--- title: Machen McChesney Blog | Audit & Assurance (2) description: Audit & Assurance | (2) --- [Family of Services](http://machenmcchesney.com/about-us/family-of-companies/)  |  [CPA & Business Advisory](http://machenmcchesney.com)  |  [Payroll, HR & Benefits](http://focuspaysolutions.com/)  |  [Wealth Management](http://machenmcchesney.com/services/financial-planning-and-wealth-mangement-services/) Auburn-Opelika (334) 887-7022 | Montgomery (334) 244-8900 [![mm-re-cobrand-fd-blues](https://info.machen.cpa/hs-fs/hubfs/mm-re-cobrand-fd-blues.png?width=279&height=100&name=mm-re-cobrand-fd-blues.png)](http://machenmcchesney.com) Search this site on Google Search Google Search this site on Google Search Google - [Client Portal](https://machenmcchesney.sharefile.com/Authentication/Login) - [1040 Electronic Organizer](https://www.my1040data.com/account/login/HT7902990) - [LinkedIn](https://www.linkedin.com/company/675439?trk=tyah&trkInfo=idx%3A1-1-1%2CtarId%3A1424436970395%2Ctas%3Amachen+mcchesney) - [Facebook](https://www.facebook.com/machenmcchesney) - [Google](https://plus.google.com/101356546927388458481) - [Twitter](https://twitter.com/machenmcchesney) - About Us - [Welcome](http://machenmcchesney.com/about-us/welcome/) - [Affiliations and Associations](http://machenmcchesney.com/about-us/affiliations-and-associations/) - [Community Events](http://machenmcchesney.com/about-us/community-events/) - [Family of Companies](http://machenmcchesney.com/about-us/family-of-companies/) - [History](http://machenmcchesney.com/about-us/firm-profile-history/) - [Mission and Values](http://machenmcchesney.com/about-us/mission-and-values/) - [Team Directory](http://machenmcchesney.com/about-us/team-directory/) - Services - [Accounting & Outsourcing](http://machenmcchesney.com/services/accounting-outsourcing/) - [Audit and Assurance Services](http://machenmcchesney.com/services/audit-assurance/) - [Business Advisory Services](http://machenmcchesney.com/services/business-advisory/) - [Business Valuation Services](http://machenmcchesney.com/services/business-valuation-services/) - [Family Office Services](http://machenmcchesney.com/services/family-care/) - [Financial Planning & Wealth Mangement Services](http://machenmcchesney.com/services/financial-planning-and-wealth-mangement-services/) - [Individual Services](http://machenmcchesney.com/services/individuals/) - [Taxation](http://machenmcchesney.com/services/taxation/) - Who We Serve - [Construction & Real Estate](http://machenmcchesney.com/industries/construction-real-estate/) - [Credit Unions](http://machenmcchesney.com/industries/credit-unions/) - [Government & Not-For-Profits](http://machenmcchesney.com/industries/governmental-not-for-profit/) - [Healthcare & Professional Services](http://machenmcchesney.com/industries/healthcare-and-professional-services/) - [Hospitality, Restaurant & Retail](http://machenmcchesney.com/industries/hospitality-restaurant-retail/) - [Manufacturing, Distribution & Automotive](http://machenmcchesney.com/industries/manufacturing-distribution-automotive/) - [Success Stories](http://machenmcchesney.com/success-stories) - Resources - [Blog](https://info.machenmcchesney.com/blog) - [E-Newsletter Archive](http://machenmcchesney.com/resources/e-newsletter-archive/) - [Financial Calculators](http://machenmcchesney.com/resources/financial-calculators/) - [Financial Terms Glossary](http://machenmcchesney.com/resources/financial-terms-glossary/) - [Helpful Articles](http://machenmcchesney.com/resources/newsletter/) - [Tax Calendar](http://machenmcchesney.com/resources/tax-calendar/) - [Tax Links](http://machenmcchesney.com/resources/tax-links/) - [Track Your Refund](http://machenmcchesney.com/resources/track-your-refund/) - [Sign