3 Ways to Prepare for Your Audit

As we step into a new year, it is time to begin preparations for your upcoming audit. Here are 3 ways to make the experience as smooth as possible. 1. Communicate – While communication is always important, it is especially crucial to establish expectations early with the auditors.  Oftentimes, the auditors will contact the client with …

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Arizona’s Requirements for Reporting Unclaimed Property

It is common as an accountant to see a business void an un-cashed check after a while or to write off an over-payment from a customer who hasn’t returned in a couple years.  It seems that few people know that it is required by Arizona law to report and remit unclaimed property to the Arizona …

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Segregation of Duties: Inventory and Cost of Sales

Proper segregation of duties is an essential element of your company’s internal control. Previously, we wrote about segregation of duties for the accounts receivable and sales process. Those were great for reducing the risk of error or fraud within your organization related to the handling of sales and accounts receivable stand point. How are you …

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Accounting for a capital lease: lessee’s perspective

Leasing equipment continues to be an attractive option for many companies compared to buying equipment outright. After going through the decision process of leasing new equipment, do you know how to account for it? The first question you should ask is “What type of lease is it?” Is it a capital lease or an operating lease? There are …

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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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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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