Every year, research firm Audit Analytics publishes a study about financial restatement trends. In 2018, the number of public companies that amended their annual reports increased by 18 percent. Many of these amendments were due to minor technical issues, however. Of the 400 public companies that...
The Securities and Exchange Commission (SEC) does not monitor just publicly traded companies. It also looks at the dealings of some private companies, often to the surprise of their owners and executives. Reasons for SEC scrutiny The SEC’s mission is to protect the public as well as...
The Securities and Exchange Commission requires certain public companies to publish quarterly financial statements to give investors insight into midyear performance. Though interim reporting generally is not required for private companies, stakeholders in smaller entities can benefit even more than those of public companies from...
In today’s global economy, multinational corporations engage in numerous cross-border transactions. But how they report those transactions is often vague. To help reduce stakeholders’ exposure to potential hidden risks, the Financial Accountability & Corporate Transparency (FACT) Coalition wants multinationals to disclose more information about corporate...
Every financial transaction your company records generates nonfinancial data that does not have a dollar value assigned to it. Though auditors may spend most of their time analyzing financial records, nonfinancial data also can help them analyze your business from multiple angles. Gathering audit evidence The purpose...
Your CPA offers a wide variety 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. Consulting services, in contrast, provide advice or technical assistance that is...
The standard for valuing certain assets and liabilities under U.S. Generally Accepted Accounting Principles is ‘fair value.’ This differs from other valuation standards that may apply when valuing a security or business interest in a litigation or mergers and acquisitions (M&A) setting. FASB guidance The Financial Accounting...
CPAs typically report historical financial performance, but sometimes they are hired to predict how a company will perform in the future. Prospective reporting options There are three types of reports to choose from when predicting future performance: These prospective statements present an entity’s expected financial position, results...
There are three types of financial statements under U.S. Generally Accepted Accounting Principles. Each one reveals different, but equally important, information about your company’s financial performance. And, together, they can be analyzed to help owners, management, lenders, and investors make informed business decisions. Profit or loss The...
Businesses use two types of audits to gauge financial results: internal and external. Here is a closer look at how they measure up. Focus Internal auditors go beyond traditional financial reporting. They focus on a company’s internal controls, accounting processes, and ability to mitigate risk. Internal auditors...