The Secret 280A Deduction

Holding Business Meetings for Your Business at Your Personal Residence In the ordinary course of business, some companies, due to their structure, are required by law to hold meetings for their entities. Others hold meetings for a variety of purposes, including educational workshops, Christmas parties, or even regular staff meetings. Tax Code Section 280A contains provisions allowing a business owner to conduct regular meetings at his or her residence. Traditionally, business meetings are held on office premises or rented spaces such as a Board Room at a Hotel or Conference Center. The expense of conducting these meetings in an outside Read More »

SAS 145 Audit Risk Assessment

Just a Bit More Well, let’s add a bit more about SAS 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement. And let’s do it in a question-and-answer format. This SAS is enormous – it’s over 250 pages long. Those in public accounting must understand its implications since understanding the entity, environment, and financial statement risks is the heart and soul of financial audits. An understanding of the risk of misstatements is what drives the remainder of the audit engagement. So, with that being said, let’s begin. Is SAS 145 principle-based, and is the methodology Read More »

Corporate Transparency Act

An Important Heads Up What is the Corporate Transparency Act? The Corporate Transparency Act authorizes the Financial Crimes Enforcement Network to collect certain identifying information about the beneficial owners and company applicants. The Act applies to domestic corporations, LLCs, and any entity created by the Secretary of State (or similar office) in any state or tribal jurisdiction, as well as foreign entities registered to do business in any state or tribal jurisdiction. Who Must Report? All domestic corporations, LLCs, and other entities created by filing with a Secretary of State or similar office All foreign corporations, LLCs, and other entities Read More »

Audit Risk Assessment Scalability

Where Less Can Be Better We first addressed SAS 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement in our November 2021 blog. Two years later, the requirements are bearing down on us. SAS 145 is effective for audits of financial statements for periods ending on or after December 15, 2023. In other words, (for most of us) starting with our calendar year 2023 audits. Audit risk assessment has long been a bane to the small practitioner, especially those whose practice consists primarily of perhaps smaller, less complicated audits. Some practitioners expressed concern that the Read More »

The New Quality Management Standards

Did I Hear Someone Say Risk Assessment? In 2022, the AICPA issued four new quality management standards, as follows: Statement on Quality Management Standards (SQMS) No. 1 – A Firm’s System of Quality Management; SQMS No. 2 – Engagement Quality Reviews; Statement on Auditing Standards (SAS) No. 146 – Quality Management for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards; and Statement on Standards for Accounting and Review Services (SSARS) No. 26 – Quality Management for an Engagement Conducted in Accordance With Statements for Accounting and Review Services. Effective Dates. The quality management systems compliance with SQMS No. Read More »
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