Nolan Accounting Center

SEPTEMBER 15, 2023

Most of the time, small business returns are not audited. In November 2021, the IRS announced that audits would increase by 50% in 2021. If you are audited, we will have all the paperwork that you need to get through it. Most of the time, audits are fairly routine. Never ignore an audit notice.

Auditing 95

Auditing Tax Accounting Accounting 95

Accounting Tools

APRIL 18, 2024

The accounting firm that conducts an audit is the owner of the work papers prepared during that audit; they are not the property of the client. Related AccountingTools Courses Guide to Audit Working Papers How to Conduct an Audit Engagement Related Article Audit Working Papers

Financial Records 40

Financial Records Auditing Collections Accounting 40

Accounting Tools

OCTOBER 21, 2023

Related Courses How to Conduct an Audit Engagement The purpose of an audit is for an independent third party to examine the financial statements of an entity. Related Articles The Difference Between an Audit, a Review, and a Compilation The Difference Between Internal and External Audits

Auditing 75

Auditing Financial Statements Accounting Accounting 75

Accounting Tools

DECEMBER 18, 2023

Substantive testing is an audit procedure that examines the financial statements and supporting documentation to see if they contain errors. If substantive testing turns up errors or misstatements, additional audit testing may be required. What is Substantive Testing? There are many substantive tests that an auditor can use.

Auditing 75

Auditing Financial Statements Financial Records Accounts Payable 75

Accounting Tools

MAY 4, 2024

Related AccountingTools Courses Guide to Audit Sampling How to Conduct an Audit Engagement The Audit Risk Model Related Articles Allowance for Sampling Risk Attribute Sampling Block Sampling Discovery Sampling Haphazard Sampling Sequential Sampling

Auditing 40

Auditing Financial Statements 40

Accounting Tools

AUGUST 5, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What is an Audit Strategy? An audit strategy sets the direction, timing, and scope of an audit. The strategy is then used as a guideline when developing an audit plan.

Auditing 74

Auditing 74

Accounting Tools

MAY 12, 2024

Related AccountingTools Courses Accounting for Inventory How to Audit Inventory Advantages of FIFO There are several advantages to using FIFO, which are as follows: Layer usage. Also, it does require the maintenance of some cost layers, which will need to be documented for the year-end audit. In March, it sells ten widgets.

Auditing 72

Auditing Financial Reporting Tax Accounting 72

Accounting Tools

OCTOBER 9, 2023

Related Courses Guide to Audit Sampling Guide to Data Analytics for Audits How to Conduct an Audit Engagement What is Audit Sampling? Audit sampling is the use of an audit procedure on a selection of the items within an account balance or class of transactions.

Auditing 75

Auditing Accounting Accounting 75

Accounting Tools

MAY 10, 2024

Related AccountingTools Courses Guide to Audit Sampling Guide to Auditor Legal Liability How to Conduct an Audit Engagement Related Article Risk of Material Misstatement

Financial Statements 40

Financial Statements Auditing Collections Accounting 40

Nanonets

APRIL 24, 2024

Audit Bank Reconciliation Guide  Both internal and external accounting audits are essential parts of financial management as well as organizational risk management. A bank reconciliation audit is one such process that helps in identifying financial gaps or discrepancies. Looking out for a Reconciliation Software?

Bank Reconciliation 52

Bank Reconciliation Auditing Reconciling General Ledger 52

Accounting Tools

MAY 2, 2024

Also, it must be included in a nonprofit’s audited financial statements. Related AccountingTools Courses Auditing Nonprofit Entities Nonprofit Accounting Related Article Statement of Activities Thus, it is not necessary (unless demanded by a recipient of the financial statements), but can contain useful information.

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40

Accounting Tools

MARCH 26, 2024

Related AccountingTools Courses Guide to Audit Working Papers How to Conduct an Audit Engagement Related Articles Audit Procedures Concurrent Audit Techniques Substantive Procedures Top-Down Approach to Auditing Crossfooting verifies that the automated totaling functions in a report are working as expected.

