So, you’re about to merge with another company. What’s next? The integration process typically starts with audited financial statements that reflect the results and financial position of…Read More
Archive for the ‘Audit’ Category
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How to prepare for year-end physical inventory counts
As year end approaches, it’s time for calendar-year entities to perform physical inventory counts. This activity is more than a compliance chore. Proactive companies see it as…Read More
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Cybersecurity matters
Investors, lenders and other stakeholders have been vocal in recent years about pushing companies to provide more information in their financial reports about cybersecurity. Could your company…Read More
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4 steps to auditing AP
At most companies, the accounts payable (AP) department handles an enormous volume of transactions. So, the AP ledger may be prone to errors or used to bury…Read More
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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…Read More
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LIFO lessons learned
You have choices when it comes to reporting inventory costs. One popular technique — the last-in, first-out (LIFO) method — assumes that merchandise is sold in the…Read More
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How auditors assess risk when preparing financial statements
Every year, your audit firm will conduct a fresh risk assessment before the start of fieldwork. Why? Because your auditor wants to mitigate the risk of expressing…Read More
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Assessing the effectiveness of internal controls
Strong internal controls can help prevent and detect fraud. That’s why Section 404(a) of the Sarbanes-Oxley Act (SOX) requires a public company’s management to annually assess the…Read More
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Audit opinions: How your financial statements measure up
Audit opinions differ depending on the information available, financial viability, errors discovered during audit procedures and other limiting factors. The type of opinion your auditor issues tells…Read More
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Auditing royalty agreements
Companies often grant licenses to others allowing them to use intellectual property — such as a patent or proprietary computer code — in exchange for royalties. Licensors…Read More