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Returning Value Blog

How Auditors Use Nonfinancial Information

Posted by Aaron K. Waller, CPA on Jun 18, 2019

Every financial transaction your company records generates nonfinancial data that doesn’t have a dollar value assigned to it. Though auditors may spend most of their time analyzing financial records, nonfinancial data can also help them analyze your business from multiple angles.

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Posted in Audit & Assurance

AUP Engagements: A Middle Ground Between Audits and Consulting Services

Posted by Melissa Motley, CPA on Jun 10, 2019

Your CPA offers a wide menu of services. An audit is a familiar type of attestation service that provides a formal opinion about whether the company’s financial statements conform to U.S. Generally Accepted Accounting Principles (GAAP).

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Posted in Audit & Assurance

Comparing Internal and External Audits

Posted by Aaron K. Waller, CPA on May 10, 2019

Businesses use two types of audits to gauge financial results: internal and external. Here’s a closer look at how they measure up.

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Posted in Audit & Assurance

Lean Manufacturers: Reap the Benefits of Lean Accounting

Posted by Melissa Motley, CPA on May 07, 2019

Standard cost accounting doesn’t necessarily work for lean operations. Instead, lean accounting offers a simplified reporting alternative that generates more timely, relevant financial data. But it’s not right for every situation.

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Posted in Audit & Assurance

Auditing Accounting Estimates and the Use of Specialists

Posted by Melissa Motley, CPA on Apr 09, 2019

The Public Company Accounting Oversight Board (PCAOB) recently voted to finalize two related standards aimed at improving audits of accounting estimates and the work of specialists. Though the new, more consistent guidance would apply specifically to public companies, the effects would likely filter down to audits of private entities that use accounting estimates or rely on the work of specialists.

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Simplifying the Accounting Rules for Convertible Debt and Equity

Posted by Aaron K. Waller, CPA on Apr 04, 2019

Distinguishing between liabilities and equity on a company’s balance sheet may seem straightforward. But difficulties arise when it comes to the terms of complex securities and financial contracts like redeemable equity instruments, equity-linked or indexed instruments, and convertible instruments.

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Posted in Audit & Assurance

Transparency Is Key with Related Party Transactions

Posted by Melissa Motley, CPA on Mar 22, 2019

In recent years, external auditors have focused more attention on related party transactions. Although related party transactions aren’t necessarily bad, they do raise some concerns about the risk of misstatement or omission in financial reporting.

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Posted in Audit & Assurance

Audits Home in on Cybersecurity

Posted by Aaron K. Waller, CPA on Mar 20, 2019

In 2018, U.S. organizations that suffered a data breach lost an average of $7.91 million as a result. That’s the highest average organizational cost of all the countries and regions covered in the 2018 Cost of a Data Breach Study by IBM and independent research firm Ponemon Institute. Malicious or criminal attacks were the source of more than half of those breaches, rather than system glitches and human errors.

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Posted in Audit & Assurance

Auditing Cashless Transactions

Posted by Melissa Motley, CPA on Feb 15, 2019

Like most businesses, you’ve probably experienced a significant increase in the number of customers who prefer to make cashless payments. And you may be wondering: How does the acceptance of these types of transactions affect the auditing of your financial statements?

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Posted in Audit & Assurance

Private Companies: Have You Implemented The New Revenue Recognition Standard?

Posted by Aaron K. Waller, CPA on Feb 04, 2019

Private companies that follow U.S. Generally Accepted Accounting Principles (GAAP) must comply with the landmark new revenue recognition standard in 2019. Many private company CFOs and controllers report that they still have significant work to do to meet the demands of the sweeping rules. If you haven’t started the implementation process, it’s time to get the ball rolling.

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Posted in Audit & Assurance

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