Auditing 40

Auditing 40

Accounting Tools

MARCH 22, 2024

What is Audit Risk? Audit risk is the risk that an auditor will not detect errors or fraud while examining the financial statements of a client. Auditors can increase the number of audit procedures in order to reduce the level of audit risk.

Auditing 40

Auditing Financial Statements 40

Accounting Tools

MAY 7, 2024

Related AccountingTools Courses Fraud Examination Fraud Schemes How to Audit for Fraud Examples of Collusion Examples of collusion are as follows: Several high tech firms agree not to hire each other's employees , thereby keeping the cost of labor down. Related Articles Examples of Corporate Fraud White Collar Crime

Auditing 75

Auditing 75

Accounting Tools

OCTOBER 6, 2023

Related Courses How to Conduct an Audit Engagement What is a Disclaimer of Opinion? For example, the auditor may not have been allowed or been able to complete all planned audit procedures. Related Articles Adverse Opinion Except-for Opinion Piecemeal Opinion Qualified Opinion Unqualified Opinion

Financial Statements 75

Financial Statements Auditing 75

Accounting Tools

APRIL 14, 2024

A robust system of internal controls reduces the risk of fraudulent activity, which moderates the need for additional audit procedures. Based on the first two steps, determine which audit procedures should be expanded or reduced. Make recommendations to the client regarding how to improve its system of internal controls.

Auditing 40

Auditing Financial Statements Accounting Accounting 40

Accounting Tools

JULY 30, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What are Audit Procedures? Audit procedures are used by auditors to determine the quality of the financial information being provided by their clients, resulting in the expression of an auditor’s opinion.

Auditing 75

Auditing Financial Statements Invoicing Accounting 75

Accounting Tools

DECEMBER 28, 2023

They request it early in an audit , and transfer the ending account balances from this report into their auditing software. They then use audit procedures to test these balances. Auditors also use the trial balance.

General Ledger 75

General Ledger Record Keeping Financial Statements Auditing 75

Accounting Tools

APRIL 7, 2024

Issuance costs include audit fees, investment banking fees, legal fees, marketing expenses, and Securities and Exchange Commission (SEC) registration fees. In addition, the board hires an audit firm to conduct an audit of its financial statements, for which the fee is $50,000.

Financial Statements 40

Financial Statements Corporate Finance Auditing 40

Accounting Tools

APRIL 29, 2024

Impact of System Weaknesses on Audits When auditors find a system weakness, they will likely expand their audit procedures to gain comfort that a client's financial statements fairly represent its financial results, position, and cash flows. This means that system weaknesses will result in a more expensive audit.

Computation 40

Computation Financial Statements Auditing Accounting 40

Accounting Tools

AUGUST 1, 2023

Related Courses How to Conduct an Audit Engagement How to Conduct a Compilation Engagement How to Conduct a Review Engagement What are Financial Statement Assertions? The assertions form a theoretical basis from which external auditors develop a set of audit procedures.

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75

Accounting Tools

APRIL 11, 2024

A traveling auditor is a person who spends a disproportionate amount of time conducting audits in distant locations. The typical auditor works with audit clients that are located within driving distance of his or her home. The auditor can also conduct physical audits of inventory and fixed assets, thereby confirming their existence.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

NOVEMBER 5, 2023

Related Courses How to Audit Receivables How to Conduct an Audit Engagement The Balance Sheet What is an Accounts Receivable Confirmation? This is a strong secondary form of evidence that the accounts receivable outstanding at the end of the reporting period being audited were in existence at that time.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Accounting 75

Accounting Tools

OCTOBER 25, 2023

Auditing Differences Interim financial statements are not usually audited. Given the cost and time required for an audit , only the year-end financial statements are audited. A review is conducted by external auditors , but the activities encompassed by a review are much reduced from those employed in an audit.

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75

Accounting Tools

JANUARY 9, 2024

What are Government Auditing Standards? Government auditing standards are used to conduct financial audits and performance audits of government entities and entities that receive government awards. Performance audits are used to measure the performance of a project or program against previously defined objectives.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

MAY 15, 2024

Related AccountingTools Courses How to Audit Payroll Optimal Accounting for Payroll Payroll Management Related Articles Time Ticket Timekeeping by Telephone (podcast) Timesheets are more commonly used in job shop operations, where labor hours are charged to specific customer projects.

