CPAs Calculating the Latest in Audit + Accounting News

Is it time to update your processes and controls?

Your organization has changed. From employees to the services you offer to the technology you use, everything is in a constant state of change. However, one area that typically remains unchanged are the processes and controls that were originally set in place. But is that ok? If things are continually changing, shouldn’t you also be …

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Who is the PCC and what do they do?

The PCC (Private Company Council) is a sub-organization created by and of the FASB. The PCC’s primary function is to evaluate current financial reporting standards set forth by GAAP and identify opportunities to streamline implementation and general reporting standards for private companies. The FASB and PCC recognize that certain standards are not as impactful for …

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Outgrowing your accounts payable? Here is how to know

With many companies having manual accounts payable, there is bound to be inefficiencies and mistakes. It can be time-consuming and may hold companies back from reaching goals or growing in their industry. With the growth of a business, you might be outgrowing your accounts payable. Here is how to know: Don’t miss: Accounting for estimates …

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Accounting for estimates

Not every financial statement item is able to be precisely measured. Often, your company will have to make a best-educated guess to account for items that are not able to be specifically determined. This is where accounting for estimates comes into play. Don’t miss: The future of auditing with artificial intelligence  Auditing standards define an …

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The future of auditing with artificial intelligence

The world of public accounting is ever-evolving, which is what makes it so interesting to most people that choose this career path. It used to be that audits involved toting around loads of papers and documents, but in this day and age, an audit can be completed almost completely paperless if the client’s processes allow …

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Are your earnings high-quality? 

Whether you are a corporate manager or an investor in the stock market, basic financial analysis is an imperative skill. When glancing at a statement of operations, revenue and earnings are typically the first items looked at. When public companies release quarterly earnings which slightly beat or miss expectations, stock prices can fluctuate greatly. Even …

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New revenue recognition for contractors: wasted or unproductive costs

Topic 606, Revenue from Contracts with Customers, of the Accounting Standard Codification has been discussed extensively for the past few years and while most discussions focus on the technical issues, I want to discuss application of the standard, particularly on how it affects the construction industry. Don’t miss: Accounting for payments and discounts to customers …

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Accounting for payments and discounts to customers

Many companies sell to large, national retailers. Often, when selling to these retailers, these companies will need to make separate payments to these customers or have amounts deducted from the payments received on their invoices. However, many times we don’t see these accounted for appropriately. How should these be accounted for? It depends on the …

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A sigh of relief: accounting changes for leases

On July 17th, 2019, the FASB voted to give privately held companies until 2021 to follow the new lease standard, rather than having to implement it next year. Private companies can all let out a sigh of relief. The reasoning behind this decision comes down to the fact that changing from the old standard to …

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The auditor’s role in detecting fraud

“How did the auditors not catch this? Isn’t it the auditor’s job to detect fraud?” It is a common misconception that fraud is detected by external auditors. According to the Association of Certified Fraud Examiner’s 2018 Report to the Nations, tips are the most common detection method, at 40%, for occupational fraud while external audit …

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