A conflict of interest could impair your auditor’s objectivity and integrity and potentially compromise you company’s financial statements. That is why it is important to identify and manage potential conflicts of interest. What is a Conflict of Interest? According to the America Institute of CPAs (AICPA), “A...
On September 30, the Financial Accounting Standards Board (FASB) finalized a rule to defer the effective date of the updated long-term insurance standard for a second time. The deferral will give insurers more time to properly implement the changes amid the COVID-19 pandemic. Need for Change After...
On September 17, the Financial Accounting Standards Board (FASB) issued an accounting rule that will provide more detailed information about noncash contributions charities and other non-profit organizations receive known as “gifts in kind.” Here are the details. Need for Change Gifts in kind can play an important...
Remote audit procedures can help streamline the audit process and protect the parties from health risks during the COVID-19 crisis. However, seeing people can be essential when it comes to identifying and assessing fraud risks during a financial statement audit. Virtual face-to-face meetings can be...
Today, many banks are working with struggling borrowers on loan modifications. Recent guidance from the Financial Accounting Standards Board (FASB) confirms that short-term modifications due to the COVID-19 pandemic will not be subject to the complex accounting rules for troubled debt restructurings (TDRs). Here are...
Many companies are struggling as a result of shutdowns and restructurings during the COVID-19 crisis. To add insult to injury, some also have fallen victim to arson, looting, or natural disasters in 2020. Lenders and investors want to know how your business has weathered these adverse...
Marketplace changes during the COVID-19 crisis have caused many companies to make major strategic shifts in their operations — and some changes are expected to be permanent. In certain cases, these pivot strategies may need to be reported under the complex discontinued operations rules under...
The COVID-19 crisis is causing private companies to re-evaluate the type of financial statements they should generate for 2020. Some are considering downgrading to a lower level of assurance to reduce financial reporting costs, but a downgrade may compromise financial reporting quality and reliability. Others...
Increasing diversity is a key initiative at many companies in 2020. This movement goes beyond social responsibility — it can lead to better-informed decision-making, improved productivity, and enhanced value. Congress also has made diversity-and-inclusion a key focal point: Legislation is in the works that would...
During the COVID-19 crisis, you cannot afford to lose sight of other on-going risk factors, such as cyberthreats, fraud, emerging competition, and natural disasters. A ‘stress test’ can help reveal blind spots that threaten to disrupt your business. A comprehensive stress test requires the following...