February 23, 2017 – Piercy Bowler Taylor & Kern (PBTK), a full-service accounting firm based in Las Vegas, is pleased to announce that Michael Rosten, CPA, CFE has been promoted from Principal to Shareholder. Rosten is the first shareholder in the firm’s 26-year-history to come from outside the traditional tax and audit departments.
“Mike is an integral part of our forensic accounting and litigation support practice,” said Tom Donohue, PBTK President. “He has been with PBTK for 12 years, and has been a consistently solid performer. He is a team player that has earned the respect of staff and his peers alike.”
Outside of work, Rosten is an avid mountain climber who excels at pushing himself to surpass personal records and summit times. Just like his accomplishments in hiking, he set his sights on becoming a shareholder and he surpassed his new business goals to make it happen.
Rosten is often called upon by attorneys or the courts to be an expert witness in cases involving employee fraud investigations, loss profit analysis, damages calculations, and divorce proceedings. He can be reached at email@example.com.
About Piercy Bowler Taylor & Kern
Piercy Bowler Taylor & Kern is a full-service accounting and business advisory firm that provides accounting and auditing, tax, consulting, valuation and litigation support services. Founded locally in 1990, the firm specializes in the casino gaming and leisure time industries, governmental and not-for-profit organizations, real estate development and construction industries and the legal and general business communities. Now with offices in Salt Lake City, Reno and Las Vegas, PBTK is one of the few independent accounting firms in its local markets to perform SEC audits. For more information on PBTK, visit pbtk.com or call Shannon Hiller at 702.384.1120.
If your business issues audited financial statements and follows a calendar year end, your external auditing procedures have already begun. At a minimum, you’ve signed an engagement letter, sent over preliminary financial statements and allowed your CPA to observe any year end physical inventory counts. But there are some steps you can still take to streamline audit fieldwork.
Think Like an Auditor
An external audit is less intrusive if you anticipate your auditor’s document requests and inquiries. Auditors typically ask clients to provide similar documents year after year. They’ll accept copies or client-prepared schedules for certain items, such as bank reconciliations and fixed asset ledgers. To verify other items, such as leases, invoices and bank statements, they’ll want to see original source documents.
What does change annually is the sample of transactions that auditors randomly select to test your account balances. The element of surprise is important because it keeps bookkeepers honest.
Prepare for audit inquiries by comparing last year’s financial statements to the current ones. Your auditor is likely to ask questions about any line items that have changed materially. A “materiality” rule of thumb for small businesses might be to inquire about items that change by more than, say, 10% or $10,000.
Review 2015 Adjustments
Ideally, management should learn from the adjusting journal entries auditors make at the end of audit fieldwork each year. These adjustments correct for accounting errors, unrealistic estimates and omissions. Often internally prepared financial statements need similar adjustments, year after year, to comply with U.S. Generally Accepted Accounting Principles (GAAP).
For example, auditors may need to prompt clients to write off bad debts, evaluate repairs and supplies accounts for capitalizable items, and record depreciation expense and accruals. Making routine adjustments before the auditor arrives may save time and reduce discrepancies between the preliminary and final financial statements.
You can also reduce audit adjustments by asking your auditor about any major transactions or complicated accounting rules before the start of fieldwork. For instance, you might be uncertain how to account for a recent acquisition or classify a shareholder advance.
An external audit doesn’t have to be a time-consuming or disruptive event. The key is to prepare, so that audit fieldwork will run smoothly. Contact Bill Nelson for more information on getting ready for an audit.