What IRS Auditors Know About Your Business Industry

RogerRossmeisl

In other words, your business can use the same guides to gain insight into what IRS auditors know, and what the IRS is looking for in terms of compliance with tax laws and regulations. The post What IRS Auditors Know About Your Business Industry appeared first on Roger Rossmeisl, CPA.

Winning Auditor Malpractice Cases

FraudFiles

Simply because there is a fraud, a business failure, or a pyramid scheme collapse, the auditors are not necessarily at fault. The auditors may have carried out their professional responsibilities exactly as they should have, but they still did not uncover the fraud.

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Blaming the Auditors for Fraud

FraudFiles

Often, the blame is cast in the direction of the auditors. The auditors are an easy target. Not only do they usually have professional liability insurance policies to fall back on, the auditors initially seem like the logical culprit.

EY Charges Related to Auditor Independence

FraudFiles

What the chief accounting officer (Stiehl) did amounted to “auditor selection process improprieties.” Basically, independence is a core attribute that auditors must have.

Deutsche Bank Auditors Found AML Process Weaknesses

PYMNTS

Internal auditors at Deutsche Bank found weaknesses in anti-money laundering processes resulted in checks and high-value electronic payments being processed without undergoing the proper vetting. In 2018 under 100 checks were impacted but the internal auditors aren’t sure how many got through before 2018. Bank Regulation anti money laundering rules Anti-Money Laundering auditor auditors banking checks Deutsche Bank fraud News What's Hot

Why Auditors Do Not Find Fraud

FraudFiles

Even with all the publicity surrounding the issue of financial fraud in the last twenty years, most auditors, investors, and other professionals still do not “get it” when it comes to detecting fraud. Auditors examine a very small percentage of transactions. Inexperienced Auditors.

Wirecard Saga Reignites Debate Over Auditors’ Role In Combatting Fraud

PYMNTS

As the fallout from Wirecard ‘s $2 billion accounting scandal continues, some attention has turned to the Germany-based payment company’s auditor, Ernst & Young (EY). The Auditor’s Role.

Auditors Look Into Concerns Raised About Trade Finance Firm Barak

PYMNTS

As Barak Fund Management looks for the green light to reshuffle a large trade finance fund, auditors are looking into concerns raised about the business, Bloomberg reported.

Wirecard Auditor Flagged KPMG Report, Saying It Needed ‘Context’

PYMNTS

In April, one day before the delayed report was published, EY auditors told Wirecard of their concerns with how the third-party business was presented.

Withum Leads SPAC Market as the #1 Auditor of Record for 2020

Withum

News

Aussie Auditors’ Role In Reverse Factoring Disclosure Questioned

PYMNTS

Several high-profile corporate collapses and initiatives from corporate accounting standard-setters have raised questions about businesses’ use of supply chain finance and whether the trade finance tool prevents investors and auditors from gaining a transparent view into company finances.

Auditors Say EU Failed To Stop Misuse Of Funds

PYMNTS

Auditors of the European Union said Thursday (Jan. According to the report, auditors said that the EU has only been able to get back about 15 percent of the misused funds. The auditors found that misused EU funds totaled 391 million euros or $451 million in 2017, in line with the past four years, but the EU’s anti-fraud investigative office OLAF was only able to indict EU member states in 45 percent of cases.

USA Tech Shares Plummet As Auditor Resigns

PYMNTS

USA Technologies’ shares lost roughly 45 percent of their value on Thursday in intraday trading after an SEC filing by the firm revealed that RSM US LLP, the firm’s auditor, resigned over concerns tied to financial reporting by the company. In the meantime, USA Technologies said in the same filing that it will seek to have a new independent auditor in place as soon as “practicable.”.

Auditors Ready To Drop Riskiest Corporate Clients

PYMNTS

As pressure continues to mount on the so-called Big Four corporate auditors in both Australia and the U.K., Grant Thornton is expected to divest Sports Direct as a client next month amid rising concerns over the company’s accounting practices, with the auditor separately announcing plans to take a “line by line” review of its clients. the Financial Times reports that the conglomerates are gearing up to offload some of its riskiest corporate clients.

UK Financial Watchdog Ramps Up Auditor Oversight

PYMNTS

Reports said the FRC also intends to heighten its scrutiny of auditor governance and leadership, risk mitigation processes, control and overall behavior. financial watchdogs have stepped up their oversight of the accounting and auditing industry amid a string of corporate accounting scandals, collapses and questions over the dominance of the Big Four auditing firms. The U.K.

