Recent News & Blog / Audit
New survey reveals top audit committee concerns
Audit committees act as gatekeepers over financial reporting. A recent study identified the following five priorities for audit committee members over the next 12 months: 1) cybersecurity, 2) enterprise risk management, 3) finance and internal audit talent, 4) compliance with laws and regulations, and 5) finance transformation. Contact the CPAs and business advisors at SEK with your audit questions.
Mind the GAAP: How to ensure transparency when using non-GAAP metrics
The Securities and Exchange Commission closely monitors companies’ use of financial metrics that don’t conform to U.S. Generally Accepted Accounting Principles (GAAP). Over the years, the use of non-GAAP measures has grown. These unaudited figures can provide added insight when they’re used to supplement GAAP performance measures. But they can also be used to mislead investors and artificially inflate a public company’s stock price. Contact the CPAs and business tax advisors at SEK to discuss your company’s non-GAAP metrics and disclosures.
What is your external auditor’s responsibility for cybersecurity?
The average cost of a data breach has grown 15% to $4.45 million over the last three years, according to a 2023 survey by the Ponemon Institute, a research organization. Financial statement audits can help company management identify IT risks. But an auditor’s responsibilities don’t include an evaluation of cybersecurity risks across a company’s entire IT platform. Business owners and managers need to understand the scope of the external auditor’s responsibilities and develop a cybersecurity program that mitigates the risks. Contact the CPA's and business tax advisors at SEK for more questions on data breaches, business audits and more tax tips.
FASB issues new segment expense disclosure rules
On November 27, 2023, the FASB issued updated accounting rules on segment reporting. The guidance concludes several years of discussions aimed at providing investors with better information about a company’s business unit costs from the viewpoint of management. Contact the CPA's and business tax advisors at SEK for help implementing the updated guidance, more tax tips and financial advice.
Governmental entities: How to prepare for an audit
Preparing for an audit is a year-round process with several components, making it a challenging task for some. Understanding the contributing factors and timeline of an audit can help ensure you complete yours on time and accurately.
Overview of the offsetting rules
As companies explore hedging strategies in today’s uncertain economy, management might need to become familiar with the accounting rules for offsetting. Here are the basics, including what needs to be disclosed in your footnotes about these contractual arrangements.
FASB approves updated rules for disclosing income taxes
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. Rate reconciliation
FASB finalizes new crypto standard in record time
On September 6, the Financial Accounting Standards Board (FASB) unanimously voted to finalize new accounting rules on cryptocurrency assets — less than five months after the proposed standard was issued for public comment. Here’s what companies that hold these assets should know.
GASB 96 - What is a SBITA and how will our governmental entity implement this standard?
By: Kevin Stouffer, CPA Member of the Firm
FASB votes to exempt private companies from disaggregation of income statement project
Private companies can breathe a sigh of relief: The Financial Accounting Standards Board (FASB) and the Private Company Council have agreed to give them a pass on a coming proposal that, if approved, would require expanded footnote disclosures about expenses.