Choose the Right Level of Assurance for Your Business

The COVID-19 crisis is causing private companies to re-evaluate the type of financial statements they should generate for 2020. Some are considering downgrading to a lower level of assurance to reduce financial reporting costs — but a downgrade may compromise financial reporting quality and reliability. Others recognize the additional risks

2021-04-12T14:53:31-06:00October 13th, 2020|

Stress Test Your Business

During the COVID-19 crisis, you can’t afford to lose sight of other ongoing risk factors, such as cyberthreats, fraud, emerging competition and natural disasters. A so-called “stress test” can help reveal blind spots that threaten to disrupt your business. A comprehensive stress test requires the following three steps. 1. Identify

2021-04-12T14:53:50-06:00September 8th, 2020|

FASB Gives More Time for Updated Revenue Recognition and Leases

Private companies and most nonprofits were supposed to implement updated revenue recognition guidance in fiscal year 2019 and updated lease guidance in fiscal year 2021. In the midst of the novel coronavirus (COVID-19) crisis, the Financial Accounting Standards Board (FASB) has decided to give certain entities an extra year to

2021-04-12T14:54:12-06:00June 10th, 2020|

Financial Statements Help Make Informed Business Decisions

There are three types of financial statements under U.S. Generally Accepted Accounting Principles (GAAP). Each one reveals different, but equally important, information about your company’s financial performance. Together, they can be analyzed to help owners, management, lenders and investors make informed business decisions. Profit or Loss (aka Income Statement) The

2021-04-12T14:55:12-06:00June 4th, 2019|

Evaluating Your Audit Committee

Under the Sarbanes-Oxley Act, the audit committee — not management or the full board of directors — is directly responsible for appointing, compensating and overseeing external auditors. Periodically, it’s a good idea to assess the effectiveness of your audit committee by performing a self-evaluation. Here are reasons to conduct a

2021-04-12T14:55:30-06:00February 12th, 2019|

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|

Auditing the Use of Estimates and Specialists

Complex accounting estimates — such as allowances for doubtful accounts, impairments of long-lived assets, and valuations of financial and nonfinancial assets — have been blamed for many high-profile accounting scams and financial restatements. Estimates generally involve some level of measurement uncertainty, and some may even require the use of outside

2021-04-12T14:55:56-06:00August 21st, 2018|

It’s Time for Business Midyear Checkup!

Time flies when you’re busy running a business. But it’s important to occasionally pause and assess interim performance — otherwise you’re likely to be surprised by the year-end results. When reviewing midyear financial reports, however, recognize their potential shortcomings. These reports might not be as reliable as year-end financials, unless

2021-04-12T14:56:24-06:00June 12th, 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|
Go to Top