks. “Algorithm aversion is the tendency to discount computer-based advice more heavily than human advice. It’s been shown in a whole range of decision-making scenarios, from movie recommendations, to dating advice, to forecasting stock prices. Part of it could be that decision makers don’t understand how the systems work, and part of it could be that they don’t trust that the AI systems are well-suited to the tasks. The research on algorithm aversion finds that people tend to believe that computers are best suited for simple or objective tasks, and that computer systems can’t think or adapt in real time.”

“ALGORITHM AVERSION IS THE TENDENCY TO DISCOUNT COMPUTER-BASED ADVICE MORE HEAVILY THAN HUMAN ADVICE. IT’S BEEN SHOWN IN A WHOLE RANGE OF DECISIONMAKING SCENARIOS, FROM MOVIE RECOMMENDATIONS, TO DATING ADVICE, TO FORECASTING STOCK PRICES.” Ulla’s research suggests that auditors may be reluctant to rely on AI-generated advice, even if it’s more accurate than human advice. Ulla and her co-authors examined whether auditors evaluating complex accounting estimates would be susceptible to algorithm aversion: “Participants in our study completed a scenario where an audit task involved a potential audit adjustment. The client was a bank, and the client’s stance was that no adjustment was needed to their allowance for loan loss (ALL). Participants were given a report from their firm’s specialist that contradicted management’s evidence and suggested that their ALL was

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materially understated.”

present, participants were willing to discount the AI system.”

Although all participants saw the same firm-provided report, some participants were told that the report came from the firm’s in-house valuation group (i.e., humans), while others were told that the report was from the firm’s proprietary AI system. Regardless of the source, identical language was used to describe the accuracy and reliability of the report.

Does this mean that firms shouldn’t use these new technologies? “Not at all,” Ulla says. “However, it’s difficult to predict who’ll use AI or not, because every situation is different, and it’s a very nuanced area. It depends on the person, the task, and the scenario. It could even depend on the seniority of the decision maker. It gets even more complicated if the client is using AI as well.”

Participants in both conditions proposed audit adjustments to increase the client’s ALL. On average, however, participants who believed the firm evidence came from the firm’s proprietary AI system proposed ALL adjustments in dollar amounts that were 23% lower than participants who thought the evidence was provided by humans, a result that’s consistent with algorithm aversion.

When the nature of the evidence provided by the client was more objective, the difference in proposed audit adjustments grew even larger. Ulla and her co-authors also varied the banking client’s underlying information used to develop their conclusion that no adjustment was necessary to the ALL. As described in the paper, some study participants were told that the client “relies heavily on the judgment of loan officers and credit analysts, who use a variety of methods and information (e.g., discussions with real estate brokers) to develop estimates for a key parameter in the ALL estimate (i.e., collateral values).” This information is considered relatively more subjective. Other participants were told that the client “relies on client-selected, detailed market data (i.e., real estate price indices) to update collateral values in a standardized manner.” This method is considered relatively more objective.

The results? The effects of algorithm aversion became even clearer: For participants who believed that the client’s evidence was more objective, seeing an AI-based audit firm report (instead of a human-based report) led to 43% lower proposed audit adjustment dollar amounts.

Ulla describes it this way: “Auditors were more than willing to rely on AI-based evidence from their firm and propose audit adjustments based on that evidence. But they were quick to discount an AI system when the client’s evidence seemed to be relatively more objective in nature. If there was any doubt

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This awareness is a central theme for much of Ulla’s research. “I struggled so often as an auditor, and now I wish I would’ve read some of the research that was out there,” she admits. “It would’ve helped so much to see where some of the pitfalls and blind spots were.”

What’s next in this line of research? Ulla says, “Another paper we’re working on examines how auditors react to misestimates committed by humans versus AI systems.

Our preliminary results show that if an AI system makes a mistake, people immediately abandon the system and say, ‘I don’t want to use that.’ But if a human makes a mistake, they’re more willing to give the human the benefit of the doubt.”

Ulla’s advice for firms investing in AI-driven technologies is to consider the human element: “The main takeaway is awareness. Firms should be aware that algorithm aversion could happen, and it could have a significant effect on the quality of your services. So, firms should be sure to include that awareness in their development of, and training on, these technologies. An auditor might not fully understand how the AI system made its conclusion, but they still have to go to the client and explain it. That puts the auditor in a very difficult spot. But, if we can cautiously embrace these new technologies, this will be an exciting time for our profession.” n Reprinted courtesy of Insight, the magazine of the Illinois CPA Society.

Joshua Herbold, Ph.D., CPA, is a teaching professor of accountancy and associate head in the Gies College of Business at the University of Illinois Urbana-Champaign and sits on the Illinois CPA Society Board of Directors.

