CPAs Calculating the Latest in Audit + Accounting News

Stock Compensation: Stock Options

Stock compensation to employees and other suppliers of goods or services can take many forms, including the stock option grants, awards of restricted  and non-restricted stock, cash payments based upon the company’s share price, and employee stock ownership plans, amongst many others.  The one common attribute of the many varying forms of stock compensation is …

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Physical Safeguards for your IT Environment

You may think that the term “physical safeguards” for your information technology environment apply only to the protection of your IT network and data from intrusion and theft; but did you know it is just as likely, if not more so, to be damaged from improper storage.  What I mean is the possibility of fire …

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Understanding the Control Environment

When trying to deter fraud, most companies focus their time on developing effective internal control procedures and segregation of duties.  Though developing these types of systems are important, a common element of the COSO Internal Control Framework that is often overlooked is the organization’s control environment. The control environment is important to all organizations since …

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Straight-line expense recognition of leases

Update: The guidance below will be superseded upon the new lease accounting standard becoming effective for most private companies in 2020. For further information on the upcoming changes to lease accounting, click here. Sometimes operating leases aren’t as straightforward as they seem to be and there are a couple of situations that create a deferred …

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A Few Simple Steps for Having a Successful Audit

There are some simple steps any entity can take to help make a financial audit as simple and painless as possible.  First, good cooperation between the client and auditor is essential.  Second is the client’s maintenance of a good system of internal controls over the financial activities occurring in the entity.  These things make it …

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What You Need to Know about Asset-Based Financing

Asset-based financing, though once considered a financing option of last resort, is now a popular choice for companies that are highly leveraged with debt or do not have a long credit track record for traditional financing. The main difference between asset-based financing and other traditional types of lending is that asset-based financing is secured by …

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Segregation of duties: accounts receivable and sales

A key concept of internal controls within an organization is segregation of duties. Segregation of duties helps to significantly reduce the risk of error or fraud. Do you know which duties need segregation? Here is a little refresher on some of the control activities that should be segregated when it comes to accounts receivable and …

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8 Tips to Manage Inbound Freight Costs

If you are in the business of providing goods, then you undoubtedly are in the business of managing your freight costs (both product in and product out).  This posting will focus on managing inbound freight costs. For many companies, freight expense can be a significant portion of total expenses incurred for the year. So, what …

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Business Combinations 101

Over the past year, there seems to be some increase in activity related to mergers and acquisitions (“M&A”).  When times are tough you typically see an increase in M&A activity as strong companies will act to buy other companies to create a more competitive, cost-efficient company.  M&A’s can come in various forms.  They can be …

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