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How to account for... Deferred compensation arrangements
A smooth audit takes thoughtful consideration
Some retirement plans need an audit
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New Standards for Audit Engagements
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Greetings!
Happy Holidays from your friends at
Wall, Einhorn & Chernitzer, P.C.!
In the December edition of the Wall, Einhorn & Chernitzer  (WEC) A&A Advisor, you'll find information on planning for an audit, deferred compensation arrangements and much more!
  
Also, If you haven't read our recent announcement regarding new standards for audit engagements, you can find that here.
  
How to account for...
Deferred compensation arrangements
Preparers of financial statements - and practitioners who perform attest engagements on those statements - often ask questions about how deferred compensation arrangements should be properly reflected in reporting entities' financial statements.

In most practice situations, the Financial Accounting Standards Board's Accounting Standards Codification (FASB ASC) Topic 710, Compensation - General, provides the relevant guidance for accounting for these types of arrangements.
  
  
Contact WEC today to speak with one of our A & A experts and learn more about how to account for deferred compensation arrangements.
A smooth audit takes thoughtful consideration
It may seem like much ado about nothing, but the truth of the matter is that planning counts.
 
Being well prepared for your external audit team is critical to ensuring an efficient audit. Beyond providing adequate workspace and access to information and personnel, there is advance groundwork to consider.
 
Before the audit process even begins, the first concern to be addressed is identifying - and communicating to the audit team - exactly who will be relying on the financial statements and for what purpose.
 
To find out more, click here.

 

Some retirement plans need an audit: Determining when it's appropriate

How can a retirement plan administrator know that a plan is subject to an audit? The general rule prescribed by the Department of Labor says a large plan needs to have an audit. A plan is considered "large" if it reaches 100 or more participants at the beginning of the plan year, unless the "80-120 exception" is met.

 

It's imperative to understand the two most important concepts to classify a plan properly as "small" or "large":

  • The number of participants
  • The "80-120 exception" rule

A Department of Labor regulation was provided to alleviate the filing requirements of a plan with participants numbering close to 100 but continually changing from year to year [DOL Reg. 2520.103-1 (c) and (d)]. It allows plans with between 80 and 120 participants at the beginning of the current year to elect to complete current-year Form 5500 using the same plan category (that is "small" or "large") that was used in the previous year.

 

Learn more about the rules for retirement plan audits here.

 

A & A Service Leaders
Joanna                        Julie                          susan
Joanna G. Brumsey, CPA              Julie L. Sokolowski, CPA                    Susan R. Einhorn, CPA
Shareholder                                   Shareholder                                         Shareholder
  
Click Service Leader's name to email directly, or photo for online professional profile.
About Wall, Einhorn & Chernitzer, P.C.

Wall, Einhorn & Chernitzer, P.C. (WEC) offers a local touch with regional scope and national resources. Serving clients since 1989, we are today the largest public accounting firm headquartered in Norfolk, Virginia and the second largest in the Hampton Roads region.  Our team is comprised of professionals who are committed to a common vision as a high performance firm and a common goal to provide our clients with exceptional service.

 

WEC is an independently owned and operated member firm of CPAmerica International, one of the largest associations of CPA firms in the United States. Through our affiliation, we have instant access to the expertise and resources of more than 2,500 professionals across America. WEC clients benefit from the resources, experience and professional knowledge base of a national firm while still receiving the personalized service and attention that only a locally-owned, independent accounting firm can offer.

 

In addition to our Assurance and Tax services, WEC provides a range of Business Advisory services and solutions strategically customized to fit our clients' unique and individual needs. These services include Estate Planning, Entrepreneurial Services, Restructuring and Turnaround, Wealth Management, Business Valuation, Litigation and Dispute Consulting, Virtual Office Services, and Exit Planning.

 

The expertise of our CPAs and Advisors spans a range of business sectors. Our specialized industry niches include: Real Estate, Retail, Franchise, Construction, Government Contracting, Manufacturing & Wholesale Distribution, Technology and Not-for-Profit.

 

We are honored that WEC has been named as one of the "Best Places to Work in Virginia" in 2012 and 2013 by Virginia Business magazine, one of the "Top 25 Best Places to Work in Hampton Roads" by Inside Business, named to their "Hall of Fame" in 2010, and listed among the "Best Firms to Work For" by Accounting Today.

 

For more information, please visit us at www.wec-cpa.com.