CPAs Calculating the Latest in Audit + Accounting News

Accounting for goodwill after acquisition

Over the years, the subsequent accounting for goodwill has been an area that has seen a lot of changes and our blog has tried to keep you up to date with all of these. Where do we stand now? First off, goodwill mainly arises from a business combination where the purchase price exceeds the fair …

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Expanded consolidation relief for private companies

Back in 2014, FASB initially provided variable interest entity (VIE) consolidation relief to certain common control leasing arrangements. While this was great as common control leasing arrangements were probably the most frequent occurrence that led to consolidation of a VIE, there has always been hope that this alternative would be expanded to all common control …

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IT safeguards, are you protecting your business?

Generally, when executives are discussing the company’s internal safeguards, they look to controls within the accounting department such as segregation of duties, dual check signors and purchase order matching. But what about safeguards within the information technology environment? As the role of IT continues to grow in the business world, your company should continue to …

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Revenue recognition: contract fulfillment costs

The new revenue recognition standard has been discussed extensively for the past few years and while most discussions focus on the technical issues, I like to discuss application of the standard, particularly on how it affects the construction industry. In a previous blog, I discussed the importance of adopting the new standard and how it …

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Evaluating a business as a going concern

During an audit, one thing that will be evaluated is your company’s ability to continue as a going concern. In layman’s terms, this means: will your company be able to stay in business in the near future? Making this determination is oftentimes not black and white, and there are several factors that both management and …

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Unclaimed property: a whole lot of money and no place to call home

What would you do with $1 billion? This astounding 10-digit figure is the approximate value of unclaimed property held by the State of Arizona and belongs to roughly one million current or former Arizona residents. Chances are one in seven of finding unclaimed property if you live in the Grand Canyon State! So, what exactly …

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3 Steps to a more efficient period close

When the end of the month rolls around, every accountant knows that it’s time to scramble. Closing out the previous month can be a hassle with filling out all the schedules, making the closing entries, correcting issues and checking to make sure nothing was missed. It can be a very time-consuming process, but there are …

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Bookkeeping services: when to hire a bookkeeper

Bookkeeping is the foundation for any successful company or business. However, for many business owners, it does not mean this task is any less mundane, confusing or time consuming and often, it is placed on the back burner behind other top priorities. While you may be thinking to yourself, “Yes, exactly!” – and understandably so …

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Controls and programs to minimize fraud

In today’s environment, companies are often the target for fraud. In order to minimize threats, your company should have an effective system of programs and controls in place. These programs and controls work by discouraging individuals from performing fraudulent activities. The following conditions are generally present for fraud to occur: Incentive/pressure. Relates to finances, personal …

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First time audit expectations, preparation and planning

Recently, I read an article that the Pentagon failed what is being called its first-ever comprehensive audit. While the auditors did not note any instances of fraud from the audit, it uncovered several matters the Pentagon must work to address. The Defense Department was not surprised by this as they never expected to pass it …

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