Auditing standards require auditors to identify and assess the risks of material misstatement due to fraud and to determine overall and specific responses to those risks. Here are some answers
Many calendar-year entities are currently preparing for the start of audit fieldwork. One proactive way to facilitate your financial statement audit is to foster collaboration between your internal audit department
How often do you reconcile your organization’s internal financial records against your bank statements? Bank reconciliations are an essential internal control procedure that are sometimes overlooked or neglected by busy
Owners’ equity is the difference between the assets and liabilities reported on your organization’s balance sheet. Generally, there are two component pieces: capital contributions and retained earnings. The former represents
Typically, goodwill impairment is a negative indicator. It potentially signals that an organizational combination failed to meet management’s expectations due to internal or external factors. In recent years, uncertain markets,
For calendar-year entities, audit season is just around the corner. Understanding the types of source documents your audit team might request can decrease disruptions during audit fieldwork and improve your
A chart of accounts is the foundation of accurate financial reporting, so it needs to be set up correctly. It can be difficult for management to evaluate financial performance and
An important metric that’s reported on your organization’s income statement is the pretax (accounting) profit. Lenders, investors, and other stakeholders rely on pretax profits to evaluate an organization’s financial performance.
Financial statements help managers, lenders, and investors evaluate an organization’s financial performance. However, they only tell part of the story, and they might not reveal financial distress until it’s too
Understanding how to present contingent liabilities accurately in financial statements is critical for business owners and managers. Under U.S. Generally Accepted Accounting Principles (GAAP), some contingent losses may be reported
