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 […]
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 […]
As we head towards the end of 2020, it is expected that most auditors will have to deal with auditing the books of companies greatly impacted by COVID-19. Many of the situations will be new and unique to audit teams, although they are likely to see them often in the next couple of years. This […]
To define its financial stature, every company has to perform some accounting tasks including collection, analysis, classification, verification, interpretation, and presentation of financial information. Among various types of bookkeeping, one is called corporate accounting. Corporate accounting deals with the preparation of cash flow statements, financial records, balance sheets and creation of consolidated documents, etc. Corporate […]
Blockchain, also known as distributed ledger technology (DLT), is a technology that enables the existence of cryptocurrency – the likes of Bitcoin. Blockchain is an accounting technology that is concerned with the transfer of ownership of assets and maintaining a ledger of accurate financial information. In accounting, records are maintained and stored in a centralized […]
The rise in the global use of digital assets presents new challenges for how to properly account for these types of assets in financial statements following GAAP. Understanding what digital assets are and how to categorize the different types of assets is crucial for the auditor. CPAs must be able to account for investments in […]
Business fraud, also known as corporate fraud, refers to the unlawful activities undertaken by an individual or company, performed in a dishonest and unethical manner. Business fraud is designed for the advantage of an individual or company performing it. Business fraud has an impact on the business, other employees, and outside parties. Considered a white-collar […]
