What is the purpose of audit planning if the audit may not ultimately follow the carefully thought out plan?  As may be inferred from Dwight D. Eisenhower's words—"Plans are worthless, but planning is everything"—the value of audit planning is not derived solely from the resulting audit plan.  Daniel Gartland, risk control consultant at CNA, describes the importance of detailed planning. To read the full ar ...

Accountants should focus on providing niche areas of service such as business valuation and retirement planning and move away from tasks including bookkeeping and financial reporting because automation and technological advances will take over much of their work.  Dominic Diongson, deputy editor for AccountingWEB, explains. To read the full article in AccountingWEB, click:  CPAs Should Shift to Niche Servic ...

The Case of the Delayed Real Estate Development In a situation where there is a claim of wrongdoing and one party suffers pecuniary damages, it is incumbent on the economic damages expert to precisely define the period of such claimed damages to properly quantify them. The outcome is largely dependent on the expert’s processes for determining damages, the components of the Expert Report, and the ability to ...

Know What You are Doing Creating or renovating a firm’s website is often a major undertaking. Because years can pass before a website is redone, it is easy to overlook key steps or strategies—and to underestimate the amount of time and effort it will require. ...

Fair value measurement has been a hot topic during the last few years, increasingly attributable to PCAOB identified audit deficiencies and heightening scrutiny over the existing fair value framework and related auditing standards.  In this post, we take a look at the causes of attention and recent responses from professionals and professional organizations. To read the full article in Mercer Capital's Fina ...

Regulation from 1995 requiring companies to set up representative offices in China scrapped, as vice-premier warns of new challenges ahead.  As Washington prepares to unveil a corporate tax-cut plan, Beijing has scrapped cumbersome requirements on foreign businesses that have been in place for 22 years in its latest bid to woo investors. To read the full article in South China Morning Post, click: Beijing C ...

The college selection process can have significant financial implications, so the entire family should be involved in the decision.  The difference in cost between public and private universities is substantial, and the impact on a family's future wealth will be even larger as a result of compound growth. To read the full article in the Financial Advisor, click: Helping Clients Understand the 'Real Cost' of ...

Identifying Gaps and Risks Valuation and financial forensics professionals and their firms often provide other services. In this article, the author discusses Anti-Money Laundering (AML) actions and which industries are at risk for violating Bank Secrecy Law and AML provisions. Many kinds of businesses are at risk for money laundering and for penalties if AML programs do not meet regulatory standards. Finan ...

Fraudulent Payroll and Expense Schemes (Part III of III) This article represents the third installment of a three-part series discussing the potential for embezzlement within an organization by its Accountant Bookkeeper Office Manager (ABOM). Part one discussed how the ABOM could mishandle incoming cash receipts to commit fraud. Part two discussed how the ABOM could mishandle outgoing cash disbursements to ...

The Appraisal Foundation’s forthcoming VFR Valuation Advisory #3, The Measurement and Application of Market Participant Acquisition Premiums (Advisory #3) sets forth best practices for measuring and evaluating the reasonableness of valuation premiums applied in (or implied by) fair value measurements of controlling interests in business enterprises.  Travis Harms, Mercer Capital’s Financial Reporting Valuat ...

Seemingly overnight, the internet of things (IoT) has become a technology buzzword, challenging businesses to embrace a technology in its infancy before they can firmly grasp the pitfalls and opportunities involved.  Sylvia Edwards Davis explains this concept and what to do to propel your business forward. To read the full article in CGMA, click: How to Stay Ahead of the IoT Curve. ...

Business travelers who incur expenses while traveling away from home have new per-diem rates to use in substantiating certain of those expenses (Notice 2017-54).  The new rates will be in effect from Oct. 1, 2017, to Sept. 30, 2018.  Sally Schreiber, Journal of Accountancy senior editor, explains. To read the full article in the Journal of Accountancy, click: IRS Updates Special Per-Diem Rates for Business ...

Don’t be a Victim of Fraud Fraud can affect virtually any organization and fraud costs can be far more than just monetary losses. The author discusses the recent Wells Fargo fraud investigation and shares her views regarding what makes for an effective risk identification program. The effects of fraud can go beyond simple dollar losses and include harm to the organization’s reputation, employee morale, lega ...

Perils of Selling to Family Members and Delaying a Sale Now to Third Parties Are the increases in market multiples and the access to capital a sign of the impending surge of business exits? In this article, the author shares his views on selling to family members vis-à-vis to a non-heir third party, the perils of waiting to sell a business, discussing the valuation gap and seller’s expectations, and delayin ...

The first three quarters of 2017 were active for U.S. markets.  Major indices were characterized by low volatility and upward momentum against a backdrop of tightening monetary policy and strong economic indicators.  Private equity saw steady deal flow despite challenging market conditions, and record levels of venture capital deployment were seen amidst declining deal volume as capital continued to gravita ...

FASB and the International Accounting Standards Board designed their converged revenue recognition standard to enhance comparability across industries.  But the standard has presented different implementation challenges to the various business sectors.  Ken Tysiac, Journal of Accountancy editorial director, explains. To read the full article in the Journal of Accountancy, click: How Revenue Recognition Chan ...

Help Clients Kick-Start Their Charitable Efforts Here is a look at questions to ask and tactics to consider while working with clients who want to engage in charitable giving.  Among other strategies, clients may want to consider making multiyear gifts or donating to international causes.  The Adviser's Guide to Financial and Estate Planning, Volume 1, has an entire chapter dedicated to helping you learn ab ...

Fraudulent Billing/Cash Disbursement Schemes (Part II of III) This article represents the second of a three-part series discussing the potential for embezzlement within a firm or organization by its Accountant Bookkeeper Office Manager (ABOM). Part one discussed how the ABOM could mishandle incoming cash receipts to commit fraud. This article will be discussing how an ABOM can mishandle outgoing cash disbur ...

Case Law Four cases are presented in this article that provide valuation, litigation support professionals, and M&A advisors insight regarding how courts are addressing damages claims, challenges to experts, appraisal action challenges, and claims of fraud and breach of contract in connection with M&A transactions. Although the cases are from Delaware and California, they provide insight for readers ...

We have recently discussed the changing dynamics of the IPO market and startups’ shifting perspectives in regards to going public.  Public offerings have not all gone wrong this year, but latest rounds of unicorn IPO flops appear to have dampened some investors’ outlook on the traditional IPO route.  Nevertheless, unicorn investors still need liquidity and are turning to creative ways to get the IPO pipelin ...