Up for Our E-Newsletter](http://machenmcchesney.com/resources/e-newsletter/) - [Subscribe to Our Blog](http://machenmcchesney.com/resources/subscribe-to-the-machen-mcchesney-blog/) - News & Events - [Press Releases](http://machenmcchesney.com/news-events/press-releases/) - [Upcoming Events](http://machenmcchesney.com/news-events/upcoming-events/) - Careers - [Our Culture](http://machenmcchesney.com/careers/culture/) - [Benefits](http://machenmcchesney.com/careers/benefits/) - [Our Stories](http://machenmcchesney.com/careers/our-stories/) - [Current Openings](http://machenmcchesney.com/careers/current-openings-send-resume/) - [Accounting Internship Opportunities](http://machenmcchesney.com/careers/students/) - Contact Us - [Auburn-Opelika Office](http://machenmcchesney.com/contact-us/contact-us-auburn-office/) - [Montgomery Office](http://machenmcchesney.com/contact-us/contact-us-montgomery-office/) # Returning Value Blog ## [Tackling Risk Management With a Proactive Approach](https://info.machen.cpa/blog/tackling-risk-management-with-a-proactive-approach) ![](https://info.machen.cpa/hubfs/Aaron%20Waller%202025%20update.jpg) Posted by [Aaron K. Waller, CPA](https://info.machen.cpa/blog/author/aaron-k-waller-cpa) on Mar 13, 2025 [![](https://info.machen.cpa/hubfs/Risk%20Management%20-2057232992-1.jpeg)](https://info.machen.cpa/blog/tackling-risk-management-with-a-proactive-approach) Risks are unavoidable in today’s volatile, uncertain marketplace. However, proactive owners and executives can manage business risks more effectively with an enterprise risk management (ERM) framework. A structured approach helps organizations anticipate risks, seize opportunities, and build resilience. [Full Story](https://info.machen.cpa/blog/tackling-risk-management-with-a-proactive-approach) Posted in [Audit & Assurance](https://info.machen.cpa/blog/topic/audit-assurance) ## [FAQ About Reporting Subsequent Events](https://info.machen.cpa/blog/faq-about-reporting-subsequent-events) ![](https://info.machen.cpa/hubfs/Melissa%20Motley%202025%20update%20.jpg) Posted by [Melissa Motley, CPA](https://info.machen.cpa/blog/author/melissa-motley-cpa) on Mar 11, 2025 [![](https://info.machen.cpa/hubfs/computer%20and%20quesitons%20marks%20-1154652697-1-1.jpeg)](https://info.machen.cpa/blog/faq-about-reporting-subsequent-events) Subsequent events are in the spotlight these days. The Public Company Accounting Oversight Board (PCAOB) recently initiated a project to modernize outdated auditing standards related to these events. The PCAOB says the audit guidance hasn’t kept pace with changes in financial reporting frameworks, risk assessment methodologies, and technological advancements. This has resulted in inconsistencies in how companies account for post-balance-sheet developments in their financial statements. [Full Story](https://info.machen.cpa/blog/faq-about-reporting-subsequent-events) Posted in [Audit & Assurance](https://info.machen.cpa/blog/topic/audit-assurance) ## [How to Forecast Smarter](https://info.machen.cpa/blog/how-to-forecast-smarter-2025) ![](https://info.machen.cpa/hubfs/Melissa%20Motley%202025%20update%20.jpg) Posted by [Melissa Motley, CPA](https://info.machen.cpa/blog/author/melissa-motley-cpa) on Feb 12, 2025 [![](https://info.machen.cpa/hubfs/Forecasting%20903862896-1.jpeg)](https://info.machen.cpa/blog/how-to-forecast-smarter-2025) Financial forecasting provides a roadmap to guide your organization on the path to success. Forecasts support strategic planning by helping you allocate resources efficiently, manage risks effectively, and optimize capital investments. However, today’s dynamic marketplace is uncharted territory, so you can’t rely solely