A Risk-Based Approach to Journal Entry Testing - Journal of …
To extract journal entries that equate to round multiples of 10,000, 100,000 and 1,000,000, use the Excel MOD () function, which provides the remainder after the auditor divides a number by a divisor. For example, say that $10,422 is in cell A1 and the function MOD (A1,1000) is …
The Rise and Fall of Enron - Journal of Accountancy
Senior management, which had been voting with its feet since August 2000, selling Enron stock in the bull market, continued to exit, collectively hundreds of millions of dollars richer for the experience. On August 14, just six months after being named CEO, Skilling himself resigned, citing “personal reasons.”.
The basics of S corporation stock basis - Journal of Accountancy
Initial basis is generally the cash paid for the S corporation shares, property contributed to the corporation, carryover basis if gifted stock, stepped-up basis if inherited stock, or basis of C corporation stock at the time of S conversion. Common basis increases include capital contributions, ordinary income, investment income and gains ...
Guidance on claiming the ERC for third and fourth quarters of 2021
Aug 5, 2021 · Although the limit on the maximum ERC in the first half of 2021 of 70% of up to $10,000 of an employee’s qualified wages per calendar quarter (i.e., $7,000) continues to apply to the third and fourth calendar quarters of 2021, the notice notes that a separate credit limit of $50,000 per calendar quarter applies to recovery startup businesses ...
5 best practices for intercompany accounting - Journal of …
Dec 1, 2016 · HOW TO PREVENT PROBLEMS. To avoid problems and to effectively support new regulatory pressures, Cheney recommended five best practices: Standardize global policies that govern critical areas across the organization. Most companies tend to have in place one or two pages of very high - level policies for intercompany accounting.
Assessing and Responding to Risks in a Financial ...
EXECUTIVE SUMMARY The new audit risk standards require the auditor to understand and respond to risks of material misstatement, whether due to errors or fraud. In reaching that understanding, auditors should identify risks to the entity’s business and the controls in place to mitigate them. These standards use the more.
Challenges to consider in auditing revenue recognition
Jul 1, 2020 · FASB's new revenue recognition standard, FASB ASC Topic 606, Revenue From Contracts With Customers, is one of the most significant changes ever in U.S. GAAP. The new, principles-based standard requires consideration of a five-step framework that includes estimates on the revenue recognized for the accounting period (see the sidebar, "Independence Missteps Related to Revenue Recognition," below).
Currency Translation Adjustments - Journal of Accountancy
The financial statements of many companies now contain this balance sheet plug. As shown in Exhibit 1, eBay’s currency translation adjustments (CTA) accounted for 34% of its comprehensive income booked to equity for 2006. General Electric’s CTA was a negative $4.3 billion in 2005 and a positive $3.6 billion in 2006.
Top soft skills for accounting professionals - Journal of Accountancy
Jun 7, 2021 · Communication. Career Development. Networking. As professionals advance in an accounting or finance career, soft skills become increasingly important. In a world that is becoming more digital, computerized, and automated, soft skills can be the differentiator between two employees competing for the same promotion or position.
5 missteps to avoid when evaluating internal controls
Jul 1, 2019 · Misstep No. 2: Not understanding which controls are relevant to the audit. Auditors are required by paragraph .13 of AU - C Section 315 to obtain an understanding of internal control relevant to the audit. This includes all controls assessed as relevant by the auditor and is not limited to those controls that the auditor plans to test for ...