What is the difference between an audit and a review engagement?

Posted by Jenny H. Shao on Feb 12, 2018 3:50:43 PM

Nonprofits, construction companies, or companies with external investors are all examples of companies that may be required to get audits. However, these requirements may be dependent on certain circumstances. For instance, a nonprofit that recently reached a higher level of government funding may have crossed the audit requirement threshold. That said, there are many nuances involved in determining whether a switch to or from a review to an audit would be necessary. Regardless, companies do experience this transition and the following information is aimed at determining the difference between the two.

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Topics: Audit & Assurance, Audits Vs. Reviews

Tis the season for Giving | Deductible vs. Nondeductible Contributions and their limits.

Posted by Julia E. Backa, MSBM on Dec 18, 2017 8:31:00 PM

Not everyone thinks the holiday season is the most wonderful time of the year. The Huffington Post, CBS News, Harvard Medical School, HealthLine, etc. all have articles regarding the causes, and tips for coping with the holiday blues. Stress caused by finances, lack of time, and high expectations is mentioned as a frequent contributing factor. To cope a few sources recommend starting a new tradition involving volunteering and making charitable contributions. Perhaps this is because both volunteering and donating to charity have been found to increase happiness.

To do our part in spreading holiday cheer, we not only want to join the bandwagon in encouraging others to donate and volunteer, we want to help those that do, better understand the ins and outs of deductible vs. nondeductible contributions and the limitations on charitable contributions.

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Topics: Deductible Contributions, Charitable Contributions, Tax

How to Pass the CPA Exam | Do's and Don'ts

Posted by Haylie Parkhill on Dec 4, 2017 4:05:00 PM

Congratulations you’ve decided to take the plunge and start studying for the CPA exam. Successfully completing the CPA exam can seem like a daunting task, especially with the publically posted (low) pass rates. However, the end result is well worth all the time, struggles and sleepless nights. Earning a CPA designation should result in higher earnings potential and additional career opportunities.

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Topics: The CPA Exam, Studying Accounting

How to Prepare for an Audit | GBACO's Essential Tips

Posted by Stephanie D. Wright, CPA on Nov 20, 2017 2:38:11 PM


2018 is fast approaching and with it comes busy season for auditors. If your company is subject to an audit (as of and for the year ending December 31, 2017) this means it is time to start preparing.  

Companies need audits for a variety of purposes and the accounting personnel of auditees vary in size, background, and experience. Suppose you are the owner of a construction company that's subject to an external audit for insurance purposes. Maybe you are the internal accountant of a larger company. Whatever the reason for your audit, or the position you hold, sometimes it can difficult to know how to best prepare for your audit.

If you are in charge of communicating with your external auditors, we advise that you review the following. Ask yourself if any of the tips below are applicable to you.  Being prepared will not only reduce the headache involved with finding the answers to your auditors' questions, but will also reduce the overall cost of your audit by increasing your auditors' efficiency. 

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Topics: Audit & Assurance, Tips for Preparing for an Audit

Federal and PA Tax Exempt Filing Requirements | Form 990 series and BCO-10

Posted by Patrick M. Rossiter on Nov 7, 2017 1:08:00 PM

Despite tax-exemption, nonprofit organizations are still subject to reporting requirements with taxing authorities, namely the Internal Revenue Service and various state revenue departments. For the Boards and Executive Directors of nonprofits, this means it's important to have a clear understanding of their organization and where it falls within filing requirements. 

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Topics: Nonprofit Filing Requirements, PA Nonprofit Filing Requirements, Form 990

QuickBooks Tips | Managing Cash Flow Using the Vendor Center

Posted by Lauri A. Lisanti, CPA, MAcc, CPS, Certified QB ProAdvisor on Oct 23, 2017 5:26:40 PM
Accounts payable is the outstanding bills a business owes money on. In many small businesses, the person who is responsible for paying these bills, will write out the checks as the bills come in or at predefined intervals (once a week, twice a month or even monthly).
Which is an acceptable practice. However, this can inhibit the business owner from having an accurate picture of the business's cash flow without calculating it manually or sorting through a large pile of papers. QuickBooks' accounts payable module, allows businesses to maintain their cash flow without the clutter or risk of not paying the bills on time. This also minimizes any surprises and the chance of affecting the business’ credit report adversely.
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Topics: Certified QuickBooks Proadvisor, Quickbooks Tips, Bookkeeping

Single Audits/Federal Audits/OMB A-133 Audits | Which is it? What is it? and Determining Who Needs One.

Posted by Jennifer A. Varley, CPA on Oct 9, 2017 10:50:00 AM

Which is it?

Entities that receive federal assistance (i.e. federal funds, federal grants, and federal awards) are subject to audits in order to ensure that the federal assistance programs are utilized in compliance with the federal government. Before 1984 these audits were performed per program rather than per entity. In other words, entities with multiple assistance sources were subject to multiple audits and the costs of those audits.

Single Audit:

For the sake of efficiency and cost-effectiveness the Single Audit Act of 1984 was passed. The act earned its name because its purpose is to consolidate these audits, allowing entities to receive one audit over all of their federal assistance.

Due to this act these audits are referred to as "Single Audits".

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Topics: Nonprofit Audit & Assurance, Single Audit, Audit & Assurance

QuickBooks Tips | How to Fix Duplicated List Items

Posted by Lauri A. Lisanti, CPA, MAcc, CPS, Certified QB ProAdvisor on Sep 18, 2017 4:19:00 PM

Using QuickBooks requires the creation and maintenance of lists such as customer, vendor, chart of accounts lists. Frequently, clients come across a scenario where they find duplications within these lists. For instance, they find two slightly different versions of the same customer or vendor.

Unfortunately, this can become a data management nightmare. Applying payments to a customer's account, pulling a report to determine if a vendor should receive a 1099, or posting a transaction to a general ledger account, etc. when there are active duplications in the necessary lists will result in potentially major errors.

This issue seems to be more prevalent when more than one person has access to the QuickBooks® data. One person may not see the name already created in the list by another individual and will proceed to create another. QuickBooks has a built-in feature to prevent this. A warning message should appear indicating the name is already in use and asks would you like to merge them. However, even the slightest variable in how the names are entered will bypass this feature. It only takes one small difference in the name to create a new one. An example is putting a middle initial in a name of an individual or a comma in the name of a business.

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Topics: Certified QuickBooks Proadvisor, Quickbooks Tips, Bookkeeping

The EZ way to Form a Charitable Organization

Posted by Stacey L. Schroeffel, CPA, MST on Sep 11, 2017 3:42:00 PM

In July 2014 the IRS released a new, easier version of Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. 

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Topics: Nonprofit Organizations, Form 1023-EZ, Charitable Organizations, Forming a Nonprofit

QuickBooks Tips | Memorizing Transactions

Posted by Lauri A. Lisanti, CPA, MAcc, CPS, Certified QB ProAdvisor on Aug 28, 2017 4:55:45 PM

Businesses can make any number of transactions in a given year. A transaction being any business agreement or exchange that one makes with another person or business.  To minimize mistakes and increase efficiency business should utilize QuickBooks to memorize transactions.

QuickBooks Memorized transactions:

Instructions on memorizing QuickBooks transactions.

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Topics: Advice from a Certified QuickBooks Proadvisor, Quickbooks Tips, Bookkeeping

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