A new take on ethics and independence - Journal of Accountancy
WEBDec 1, 2018 · Professional accountants are required to apply the conceptual framework to identify, evaluate, and address threats to independence. Independence "of mind" and "in appearance" requires adherence to the fundamental principles of integrity and objectivity. New and improved provisions help accountants apply the conceptual framework when …
Fraud is suspected: Now what? - Journal of Accountancy
WEBAug 1, 2022 · As AU - C Section 240 states: "Although the auditor may suspect or, in rare cases, identify the occurrence of fraud, the auditor does not make legal determinations of whether fraud has actually occurred" (¶ .3). The legal determination of whether fraud has occurred is made by a judge or jury, not by management and not by the auditor.
Tax, accounting, auditing news - Journal of Accountancy
WEBSep 13, 2024 · A letter asks the Department of Homeland Security to add accounting to its STEM Designated Degree Program List in an effort to bolster talent acquisition. Next 20. The latest news from the Journal of Accountancy, covering accounting, financial reporting, auditing, taxation, financial planning, technology, and more.
Keep or toss? A guide to CPA firm record retention
WEBWhen determining which records should be kept or purged, consider retaining items that document or support the firm's: Client/engagement evaluation process: Such as signed engagement letters, client acceptance checklists, engagement acceptance approvals, and client disengagement letters. Administrative records: Such as fee and billing records ...
Carry your losses (further) forward - Journal of Accountancy
WEBMay 1, 2018 · Under current law, assuming each of the tax years takes place after Dec. 31, 2017, and using the same taxable income or (losses) as above, the $500 of loss in year 2 must be carried forward to year 3 and can only be utilized to the extent of 80% of taxable income, or $80. Total federal income tax paid (after taking into account the carryforward ...
Challenges to consider in auditing revenue recognition
WEBJul 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 …
Mastering accounting for business combinations
WEBMar 1, 2019 · Accounting for business combinations is complex and requires considering a number of areas, including the following: Identifying business combination transactions. Identifying the acquirer. Determining the acquisition date. Measuring the consideration transferred. Recognizing and measuring the identifiable assets acquired and liabilities ...
The pros and cons of LLCs - Journal of Accountancy
WEBDec 1, 2018 · The pros and cons of LLCs. This popular entity choice serves a wide variety of purposes. By Walter D. Schwidetzky, J.D., LL.M. December 1, 2018. Image by DigtialStorm/iStock. TOPICS. The use of the limited liability company (LLC) has mushroomed in popularity over the past two decades. IRS statistics show a 66% …
A refreshed focus on risk assessment - Journal of Accountancy
WEBJan 1, 2022 · New risk assessment standard has focus on clarity. SAS 145 addresses definitions and internal control responsibilities. The critically important process of risk assessment in audits was changed in October when the AICPA Auditing Standards Board (ASB) issued Statement on Auditing Standards No. 145, Understanding the Entity and …
Accounting for sale and leaseback transactions
WEBOn Dec. 31, 2021, the seller-lessee would record the transaction as shown in the table "Journal Entry Based on Amortization Table.". The seller-lessee would make similar entries for the remaining nine years. Next, assume the contract provided Smith Corp. with an option to purchase the building on Jan. 1, 2026, for $12,000,000 and that the assets similar to …
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