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In This Issue
Consolidated and combined statements
Nipping fraud in the bud
Chance of IRS audit increases with income level
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In the  February edition of the Wall, Einhorn & Chernitzer, P.C. (WEC)  A & A Advisor, you'll find information on practice issues with consolidated and combined statements, understanding fraud and the chance of an IRS audit increasing with income level.
  
Consolidated and combined statements: A look at some
practice issues
Certain business arrangements lead financial statement preparers to question whether consolidated financial statements are required, combined financial statements are needed, or separate financial statements of affiliated entities should be prepared.

The authoritative accounting technical literature guidance that is applicable in preparing consolidated or combined financial statements is in the FASB Accounting Standards Codification (FASB ASC) Topic 810, Consolidation. The focus of discussions in these materials is on some of the more frequently asked questions associated with using the FASB ASC 10 technical literature requirements and guidance.


  
Contact WEC today to speak with one of our A & A experts and learn more about consolidated and combined statements.
Nipping fraud in the bud: Understanding it is key to stopping it
 
Among investigators and criminal profilers I work with, there is a common phrase that I hear over and over again: " To catch a crook, get inside the mind of a crook."

Make it your mission to know their method of operation - or modus operandi. It is the "how" and "why" of what criminals do best. As a fraud investigator, I need to know the motives, rationalizations and opportunities that are specific to the white-collar criminal, or fraudster.

These are the components, or legs, of what we fraud examiners call "The Fraud Triangle." Looking back on the scores of cases I've worked through the years, I often see similarities between legs of the triangle and, believe it or not, gardening.

By David Sawyer, CPA, CFE, licenses private investigator and partner with CPAmerica's Atlanta affiliate Frazier & Deeter, LLC
 
 To find out more on understanding fraud, click here.
Chance of IRS audit increases with income level
Just what are your chances of having your income tax return audited by the IRS?
 
It depends on how much money you make.
 
The average odds are approximately 1 in 100. In the latest figures released by the IRS, for tax year 2011, more than 1.4 million taxpayers were audited of 143 million tax returns filed.
 
But for Americans in higher tax brackets, the chances go up, with the wealthiest taxpayers having a 1 in 4 chance of hearing from the IRS.
 
To find out more on your chances of being audited, click here.
A & A Service Leaders
A & A Leaders
   Joanna G. Brumsey, CPA       Julie L. Sokolowski, CPA        Susan R. Einhorn, CPA         Angela R. Kerns, CPA
              Shareholder                              Shareholder                           Shareholder                            Shareholder
Click Service Leader's name to view professional profile and contact directly.
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, 2013 and 2014 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.