Contributor: David A. McKay

Accounting & Audit Alert- Internal control questionnaires: How to see the complete picture

Businesses rely on internal controls to help ensure the accuracy and integrity of their financial statements, as well as prevent fraud, waste and abuse. Given their importance, internal controls are a key area of focus

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Posted In: Alerts & Advisories

Accounting & Audit Alert- Auditing WIP

Many types of businesses — such as homebuilders and manufacturers — turn raw materials into finished products for customers. Production is a continuous process. So, any work that’s been started but isn’t yet completed before

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Posted In: Alerts & Advisories

Accounting & Audit Alert- Follow the cutoff rules for revenue and expenses

Timing counts in financial reporting. Under the accrual method of accounting, the end of the accounting period serves as a strict “cutoff” for recognizing revenue and expenses. However, during the COVID-19 pandemic, managers may be

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Posted In: Alerts & Advisories

Accounting & Audit Alert- Accounting methods: Private companies have options

Businesses need financial information that’s accurate, relevant and timely. The Securities and Exchange Commission requires publicly traded companies to follow U.S. Generally Accepted Accounting Principles (GAAP), often considered the “gold standard” in financial reporting in

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Posted In: Alerts & Advisories

Accounting & Audit Alert- Accounting estimates present challenges in times of uncertainty

In today’s unprecedented market conditions, it can be challenging to predict metrics that underlie your company’s accounting estimates. Examples of key “unknowns” include how much longer certain pandemic issues will continue, how federal stimulus spending

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Posted In: Alerts & Advisories

Accounting & Audit Alert- Hit or miss: Is your working capital on-target?

Working capital equals the difference between current assets and current liabilities. Organizations need a certain amount of working capital to run their operations smoothly. The optimal (or “target”) amount of working capital depends on the

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Posted In: Alerts & Advisories

Accounting & Audit Alert- How to strengthen your internal controls

Internal controls are a system of policies and procedures organizations put in place to protect assets and improve operating efficiency. Effective internal controls are critical to accurate financial reporting. A solid system of controls can

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Posted In: Alerts & Advisories

Accounting & Audit Alert- Using your financial statements to evaluate capital budgeting decisions

Strategic investments — such as expanding a plant, purchasing a major piece of equipment or introducing a new product line — can add long-term value. But management shouldn’t base these decisions on gut instinct. A

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Accounting & Audit Alert- What’s “fair value” in an accounting context?

In recent years, the accounting rules for certain balance sheet items have transitioned from historical cost to “fair value.” Examples of assets that may currently be reported at fair value are asset retirement obligations, derivatives

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Posted In: Alerts & Advisories

Accounting & Audit Alert- Liabilities for unused time off mount as pandemic lingers

During the pandemic, many employees have postponed using their allotted paid time off until COVID-related restrictions are lifted and safety concerns subside. This situation has caused an increase in accruals for certain employers. Here’s some

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Posted In: Alerts & Advisories