Australia’s Big Banks Defend Spending Millions On Outside Auditors

PYMNTS

According to a report in The Sydney Morning Herald , National Australia Bank’s outgoing chairman Ken Henry and other executives held discussions last week with its independent auditor, Ernst & Young , about the shortcomings in the bank’s risk management. EY has been the bank’s independent auditor for 13 years. But Australia’s banks have defended the decision to shell out millions of dollars to independent auditors for additional consulting work.

Wirecard Delays Annual Report After Auditors Can’t Confirm $2.1B In Cash Exists

PYMNTS

Wirecard has postponed publication of its 2019 annual report after disclosing that its auditor can’t confirm the existence $2.1 billion in trust accounts — or about a quarter of the value on the company’s books.

Withum Named #1 IPO Auditor for Q3 of 2020

Withum

News

Internal Auditor Charged In $2B India Bank Fraud Scandal

PYMNTS

An internal auditor at a Mumbai branch of Punjab National Bank is accused of conspiring with other officials to defraud the lender of $2 billion, reported Reuters. Citing Federal police in India, Reuters reported the Central Bureau of Investigation (CBI) said it has arrested Mohinder Kumar Sharma, an auditor at the lender, as the probe into the fraud continues to expand.

Tips to Ensure You Don't Mishandle a Sales Tax Audit

TaxConnex

Good news and press for your business could also put you on the radar for auditors. Many companies’ documentation is poorly organized and hard for an auditor to interpret. Be sure you have your documentation in order before the auditor shows up.

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Audit Standards On Hot Seat In Wake Of Wirecard Scandal

PYMNTS

Auditors should be required “to find fraud rather than stumble over it,” Donald Brydon , appointed last year to overhaul audit standards in the United Kingdom, told the Financial Times. Many are now debating the role of auditors in fraud mitigation.

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New CaseWare Solutions To Streamline Accounting, Auditing Services

PYMNTS

CaseWare International ‘s new technology will attempt to let accountants and auditors work better with customers, particularly as the world emerges from the coronavirus pandemic. B2B Payments accountant auditor B2B CaseWare digital taxes What's Hot In B2B

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Wirecard Denies Fraud Claims, Defends Accounting Practices

PYMNTS

His comments come after FT published documents last week allegedly provided by whistleblowers that “appear to indicate a concerted effort to fraudulently inflate sales and profits at Wirecard businesses in Dubai and Ireland, as well as to potentially mislead EY, Wirecard’s Tier 1 auditor.”. Wirecard has insisted that its “group auditor Ernst & Young GmbH, Germany, confirmed that they have complied and will comply with all statutory and professional audit standards.”.

Business Meal and Vehicle Expense Recordkeeping DOs and DON’Ts

RogerRossmeisl

Tax auditors are adept at rooting out inconsistencies, omissions and errors in taxpayers’ records, as illustrated by one recent U.S. If you’re claiming deductions for business meals or auto expenses, expect the IRS to closely review them.

UK Government Urged To Break Up Financial Reporting Council

PYMNTS

Criticism has mounted against the FRC in the wake of the collapse of government contracting giant Carillion — policymakers question how the government was unable to prevent its auditor, KPMG, from identifying Carillion’s accounting failures. MPs accused KPMG of “failing to exercise professional skepticism,” and the ordeal has amplified calls to break up the nation’s Big Four auditors, which, along with KPMG, include PwC, EY and Deloitte. The U.K.

Bitcoin Daily: QuadrigaCX’s Crypto Moves To EY; Samsung Unveils Smartphone With Built-In Crypto Key

PYMNTS

On another note, the County Auditors’ Association of Ohio (CAAO) is forming a group to study the application of blockchain technology on real estate transactions, CoinDesk reported. CAAO President and Stark County Auditor Alan Harold said in an announcement posted on the SafeChain website, “The goal of this working group is to consider how county auditors can be forward-thinking to improve the taxpayer experience in conveying and transferring real property.”.

