Seymour Goldberg, in Accounting Today, writes that many CPAs serving as trustees or preparing fiduciary income tax returns fail to understand certain fiduciary trust accounting rules, which understanding is necessary for these purposes. His article, begins as follows:
Many CPAs are asked to act as trustees or are retained to prepare fiduciary income tax returns for trusts. The CPA who is involved in trust issues must become aware of the fiduciary trust accounting rules that apply to a given trust.
Most CPE courses for CPAs throughout the United States focus on fiduciary trust income tax compliance and not necessarily on the fiduciary trust accounting issues. Perhaps the reason for this is that fiduciary trust accounting is state specific and the state CPA societies for the most part have not developed CPE programs on the state specific fiduciary trust accounting rules.
Read Mr. Goldberg’s full article at What Accountants Need to Know about Trust Compliance Issues.