Preparing for Cashless Audits

Cashless transactions are becoming the primary mode of payments. The acceptance of these payments is changing the auditing of financial statements.

Cashless transactions require the exchange of digital information to facilitate payments. Rather than focusing on the recording and collection of physical cash, auditors focus on analyzing your company’s electronic sales records. This analysis requires four specific procedures.

Determination of Audit Opinions

Audit opinions allow stakeholders to evaluate a company according to compliance with accounting rules and the likelihood of continuing to operate. Auditors consider many factors when issuing an audit opinion; these include, information available, financial viability, and errors found, as well as other limiting factors.

Long-Awaited Cloud Computing Expense Guidance

In August, the Financial Accounting Standards Board (FASB) published Accounting Standards Update (ASU) No. 2018-15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract.

Financial Health Beyond Financial Statements

While financial statements can help the monitoring of a company’s performance, they may not provide enough information to determine financial health. Often, undisclosed liabilities and risks are important determinants. There are several ways a CPA can help stakeholders identify unrecorded items through either agreed upon procedures (AUPs) that target specific accounts or external auditing procedures.

The what, how and why of job cost reporting

Job cost reporting is the system used to code and earmark project expenses to maintain or improve financial efficiency and profitability. Custom work calls for continuous supervision because once you begin a contracted job, it’s easy to concentrate on finishing the project rather than monitoring depleting resources. From the architect drawing up blueprints to the general contractor constructing a medical plaza, you need to keep track of expenses to produce the best financial results.