Activity Review
North Carolina State
Board of Certified Public
Accountant Examiners
1101 Oberlin Rd., Ste. 104 • PO Box 12827 • Raleigh, NC 27605 • 919-733-4222 • www.nccpaboard.gov • No. 09-2014
Should I Move to the Cloud?
IRS Updates Warning
about Scams
The Internal Revenue Service (IRS)
and the Treasury Inspector General
for Tax Administration (TIGTA)
continue to hear from taxpayers
who have received unsolicited calls
from individuals demanding pay¬
ment while fraudulently claiming
to represent IRS.
Based on the 90,000 complaints
that TIGTA has received through
its telephone hotline, TIGTA has
identified approximately 1,100 vic¬
tims who have lost an estimated $5
million from these scams.
For more information or to
report a scam, go to www.irs.gov
and type "scam" in the search box.
IRS Form 2848
The Internal Revenue Service (IRS)
has again revised Form 2848, Power
of Attorney and Declaration of Repre¬
sentative, but unless you read the
instructions, you'll miss one of the
important changes.
Theinstructionsnow tell practi¬
tioners how to get a list of their active
authorizations on file with the IRS.
Authorizations automatically
stay on file with the IRS for seven
(7) years, which means that the IRS
will contact you to speak on behalf
of your client, even if you are not
engaged to do so.
For more information, go to
www.irs.gov and type "Form 2848"
in the search box.
According to an August 2014 survey
reportfrom Emergent Research and In¬
tuit Inc., nearly 80 percent of U.S. small
businesses intend to be fully adapted
to cloud computing by 2020, more than
doubling the current 37 percent rate.
With a prediction like that, it is
easy to see why CPAs and CPA firms
are asking the Board, "Should 1 move
to the cloud?"
Although the Board cannot answer
that question for you, it can provide
you with resources to help you decide
if the cloud is right for you, your firm,
and your clients.
First and foremost, remember that
every CPA mustcomply with 21 NCAC
08N .0205, Confidentiality. A CPA is
responsible for maintaining the confi-
dentialityof information obtained in the
course of employ ment or a professional
engagement.
This means that any information
stored in paper or electronic files, in
your office, on your computer, cell
phone, tablet, or storage device must
be kept confidential even when such
information is sent by fax or email or
moved and stored in the cloud.
Here are a few things for you to
consider when making the decision to
move to the cloud:
• How do you want to use the
cloud? For backup, disaster recov¬
ery, archiving or storage? For docu¬
ment collaboration, file sharing,
on-site computer support? Cloud-
based computing and applications?
• What benefit(s) would the
cloud bring to you and/or your
clients?
• Doyouneedaconsumercloud
or an enterprise cloud?
• From a security standpoint,
what safeguards are provided?
• Which cloud would house
your data?
• The cloud is a shared respon¬
sibility; do you know what your
responsibilities are?
• Does your liability insurance
policy cover your use of the cloud?
If so, how?
• Have an IT expert who is
knowledgeable about the cloud
review any contract for cloud ser¬
vices before you sign the contract.
For your convenience, we have
posted a number of articles about
the cloud on the Board's website,
www.nccpaboard.gov. Click on the
Resources tab and select the "Info You
Can Use" section.
The Board does not endorse or recom¬
mend any p rodu cts referenced in the articles
provided on the website.
In This Issue
2014 Board Meetings . 2
Application Status . 6
Cease and Desist Orders . 3
Certificate of Existence Scam . 4
Certificates Issued . 7
Disciplinary Actions . 2
Exam Stats . 6
Reclassifications . 5
Resource for Auditors . 6
