Professional Accounting Blog

    Accounting For Your Prosperity

    Beneish Model Helps Detect Earnings Manipulation

    Posted by Meaden & Moore on Jul 24, 2019 8:34:00 AM

    Topics: Investigative and Forensic Accounting

    Financial statement manipulation is the costliest type of occupational fraud. The 2018 Report to the Nations published by the Association of Certified Fraud Examiners found that the median loss from financial statement fraud was $800,000, compared to median losses of $114,000 for asset misappropriation and $250,000 for corruption. 

    With any type of fraud, the sooner it’s detected, the more likely losses can be mitigated. Here’s a tool to help clients quickly assess the likelihood of earnings manipulation.

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    Ohio will keep the Business Income deduction (BID) at $250,000 and maintain the 3% flat rate cap in Budget bill

    Posted by Meaden & Moore on Jul 23, 2019 10:12:35 AM

    Topics: Tax Planning & Strategies

    On July 16, the Ohio House and Senate conference committee on Am. Sub. HB 166 voted to keep the Business Income Deduction (BID) at $250,000 and to maintain the 3% flat rate cap on income above it. Legislators were convinced to avoid tying the BID exclusions to the federal 199A law regarding the Qualified Business Income Deduction.

    The provision was previously mentioned as an option that would have impacted a broad array of specified service trades and businesses (SSTB). The House, Senate and DeWine Administration in reaching a compromise eliminated the BID for lawyers and lobbyists – two professions which became the focal point of BID concerns by some legislators. Read More

    How Journal Entries May Signal Fraud

    Posted by Meaden & Moore on Jul 22, 2019 9:51:00 AM

    With a median loss of $800,000, financial statement frauds are the costliest type of white-collar crime, according to the 2018 Report to the Nations by the Association of Certified Fraud Examiners (ACFE). Fortunately, auditors and forensic accountants may be able to detect financial misstatement by testing journal entries for errors and irregularities. Here’s what they look for and how these tests work.

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    Applying the Daubert Standard in Federal Cases

    Posted by Meaden & Moore on Jul 19, 2019 9:25:17 AM

    Topics: Investigative and Forensic Accounting

    Under Rule 702 of the Federal Rules of Evidence, an expert witness may testify if scientific, technical, or other specialized knowledge will help a judge or jury make sense of evidence or understand facts. A 1993 U.S. Supreme Court case – Daubert v. Merrell Dow Pharmaceuticals Inc. – put this rule to the test, affirming judges’ roles to act as gatekeepers against “junk science.”

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    Typical Multiples for Business Valuation

    Posted by Lloyd Bell on Jul 19, 2019 7:27:00 AM

    Topics: Corporate Finance

    A common question that I’m asked is, “Where are the current multiples for my industry?” The answer: it depends! Think about business valuation multiples as being an average or median of a data set. It’s likely that the company in question is not an average company, but rather is probably performing above or below the average of its peer group

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    Commercial Property Coinsurance: To Penalize or Not to Penalize

    Posted by Meaden & Moore on Jul 15, 2019 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    The wording of a Coinsurance commercial property policy effectively asks a simple question: Is the Required Insurance value greater than the Limit of Liability? If the answer is “yes,” there is work to do to impose a Coinsurance penalty. If the answer is “no,” the loss will be paid without penalty, subject to deductibles, limits and so on.

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    How to Value a Private Company

    Posted by Lloyd Bell on Jul 9, 2019 10:13:00 AM

    Valuing a private company requires more than simply applying technical models. It also requires complete understanding of business operations, economic and industrial conditions, tax laws, and knowledge of the current capital markets. You can trust the valuation consultants at Meaden & Moore to be well-versed in all these areas and more. The need for valuing a private company may vary, but the approach is largely the same.

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    How to Prevent Fraudulent Bank Transactions in Your Account

    Posted by Kendra Williams on Jul 8, 2019 9:30:00 AM

    Topics: Accounting & Auditing

    In the “old days” (insert my sweet grandmother’s voice), accounting employees waited to reconcile cash until the monthly bank statements were received in the mail. Today, companies are “going green” to avoid monthly fees by waiving paper statements. It’s far easier and more convenient to review daily transactions through the bank’s website.  But is pressing that easy button causing you to overlook fraudulent bank transactions in your account?

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    Deciphering Microsoft on the accounting, erp or crm software side

    Posted by Scott A. Holter on Jul 3, 2019 3:47:02 PM

    Topics: ERP

    Microsoft’s branding in general and the “Dynamics” brand, in particular, has created a lot of confusion in the market. Frequently, I hear that a company is running “Dynamics” but that’s just a brand akin to hearing that a person drives a Toyota or Ford without providing the specific model let alone the myriad of factory or aftermarket options installed.  

    Over the years, Microsoft acquired four Enterprise Resource Planning (ERP) systems and one Customer Relationship Management (CRM) system.

    Microsoft acquired iCommunicate in 2001 and re-named the software Microsoft CRM. Around that same time, Microsoft acquired Great Plains Software and, shortly thereafter, renamed Great Plains as Dynamics GP and renamed CRM as Dynamics CRM.  The Great Plains acquisition also brought the Solomon accounting software package to Microsoft which it renamed Dynamics SL.

    As these three evolved, they took on the year as the version. For example, Dynamics GP is currently marketed as Dynamics GP 2018. 

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    Calculating Damages in Mergers and Acquisitions Transactions Disputes

    Posted by Meaden & Moore on Jul 1, 2019 8:00:00 AM

    Topics: Investigative and Forensic Accounting

    Mergers and acquisitions (M&A) transactions rarely turn out precisely as the parties anticipated when they negotiated the deal and signed the documents. This can cause disputes over purchase price adjustments, representations, warranties, and earnout provisions. To determine the liability and computing damages that occur from these disputes, you need a combination of business valuation, forensic accounting, and economic analysis techniques.

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