Contingent Liabilities Reporting Can Be Gray

Reporting contingent liabilities Contingent liabilities reflect amounts that your business might owe if a specific “triggering” event happens in the future. Sometimes companies are unclear when they’re required to report this on their financial statements under U.S. Generally Accepted Accounting Principles (GAAP). Here are the basics. What are contingent liabilities? Operating a business comes with…

What are the responsibilities of an audit committee?

Your Audit Committee Role Before you jump headfirst into the year-end financial reporting process.  You should review the role independent audit committees play in providing investors and markets with high-quality, reliable financial information. Recent SEC statement Also due to Securities and Exchange Commission (SEC) regulations, all public companies must have an independent audit committee.  Or…

Audit Procedures: Risk assessment

Audit Procedures and Risk assessment: A critical part of the audit process Audit season is right around the corner for calendar-year entities. Here’s what your auditor is doing behind the scenes to prepare. And how you can help facilitate the audit planning process. The big picture Every audit starts with assessing “audit risk.” This refers…

Your Business and Audits of Cashless Transactions

Auditing Financial Statements in a Cashless Environment Like most businesses, you’ve probably experienced a significant increase in the number of customers who prefer to make cashless payments. And you may be wondering: How does the acceptance of these types of transactions affect the auditing of your financial statements? Cashless transactions require the exchange of digital…

New Revenue Recognition Standard

What Business Leaders Really Need to Know about the New Revenue Recognition Standard Don’t Try to do This Without a Safety Net ASU 2014-09 Revenue from Contracts with Customers (Topic 606) comes into effect this year for public entities and next year for all other non-public organizations. The accounting team members at Ciuni & Panichi,…

Communicating with the Audit Committee

The Audit Committee Auditors and CFOs often present information about a company’s or not-for-profit’s operations, strategies, and risks to the Audit Committee or another oversight committee such as the finance committee. This information is often the basis for a recommendation and/or report to be delivered to the Board of Directors. Understanding the committee’s role and…

Materiality and Your Audit/Review

How materiality is established in an audit or a review When accountants conduct an audit or review, they can’t test every transaction. Instead, they set a “materiality” threshold. This benchmark is used to obtain reasonable assurance in an audit — or limited assurance in a review — of detecting misstatements that could be large enough,…