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NEW RULES FOR TRANSPARENCY

CTA AND BOI REPORTING — RISK MANAGEMENT CONSIDERATIONS FOR CPA FIRMS

BY CAMICO’S LOSS PREVENTION TEAM

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he Corporate Transparency Act (“CTA”) was enacted January 1, 2021, as part of the National Defense Authorization Act, representing the most significant reformation of the Bank Secrecy Act and related anti–money laundering rules since the U.S. Patriot Act. The CTA is intended to address and guard against money laundering, terrorism financing, and other forms of illegal financing by mandating certain entities (primarily small and medium size businesses) to report “beneficial owner” information to the Financial Crimes Enforcement Network (“FinCEN”).

The CTA authorizes FinCEN, a bureau of the U.S. Treasury Department, to collect, protect, and disclose this information to authorized governmental authorities and to financial institutions in certain circumstances.

This article is intended to provide a high-level overview of some of the key CTA provisions and address significant issues, critical unknowns, and potential risks facing accounting firms.

WHAT ENTITIES ARE SUBJECT TO THE NEW CTA REPORTING REQUIREMENTS? Entities required to comply with the CTA (“Reporting Companies”) include corporations, limited liability companies (LLCs), and other types of companies created by a filing with a Secretary of State (“SOS”) or equivalent official. The CTA also applies to non-U.S. companies registered to do business in the U.S. through a filing with a SOS or equivalent official.

Since the definition of a domestic entity under the CTA is extremely broad, additional entity types could be subject to

CTA reporting requirements based on individual state law formation practices.

There are a number of exceptions to who is required to file under the CTA. Many of the exceptions are entities already regulated by federal or state governments and as such already disclose their beneficial ownership information to governmental authorities.

Another notable exception is for “large operating companies” defined as companies that meet all of the following requirements: •

Employ at least 20 full-time employees in the U.S.

•

Gross revenue (or sales) over $5 million on the prior year’s tax return

•

An operating presence at a physical office in the U.S.

As currently promulgated, the CTA has an exemption for “any public accounting firm” registered in accordance with Section 102 of the Sarbanes-Oxley Act of 2002 (firms registered with the Public Company Accounting Oversight Board). However, other public accounting firms could be deemed Reporting Companies subject to compliance with the CTA.

WHO IS CONSIDERED A “BENEFICIAL OWNER” OF A REPORTING COMPANY? A beneficial owner is any individual who, directly or indirectly, exercises “substantial control” or owns or controls at least 25% of a reporting company’s ownership interests.

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An individual exercises “substantial control” if the individual (i) serves as a senior officer of the company; (ii) has authority over the appointment or removal of any senior officer or a majority of the board; or (iii) directs, determines, or has substantial influence over important decisions made by the Reporting Company. Thus, senior officers and other individuals with control over the company are beneficial owners under the CTA, even if they have no equity interest in the company.

In addition, individuals may exercise control directly or indirectly, through board representation, ownership, rights associated with financing arrangements, or control over intermediary entities that separately or collectively exercise substantial control.

CONSIDERATIONS FOR ENTITIES AS THEY BEGIN TO PREPARE FOR THE CTA With the CTA introducing a new and expansive reporting regime, now is the time for entities to assess the new rules’ implications on their organizations. As entities begin this evaluation, the following, although not meant to be all inclusive, should be considered: •

Is the entity subject to the CTA or does it qualify for exemptions?

•

If the company is not exempt, how should it calculate percentages of “ownership interests” to determine whether any owners meet the 25%-ownership threshold?

In many companies with simple capital structures, the answer will be obvious. It may be much less obvious, however, for companies with complicated capital structures (given the expansive definition of “ownership interest”), or companies in which some ownership interests are held indirectly — for example, through upper-tier investment entities, holding companies, or trusts.

•

How should a company begin to assess and determine each person who exercises “substantial control” over it? There may well be multiple people who qualify, given the expansiveness (and vagueness) of the “substantial control” definition.

•

What new processes and procedures should a company put in place to monitor future changes in its beneficial owners and reportable changes on existing beneficial owners that will require timely updated reports to FinCEN? Note that the types of information that must be provided to FinCEN (and kept current) for these beneficial owners include the owner’s legal name, residential address, date of birth, and unique identifier numbers from a non-expired passport, driver’s license, or state identification card (including an image of the unique-identifier documentation).

CTA regulations provide a much more expansive definition of “substantial control” than in the traditional tax sense, so many companies may need to seek legal guidance to ultimately determine who are deemed beneficial owners within their organization.

PHASE-IN OF REPORTING REQUIREMENTS As currently promulgated, the CTA’s reporting requirements will be phased-in in two stages: All new Reporting Companies — those formed (or, in the case of non-U.S. companies, registered) on or after January 1, 2024 — must report required information within 30 days after their formation or registration.

All existing Reporting Companies — those formed or registered before January 1, 2024 — must report required information no later than January 1, 2025.