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W Virginia Withholds Payment To Tax Delinquent Vendors

PYMNTS

The West Virginia State Auditor’ s office has announced a new tax program aimed at vendors who owe the state money. The number of vendors to be included in the intercept routine will gradually get larger until all vendors are included,” State Auditor John B. B2B Payments auditor B2B delinquent intercept News payment tax taxes vendors West Virginia What's Hot In B2B

7 Ways a Business is Selected for Audit

TaxConnex

An audit of your customer – A customer undergoing its own sales tax audit may produce one of your invoices , resulting in the auditor questioning why you are not charging sales tax and potentially leading to an inquiry or nexus questionnaire being sent to your company.

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Your Business Audit Will Cost You, Unless.

GrowthForceBlog

In a perfect world, when the time for an audit rolls around, you'd simply greet the auditor, show them your files, and wait for your perfect grade. 5 min read.

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Name Your Sales Tax Data Files for the Long Haul

TaxConnex

You don’t want to accidentally give an auditor a wrong file or utilize old data in your returns. When we talk with businesses about sales tax compliance, we eventually get to a discussion about preparing and filing returns. Many times, this starts with “how hard can it be”. “It’s

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Wolters Kluwer’s Continuing Audit Education Adds Value

MarkFriedlich

As auditors, we understand that. The value of continuing audit education from the School of Audit During the first few months of each year our lives go on hold as we take care of our clients needs.

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Resale Certificates: What They Are and How to Use Them

TaxConnex

In the absence of a valid resale certificate, an auditor is likely to assume the transaction was taxable. An exemption certificate is used to exempt an otherwise taxable transaction from sales tax.

UK Accounting Watchdog Ramps Up Fines

PYMNTS

The newly aggressive tactics suggest the FRC took note of criticism by policymakers that the regulator was ineffective and “toothless” to address substandard auditing by the nation’s Big Four auditors: KPMG, PwC, Ernst & Young and Deloitte. ” B2B Payments auditor B2B corporate accounting Financial Reporting Council KPMG News PWC What's Hot In B2BThe U.K.’s

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Common Accounting Mistakes: Government Edition - Issue #8 Unallowable Expenses

SMBAccountant

DCAA provides an excellent online reference tool, the Selected Area of Cost Guidebook, for contractors and auditors alike to review costs for allowability. There are certain expenses that a business incurs that the federal government does not reimburse.

Common Accounting Mistakes: Government Edition - Issue #1: Am I Accrual or Cash Basis?

SMBAccountant

The issue is that auditors don’t arrive only after the fiscal year has been closed.

Controls are Ineffective When Managers Go Rogue

RogerRossmeisl

For instance, a manager may fail to call attention to business risks or dispute an auditor’s findings. Management overrides of internal controls can make your company more vulnerable to fraud.

Common Accounting Mistakes: Government Edition - Issue #12 R&D

SMBAccountant

These different methods of accounting for R&D costs can be audit hot spots for both the government contracting and IRS auditors.

Questions to Ask Your Sales Tax Provider Before You Sign the Contract

TaxConnex

Will you advise me on what to share with the auditor? They said it would be simple. They said they could automate it all, but in fact, you’re still doing a lot of the work.

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Common Accounting Mistakes: Government Edition - Issue #9 How Quality Management Effects Accounting

SMBAccountant

DCAA auditors not only want to see that there is a policy in place, but there is continued effort to monitor the effectiveness through separation of duties and internal audits.

Earn $20 per Book Promoting My Tax Preparer Book from Home in Your Spare Time

AdviceForTaxpreparers

Issue 3: I am an accounting major, auditor, or I don’t have enough experience in tax to promote the book. Advice for Tax Preparers Making tax preparers lives easier one blog at a time HOME. ABOUT. CONTACT. Earn $20 per Book Promoting My Tax Preparer Book from Home in Your Spare Time.

Common Accounting Mistakes: Government Edition - Issue #1: Am I Accrual or Cash Basis?

SMBAccountant

The issue is that auditors don’t arrive only after the fiscal year has been closed.

Sales Tax Audits - The Danger Grows

TaxConnex

One of your customer s undergoing their own sales tax audit might produce one of your invoices, resulting in the auditor possibly contacting you for a certificate of exemption or other documents.

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Key Pieces of Your Exemption Certificate

TaxConnex

During a sales tax audit, one of the first requests from the auditor will be for you to provide copies of all exemption certificates for any exemptions you have claimed on your returns. An exemption is an exception that eliminates the need to pay sales tax.