The Wall Street Journal reported that CFOs of public companies are retiring at the fastest pace in over a decade. Exit rates of nearly 18% annually are now thought to be higher than for CEOs, a historically high turnover job. The trend, captured by a survey commissioned by the Journal, is said to be the result of […]
This blog post delves further into the types of accounting changes addressed in Accounting Standards Codification (ASC 250), Accounting Changes and Error Corrections, specifically addressing the steps in the process of correcting an error in the financial statements. Part one of this post was published on March 9, 2020. There is a three-step process to follow to […]
The economic fallout from the COVID-19 crisis has emphasized the current and future need for timely and high-quality financial reporting by all companies. On April 8, 2020, the SEC Chairman and the SEC Division of Corporation Finance Director released a joint statement which included the following summarizing statement: “Company disclosures should reflect [the] state of […]
Does it feel like a loss of control? A loss of knowing whether your staff is working or goofing off? Ask yourself: Does it matter what time the work gets done, or that it gets done well? Ask yourself: How can I assign work that makes both me – and my staff comfortable that we […]
In their latest issue, IR-2020-89, the Internal Revenue Service is reminding businesses of the three new credits that are available to many businesses hit by COVID-19. To recap, these are: Employee Retention Credit: The employee retention credit is designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of […]
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 […]