PENALTIES FOR NONCOMPLIANCE Penalties for willfully violating CTA reporting requirements include (1) civil penalties of up to $500 per day that a violation is not remedied, (2) a criminal fine of up to $10,000, and/or (3) imprisonment of up to two years. A safe harbor from the penalty is available to Reporting Companies that file corrected reports with FinCEN no later than 90 days after submission of an inaccurate report (31 U.S.C. 5336(h)(3)(C)).

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•

Caution: Keeping current with the information that needs to be provided to FinCEN will be a significant trap for Reporting Companies, as they will need to rely on beneficial owners to timely update them

WINTER 2024

on reportable changes to their information (e.g., ownership changes, moves, marriages, divorces, etc.). Reporting Companies must file updated or corrected reports within 30 days of reportable changes or discovery of inaccurate information in previously filed reports. As a result, a company’s operative documents may need to be revised to include provisions related to the CTA such as representations, covenants, indemnifications, and consent clauses. For example, the operating agreement may require:

•

o

A representation by each shareholder, member or partner, as applicable, that it will be in compliance with or exempt from the CTA;

o

A covenant by each shareholder, member or partner, as applicable, requiring continued compliance with and disclosure under the CTA or to provide evidence of exemption from its requirements;

o

An indemnification by each shareholder, member or partner, as applicable, to the company and its other shareholders, members or partners, as applicable, for its failure to comply with the CTA or for providing false information; and

A consent by each disclosing party for the company to disclose identifying information to FinCEN, to the extent required by law.A consent by each disclosing party for the company to disclose identifying information to FinCEN, to the extent required by law.

POTENTIAL RISKS TO THE CPA OF HELPING CLIENTS PREPARE FOR THE CTA There has been much discussion and debate within the accounting community about whether CPAs are in a position to provide guidance and advice to their clients regarding whether an exemption applies or to ascertain whether legal relationships constitute beneficial ownership. The overarching concern is that CPAs and non-attorney tax professionals providing assistance to clients in this arena could be deemed engaging in the unauthorized practice of law (“UPL”). As each state has its own definitions of what

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services are considered UPL, this is an area of some risk to the accounting profession. As of the date of this writing, no state has yet to provide clarity as to whether providing advice to clients regarding the CTA would, or would not, be viewed as UPL.

DOCUMENT, DOCUMENT, DOCUMENT…

•

From a risk management best practices perspective, CAMICO strongly encourages CPAs to tread carefully as it relates to advising clients regarding the CTA and the filing of beneficial ownership reporting, and instead, advise clients to seek guidance from qualified legal counsel.

RISK MANAGEMENT TIPS •

Familiarize yourself with the Corporate Transparency Act and the beneficial ownership reporting requirements and stay current with any further guidance promulgated by FinCEN.

For additional information regarding the CTA’s beneficial ownership reporting requirements, refer to FinCEN’s Frequently Asked Questions document at www.fincen.gov/boi-faqs.

Tread carefully to reduce the likelihood of an accusation of practicing law without a license!

Performing services for clients that are outside of the purview of your licensure or your competencies poses significant liability and insurance coverage risks. It is best to refer such services to other professionals than to face the consequences of allegations of falling short of professional standards of care.

However, if contemplating providing CTA-related services to clients, we strongly encourage you to document your due diligence efforts to confirm that your state has not deemed these services to be the unlicensed practice of law. Note that engaging in the unauthorized practice of law is not covered by the CAMICO policy, so we encourage you to also contact us so that we can help you evaluate the risks associated with these services, as well as assess any potential coverage issues.

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Inform and advise your clients in writing regarding the new beneficial ownership reporting requirements under the CTA and your recommendation that they seek legal guidance.

CAMICO offers a client notification template for this purpose.

o

Modify engagement letters to include language that specifically disclaims the firm’s involvement in assisting clients with CTA compliance. See CAMICO’s below suggested engagement letter language for this purpose: Management is responsible for Client’s compliance with the Corporate Transparency Act (“CTA”), if applicable to its business, and for ensuring that any required reporting of beneficial ownership information is timely filed with the Financial Crimes Enforcement Network (“FinCEN”) as required by the CTA. As <Firm> is not rendering any legal services as part of our engagement, we will not be responsible for advising you regarding the legal or regulatory aspects of your company’s compliance with the CTA, nor are we responsible for the preparation or submission of Client’s beneficial ownership information reports to FinCEN. If you have any questions regarding Client’s compliance with the CTA, including but not limited to whether an exemption may apply to your organization or to ascertain whether relationships constitute beneficial ownership under CTA rules, we strongly encourage you to consult with qualified legal counsel experienced in this area.

For details on specific CTA provisions, refer to the Beneficial Ownership Information Reporting Rule, available at www.fincen.gov/boi.

