Posts Tagged ‘business audit’

How to weigh the pros and cons of auditor rotation

Thursday, November 5th, 2015

Some organizations switch auditors regularly — that can mean going to a new firm or just getting a new lead auditor —  but there can be both advantages and disadvantages to this practice.

Although the Securities and Exchange Commission regulates how often public companies need to switch lead auditors, there’s no requirement for anyone else to do so. It’s individually determined by the organization.

Mark Van Benschoten recently sat down with Smart Business to discuss the pros and cons of an auditor rotation and also best practices. To read the full article, check it out on Smart Business’s website.

By Mark Van Benschoten, CPA (Dublin office)

Want to read more articles about best practices for business audits? Check these out:

Will An Audit Find Fraud In My Business?

10 Ways To Implement Internal Controls With Limited Resources

Getting Back To Business: How Outsourcing May Provide Relief To Your Business

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Will An Audit Find Fraud In My Business?

Thursday, September 10th, 2015
Fraud in My Business - Ohio CPA Firm

Your annual audit isn’t designed to detect fraudulent activity, but if across suspicious transactions are discovered a fraud detection expert should be called in.

For the same reason you wouldn’t expect your eye doctor to repair your tooth, you shouldn’t depend on your annual audit to detect occupational fraud in your business. A financial statement audit validates your financial records and provides reasonable assurance that they are materially accurate. It does not look for fraudulent activity.

Of course, if your auditor comes across suspicious transactions or questionable information, they will certainly share their findings with you. In addition, a good auditor will be able to recommend a fraud detection expert to help you dig deeper into the questionable activity.

So, if your audit won’t detect fraud, how will you know if it’s happening in your organization? 

According to the Association of Certified Fraud ExaminersReport to the Nations on Occupational Fraud and Abuse, only 3 percent of the nearly 1,500 reported cases of occupational fraud were detected by an external audit. According to the study, employee tips continue to be the most common way in which fraudulent activity is reported – usually through a fraud reporting hotline.

Your employees are likely honest, hard-working individuals who would never do anything to jeopardize your business. But until you empower them with a secure, anonymous outlet to tip off this behavior, you will never truly know for sure.

Are you serious about protecting your business from fraud? Learn more at www.reacpa.com/red-flags or contact me directly.

This article was published in the September 2015 issue of Columbus Business First – Ask The Expert.

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What red flags might get you audited?

Wednesday, March 21st, 2012

The IRS may audit only 1 percent of all tax returns annually, but if you’re one of the unlucky few, you may be wondering “Why me?” Since the agency doesn’t have enough personnel to closely review each and every tax return they receive, they rely very heavily on their computer systems flag items of “interest”.. Here are six of most common “red flags” that may impact a business owner filing a personal return. (more…)

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