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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The 'P' in CPA: Understanding auditors’ responsibility to the public

Accounting Today

Audit CPAs PwC Audit preparation

Are Auditors Becoming as Hard to Find as a PS5?

Going Concern

On top of the overall pipeline issue, we’ve heard grumblings of auditor shortages for years. With all that in mind, I thought I’d pull some numbers from the two most recent AICPA Trends reports to compare 2019 to 2021 and see if new hire demand lines up with an auditor shortage.

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.

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.

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.

Pressure Mounts On Big Four Auditors

PYMNTS

Former ASIC Chairman Greg Medcraft warned that declining audit quality runs the risk of high-profile corporate collapses, pointing to the Enron scandal that went undetected by auditors — described as the “gatekeepers” that “facilitate trust,” Medcraft said. Auditors are not skeptical enough. He suggested that more competition, not tougher regulation, is key to keeping auditors in check and keeping auditing standards elevated.

Friday Footnotes: EY and KPMG This Week’s Big 4 Lawsuits; Eliminate Accounting Majors?; Auditors Fire Messy Municipal | 4.29.22

Going Concern

Less work for EY auditors? Scarred by its role as auditor to fraudulent payments group Wirecard, the Big Four firm has searched its soul (more thoroughly than it searched Wirecard’s books) and this week announced “the most comprehensive process of change in its more than 100-year history”.

Friday Footnotes: No Foolin’ Here; 18,000 New Accounting Jobs; Skills Auditors Need NOW to Be Future-Ready | 4.1.22

Going Concern

ARB’s auditor Messrs BDO voluntarily resigns after failure to reach agreement on proposed increase of audit fees [ The Edge ] Expect to see a lot of this going forward: ARB Bhd on Friday (April 1) announced its auditor Messrs BDO PLT (BDO) has voluntarily resigned.

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.

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.”.

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 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.

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.

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

Withum

News

The SEC Only Gives Out Wrist-Slaps to the Big 4 When They Break Independence Rules On Providing Non-Audit Services to Audit Clients

Going Concern

The regulator already has auditor independence rules etched in stone that prohibit audit firms from providing non-audit services to an audit client, including its affiliates, such as: Bookkeeping. But as we all know, auditor independence rules are a farce.

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6 Rules of Audit Room Etiquette

Going Concern

As workers return to the office, many auditors find themselves visiting client sites for the first time. Audit Career Center audit room etiquette Audit Rooms Auditors Etiquette tales from the audit room

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KPMG UK Somehow Won’t Be Getting a Record Fine From the Financial Reporting Council For Carillion Mess

Going Concern

The Financial Times reported this afternoon: KPMG is set to be hit with its biggest-ever fine in the UK after a tribunal found that its auditors deliberately misled regulators during routine inspections of its work.

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.

In the Trenches: My Three Least Favorite Audit Rooms

Going Concern

Yes, the fire code probably would have limited the room to three , maybe four , people , but we stuffed eight auditors in there. Audit Career Center Audit Rooms Auditors tales from the audit room

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Withum Named #1 IPO Auditor for Q3 of 2020

Withum

News

The new breed of audit

TaxConnex

In years past, auditors could show up at your door asking to look at your records. Many audits are conducted remotely, and an auditor never visits your office. Auditors can also use artificial intelligence to dig up even more evidence.

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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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Best Practices for Managing a Sales Tax Audit

TaxConnex

One of your customers undergoing their own audit might produce one of your invoices, resulting in the auditor possibly contacting you for an exemption certificate or other documents. An audit doesn’t necessarily mean the end of your business even if the auditor finds non-compliance.

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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.

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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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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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.”.

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

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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Evolution of the Sales Tax Audit: Have Audits Changed with Economic Nexus?

TaxConnex

Bad luck for one, or a customer of yours undergoing their own audit might produce one of your invoices, resulting in the auditor possibly contacting you for an exemption certificate or other documents. Sales tax has evolved a lot in recent years. So has the sales tax audit.

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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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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.

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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