•

o

Prepare your own firm for compliance if you are deemed to be a Reporting Company under currently promulgated CTA guidance. n

•

CAMICO policyholders with questions regarding this communication or other risk management questions should contact the Loss Prevention department at lp@camico.com or call our advice hotline at 800.652.1772 and ask to speak with a Loss Prevention Specialist.

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BINARY BARRICADE

BUILDING YOUR PERSON AL DIGITAL FORTRESS

BY JAMES HARRISON, INVISUS

Y

ou stand at the checkout, groceries piled high, anticipation buzzing for a home-cooked meal. You reach for your debit card, a familiar rhythm of purchase. Beep.

Decline. Your heart stumbles. You swipe again, remembering your account brimming with comfort and security. Beep.

Decline. Panic chills your veins.

You whip out your phone, fingers trembling as you navigate the familiar app. The screen screams emptiness — your

checking, your savings, your retirement, gone.

Questions bombard you. How? Where? That sick feeling in your gut gets worse. Your dreams, your financial future, seemingly hanging by a thread. How do you tell your spouse? And the money — is it gone forever? Where do you even begin to fight back?

This, unfortunately, is the harsh reality of our hyper-

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connected world. It’s one story among countless other variations that happen every day to good, hard-working people. The convenience of the digital age dances with unseen vulnerability. Our lives, woven into the digital world, are exposed to threats we never imagined.

In 2023, families were five times more likely than businesses to face cyberattacks according to the Cybersecurity & Infrastructure Security Agency. Protecting yourself and your loved ones from cyber threats can feel like an uphill battle, with apps and technologies often mere bandages for a deeper wound.

Proactive defense requires time and research, a daunting prospect for busy people. Building a personal digital fortress demands a multi-layered approach, focused on four key areas: • Online Privacy • Family Safety • Device Security • Identity & Financial Protection Imagine this fortress as a four-walled Citadel, each brick carefully placed to safeguard your family’s digital well-being.

Here are some tips to get you started.

settings and tools to keep companies from tracking your every move.

2. Remove your personal info from data broker sites and online advertisers to minimize spam and robocalls 3. Monitor your social media accounts for personal info exposure and privacy risks Forget passive trust. It’s time to proactively defend yourself and your loved ones against unwanted online surveillance and privacy risks.

FAMILY SAFETY Every day, 500,000 predators lurk online, shadows in the digital playground. And there, immersed in screens for an average of 8 hours and 39 minutes, are our teens — 54% of their waking hours lost in the digital haze. Do you know who they’re talking to, what they’re viewing? The phone’s seductive veil of privacy grants instant access to any information, the power to connect with anyone with just a click.

The stats are sobering: 6 in 10 teens face online harassment, cyberbullying, or worse. Depression and other mental health challenges for teens and adults are skyrocketing in this everything-online world.

But together, we can rewrite the narrative and stop the damage before it starts. Here’s what you can do:

ONLINE PRIVACY With every click and keystroke, we hand over a piece of ourselves. New accounts, loan applications, credit cards — each digital footprint adds another layer to our online persona. We trust companies to safeguard this data, yet the constant expansion of our digital lives feels like a ticking time bomb.

Despite privacy laws and consumer protection actions taken by the government, spam emails, scams, and robocalls only seem to be getting worse. The truth is, 95% of us have personal information floating in the hands of data brokers and on the dark web. A sobering statistic, but not a hopeless one.

To limit the exposure of your personal data and protect your online privacy, be sure to: 1. Browse the web privately with the right privacy

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1. Get the monitoring and education you need to see the warning signs of cyberbullying 2. Block harmful content from your family’s devices and home Wi-Fi 3. Limit screen time and keep tabs on your kid’s whereabouts 4. Keep kids safe from predators on online video games If you have kids at home, you can and should build a safer, healthier world for your family.

DEVICE SECURITY The digital walls we build can seem frail in the face of reality.

Every 39 seconds, a computer succumbs to hacking. An

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unsettling 83% of Wi-Fi routers harbor hidden vulnerabilities, leaving our networks exposed. As smart devices sneak their way into our homes, a chilling question lingers: are we being watched, our conversations archived in unseen corners?

Here are the essentials of winning on the battlefield of desktops, cell phones, and smart home devices: 1. Be sure you are running an updated, top-rated antivirus program

other financial accounts 5. Have a full identity theft recovery service already in place – in case something happens As a UACPA member, you automatically save over 40% on the iDefend service when you go to https://www. idefendhome.com and use promo code “UACPA.”

3. Ensure your smart phone is configured with maximum privacy and security settings

The UACPA has partnered with INVISUS, a Utah-based cybersecurity company specializing in cyber risk management for small and mid-sized companies, to help you assess your current status, implement a plan to minimize risk, get compliant, and properly respond to data breach incidents.

