Average audit fees increased 4.25 percent from 2017 to 2018, going from an average of $2,220,251 in 2017 to $2,314,703 in 2018, mainly driven by new standards from the Financial Accounting Standards Board, according to a new report.
Some of the reasons cited for the audit fee increases in the public sector match up with FERF's earlier annual reports, starting with the impact of new FASB standards at 66 percent, especially those related to revenue recognition and leases. Other contributing factors include high levels of mergers and acquisitions (36 percent) and a focus on revenue recognition (34 percent).
In case you are keeping track:
Accounting firm punches back at Thalhimer with MGT-related lawsuit - Richmond BizSense
The bad blood between a local real estate firm and its former accountant has led to yet another legal battle.
Richmond-based accounting giant Cherry Bekaert last month sued Thalhimer, as the two sides continue to blame each other in the wake of the 2018 collapse of Thalhimer's general contracting arm, MGT Construction.
Cherry Bekaert threw the latest jab, filing a lawsuit two days before Christmas in Richmond Circuit Court, claiming Thalhimer owes it at least $600,000 for expenses the auditing firm has incurred while dealing with various MGT-related matters.
Putting the 'C' in CRM | Accounting Today
Customer relationship management is an essential part of an accounting firm's business, but it often gets overlooked in favor of the good accounting work the firm does for their client. But CRM systems have a lot to offer firms, and implementing one can push a firm to take a necessary look inside how they manage client relationships.
I'm not going to detail what to look for in a CRM application other than the tools necessary to prompt the client when you need something (like tax return input) along with the capabilities of tracking the process from inquiry to delivering the final product to the client. To be effective, a CRM system needs to interface closely with, or include workflow functionality.
Moody's predicts CECL will have limited impact on big banks | Accounting Today
"The accounting change by itself is unlikely to change our assessment of banks' stand-alone credit strength,' says Moody's vice president Maria Mazilu in a statement Tuesday. "However, if a bank were to restore its capital ratios, or otherwise offset the impact of CECL, it would be credit positive."
However, Moody's sees some problems with the new standard. Beyond capital, some of the negative aspects of CECL accounting, according to the report, include increased earnings volatility and decreased peer comparability, which may cause investor uncertainty and raise funding costs.
Many things are taking place:
Companies Shell Out More in Audit Fees to Tackle Accounting Rule Changes - WSJ
Annual audit fees continue to rise for U.S. companies as they adapt to an onslaught of new accounting rules and regulatory changes.
The average hourly fees public companies pay to external auditors have climbed 31% over the past decade to $283 in 2018, according to a new survey of finance executives by the Financial Education & Research Foundation.
Businesses retain external auditors to ensure that their finance statements contain no material misstatements.
Gwyneth Paltrow wishes she'd known more about accounting when she started Goop - MarketWatch
The Oscar-winning actress says she expected controversy when she added 'entrepreneur' to her résumé
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During an appearance at the National Retail Federation's "2020 Vision" trade show this month, the Oscar-winning actress Gwyneth Paltrow told a packed house that she knew what she wanted to accomplish when she launched Goop from her kitchen table in 2008, but she didn't know she would need bookkeeping skills to do it:
Paltrow, who appeared on stage Tuesday for a Q&A session with Ellevest Chief Executive Sallie Krawcheck, said she "spent a lot of time googling things under the table" during meetings in her attempt to get up to speed on topics that were still new to her.
Accountants to rely more on big data in 2020 | Accounting Today
Technology such as data analytics, artificial intelligence, machine learning, blockchain and robotic process automation will be playing a greater role in the accounting profession this year, according to a recent report from the Institute of Management Accountants.
"Four key elements must be present for organizations looking to become data-driven: data-savvy people, quality data, state-of-the-art tools and a supportive organizational culture," according to the report.
Management accountants are embracing data science and analytics to improve performance at their companies, leveraging the technology to improve their organizations' data governance and analysis capabilities.
BlackRock pushes for clearer accounting of climate risks from companies | Accounting Today
BlackRock, the world's biggest fund manager, said Tuesday that it plans to put sustainability at the center of its investment strategy and it will push companies to improve their climate risk disclosures.
"While no framework is perfect, BlackRock believes that the Sustainability Accounting Standards Board (SASB) provides a clear set of standards for reporting sustainability information across a wide range of issues, from labor practices to data privacy to business ethics," he wrote. "For evaluating and reporting climate-related risks, as well as the related governance issues that are essential to managing them, the TCFD provides a valuable framework.
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