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…

Auditing Grant Compliance

Auditing grant compliance Has your organization received any public or private grants to fund its growth? Grants sometimes require an independent audit by a qualified accounting firm. Here’s what grant recipients should know to help facilitate matters and ensure compliance at all levels. Federal compliance Federal awards require compliance with the Uniform Administrative Requirements, Cost…

What Do Your Financial Statements Say

Financial statements tell your business’s story, inside and out Ask many entrepreneurs and small business owners to show you their financial statements and they’ll likely open a laptop and show you their bookkeeping software. Although tracking financial transactions is critical, spreadsheets aren’t financial statements. In short, financial statements are detailed and carefully organized reports about…

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…

Prepare for Physical Inventory

Are you preparing for your physical inventory counts? This is more than a compliance chore. Companies that are proactive use inventory as an opportunity to improve efficiency. The Basics Under U.S. Generally Accepted Accounting Principles (GAAP), inventory is recorded at the lower of cost or market value. These are the three types: Raw materials, Work-in-progress,…

Business Complained – FASB Responded

Cloud Servers vs. Physical Servers – FASB Responds Businesses have complained to the Financial Accounting Standards Board (FASB) about the different accounting treatment for cloud-based services vs. those operated on physical servers onsite over the last three years. Businesses told the FASB that the economics of these arrangements are virtually the same. As more businesses…