Topic: audit

Digital Tools Streamline Audit Production

Say good-bye to your old friend “SALY” By Roman H. Kepczyk Quantum of Paperless Traditional audit practices use the previous year’s audit programs and processes updated for the current year as their standard operating plan. MORE ON TECH SPENDING: Tech Tools for Today’s Properly Equipped Field Audit Teams | Accounting Firms Run on More than Checklists Alone | Going Paperless Means Convincing Clients First | How to Cut Tax Prep Costs with Scanners | Making Digital Tax Process Easier Is All About the Workflow | Why Firms Need Document Retention Standards | Is Your Network Drive a Disaster Waiting to Happen? | Intranet Is the Best Place for Firm Knowledge | Digital Fax Has Benefits You May Be Ignoring Eventually […]

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Tech Tools for Today’s Properly Equipped Field Audit Teams

The right monitors, scanners and web tools. By Roman H. Kepczyk Quantum of Paperless The advent of today’s audit “document container” applications has transitioned every aspect of audit production into a digital format. MORE on TECH SPENDING: Accounting Firms Run on More than Checklists Alone | Going Paperless Means Convincing Clients First | How to Cut Tax Prep Costs with Scanners | Making Digital Tax Process Easier Is All About the Workflow | Why Firms Need Document Retention Standards | Is Your Network Drive a Disaster Waiting to Happen? | Intranet Is the Best Place for Firm Knowledge | Digital Fax Has Benefits You May Be Ignoring | Wireless Is Hot, and Here’s How to Handle It | How Safe Is […]

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Big Four Slump in China

Five years of losses to second-tier firms. By CPA Trendlines In what the world’s leading China-watcher in accounting calls “bad news for the Big Four,” KPMG was dropped a notch and EY was pushed out of the top four rankings by Chinese-owned firms. Paul Gillis, PhD, CPA, and Professor of Practice at Peking University’s Guanghua School of Management, termed the new rankings “bad news for the Big Four,” adding, “The Big Four had better find their game soon. If the trends of the past five years continue, China may be the place where the Big Four are beaten by the second tier.”

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Study: Fraud Hits Smallest Companies Hardest

Many never fully recover. By CPA Trendlines The typical organization is losing 5% of revenues per year to fraud, costing about $145,000 per company – and smaller businesses are disproportionately victimized, according to a new research report. The losses translate to $3.7 trillion globally, says the group which has been conducting the research since 1996. PRO members: Download the full report here. Highlights…

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Something Cool: Mind-Mapping the Big Four Scandals

It started as a rivalry between two brothers. One of them worked at one of the Big Four (still does). And he was always making jokes about the other firms’ scandals.

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Trickle-Down Audit Economics: CPAs Cut Fees to Clients’ Suppliers

Economies of scale found in supply chain. Audit fees can be costly for many public and private companies, but an accounting professor has discovered a way they save some money when going through the process.

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Auditors Beware: Even Hedge Fund Execs Don’t Trust Hedge Fund Execs

In a new study that even the hedge fund trade association calls “troubling,” hedge fund executives say corruption, misconduct and pressure to break the rules are rampant and routine in their business. The top ten findings include: 46% of respondents reported that their competitors likely have engaged in unethical or illegal activity in order to be successful. 35% of respondents reported feeling pressured by their compensation or bonus plan to violate the law or engage in unethical conduct, while 25% of respondents reported other pressures that might lead to unethical or illegal conduct. 30% of respondents reported that they had personally observed or had first-hand knowledge of wrongdoing in the workplace.

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Fraud: The 15 Biggest Risks for 2013

Warning: This article will make you question your controls and audit procedures. by Gary Zeune, CPA Managing Director, The Pros & The Cons Most risk is not in the accounting records. Why not? Because the vast majority of our work as CPAs involves monetizing and measuring activities that have already occurred. The risk starts before we do our job. Think recording sales, not making sales. In manufacturing, think cost accounting, not making widgets. Because our work is historical, one of the major flaws, no matter the type and size of the entity, is that we usually react to change after fraud has occurred. When a new law, regulation or competition affects our employer or client, we fail to implement new […]

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FASB Issues ASU 2013-02 [FASB ASC 220]

New comprehensive income display guidance. by Thomas A. Ratcliffe, Ph.D, CPA Plain-English Accounting The FASB has issued Accounting Standards Update [ASU] 2013-02, entitled Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The ASU amends the guidance in the FASB Accounting Standards Codification [FASB ASC] Topic 220, entitled Comprehensive Income. The goal behind development of the ASU 2013-02 amendments is to improve the transparency of reporting reclassifications out of accumulated other comprehensive income. The amendments to FASB ASC 220 do not change current requirements for reporting net income or other comprehensive income in the financial statements. Essentially, all of the information required to be displayed or disclosed in financial statements already are required to be disclosed in the financial […]

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