What it means to be a CPA

If you use someone to prepare your taxes or have a firm that performs your company’s compilation, review or audit engagement, you are likely going to be working with a CPA who is signing off on the return or the report to your issued financial statements. You may even have a team of CPAs at …

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Benefits of cross training employees

Cross training is training people to work in several different roles or training them to do tasks outside of their normal responsibilities. In today’s competitive hiring environment, implementing cross training can bring benefits to existing and future employees and your company. Don’t miss: The benefits of peer reviewed CPA firms Some of the employee benefits …

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The benefits of peer reviewed CPA firms

Every three years audit firms enrolled in the AICPA Peer Review Program are required to have a peer review of their accounting and audit practice. Since the AICPA oversees the peer review program, the entity that performs the peer review is another firm approved by the AICPA. Basically, this is where the term “peer review” …

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What are the audit independence requirements?

Audited or reviewed financial statements need to be performed by an independent public accounting firm. What causes a firm to not be independent from your company? While there may be an obvious reason such as having ownership in your company, there are many situations that cause threats to independence. Here are occasions you may be …

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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 …

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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 …

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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 …

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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). …

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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 …

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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 …

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