CPAs Calculating the Latest in Audit + Accounting News

Significant risks in an audit

In order to perform an effective audit that results in a set of fairly stated financial statements it is necessary for us (the auditors) to gain an understanding of your business and identify any specific financial reporting risks, referred to as significant risks in an audit. Don’t miss: Monitoring inventory For the purpose of an …

Keep Reading

Monitoring inventory

Retail and distribution can be highly competitive. In order to persevere over your competitors, it is essential to have a strong grasp of your inventory system. Doing so will prevent obsolescence, shrinkage, provide insightful information and more. Along with monitoring inventory quantity and quality, key ratios in your everyday course of accounting and operations will …

Keep Reading

When is an accrual needed if you track accrued paid time off?

Many companies provide paid time off to employees, however not all employees use the entirety of their time off within the company’s fiscal year and roll over time to be taken in the following year. When this happens, it is the responsibility of the employer to track accrued paid time off for each employee. Accounting …

Keep Reading

What is an income tax provision?

Buckle your seatbelts because we’re about to go on an income tax provision ride. In this blog, we will be primarily focusing on current versus deferred portions of an income tax provision. Let’s begin by defining some terms. A tax provision is the income tax corporate entities will incur based upon the company’s net income …

Keep Reading

Does your company have antifraud programs and controls?

Antifraud programs and controls are put in place by a company to ensure management directives are carried out related to compliance with laws and regulations. Good antifraud programs and controls should focus on prevention, deterrence and detection of fraud related activities. Normally, there are three conditions that are present when fraud occurs: 1) incentive/pressure 2) opportunity …

Keep Reading

Financial statement close checklist

Whether you are new to the financial closing process or have been doing it for years, you know this task can be a daunting one. If you have never done a financial statement close it is best to understand the process and what you are trying to accomplish. When closing the books for a month/quarter …

Keep Reading

Franchisor revenue recognition relief

Recently, the FASB issued an update to U.S. accounting standards that will be some relief to franchisors by providing an avenue for earlier revenue recognition for initial franchise fees. Many franchisors found it difficulty to support the identification of distinct performance obligations within a franchise agreement under the new revenue recognition standard guidance (Topic 606). …

Keep Reading

What is impairment?

As a result of the COVID-19 pandemic, many private companies will be tasked with reviewing certain assets for potential impairment during the year. While companies are required to assess if any impairment of assets had occurred during the year, prior to 2020, this was often done rather casually. However, the impact of COVID-19 on most …

Keep Reading

COVID-19 and continuing as a going concern

Under U.S. GAAP, an entity is presumed to be a going concern until the entity’s liquidation becomes impending. But what exactly does that mean? Going concern signifies that the company is financially stable enough to meet its current obligations and can continue operations for the foreseeable future. Don’t miss: COVID-19 leads to slow moving and …

Keep Reading

COVID-19 leads to slow moving and obsolete inventory

Millions of retailers and manufacturers across the nation have dealt with pandemic shutdowns and capacity restrictions that have not only negatively impacted their bottom line, but also led to an increase in the levels of inventory on hand. Depending on the type of inventory, the aged inventory will likely require special attention and analysis to …

Keep Reading