What does that risk assessment in a SSARS 19 review look like?

Leave a Comment / Compilations & reviews /

In a review, the analytical procedures and inquiries should be based on the accountant’s professional judgment.  That judgment is based on the accountant’s understanding of the industry and the client.

According to the SSARS literature, it is also based on the accountant’s awareness of the risk of unknowing failure to modify the review report on financial statements that are materially misstated

That means the accountant should focus analytical procedures and inquiries on those areas where there are increased risks of misstatements.

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What does that risk assessment in a SSARS 19 review look like?Read More »

What does that risk assessment in a SSARS 19 review look like? Read More »

Primer for CPAs on testing the functional allocation

Leave a Comment / Accounting, Audits, Books you might enjoy /

I discuss the e-book Lies, White Lies, and Accounting Practices; Why nonprofit overhead doesn’t mean what you think it means by Saundra Schimmelpfennig at my other blog, Nonprofit Update.

If you are a CPA working with NPOs, check out my description of the book in my post, Q: Are overhead ratios the perfect measure of NPO efficiency and effectiveness?   You ought to get the book.

I suggest you buy a copy of the book for all of your staff who work with NPOs. Would be a cheap and fast way to provide some education on testing the functional allocation.

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Primer for CPAs on testing the functional allocationRead More »

Primer for CPAs on testing the functional allocation Read More »

Remember to book construction retainages

Leave a Comment / Accounting /

On construction projects, there’s typically a retention held back from the contractor until the project is complete.  Scott Moglia at Nonprofit GPS has a reminder in Don’ Forget about your Retainages:

Remember to pick up the liability for retainage on construction projects.

When I read his post, I pondered a moment and realized that if all of my clients were  a baseball team, the lifetime team batting average for booking that liability when it exists is about 0.000.

Remember to look for, and record, retainages.

Read the full, short article.

Remember to book construction retainages Read More »

The ROI on social media is zero. Also zero on your e-mail, rebranding and relocation. So get started.

4 Comments / Social media /

Who would think to demand a quantification of the ROI on developing a new logo then printing new letterhead & business cards that go with it?

Do you really want to identify exactly every contributing factor behind a new client so your new logo, new office, e-mail system, marketing speech last spring, and latest 4 newsletters can get proportionate credit for that new audit?  Then you could calculate the ROI of your newsletter.

Then why would you even think about using that criteria for social media?

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The ROI on social media is zero. Also zero on your e-mail, rebranding and relocation. So get started.Read More »

The ROI on social media is zero. Also zero on your e-mail, rebranding and relocation. So get started. Read More »

Tell my again why there’s nothing to write about in accounting?

2 Comments / Pondering /

I was out-of-town four days towards the end of January.  Provided a peer review to a CPA firm.  Took a break from the ‘net as much as I could.

I drove across the Central Valley of California for the first time and after the project, enjoyed taking one of those away days seeing Yosemite.  Haven’t been there before.  It’s breathtakingly awe-inspiring. (Yes, I know. I don’t get out enough.)

While driving I came up with two or three ideas for blog posts. Couldn’t help but think about some things and translate them to blog ideas as I was driving and observing and pondering.

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Tell my again why there’s nothing to write about in accounting?Read More »

Tell my again why there’s nothing to write about in accounting? Read More »

Q: How do you make sure you can take a stand for your real client, and stand up against the person that signed the engagement letter?

1 Comment / Pondering /

A: Be ready to fire the apparent client.

If your real client is the stockholders or an NPO itself and not the CFO or CEO, then you may have to take a stand against the CFO or CEO.  How can you make it possible to do that since they can fire you?

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Q: How do you make sure you can take a stand for your real client, and stand up against the person that signed the engagement letter?Read More »

Q: How do you make sure you can take a stand for your real client, and stand up against the person that signed the engagement letter? Read More »

10 year anniversary of Ulvog CPA

Leave a Comment / Other stuff /

On January 28, 2002 I hung out my shingle as a one-person CPA firm.  Ten years ago!

That was an exciting and thrilling step for me.  I’ve never had as much fun in my professional life as I have in the last decade.

My hope is that I’ve helped many organizations in the religious non-profit community improve their accounting and accountability.

I’m looking forward to many more years serving the non-profit community.  Looking forward to serving the CPA community as well.  Also looking forward to having even more fun – the next decade will be better than the last!

10 year anniversary of Ulvog CPA Read More »

Why my interest in the Bakken oil field is increasing

Leave a Comment / Other stuff /

(Cross-post from my other blog, Nonprofit Update)

For quite a while now I’ve been fascinated by the rapid increase in oil production in the Bakken field in North Dakota. 

Have had a lot of posts on my blog Outrun Change.  Under 1% unemployment in one county. Production graphs that are going vertical.  More oil produced in ND than California. That kind of stuff.

This month my interest level took off like those oil production charts.

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Why my interest in the Bakken oil field is increasingRead More »

Why my interest in the Bakken oil field is increasing Read More »

Benefit Corporations – new form of incorporating that allows goals other than profits to be priority

Leave a Comment / Other stuff /

(cross-post from my other blog, Nonprofit Update.)

The Wall Street Journal discusses ‘benefit corporations’ in their article, With New Law, Profits Take a Back Seat.

This is a traditional for-profit corporation modified to so the entity can have social or environment issues as a priority.  Profit or the interest of stockholders can take a back seat to those self-defined issues.

Why take the benefit corporation approach?

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Benefit Corporations – new form of incorporating that allows goals other than profits to be priorityRead More »

Benefit Corporations – new form of incorporating that allows goals other than profits to be priority Read More »

Investigators for Olympus aren’t pointing fingers at KPMG and E&Y

Leave a Comment / Audits, Fraud /

An investigative panel set up by Olympus released a report saying the external auditors couldn’t have found the fraud. 

The panel also blamed five internal auditors for helping with the cover up.  Olympus has sued the five.

An Internet search today indicates there are 270 articles discussing this. Here are a few you can browse:

One panel of investigators appointed by Olympus pointed fingers at the external auditors. I discussed this report in my guest post at re: The Auditors.

In contrast, this new panel isn’t pointing fingers at the external auditors.  They are blaming the internal auditors for the costs incurred to investigate the cover up.

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Investigators for Olympus aren’t pointing fingers at KPMG and E&YRead More »

Investigators for Olympus aren’t pointing fingers at KPMG and E&Y Read More »