4. Lock down your smart home devices and listening virtual assistants such as Alexa

THERE IS HOPE IN THIS DIGITAL AGE

2. Use the maximum encryption and security settings on your Wi-Fi router

5. Use a VPN or personal hot-spot when connecting online from remote locations 6. Get regular computer and device security checkups

IDENTITY & FINANCIAL PROTECTION Your dream car gleams on the lot, keys shimmering in the sunlight. You envision the open road, freedom at your fingertips. But one credit check shatters your joy — identity theft. Someone stole your social security number, racked up debt on phantom cards, and now? Months, maybe years, navigating the nightmare of clearing your name and your credit record.

This isn’t a distant threat. Last year, over 1.1 million became victims of identity theft. For your digital defense plan, here are the minimums you’ll need to safeguard against identity and financial fraud.

The digital transformation of everything is no place for passive defense. Antivirus software and other apps by themselves won’t hold back the tide of emerging cyber threats. But don’t let fear hold you hostage. Expert help is at your fingertips.

We are proud to be partnered with the UACPA to help you get the latest education and hands-on expert help in protecting against cyber threats at work and at home.

Our iDefend service is designed for busy professionals and families who want to build a digital fortress at home but don’t have the time or expertise to stay on top of it all. iDefend is a complete home and family cyber protection service, built on a foundation of personalized one-on-one care from our Utah-based team of experts whose only job is to keep you and your family safe. n James Harrison is the founder and CEO of INVISUS, an industry pioneer

1. Monitor your SSN, date of birth, home address and other personal information for suspicious activity

in cybersecurity and identity theft protection since 2001. As chief

2. Monitor the dark web for exposure of email, passwords and hijacking of your online accounts

strategist and product visionary,

3. Monitor the credit bureaus for potential credit fraud with your identity

solutions and is a featured author,

he leads the development of the company’s innovative security speaker and trainer.

4. Set up monitoring and fraud alerts with your bank and

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MEMBERSHIP

NEW MEMBERS

Congratulations to the following individuals who were approved for membership in the UACPA as of Nov. 30, 2023.

Maria Borisevich Corry R. William Grabber Construction Products, Inc. Kirsten Coyle Graham Doxey Shay Fidel David M. Sneddon Tanner LLC Jared P. Eccles Eccles & Associates, LLC Darin Gubler Savage Esplin & Radmall, PC Jeffrey Lloyd Jason G. Page David A. Phillips Utah Valley University Owen Reeder Dominion Energy Hyrum J. Schwab Larson & Company, PC Carol Sonnenberg Tan Eslliey Haynie & Company

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Timothy T. Tse KPMG LLP Jacob Wells Leah Wietholter Workman Forensics LLC Tyrel C. Wilcox Ailin Zhou PwC

Student Affiliates Brigham Young University Mishelle Gankhuyag E Russell Crosbie Kailie Smith Ali Branham Utah Tech University Areli Hernandez Islas Ryan Hafen Austin Bracken Serah Sukut Kimberly Bird Kaden Simkins Hank Dodson Kohl Bowler Ethan Gulbranson Blakely Fairchild Damon Rivers Hailee Paul Josh Weiland

Southern Utah University Christian Jones Braden Barnes Clint Thompson Dallin Merrill Cameron Mulligan University of Utah Brandon Anaya Alyssa Faye Carlos Michael Zoumadakis Perla Gatica Alvarado Utah State University Kevin Hudson Lane Dudley Spencer Rawle Utah Valley University Nicolas Garcia Weber State University Aubry Savage Abigail J. Wagstaff Dararith Yat Madelyn Medell Daniel E. Morris Daniel Rhead Parker R. Pulver Westminster University Noah Goodlett No School Listed Odin J. Hopkins Mitchell D. Gregory Fredy Laboriel Ephraim Campbell Jessica J. Castillo

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Logan C. Adams Canon J. Higgins Anne Marie Harmon Thomas H. Sutherland Morgan Dickason Hal Waldo Mariana Yukari Tierney Fox Rebecca Reitz Kalli L. Mullins Jacob Fry Spencer Capener Kylee Evans Emily M. Garcia Jr. Emma Hunt Ariana D. Hernandez Nicole Balsewicz Jangera L. Andersen Victor Barraza Jr. Ryan Smith Jamie Rikala Josue A. Martinez Aubry Savage Connor J. Smith Marcy Locke Scott M. Ruebush Sara Lassig Jaylee Grotegut Joshua D. Allmendinger Steven Paulson Kole C. Randall June Ganguli Taylor Antczak Connor Morgan Shirley Paredes Patricia Hulboj Izuchukwu Ofoma Sha Luo

