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Returning Value Blog

It's Almost Time for a Midyear Checkup on Your Company's Financial Health

Posted by Jessica L. Pagan, CPA on May 15, 2024

Interim financial reporting is essential to running a successful business. When reviewing midyear financial reports, however, you should recognize their potential shortcomings. These reports might not be as reliable as year-end financials unless a CPA prepares them or performs agreed-upon procedures on specific accounts.

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Posted in Audit & Assurance

ESG Audits: Navigating New Frontiers in Corporate Responsibility

Posted by Melissa Motley, CPA on Apr 08, 2024

Reporting on environmental, social, and governance (ESG) matters is an increasingly crucial area of corporate compliance. While ESG reporting and disclosure apply primarily to public companies, there are efforts aimed at requiring private companies to also report on these matters. For example, the European Union’s Corporate Sustainability Reporting Directive requires private organizations that meet specific criteria to publish social and environmental risks and their impacts.

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Auditing WIP Today

Posted by Aaron K. Waller, CPA on Apr 04, 2024

External auditors spend a lot of time during fieldwork evaluating how businesses report work-in-progress (WIP) inventory. Here’s why this warrants special attention and how auditors evaluate whether WIP estimates seem reasonable.

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Posted in Audit & Assurance

Spotlight on Auditor Independence

Posted by Aaron K. Waller, CPA on Mar 08, 2024

Auditor independence is the cornerstone of the accounting profession. Auditors’ commitment to follow the standards set forth by the American Institute of Certified Public Accountants (AICPA), the Securities and Exchange Commission (SEC), and the International Auditing and Assurance Standards Board (IAASB) ensures stakeholders can trust that audited financial statements present an accurate picture of the performance and condition of companies.

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Inventory Management Systems: What's Right for Your Business?

Posted by Aaron K. Waller, CPA on Feb 05, 2024

If your business has significant inventory on its balance sheet, it can be costly. The carrying costs of inventory include warehousing, salaries, insurance, taxes, and transportation, as well as depreciation and shrinkage. Plus, tying up working capital in inventory detracts from other strategic investment opportunities.

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Posted in Audit & Assurance

Auditing Concepts: Close-Up On Materiality

Posted by Aaron K. Waller, CPA on Jan 17, 2024

As audit season begins for calendar-year entities, it’s important to review issues that may arise during fieldwork. One common issue is materiality. This concept is used to determine what’s important enough to be included in — and what can be omitted from — a financial statement. Here’s how materiality is determined and used during an external financial statement audit.

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Are You Ready For Year-End Inventory Counts?

Posted by Aaron K. Waller, CPA on Dec 18, 2023

As year-end approaches, it’s time for some calendar-year businesses to perform physical inventory counts. This activity is more than a time-consuming chore; it’s an opportunity to improve your company’s operational efficiency. Here are some best practices as you prepare to count your inventory, as well as guidance on how to get more from these counts.

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Posted in Audit & Assurance

It's Important to Track Tools and Small Equipment

Posted by Melissa Motley, CPA on Dec 07, 2023

Is your business constantly replacing its tools and small equipment? Certain items that can fit in a backpack, pocket, or even the armrest of a vehicle — such as power tools, hard hats, iPads, and RFID readers — have a tendency to “walk away” from job sites, warehouses, and offices. However, the cost of lost, damaged, and stolen items can quickly erode profits and cash flow. An effective tracking system can help remedy this problem by making workers more accountable.

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Posted in Audit & Assurance

FASB Approves Updated Rules for Disclosing Income Taxes

Posted by Melissa Motley, CPA on Oct 05, 2023

On August 30, 2023, the Financial Accounting Standards Board (FASB) unanimously voted to finalize its proposed improvements to the disclosure rules for income taxes. Here’s what’s changing and when those changes are effective.

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Posted in Audit & Assurance

Reporting UTPs on Your Financial Statements

Posted by Aaron K. Waller, CPA on Aug 08, 2023

It can be difficult for business owners to navigate the tax code and monitor tax law developments. One area of special concern is financial reporting for uncertain tax positions (UTPs). Here’s some insight to help clarify matters.

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Posted in Audit & Assurance

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