on historical data. Reliable forecasts also consider external market trends and professional insights. Here are some tips to strengthen your forecasting models and help you avoid common pitfalls. [Full Story](https://info.machen.cpa/blog/how-to-forecast-smarter-2025) Posted in [Audit & Assurance](https://info.machen.cpa/blog/topic/audit-assurance) ## [Fraud Risk Assessment: What Auditors Watch For](https://info.machen.cpa/blog/fraud-risk-assessment-what-auditors-watch-for) ![](https://info.machen.cpa/hubfs/Aaron%20Waller%202025%20update.jpg) Posted by [Aaron K. Waller, CPA](https://info.machen.cpa/blog/author/aaron-k-waller-cpa) on Jan 27, 2025 [![](https://info.machen.cpa/hubfs/Fraud%20-1372380725-1.jpeg)](https://info.machen.cpa/blog/fraud-risk-assessment-what-auditors-watch-for) Auditing standards require auditors to identify and assess the risks of material misstatement due to fraud and to determine overall and specific responses to those risks. Here are some answers to questions about what auditors assess when interviewing company personnel to evaluate potential fraud risks. [Full Story](https://info.machen.cpa/blog/fraud-risk-assessment-what-auditors-watch-for) Posted in [Audit & Assurance](https://info.machen.cpa/blog/topic/audit-assurance) ## [Beyond the Financials: What's a Quality of Earnings Report?](https://info.machen.cpa/blog/beyond-the-financials-whats-a-quality-of-earnings-report) ![](https://info.machen.cpa/hubfs/Melissa%20Motley%202025%20update%20.jpg) Posted by [Melissa Motley, CPA](https://info.machen.cpa/blog/author/melissa-motley-cpa) on Jan 23, 2025 [![](https://info.machen.cpa/hubfs/Earnings%20Report-1.jpeg)](https://info.machen.cpa/blog/beyond-the-financials-whats-a-quality-of-earnings-report) Financial statements provide insights into a company’s *historical* performance. But, the parties to a merger or acquisition are also interested in assessing the acquisition target’s potential to generate cash flow in the *future*. That’s where an independent quality of earnings (QOE) report comes into play. [Full Story](https://info.machen.cpa/blog/beyond-the-financials-whats-a-quality-of-earnings-report) Posted in [Audit & Assurance](https://info.machen.cpa/blog/topic/audit-assurance) ## [How Do Auditors Verify Account Balances and Transactions?](https://info.machen.cpa/blog/how-do-auditors-verify-account-balances-and-trasactions) ![](https://info.machen.cpa/hubfs/Aaron%20Waller%202025%20update.jpg) Posted by [Aaron K. Waller, CPA](https://info.machen.cpa/blog/author/aaron-k-waller-cpa) on Dec 17, 2024 [![](https://info.machen.cpa/hubfs/The%20word%20Audit%20511975617-1.jpeg)](https://info.machen.cpa/blog/how-do-auditors-verify-account-balances-and-trasactions) Audit season is just around the corner for calendar-year entities. Understanding the types of source documents your audit team might request can minimize disruptions during audit fieldwork and maximize your audit’s effectiveness. Here are some common sources of “substantive evidence” that auditors gather to help them form an opinion regarding your financial statements. [Full Story](https://info.machen.cpa/blog/how-do-auditors-verify-account-balances-and-trasactions) Posted in [Audit & Assurance](https://info.machen.cpa/blog/topic/audit-assurance) ## [How Your Business Can Prepare for and Respond to an IRS Audit](https://info.machen.cpa/blog/how-your-business-can-prepare-for-and-respond-to-an-irs-audit) ![](https://info.machen.cpa/hubfs/Melissa%20Motley%202025%20update%20.jpg) Posted by [Melissa Motley, CPA](https://info.machen.cpa/blog/author/melissa-motley-cpa) on Nov 20, 2024 [![](https://info.machen.cpa/hubfs/IRS%20Audit%201029300652-1.jpeg)](https://info.machen.cpa/blog/how-your-business-can-prepare-for-and-respond-to-an-irs-audit) The