Jeffrey C. Burnett Samuel C. Francis Jonathan Chan Amanda Smith Deyanira Calderon Gavin Pitts Zane Price Bryce Reynolds Maryanne Hansen Amanda P. Wilcox McKenzie Fuchigami Hunter D. Gooch Ayla Harmon Dallin Toone Samuel Batt Joe Corbridge Jackson B. Hyde Gaige Vielhauer Angie Light Skylar R. Dean Leland D. Carney Donna Voss Patrick Kardelis Jerry Cortes Andrew Jensen Adam D. Teerlink Isaiah Racule Isabella D. Jacobsen Elijah Younica Jessica D. Moffitt Karley Carron-Campbell Diego Contreras Juan Soto Jr. Ethan D. Shaffer Collin Dowdell Nathan Pickett Kamryn Lima

MEMBERSHIP

MEMBERS IN THE NEWS

Do you or your firm have news to share? Send the details to Amy Spencer, as@uacpa.org.

Kathryn Fargam has been named audit partner at Tanner LLC. She has 14 years of accounting experience in a variety of privately held and SEC reporting companies. She received her bachelor’s and master’s in accountancy from Utah State University.

She is currently a board advisor for the Utah Chapter of Financial Executives International (FEI), a member of Women’s Tech Council, and serves on the audit and finance committee for the World Trade Center Utah.

Braxton Savage was recognized with the 20 under 20 award from Utah Business.

The manager of transaction advisory services at Tanner LLC oversees a team of professionals, providing guidance and oversight in all aspects of engagements in the M&A sector. Braxton also recently graduated from the AICPA’s Leadership Academy and graduated from the UACPA’s Leadership Academy in 2022. He earned his bachelor’s in accounting and Master of Accountancy from Southern Utah University.

For the fourth year in a row, Haynie & Company won the 2023 Salt Lake Tribune Top Work Place Award. Haynie credits their employees “for creating and embracing a culture where everyone feels engaged, appreciated, and fulfilled.” The press release goes on to say, “this esteemed recognition reflects our dedication to creating a supportive and rewarding work environment.”

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CLA (CliftonLarsonAllen LLP) has announced a new principal, Kent Bodily, at the Salt Lake City office. Kent has more than 26 years of experience in accounting. He began his career at Neilson, Elggren, Durkin & Co and was most recently a tax managing director at BDO. He received his master’s degree from the University of Utah. CLA is the eighth largest accounting firm in the U.S. FORVIS has joined with Mazars to form a new top 10 global network. The new network positions both firms for continued global growth. Forvis Mazars will be a new entrant in the top 10 global network rankings. The new organization will be effective June 1, 2024.

Eide Bailly is pleased to announce that the Accounting MOVE Project has named the firm to its Best CPA Firms for Women and Best Firms for Equity Leadership lists for 2023.

Eide Bailly is also celebrating being named Tipalti’s Accounting Partner of the Year for 2023 as well as Oracle NetSuite’s 2023 North American Partner of the Year. Tipalti is the only company handling both Global Payments and Accounts Payable workflows for highvelocity companies across the entire financial operations cycle, executing payments around the world. NetSuite is the world’s number one cloud ERP, offering one unified business management suite encompassing ERP, financials, CRM and e-commerce for more than 37,000 organizations.

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BOARD QUESTION

DESCRIBE YOUR MORNING ROUTINE. Dustin Wood, CPA

Jason Tomlinson, CPA

“I am very much a routine-oriented person.

I wake up each morning to an alarm, eat oatmeal for breakfast, and get ready to leave the house. Most days, that means going straight in to the office, but I help in getting my youngest son ready and dropped off at school as needed.”

“My morning starts at 6 a.m. to be up with the kids. Then it’s a low-stress morning to make lunch, eat breakfast and ‘encourage’ kids. Then a 20–30 minute walk to work between 8 and 9 a.m. will depend on whether I walk the younger kids to school or have an early meeting.”

Stacy Weight, CPA

Ariane Gibson, CPA

“My day starts with a 6:45 a.m. alarm and then getting the kids off to the bus stop at 7:10. I leave the house around 7:30 and enjoy my protein shake during my 30 minute commute. I arrive at the gym at 8 a.m. where I walk for 30 minutes and then head to the office.”

“My morning routine varies as my husband and I trade off getting kids to school and try to vary our in-office days. A couple of years ago, I stopped setting alarms (unless there’s something critical, like a flight to catch) since I have young children who always wake me up early.”

Annette Andersen, CPA

Shalaun Howell, CPA

“My morning routine is nothing fancy. My alarm goes off at 6:00 a.m., I snooze twice just in case I fall asleep while I am praying.

Then I shower, get ready, eat breakfast, generally make lunch, and get to work by 8:00. If I work out, my morning starts at 5:00.”

“Six kids, six piano practices, six breakfasts, six lunches, six hairdos…seven goodbye kisses.”

