There are many challenges for auditors in the wake of the COVID-19 virus. Auditors are finding new creative ways to ensure they are still meeting audit standards requirements while conducting test work during this quarantine phase. This level of remote auditing is new for the public accounting profession and has been implemented quickly to stay […]
As questions pour into the Department of Labor and the Internal Revenue Service from employers on the Families First Act and the CARES Act, both agencies are updating their respective FAQs. Here are the latest updates: Department of Labor: DOL has added four FAQs, #90-#93, concerning paid family leave or paid leave. These are: Internal Revenue […]
On May 18, 2020, the U.S. Department of Labor’s Wage and Hour Division (WHD) announced a final rule to provide one analysis for all employers when determining whether they qualify as “retail or service” establishments for purposes of an exemption from overtime pay applicable to commission-based employees. Section 7(i) of the Fair Labor Standards Act […]
The theory behind the fraud triangle is one of the most basic concepts an accounting student learns in his or her introductory auditing college coursework. The fraud triangle is a model for explaining the factors and/or motivations that cause a person to commit fraud. The Association of Certified Fraud Examiners defines the fraud triangle […]
On May 20, 2020, the U.S. Department of Labor announced a final rule that allows employers to pay bonuses or other incentive-based pay to salaried, nonexempt employees whose hours vary from week to week. The final rule clarifies that payments in addition to the fixed salary are compatible with the use of the fluctuating workweek […]
The U.S. Department of Labor (DOL) has issued three new opinion letters that address compliance issues related to the Fair Labor Standards Act (FLSA). As a reminder to my readers, an opinion letter is an official, written opinion by the DOL’s Wage and Hour Division (WHD) on how a particular law applies in specific circumstances […]
The Financial Accounting Standards Board’s (FASB) newest lease accounting standard, Accounting Standards Codification (ASC) 842, is facing implementation delays and challenges due to the COVID-19 crisis. Implementation Date: FASB recently issued a Financial Standards Update that deferred the implementation of ASC 842 for private companies and private not-for-profit companies that have not yet applied the […]
For many companies there is a strong chance that one of the effects of the COVID-19 virus will be considering it as a triggering event requiring the performance of goodwill impairment testing. The current guidance for goodwill is found in Accounting Standards Codification (ASC) Topic 350, Intangibles – Goodwill and Other. Management is required […]
Preparing taxes and performing audits are the most popular types of services offered by a CPA firm. However, CPA firms actually provide a myriad of services, one of which is the agreed-upon procedure engagement. What is an agreed-upon procedure engagement? An agreed-upon procedure (AUP) engagement is an engagement in which a CPA is to independently […]
Many people do not realize that Certified Public Accountants provide the service of auditing the financial statements of employee benefit plans. Before digging into this niche audit area, it is imperative to understand the governing law that establishes the need for the audit. Which employee benefit plans have to be audited? First, an employee benefit […]