IRS has been increasing its audit efforts, focusing on large businesses and high-income individuals. By 2026, it plans to nearly triple its audit rates for large corporations with assets exceeding $250 million. Under these plans, partnerships with assets over $10 million will also see audit rates increase tenfold by 2026. This ramp-up in audits is part of the IRS’s broader strategy, funded by the Inflation Reduction Act, to target wealthier entities and high-dollar noncompliance. [Full Story](https://info.machen.cpa/blog/how-your-business-can-prepare-for-and-respond-to-an-irs-audit) Posted in [Audit & Assurance](https://info.machen.cpa/blog/topic/audit-assurance) ## [Eyes on the Income Statement](https://info.machen.cpa/blog/eyes-on-the-income-statement) ![](https://info.machen.cpa/hubfs/Melissa%20Motley%202025%20update%20.jpg) Posted by [Melissa Motley, CPA](https://info.machen.cpa/blog/author/melissa-motley-cpa) on Oct 10, 2024 [![](https://info.machen.cpa/hubfs/Income%20Statement%20-465616940-1.jpeg)](https://info.machen.cpa/blog/eyes-on-the-income-statement) When reviewing their income statements, business owners tend to focus on profits (or losses). But focusing solely on the bottom line can lead to mismanagement and missed opportunities. Instead, you should analyze this financial report from top to bottom for deeper insights. [Full Story](https://info.machen.cpa/blog/eyes-on-the-income-statement) Posted in [Audit & Assurance](https://info.machen.cpa/blog/topic/audit-assurance) ## [Strong Internal Controls and Audits Can Help Safeguard Against Data Breaches](https://info.machen.cpa/blog/strong-internal-controls-and-audits-can-help-safeguard-against-data-breaches) ![](https://info.machen.cpa/hubfs/Melissa%20Motley%202025%20update%20.jpg) Posted by [Melissa Motley, CPA](https://info.machen.cpa/blog/author/melissa-motley-cpa) on Sep 18, 2024 [![](https://info.machen.cpa/hubfs/Internal%20control%20-488305796-1.jpeg)](https://info.machen.cpa/blog/strong-internal-controls-and-audits-can-help-safeguard-against-data-breaches) The average cost of a data breach has reached $4.88 million, up 10% from last year, according to a recent report. As businesses increasingly rely on technology, cyberattacks are becoming more sophisticated and aggressive, and risks are increasing. What can your organization do to protect its profits and assets from cyber threats? [Full Story](https://info.machen.cpa/blog/strong-internal-controls-and-audits-can-help-safeguard-against-data-breaches) Posted in [Audit & Assurance](https://info.machen.cpa/blog/topic/audit-assurance) ## [What Are AUP Engagements - and Does Your Business Need One?](https://info.machen.cpa/blog/what-are-aup-engagements-and-does-your-business-need-one) ![](https://info.machen.cpa/hubfs/Melissa%20Motley%202025%20update%20.jpg) Posted by [Melissa Motley, CPA](https://info.machen.cpa/blog/author/melissa-motley-cpa) on Aug 02, 2024 [![](https://info.machen.cpa/hubfs/Agreed%20Upon%20Procedures-1.jpeg)](https://info.machen.cpa/blog/what-are-aup-engagements-and-does-your-business-need-one) In certain circumstances, businesses may need to hire CPAs to perform agreed-upon procedures (AUPs) instead of (or in addition to) a review or an audit. AUPs are a type of attestation engagement “in which a practitioner performs specific procedures on the subject matter and reports the findings without providing an opinion or conclusion,” according to the standards set forth by the American Institute of Certified Public Accountants. [Full Story](https://info.machen.cpa/blog/what-are-aup-engagements-and-does-your-business-need-one) Posted in [Audit & Assurance](https://info.machen.cpa/blog/topic/audit-assurance) [Previous](https://info.machen.cpa/blog/topic/audit-assurance/page/1) [Next](https://info.machen.cpa/blog/topic/audit-assurance/page/3) Search this site on Google Search Google ### Recent Posts ### Subscribe to Blog ### Posts by Category - [Business Tax (356)](https://info.machen.cpa/blog/topic/business-tax) - [Business Advisory (242)](https://info.machen.cpa/blog/topic/business-advisory) - [Payroll, HR & Benefits (124)](https://info.machen.cpa/blog/topic/payroll-hr-benefits) - [Audit & Assurance (113)](https://info.machen.cpa/blog/topic/audit-assurance) - [Accounting & Outsourcing (81)](https://info.machen.cpa/blog/topic/accounting-outsourcing) - [Individual Tax (75)](https://info.machen.cpa/blog/topic/individual-tax) - [Tax Planning (33)](https://info.machen.cpa/blog/topic/tax-planning) - [Tax Updates (25)](https://info.machen.cpa/blog/topic/tax-updates) - [Retirement & Wealth Management Planning (18)](https://info.machen.cpa/blog/topic/retirement-wealth-management-planning) - [Taxation (15)](https://info.machen.cpa/blog/topic/taxation) - [Alerts (13)](https://info.machen.cpa/blog/topic/alerts) - [Business Valuation (11)](https://info.machen.cpa/blog/topic/business-valuation) - [News & Events (11)](https://info.machen.cpa/blog/topic/news-events) - [Tax News (11)](https://info.machen.cpa/blog/topic/tax-news) - [Individual Tax Planning (10)](https://info.machen.cpa/blog/topic/individual-tax-planning) - [Not For Profit (10)](https://info.machen.cpa/blog/topic/not-for-profit) - [Retirement Planning (9)](https://info.machen.cpa/blog/topic/retirement-planning) - [Estate Planning (8)](https://info.machen.cpa/blog/topic/estate-planning) - [Manufacturing Industry Insights (7)](https://info.machen.cpa/blog/topic/manufacturing-industry-insights) - [Individuals (1)](https://info.machen.cpa/blog/topic/individuals) - [Insider (1)](https://info.machen.cpa/blog/topic/insider) - [Professional Standard News (1)](https://info.machen.cpa/blog/topic/professional-standard-news) see all [![Returning\_Value](https://info.machen.cpa/hs-fs/file-2504250850-jpg/Machen-Blog-Image/Returning_Value.jpg)](http://machenmcchesney.com/about-us/mission-and-values/) - [![AICPA](https://machenmcchesney.com/img/logos/aicpa.jpg)](https://www.aicpa-cima.com/) - [![NACVA](https://machenmcchesney.com/img/logos/nacva.jpg)](http://www.nacva.com/) - ![2026 INSIDE Public Accounting Top 400](https://machenmcchesney.com/img/2026-ipa-top-400.jpg) - ![2026 Best of Auburn-Opelika](https://machenmcchesney.com/img/2026-best-of-auburn-opelika.jpg) - [![2025 Best of OA](https://machenmcchesney.com/img/2025-best-of-oa.jpg)](https://oanow.com/exclusive/readerschoice/ballot-2025/) - ![2026 Best of OA Winner](https://machenmcchesney.com/img/2026-best-of-oa-winner.jpg) - [![2025 Accounting Today Regional Leaders](https://machenmcchesney.com/img/2025-accounting-today-regional-leaders.jpg)](https://www.accountingtoday.com/) - [![ClearlyRated Best of Accounting](https://machenmcchesney.com/img/2024-best-of-accounting.jpg)](https://www.clearlyrated.com/accounting) - [![ClearlyRated Best of Accounting Employee](https://machenmcchesney.com/img/2024-best-of-accounting-employee.jpg)](https://www.clearlyrated.com/accounting) 1820 East University Drive, Auburn, AL 36830 | Tel: (334) 887-7022 | Fax: (334) 887-7221 1761 Taliaferro Trail, Montgomery, AL 36117 | Tel: (334) 244-8900 | Fax: (334) 364-0927 † This is not a CPA firm. \* Assurance, attest, and audit services provided by Frazier & Deeter, LLC. “Frazier & Deeter” is the brand name under which Frazier & Deeter, LLC\* and Frazier & Deeter Advisory, LLC† and its subsidiary entities provide professional services. 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