Full Scope vs. Limited Scope Audits

When a 401(k) or other retirement plan requires an annual audit, a plan administrator may have a choice to engage an audit firm to perform a full-scope audit or a limited scope audit of the financial statements. To be qualified for a limited scope audit, a bank or insurance carrier must act as a trustee …

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Closing and Locking a Period in QuickBooks

Have you ever mistakenly misdated a transaction in QuickBooks? Has your auditor ever asked you why equity did not match the prior year’s audited financial statements? Since QuickBooks does not require you to close your books after year-end, changing, adding, or deleting entries made in a prior fiscal year is a common mistake. So you …

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Warning Signs Your Employer May be Misusing Your 401(k) Savings

I was browsing the United States Department of Labor (“DOL”) website the other day and I came across an interesting article that talked about employer abuse of employees’ 401(k) contributions. I haven’t really thought much about this before as I have fortunately always worked for employers that I feel are trustworthy and ethical. However, the …

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Steps to Improve Financial and Single Audit Quality

The AICPA Governmental Audit Quality Center has some resources available for auditees to assist you in having a smooth and efficient audit. The Center outlines five steps that you, as an auditee, can take to improve the quality of your audit. The first step is to ensure that your auditors are properly qualified and have …

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Are You Biased?

As auditors, we’ve been taught over and over again to maintain professional skepticism when performing our audits. But as the landscape of companies change, so does our audit approach. With the increased use of technology and longevity of our client base, we need ensure our eyes are open and we ask the right questions. Bias …

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A Lesson Learned…Hopefully

Recently, it was discovered that the State of New Mexico’s bank account was not fully reconciled, to the tune of $100 million, give or take. You’re probably asking yourself the same thing I am, “How does this even happen?” The State was asked the same question and fingers were pointed, and blame was passed all …

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Government Reporting of Tax Abatements

The GASB issued an exposure draft, Tax Abatement Disclosures, for public comment in October 2014. The period for public comment ended just a couple of weeks ago and now the Board will evaluate comments and may issue a new statement this August that will provide guidance on how governments should disclose tax abatements. The proposed …

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Accounting Standards Update: Accounting for Identifiable Intangible Assets in a Business Combination

In recent Henry & Horne blog posts, we have discussed the implementation of new Financial Accounting Standards Board (FASB) Accounting Standards Updates due to The Private Company Council’s (PCC) diligent work in finding alternatives within U.S. Generally Accepted Accounting Principles warranted for private companies. In December 2014, the FASB formally issued Accounting Standards Update (ASU …

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Benchmarking Your 401(k) Plan Provisions

To attract and retain talented employees, employers should be aware of how their retirement plan provisions compare to other employers. If you are an employer and have not benchmarked your retirement plan provisions, now is a good time to do so. Each year Deloitte publishes the results of its Annual 401(k) Benchmarking Survey. You can …

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