Ray Langhaim, CPA

Marci Butterfield, CPA

“My morning routine includes OTF (Orange Theory Fitness). My alarm goes off at 6:30 to hit the 7 a.m. class. After, I make a protein shake and start with video meetings.

Because I work from home, I find time for a shower between meetings. I used to get up at 5:30 for class before COVID, but working from home has its advantages.”

“[after not sleeping well most of the night] My typical morning routine consists of getting up around 7:00. I get ready for work, take my supplements, grab my laptop and work bag and jump in the car heading for the University of Utah. No breakfast for me, just eager to see my students.”

Not Pictured: Mark Anderson, CPA and Dan Frei, CPA

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STAFF CHAT

DESCRIBE YOUR MORNING ROUTINE.

BOARD BRIEF

THE LATEST ACTIVITIES WITH THE BOARD •

Updates were given from the State Board of Accountancy meeting. Specifically discussed NASBA’s credit relief initiative to encourage CPA candidates to finish sitting for the exam as lost credits have been restored that were lost during COVID-19.

•

A report of AICPA Fall Council was given.

Specifically discussed the ongoing debate of 120 vs. 150.

Amy Spencer “After my 6 a.m. alarm, I take care of the dog’s morning needs. I dry brush my skin before showering and end it by blasting cold water for 30 seconds. Once a week, I take the dog to daycare before going to the office. At work, I consume some type of blended fruits, veggies and protein powder.”

April Deneault “I wake up at 5 a.m., take my two dogs out and feed them. I get myself ready, then wake up my daughter at 6 a.m. I make her breakfast, pack my lunch and sometimes curl or crimp her hair. I log into work at 6:30, then at 7:30, I take my daughter to school and make my 45–60 minute commute to the office and arrive around 8:30.”

Tom Horn, CPA “When I’m working, I wake up at 5 a.m. and am happy to be around for another day! I have an exercise routine with weights and stretching before breakfast. I eat breakfast while watching the morning news, check my phone for anything important and then leave for work around 6:30 a.m.”

Susan Speirs, CPA

•

•

Council members do not want to see education watered down; many believe that a bachelor’s degree should be appropriate.

•

Many responded that more value should be given to experience. For example, internships should be given more college credit.

•

The largest challenges facing the profession include: negative perceptions of the accounting profession, compensation levels are low, inadequate number of students majoring in accounting and client fees.

January Leadership Council was outlined. The January 2024 meeting focused on identifying a position on the 120 vs. 150 and mobility to create talking points. We are being asked at a state level where we stand, and we need to be able to communicate that in a consistent manner. We will also tackle working on image enhancement.

“My routine is pretty boring, at best; I get up between 5:30 and 6:00, turn on the news while I get ready for the day and head out the door in hopes that traffic will be kind and I can get to the office early before all the chaos for the day breaks loose.”

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Time: Noon – 3:50 Location: Virtual Cost: Free RSVP at uacpa.org/studentconference

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MEET A MEMBER PETER OWEN, CPA completed the CPA process. I saw the value that they were able to provide to our clients and internally within the firm.

I wanted to add the same value and obtain the expertise myself, so I set out to certify as well.

What do you like about being a CPA? The language of business is accounting and finance, and being a CPA is like being an expert “interpreter” for all stakeholders involved.

As the “interpreter” and trusted advisor, I have really found joy and fulfillment in being able to utilize my accounting and finance skillsets to help solve problems, identify opportunities, and create solutions for both my employers and within the broader communities where I’ve resided.

P

eter Owen earned one undergraduate degree in finance and another in accounting from Weber State University.

He earned his MBA at the University of Utah. “My family hails from Weber County, and I started my career in the Ogden area but have been working in the Salt Lake area for the last eight years. We currently reside in Riverton,” he says.

His career began as a financial analyst at Flying J Inc., but shortly after he started working there, they filed for Chapter 11, which led Peter to find “an opportunity to jump into an accounting career at UMB Fund Services (formerly JD Clark & Company) and spent several years learning and growing there.” After UMB Fund Services, he joined Sorensen Capital, a private equity and venture capital firm where he worked for several years. In the last four years, he has been with private equity real estate firm Dakota Pacific Real Estate and currently serves as the Director of Finance. Peter has been involved with the UACPA’s Business & Industry Committee and has “enjoyed working with others to provide CPE events for our association members.”

What led you to become a CPA? I did not initially plan to be a CPA, but as I began my career in accounting, I saw the expertise separation of those who went through and

What would surprise people to know about you? Probably one of two things: First, I was a snowboard instructor at Snowbasin for three years; And second, I’ve completed an Ironman triathlon.

What is your favorite book? “The Count of Monte Cristo,” or “Ender’s Shadow.”

What do you like to do outside of work? In the winter, you can find me and my family on the slopes. In the summer months, you can find me swimming, biking, or running. I’d take all Zoom meetings on the bike if I could.

