On the CPA's role in guarding clients' investments

Integrating CPAs as part of the investing process allows for a thorough analysis of the available investment and tax options, as well as a level of independence that might not occur otherwise. The recent SEC settlement with the brokerage industry reflects the conflict of interest between the brokera...

Full description

Saved in:
Bibliographic Details
Published in:The CPA journal (1975) 2003-11, Vol.73 (11), p.6
Main Authors: Harmelink, Philip J, VanDenburgh, William M
Format: Article
Language:English
Subjects:
Accountants
Conflicts of interest
Costs
CPAs
Ethical aspects
Fees & charges
Fines & penalties
Investment advisers
Investments
Investors
Management
Planning
Securities industry
Services
Settlements & damages
Stock brokers
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Integrating CPAs as part of the investing process allows for a thorough analysis of the available investment and tax options, as well as a level of independence that might not occur otherwise. The recent SEC settlement with the brokerage industry reflects the conflict of interest between the brokerage industry and retail investors. Brokers are highly trained salespeople whose primary job responsibility is to generate fees for their firms or themselves. Before investing, determining the overall fee structure, as opposed to a particular fee, is of critical importance. Investment costs have a fundamental impact on returns. CPAs can assist investors in selecting the best alternatives, whereas brokers have a basic conflict of interest. A critical component of investing that often receives little of no attention is the tax implications of an investment choice. Here a CPA with tax knowledge can have a material effect on investor returns.
ISSN:0732-8435