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In This Issue
Three accounting alternatives for private companies
Financial statement and compliance audits: What's the difference?
Three easy fixes to help reduce fraud
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In the October 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!
  
Three accounting alternatives
for private companies
To provide for accounting alternatives that certain private company reporting entities can use, the Financial Accounting Standards Board (FASB) has amended the Accounting Standards Codification.

The FASB issued three Accounting Standards Updates (ASUs) in consensus with the Private Company Council.

Specifically, the three updates provide alternatives within generally accepted accounting principles (GAAP) when:

  • Accounting for goodwill acquired in a business combination,
  • Using hedge accounting for certain interest rate swaps, and
  • Applying variable interest entity guidance to certain common control leasing arrangements. 
The optional guidance related to these Private Company Council alternatives is available only for use by private companies. The guidance is not available for use by public business entities, not-for-profit entities or employee benefit plans.


  
Contact WEC today to speak with one of our A & A experts and learn more about alternatives for private companies.
Financial statement and compliance audits: What's the difference?
You're required to have an audit of your financial statements, and you have a contract or grant agreement that requires a compliance audit. What is the difference between these audits, and can they be done together?

It depends on who is requiring the audits.

For example, you may have a loan with a bank that requires an annual financial statement audit, and you may have a contract with a customer that requires a compliance audit related to a particular requirement of their agreement with you. In this case, there would be two separate audits, although compliance with the particular contract may also be a part of your financial statement audit, depending on materiality or other risk factors.

To find out more the differences between audit types, click here.
Three easy fixes to help reduce fraud
Job rotation and mandatory vacations, rewards for whistleblowers and surprise audits are the three least used anti-fraud controls by organizations that have been victims of employee theft. Less than one-third of organizations employ these methods to deter fraud.

Yet, when any one of these three fraud deterrents is present, the crime is detected far faster than with any other anti-fraud control, according to the most recent biannual report of the Association of Certified Fraud Examiners.

Rotating jobs and requiring employees to take mandatory vacations so other employees can temporarily fill the position were required at only 16 percent of the nearly 1,400 businesses that suffered employee theft in the fraud examiners latest report.

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.