audit standards

Balance Sheet Fair Value FAQs

In recent years, accounting rule makers have issued guidance that requires certain items on the balance sheet to be reported at “fair value.” Here are some answers to frequently asked questions about this standard of value and how it’s measured. What is fair value? Under U.S. Generally Accepted Accounting Principles

2022-05-11T09:11:06-06:00May 11th, 2022|

Why Revenue Matters in an Audit

Why Revenue Matters in an Audit For many companies, revenue is one of the largest financial statement accounts. It’s also highly susceptible to financial misstatement. When it comes to revenue, auditors customarily watch for fictitious transactions and premature recognition ploys. Here’s a look at some examples of critical issues that

2021-04-12T14:55:52-06:00December 4th, 2018|

Income Statement Items Warrant Your Auditor’s Attention

Today’s auditors spend significant time determining whether amounts claimed on the income statement capture the company’s financial performance during the reporting period. Here are some income statement categories that auditors focus on. Revenue Revenue recognition can be complex. Under current accounting rules, companies follow a patchwork of industry-specific guidance. So,

2021-04-12T14:57:07-06:00January 30th, 2018|

Demystifying the Audit Process

Independent auditors provide many benefits to business owners and management: They can help uncover errors in your financials, identify material weaknesses in your internal controls, and increase the level of confidence lenders and other stakeholders have in your financial reporting. But many companies are unclear about what to expect during

2021-04-12T14:57:08-06:00January 16th, 2018|

Less than 6 Months Until the New Contract Revenue Guidance Goes Live

The sweeping new revenue recognition standard goes into effect soon. But many companies are behind on implementing it. Whether your company is public or private, you can’t afford to delay the implementation process any longer. 5 steps Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, requires companies

2021-04-12T14:57:43-06:00July 21st, 2017|

How Accounting Estimates are Audited

Measuring accounting estimates involves some level of uncertainty. As a result, accounting estimates — such as allowances for doubtful accounts, impairments of long-lived assets, and valuations of financial and nonfinancial assets — require extra attention from auditors. Here’s a closer look at the current standards for auditing estimates and examples

2021-04-12T14:58:23-06:00December 8th, 2016|
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