Things a Cpa Firm Should Do Pre- and Post- Retirement of Partners
Submitted by: Submitted by quester9
Views: 146
Words: 743
Pages: 3
Category: Business and Industry
Date Submitted: 11/15/2013 02:53 AM
Things a CPA Firm Should Do Pre- and Post-Retirement of Partners
CPA firm is usually comprised of auditors or accountants who are experts in areas that the firm is specialized at. Mostly, they are the experts of audit, few of them do other services such as tax reviews or consulting services. In a CPA firm, usually there will be partners and employees. These partners are the ones who have high education level and many experiences in engaging in audit engagements.
Of course, as time passes, everyone can get older and older, until they have to be retired from their jobs. Same thing applies to partners of CPA firms. When they are decided to retire, is it as simple as leaving the firm when the time comes? Definitely no, because there are several things that the firm must do in order to get things going smoothly pre- and post-retirement of a partner.
What a CPA firm must do for the retiree is to control the retirement dates. Usually, retirement is related about age. It can be 65, 68 or maybe 70. However, the most important thing is the date of retirement, as the partner who will be retired may have audit engagements with clients. Before the date of the retirement, the firm must also plan for the transition of the contract. This is important, as the firm will pay the post-retirement benefits to the retirees, and the source of fund is from the engagements with the clients. Maybe it’s difficult to do the transition, as clients may have close relationship with the retirees and tend to trust them rather than new auditors who will take the retirees’ position, but it must be done.
Then, the firm must decide how to treat these retirees. As the date of retirement approaches, the works of the partners must be decreasing than other partners or employees. When the date comes, retired partners should not be allowed to have works anymore. Even they shouldn’t have their own office space, and their names in the letterhead, telephone directory, or in the website should not be...
