Tag: audit

The difference between a compilation, a review, and an audit

  • June 18, 2024
  • Marianne Lilly, CPA, CGMA, CFE

In the past, we've detailed the many benefits to a financial statement audit and why a business might have an audit conducted.  For times when a formal audit is not required, a compilation or review may satisfy the business owner's needs....

IRS offers ways to determine Reasonable Compensation in Not-for-Profit and For-Profit entities

The IRS routinely encounters contentious issues in business tax audits, particularly regarding the appropriateness of compensation paid to owners/employees. For example: Businesses that compensate employees who are also shareholders may inadvertently classify payments that should be dividends as compensation. This...

Why you might need an audit of your financial statements

  • April 5, 2021
  • Marianne Lilly, CPA, CGMA, CFE

There are numerous advantages to conducting an audit of a company’s financial statements, particularly for privately held businesses with revenues exceeding $1,000,000. An audit provides the highest level of assurance that a company’s financial statements present a fair view (in...

Changes to partnership audit procedures may prompt the need for review

Congress recently enacted significant changes to partnership audit and adjustment rules, expected to lead to higher audit rates for partnerships. Partners should carefully review and possibly revise their partnership's operating agreement in response to these changes. While these rules generally...

Audit statute for net operating losses

Did you know that audits of net operating losses (NOLs) and other carryforwards can extend beyond the usual statute of limitations? Certain amounts generated in prior years and carried over to the current year's return can impact taxable income calculations....