MLR

Category: Audit Related Topics

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed by President Trump on March 27th, includes small business relief in the form of SBA “paycheck protection” loans.  Key provisions of this program are highlighted in this article.

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The concept of “matching” is one of the basic principles of accrual-basis accounting. It requires companies to match expenses (efforts) with revenues (accomplishments) whenever it’s reasonable or practical to do so. This concept applies when companies make advance payments for expenses that will benefit more than one accounting period. Here are some questions small business owners and managers frequently ask about prepaying expenses.

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Audit season is here for calendar-year entities. Every audit starts with assessing “audit risk.” This refers to the likelihood that the auditor will issue an adverse opinion when the financial statements are actually in accordance with U.S. Generally Accepted Accounting Principles or (more likely) an unqualified opinion when the opinion should be either modified or adverse.

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Reporting year-end financial results is a team effort.  We understand the importance of collaboration between external auditors and your company’s audit committee and wanted to help you review the role independent audit committees play in providing investors and markets with high-quality, reliable financial information.

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Some benefit plans are required to include an opinion from an independent qualified public accountant (IQPA) when filing Form 5500 each year. The IQPA examines the plan’s financial statements and schedules to ensure they’re presented fairly and in conformity with Generally Accepted Accounting Principles (GAAP). The financial statements and IQPA opinion are often referred to collectively as the “audit report.”

Depending on a your company’s objectives, when it comes to financial statements your CPA can prepare a financial compilation, review its financial statements or perform an audit. Which route the business chooses to take relies heavily on its reasons for having a CPA examine its financial statements in the first place. This article discusses three types of financial statement work: compilations, reviews and audits.

The new revenue recognition rules apply to all companies that follow United States’ Generally Accepted Accounting Principles (GAAP). The accounting personnel who deal with accounting systems within your private company should ensure they are prepared for this change in financial reporting. No matter what industry your business deals with, you should schedule and follow the new changes in order to remain current in your policies.

In the context of mergers and acquisitions, potential investors get a level of assurance when the investment target is audited.  However, relying solely on the target’s audited financial statements when making an investment decision could be shortsighted.

Audits have become more important due to increased public and government scrutiny of not-for-profit organizations, their management and their boards.

If you are selling a business, the buyer may want to pay part of the price through an earnout provision. This is a contractual arrangement in which the seller receives additional payment in the future if certain financial goals are met.