How Auditors Use Benford’s Law To Assess Transactions
An interesting tool called Benford’s Law can be effective in detecting fraud. But it also can be used during external auditing procedures to test journal entries for unusual numeric patterns.
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Tag: Assurance
Using Agreed-Upon Procedures To Target Specific Items Of Concern
Your CPA offers a wide menu of services. One flexible offering, known as an “agreed-upon procedures” engagement, provides limited assurance on a specific aspect of an organization’s financial or nonfinancial
Why Auditors Prefer In-Person Interviews To Assess Fraud Risks
Auditing standards require financial statement auditors to identify and assess the risks of material misstatement due to fraud — and to determine overall and specific responses to those risks. Here’s
Is Your Current Bad Debt Allowance Reasonable?
In today’s volatile market conditions, it’s important to review your accounts receivable ledger and consider writing off stale, uncollectible accounts. The methods you’ve used in the past to evaluate bad
New Law Puts ‘Book Income’ In The Crosshairs
The Financial Accounting Standards Board (FASB) could have congressional lobbyists nipping at its heels over a ‘book minimum tax’ rule in the newly enacted Inflation Reduction Act of 2022 (IRA).
Are Your Risk-Management Practices Keeping Up With The Times?
Risks abound in today’s uncertain marketplace. Nearly two-thirds of senior finance leaders said that the volume and complexity of corporate risks have changed ‘mostly’ or ‘extensively’ in the past five
Cyber Risks: A Critical Part Of Your Auditor’s Risk Assessment
As businesses and non-profit entities increasingly rely on technology, cyberthreats are becoming more sophisticated and aggressive. Auditors must factor these threats into their risk assessments. They also can help you
How External Confirmations Are Used During An Audit
Auditors commonly use confirmations to verify such items as cash, accounts receivable, accounts payable, employee benefit plans, and pending litigation. Under U.S. Generally Accepted Auditing Standards, an external confirmation is
Evaluating ‘Going Concern’ Concerns
Under U.S. Generally Accepted Accounting Principles (GAAP), financial statements are normally prepared based on the assumption that the company will continue normal business operations into the future. When liquidation is
How To Account For Collaborative Agreements
Today, many companies share research or technology to develop new products. For example, manufacturers might enter into a joint venture to conduct scientific research to design a new medical device.