Auditing a Business

View:  
Sorted by:  

Detecting Creative Revenue Accounting in Financial Reports

Analyzing financial reports is difficult enough, but the tricks used for reporting revenue add another layer of complexity. You can see through many common creative accounting tactics by carefully analyzing [more…]

Taking a Look at a Sarbanes-Oxley Overview

In response to a loss of confidence among American investors reminiscent of the Great Depression, President George W. Bush signed the Sarbanes-Oxley Act into law on July 30, 2002. SOX, as the law was quickly [more…]

Avoiding Lawsuits and Prosecution under Sarbanes-Oxley

How do you keep yourself, your department, and your company out of the Sarbanes-Oxley (SOX) spotlight? Here are a few tips for keeping the litigators off your doorstep and sleeping soundly with SOX compliance [more…]

The Scope of Sarbanes-Oxley: Securities and Issuers

To understand which parts of SOX apply to your company, you need to understand what type of investments are considered securities and which types of issuers are subject to or exempt from SOX. [more…]

The Importance of a Bookkeeping Audit Trail

Good business bookkeeping systems leave good audit trails. An audit trail is a sequence of events leading up to a bookkeeping entry in your business's accounts. You start with the source documents and [more…]

Watching for Illegal Accounting Practices in Your Business

Fraud, embezzlement, and misappropriation can occur in every size of business. Such illegal accounting practices require manipulation of a business’s accounts. Keep your eyes open for these kinds of illegal [more…]

How to Read an Auditor's Report

Your business's financial statement audit report can give your business a clean bill of health, or the auditor's report may state that your financial statements are misleading and should not be relied [more…]

How to Decide Whether Your Business Needs an Audit

Audits provide the opportunity for a second set of eyes (usually those of a certified professional accountant) looking over your business’s accounts. An annual audit of your business may be a requirement [more…]

How to Limit Corporate Liability after Sarbanes-Oxley

The Sarbanes-Oxley Act (SOX) provides a legal model for running corporations of all sizes, regardless of whether they’re publicly traded and technically subject to SOX. The best legal minds agree that [more…]

Sarbanes-Oxley Practices for Good Corporate Governance

Sarbanes-Oxley (SOX) was passed to combat corruption at big public companies like Enron, WorldCom, Tyco, Adelphia, Global TelLink, HealthSouth, and Arthur Andersen. But small and not-for-profit companies [more…]

Sarbanes-Oxley For Dummies Cheat Sheet

Enacted in the wake of corporate mismanagement and accounting scandals, Sarbanes-Oxley (SOX) offers guidelines and spells out regulations that publicly traded companies must adhere to. Sarbanes-Oxley guidelines [more…]

Generally Accepted Auditing Standards

The generally accepted auditing standards (GAAS) are the standards you use for auditing private companies. GAAS come in three categories: general standards, standards of fieldwork, and standards of reporting [more…]

The Four Concepts of Audit Evidence

Audit evidence consists of the documents you use during an audit to substantiate your audit opinion. While working on an audit, you encounter many different types of evidence [more…]

Gathering Audit Evidence

While you work on your client’s audit, you gather sufficient appropriate evidence to come to a determination on whatever it is you’re auditing. The methods you use to gather audit evidence aren’t one-size-fits-all [more…]

Auditing For Dummies Cheat Sheet

Auditing is the process of investigating information that’s prepared by someone else — such as a company’s financial statements — to determine whether the information is fairly stated and free of material [more…]

How to Perform an Audit in a High-Risk Situation

If an audit engagement is high-risk, you have to sit back, evaluate how the company does business, and think about how material misstatements may slip through the cracks. You then design an extended audit [more…]

How to Become an Auditor

Becoming an auditor is a process that spans quite a few years of your life. First comes the awesome educational requirement. Then you have to pass the Uniform CPA Examination. Depending on the state in [more…]

Types of Auditing Careers

After you pass the CPA exam, you’ll probably be itching to get into the job market to start making some money! Chances are good that with a CPA license in hand, you can choose to do external auditing. [more…]

What Does an Auditor Do?

The goal of a financial statement audit is for you (the auditor) to form an opinion regarding whether those statements are or aren’t free from error. To do so, you use your best professional judgment when [more…]

Who Gets Audited and Why

The types of auditing clients you may encounter and the reasons they require audits are, of course, expansive. As a new auditor, you may not be qualified to conduct some of these audits discussed here, [more…]

Rules for Auditing Private Companies

Auditors of privately owned businesses must follow a code of conduct. As an auditor, you abide by your state’s code of conduct, but you also follow the code of conduct established by the American Institute [more…]

Rules for Auditing Public Companies

The standard of professional conduct for the audit of all publicly traded companies comes from the Public Company Accounting Oversight Board (PCAOB). The Audit Standards Board [more…]

Adhering to Generally Accepted Accounting Principles and Standards

Generally accepted accounting principles (GAAP) define acceptable practices in the preparation of financial statements in the United States. Keep in mind that when you’re wearing your auditor hat, you [more…]

How to Research a New Auditing Client

Here’s something every auditor should remember: Just because a client comes to you and wants you to audit its financial statements, you don’t have to accept the engagement. After all, you’re not selling [more…]

How to Establish Independence with Auditing Clients

When deciding whether to accept an auditing engagement, you must judge your independence and objectivity. If your audit firm lacks independence or objectivity, you can’t accept the engagement. Independence [more…]

Sign Up for RSS Feeds

Small Business & Careers

Inside Dummies.com