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Returning Value Blog

Conducting An Effective Post-M&A Audit

Posted by Melissa Motley, CPA on Jan 10, 2019

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 the combined entity. This exercise requires a close partnership between the external audit team and in-house accounting personnel from both companies. Collaboration is key to a seamless transition.

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Time To Celebrate! FASB Expands VIE Exception For Private Companies

Posted by Aaron K. Waller, CPA on Jan 03, 2019

The Financial Accounting Standards Board (FASB) recently gave private companies long-awaited relief from one of the most complicated aspects of financial reporting — consolidation of variable interest entities (VIEs). Here are the details.

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How To Prepare For Year-end Physical Inventory Counts

Posted by Aaron K. Waller, CPA on Dec 17, 2018

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 an opportunity to improve operational efficiency.

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Why Revenue Matters In An Audit

Posted by Melissa Motley, CPA on Nov 28, 2018

For many companies, revenue is one of the largest financial statement accounts. It’s also highly susceptible to financial misstatement.

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4 Steps To Auditing AP

Posted by Aaron K. Waller, CPA on Nov 26, 2018

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 fraudulent journal entries. How do auditors get a handle on AP? They use four key procedures to evaluate whether this account is free from “material misstatement” and compliant with the U.S. Generally Accepted Accounting Principles (GAAP).

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How Auditors Assess Risk When Preparing Financial Statements

Posted by Aaron K. Waller, CPA on Nov 02, 2018

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 an incorrect opinion regarding the accuracy and integrity of the company’s financial statements. Inadvertently signing off on financial statements that contain material misstatements can open a Pandora’s box of risks — from shareholder lawsuits to increased regulatory oversight.

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Audit Opinions: How Your Financial Statements Measure Up

Posted by Melissa Motley, CPA on Oct 12, 2018

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 stakeholders whether you’re in compliance with accounting rules and likely to continue operating as a going concern.

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Should Cloud Computing Setup Costs be Expensed or Capitalized?

Posted by Aaron K. Waller, CPA on Oct 08, 2018

Companies will be able to capitalize or spread out the costs of, setting up pricey business systems that operate on cloud technology under an update to U.S. Generally Accepted Accounting Principles (GAAP). Here are the details.

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How To Trim The Fat From Your Inventory

Posted by Aaron K. Waller, CPA on Sep 10, 2018

Inventory is expensive. So, it needs to be as lean as possible. Here are some smart ways to cut back inventory without compromising revenue and customer service.

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Posted in Audit & Assurance

Auditing The Use Of Estimates and Specialists

Posted by Melissa Motley, CPA on Aug 08, 2018

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 specialists, such as appraisers or engineers.

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