What are some of your goals both personally and professionally? I was diagnosed as a type-1 diabetic at 38, which has provided a fun challenge to re-learn how my body operates over the last couple of years. I completed an Ironman triathlon before that diagnosis, and I have a goal to adapt to my body and finish another one by 2026. As for professional goals, most are targeted toward improving upon expertise in my current industry and helping our firm meet its strategic objectives over the next few years.

What advice do you live by? “There is never a destination, just the impulse to grow.” ― Chrissie Wellington, “A Life Without Limits: A World Champion’s Journey.” n

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PHOTOS

LEADERSHIP ACADEMY

The 2024 Leadership Academy retreat was Nov. 8 –10 at Zermatt in Midway. The group of 12 professionals joined for three days of training, including a panel discussion, speakers and sessions led by Mackey Smith, head of strategy consulting and planning at Tanner LLC.

B&I TOUR - DELTA CENTER Nearly 90 professionals came to the tour of the Delta Center and talk by Andrew Smith, SVP of Finance at Utah Jazz, on Friday, Dec. 1.

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PHOTOS

ANNUAL CONFERENCE

The UACPA Annual Conference was held Dec. 7 – 8 at the Sheraton Hotel. Attendees heard from AICPA Vice Chair Carla McCall and former Utah Gov. Gary Herbert. Thanks to sponsors Zoho, Aegis Payroll, Withum and Children First Education Fund.

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UACPA MISSION MISSION

CONGRATULATIONS

100% FIRMS Congratulations to the firms and businesses currently participating

The UACPA leadership supports and challenges members through advocacy, professional education, leadership development, networking, and community service to help them succeed in a

in the UACPA’s 100% membership program. This demonstrates their commitment to the profession, to the association’s high ethical standards and lifelong learning.

competitive and changing world.

• Adams & Petersen, CPAs

VISION

At the UACPA, our vision is to be a world-class professional

• CBIZ MHM, LLC

association essential to our members.

• CLA (CliftonLarsonAllen LLP)

We unite a vibrant community of CPAs to enhance the success of

• CMP

our members and champion the values of the profession; integrity, competency, and objectivity.

• Davis & Bott, Certified Public Accountants, L.C.

VALUES

• Eide Bailly

Advocacy

• FORVIS

The UACPA represents the profession at the Legislature and other

• Haynie & Company

regulatory bodies and promotes the value of the CPA to employers, the business community, and the public at large.

• HBME

Leadership & Service

• HintonBurdick

The UACPA provides leadership and service within the profession, within the UACPA, and within the community.

• Jones Simkins LLC • Savage Esplin & Radmall, PC

Professional Development The UACPA supports and encourages continuing education and

• Squire

leadership development.

• Tanner LLC

Professional Community

• WSRP

The UACPA reinforces peer accountability to encourage members to maintain integrity and high ethical standards. ​​It provides member-tomember networking opportunities and networking opportunities with other professions. It values belonging to a distinguished organization and believes that we serve as the primary resource and point of contact for Utah CPAs. Firms with 10 or more full-time CPAs are eligible to be a

Diverse Population Outreach The UACPA believes in reaching out to under-represented populations, those returning to the profession or choosing it as a

part of the 100% membership program. Call our membership team to sign up, 801.466.8022.

second career, and other professions.

34

THE JOURNAL ENTRY |

WINTER 2024

IN MEMORIAM Tarina Chase

Nov. 20, 1963 – Nov. 11, 2023 Member since 1995

Robert L. Schouten

Oct. 7, 1939 – Dec. 13, 2023 Member since 1969

David Cash

Feb. 8, 1975 – Nov. 7, 2023 Member since 2006

CLASSIFIEDS Utah Practice For Sale: Gross Revenues Shown: $668K Northern Utah CPA Practice; New Listings Coming soon; For more information, please call 1-800-397-0249 or visit www.AccountingPracticeSales.com to see listing details and register for free email updates to be notified first of new/upcoming listings.

THINKING OF SELLING YOUR PRACTICE? Accounting Practice Sales is the leading marketer of accounting and tax practices in North America. We have a large pool of buyers, both individuals and firms, looking for practices now. We also have the experience to help you find the right fit for your firm, negotiate the best price and terms and get the deal done. For more information, please visit our website at www.accountingpracticesales.com Interested in Buying a Practice? See local and nationwide listings at www.AccountingPracticeSales.com and register for free email updates.

Exclusive Savings for Utah Association of CPAs Invest and expand your expertise with exclusive offers from Wolters Kluwer. Get access to expertly-written content and continuing professional education that meets requirements and works with your busy schedule.

CCHCPELink.com/UACPA Members Save 25%

THE JOURNAL ENTRY |

WINTER 2024

35

Nonprofit Org. U.S. Postage

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