Author Articles
Audit, tax, and advisory resources from our team.
Many assume the Bureau of the Fiscal Service (BFS) performs audits directly, but this is a misconception. As a branch of the U.S. Treasury, the BFS does not conduct audits; instead, it supports the process through government fiscal oversight and annual audit preparation.
In PCAOB audits, auditors test management's underlying claims—known as assertions—to verify financial fairness. These assertions guide audit procedures and, combined with a strict emphasis on internal controls, distinguish PCAOB audits from standard GAAS audits.
How is a PCAOB audit different from a normal audit? PCAOB audits are mandatory for public companies and require stricter oversight than standard GAAS audits. They focus intensely on internal controls and documentation to uphold investor trust in U.S. capital markets.
The Shuttered Venue Operators Grant (SVOG) is structured as a grant rather than a loan, meaning recipients are not required to repay the funds as long as they comply with the terms and conditions of the grant. This distinction was critical for struggling live entertainment venues, museums, theaters, and other eligible entities that relied on this program to survive the economic hardships brought on by the COVID-19 pandemic.
SVOG stands for Shuttered Venue Operators Grant. This program was established under the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, which was passed in December 2020 to provide financial support to industries severely impacted by the COVID-19 pandemic. Administered by the Small Business Administration (SBA), the SVOG aimed to help eligible entities in the arts, entertainment, and cultural sectors stay afloat during a time of unprecedented closures and disruptions.
An equity audit is a detailed review of a company’s financial information related to its equity holdings. This process ensures that the equity data is accurate, transparent, and compliant with relevant accounting standards. The procedures involved in an equity audit are designed to provide stakeholders with confidence in the company's financial health and to ensure regulatory compliance. Below are the key steps in the equity audit process:
To maintain transparency and protect investor interests, the SEC mandates that private funds—including hedge, PE, and VC funds—undergo an annual audit by an independent, registered firm. This rule ensures financial statements align with GAAP, safeguarding assets and enhancing trust between managers and investors.
Internal audits are vital for ensuring that an organization’s processes, controls, and risk management strategies are functioning effectively. These audits help identify inefficiencies, mitigate risks, and ensure compliance with regulations. The responsibility for performing internal audits typically falls on a few key groups within or outside the organization. Here’s an overview of who generally performs internal audits.
A Certified Internal Auditor (CIA) is very critical in fulfilling two duties: the regulation aspect of business functions and full scope evaluation on internal controls. A CIA presents various contributions as outlined below:
Distinct auditing processes fulfill fundamental functions in securing business operations, and financial practices are consistent with regulatory necessities and enterprises' internal goals. In this context, two typical categories are SOX audits and general internal audits, which have exclusive purposes and different scopes. Apples should not be compared to oranges.
Audit findings are critical in assessing the performance, compliance, and efficiency of an organization. To ensure these findings are clear, actionable, and impactful, auditors use a framework called the 5 C's: Criteria, Condition, Cause, Consequence, and Corrective Action. This method not only organizes the findings but also provides a structured approach for addressing and resolving issues. Let’s break down each component:
A review engagement consists mainly of analytical procedures and inquiries to management, providing limited assurance. It concludes that the CPA firm is not aware of any material modifications needed for the financial statements to conform with reporting standards.
