Management letters: Follow up on your auditor’s recommendations

In today’s uncertain market, maintaining the status quo might be dangerous. Businesses must “level up” by being proactive and adaptable...

Do you know the signs of financial distress in a business?

The financial figures do not tell the entire story. Knowing how to see warning signs of coming issues allows investors,...

Forecasts vs. projections: What’s the big difference?

Financial statements consider past results. But there are occasions when you need forward-looking reports, like forecasts and projections, to: Support...

Leveraging internal audits

Internal audit departments are typical in businesses. They check to see if the company is accurately reporting financial data according...

Goodwill in a bad economy

Many companies and nonprofit organizations have been forced to reduce the value of acquired goodwill on their balance sheets due...

FAQs about fair value in accounting

Recent guidance from accounting rule makers requires the “fair value” reporting of specific items on the balance sheet. Here are...

Deciding between cash and accrual accounting methods

Small businesses typically begin with the cash-basis accounting technique. However, many eventually switch to accrual-basis reporting to comply with U.S....

Timing counts: Reporting subsequent events

Significant events or transactions may occur after the reporting period has ended but before the completion of financial statements. Examples...

Eyes on related parties

Business transactions with related parties, such as friends, family, parent firms, subsidiaries, and affiliated entities, may occasionally occur at above-...

Going private

The news media has recently focused on initial public offerings (IPOs) involving special purpose acquisition companies (SPACs). However, amid the...

New audit committee survey reveals trends on risks, ESG reporting, and more

The Center for Audit Quality, an associate of the American Institute of Certified Public Accountants, released a survey titled "Audit...

Data visualization: A picture is worth 1,000 words

Graphs, performance dashboards and other visual aids can help managers, investors and lenders digest complex financial information. Likewise, auditors also...