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In This Issue
Alternatives reduce private company cost of standards compliance
Materiality? It's what matters
Don't wait too late to see the red flags of fraud
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In the August edition of the Wall, Einhorn & Chernitzer, P.C. (WEC)  A & A Advisor, you'll find information on alternatives to reduce the cost of compliance, warning signs of fraud and much more!
  
Alternatives reduce private company cost of standards compliance
Two accounting alternatives within U.S. generally accepted accounting principles, issued by the Financial Accounting Standards Board on Jan. 16, 2014, should reduce the cost and complexity of complying with accounting standards for many private companies.

Those two alternatives were issued through Accounting Standards Update (ASU) 2014-02, Accounting for Goodwill, and ASU 2014-03, Accounting for Certain Receivable-Variable, Pay-Fixed Interest Rate Swaps - Simplified Hedge Accounting Approach.

The guidance in ASU 2014-02 amends the guidance in Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) Topic 350, Intangibles - Goodwill and Other. The new guidance provides private companies with a simplified amortization alternative that can be used in accounting for post-acquisition goodwill.

  
Contact WEC today to speak with one of our A & A experts and learn more about alternatives to reduce compliance costs.
Materiality? It's what matters
The concept of materiality is at the core of financial statement audits and independent auditors' reports. 

The topic is critical to the entire financial oversight and reporting function and is likely one of the most challenging to understand. The difficulty goes beyond the number of syllables in the word (six) or Merriam-Webster's definition - "the quality or state of being material" - which most might agree is ambiguous at best.

Oddly enough, accounting literature actually provides a better sense of the concept: "...information that if omitted or misstated could influence decisions that users make on the basis of the information being presented. ..." While this is helpful, auditors might suggest as a starting point a simple perspective - "what matters."

To find out more on materiality, click here.
Don't wait too late to see the red flags of fraud
There are definite red flags of fraudulent behavior.

Unfortunately, it is often after the crime has been committed that these warning signs become apparent.

Financial pressure is the biggest motivator of financial fraud by employees, according to the latest report of the Association of Certified Fraud Examiners. In 81 percent of cases reported to fraud examiners, at least one behavioral red flag was displayed, and in many cases, several were observed.

What are the red flags of employee fraud? Regardless of the year of the study and different groups of perpetrators studied, the behavior displayed remains very consistent.

To find out more on the red flags of employee fraud, click here.
A & A Service 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, 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.