Audit and Attest Services
The Coming Changes in Revenue Recognition
In 2002, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) agreed to work together to converge U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS). Revenue recognition is one of the most important projects on which these two bodies have worked together, and this work recently produced a new proposed standard. This new standard is expected to be released sometime in 2011 with an effective date still unknown. This new standard will replace most pre-existing general and industry-specific guidance and create a single revenue recognition standard for both U.S. GAAP and IFRS.. Read More.
Audit 101 for Startups Begins with Two Questions
At TechJournal South , CB&H’s Scott Duda offers some advice to startups considering whether or not they need an audit – and it comes down to how the startup answers the following two questions: Do you really want an audit? How well are your controls documented? Audits are the highest level of assurance CPAs can provide and are therefore the most complex, time consuming and costly option available. Many times, an audit is not the right answer for a startup. CPAs can perform three basic attest services for startups. A compilation presents management’s financial information in a standard format but the CPA does not test the. Read More.
When Does a Startup Need an Audit?
Many startups aren’t comfortable with the concept of an “ audit “, but these fears are often greatly exaggerated and unnecessary. To debunk these misconceptions, CB&H’s Collin Hill recently wrote a quick FAQ for CED (formerly The Council for Entrepreneurial Development) outlining the differences between a compilation, a review and an audit , along with some tips on how to prepare for the process. Auditing is simply an extension of a business to make sure controls and processes are in place and are reliable in order to produce materially correct financial statements. The goal is to help your business grow by letting you know what you are doing correctly and where you need improvements in your controls and processes while. Read More.