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Small businesses are the backbone of the American economy and so, for the most part, keeping them running at optimum efficiency is everyone’s best interest. To this point, small business owners are faced with a deluge of information and business advice to having the most effective business strategy.

Taking your car to get its oil changed is one of the best ways to ensure longevity of your vehicle. Many times, when the car’s hood is popped, a trained mechanic will look around to see if anything else is amiss. These maintenance check-ups are similar to an operational audit for an organization; an operational audit is a review of efficiency and effectiveness of an organization.

An audit provides the public with assurance that a company has its financial records in check. While not every business faces an audit situation, there are certain circumstances and certain businesses which are required to have audits.

Audits can be a confusing business, and one common misunderstanding stems from the differences between GAAS and governmental auditing standards. The odds are, if you’re not an accountant or CPA, you haven’t given it too much thought. Others, however, wonder why two different sets of accounting standards exist and how they differ.  Here’s a basic outline of both auditing standards and how they compare.

As 2019 continues, the auditing profession has been working alongside of other professionals to ensure that the IRS’s Revenue from Contracts with Customers is implemented correctly. Savvy auditors know already the considerations needed for revenue recognition, and the Professional Company Accounting Oversight Board (PCAOB) has helped to provide information along the way.

Is your church considering a new building or in the need of additional funds for church renovations? If your church or nonprofit religious organization (501(c)(3)) is preparing to obtain financing through a bank loan, odds are that the bank you are working with will require a certified audit of your finances to ensure compliance with generally accepted accounting principles (GAAP). Furthermore, a certified audit will further assert that your financial statements are accurately presented.  Even when a bank doesn’t explicitly require an audit before a loan, having an external, certified audit for your church, conducted by a certified professional accountant, will increase the validity of your loan application and increase your organization’s chances of approval for the loan.

Records indicate that the audit shows up in civilizations of ancient Greece, China and Egypt, as financial documentation and regulations were needed while conducting business. Though not thoroughly documented, Grecian practices mimicked those of today. Circa 522-486 A.D. revealed an example of the first auditors working as the spies of King Darius of ancient Persia. These individuals were auditing by command from the King and to keep track of the business of the governors in ancient Persian territories. In 1494, Luca Pacioli published the first book on accounting in Venice, Italy, which showcased double entry accounting systems of the merchants of the time.

A growing number of workers are concerned that Artificial Intelligence (AI) will take over all if not part of their jobs. The Pew Research Center conducted a study discussing the impact that automation could have upon jobs in the United States. And while advances in technology continue to appear from automated vehicles to the seemingly limitless technology of the 3D printer, the Auditing Profession remains hopeful. An additional report was just released showing a significant amount of jobs needed within the Auditing and Accounting Profession.

Audit Committees can sometimes have a tumultuous relationship with Accounting management, especially when there are significant changes to operations, policies, or procedures that go unnoticed by the Audit Committees. If your Audit Committee is to provide adequate oversight for your company’s financial reporting system, it can be more efficient in its responsibilities by developing a solid internal control system. Before you can properly assess your company’s practice and internal controls, as well as, the opinions of outside auditors it is necessary to ensure you are asking the right questions of your accounting practice. Here are the top 10 questions audit committees should ask accounting management.

Just as in building a home, building a nonprofit requires that certain foundations and securities be set in place. By establishing strong internal controls, nonprofit organizations can correct control deficiencies and ensure their financial health. Nonprofit organizations are encouraged to create a set of checks and balances for any associated individuals or entities otherwise known as internal controls. Instituting solid controls in your business or organization helps avoid serious issues that range from receiving a qualified or adverse opinion from auditors to more serious legal or tax implications.