Payroll 40

Payroll Auditing Accounting Accounting 40

Accounting Tools

MARCH 22, 2024

An except-for opinion is rendered by an external auditor when unable to audit parts of a client's operations. The issue arises when management imposes restrictions or when other conditions occur that make it impossible to engage in certain auditing procedures. What is an Except-for Opinion?

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40

Accounting Tools

MAY 21, 2023

Related Articles Accountant’s Liability Attorney’s Letter Audit Working Papers Auditors as Relationship Managers Due Professional Care The Purpose of an Audit The AICPA Code of Professional Conduct outlines a number of scenarios involving confidential client information, stating how the accountant should treat this information.

Auditing 75

Auditing Accounting Accounting 75

Accounting Tools

MAY 9, 2024

Related AccountingTools Courses Fixed Asset Accounting Fixed Asset Controls How to Audit Fixed Assets Related Articles Is Accumulated Depreciation an Asset or Liability? Depreciation expense is a debit entry (since it is an expense), and the offset is a credit to the accumulated depreciation account (which is a contra account ).

Financial Statements 52

Financial Statements Auditing Accounting Accounting 52

Accounting Tools

MAY 2, 2024

Examples of Sole Practitioners Examples of professions in which sole practitioners are common are architecture, auditing, law, and medicine. Given the specialized nature of many of these jobs, state governments frequently require that sole practitioners obtain a certification and insurance before going into business.

Corporation Tax 40

Corporation Tax Auditing Tax Accounting 40

Accounting Tools

APRIL 24, 2024

Related AccountingTools Courses Fraud Examination Fraud Schemes How to Audit for Fraud Optimal Accounting for Cash Intercept at Cashier The cashier can remove cash and simply not record the associated transaction in the accounting records. Related Articles Altered Check Bad Check Raised Check

Petty cash 74

Petty cash Deposits Auditing Billing 74

Accounting Tools

APRIL 6, 2024

Basis for Audit Activities A company's auditors may use the accounts receivable aging report to select invoices for which they want to issue confirmations as part of their year-end audit activities. Related Articles Accounts Receivable Analysis How to Calculate Average Accounts Receivable Schedule of Accounts Receivable

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Accounting 75

Accounting Tools

NOVEMBER 5, 2023

Outside auditors may rely upon a company’s system of internal controls when planning an audit. If the firm has a robust system of internal controls, then the auditors will test the reliability of those controls, and then reduce their other audit activities. The result is a more efficient and less expensive audit.

Bank Reconciliation 75

Bank Reconciliation Auditing Financial Statements Accounting 75

Accounting Tools

OCTOBER 10, 2023

Related Courses How to Conduct an Audit Engagement What is a Special Audit? A special audit is a tightly-defined audit that only looks at a specific area of an organization's activities. This type of audit may be initiated by a government agency, but could be authorized by any entity, or even internally.

Auditing 40

Auditing Tax 40

Accounting Tools

SEPTEMBER 20, 2023

Related Courses How to Conduct an Audit Engagement What is a Limited Audit? A limited audit has a more restricted scope than a full audit. In this type of audit, the audit team confines its operations to certain audit procedures , or only examines certain functional areas of an organization.

Auditing 40

Auditing 40

Future Firm

APRIL 18, 2023

How to Get Started With Accounting Intelligence How AI Was Used to Write This Article What is AI in Accounting? This includes tasks such as financial reporting, audit and compliance, fraud detection, and data analysis. This can significantly streamline the audit process, reducing the time and resources required to complete the audit.

Data Entry 96

Data Entry Accounting Accounting Invoice Processing 96

Accounting Tools

DECEMBER 18, 2023

What is Audit Failure? An audit failure occurs when an auditor deviates from the applicable professional standards in such a way that the opinion contained in his or her audit report is false. Independence Issues A particularly concerning cause of audit failures arises when the auditor is not independent of the client.

Auditing 40

Auditing Financial Statements Accounting Accounting 40