Segregation of Duties: The Key to Proper Controls and Minimizing Fraud

 

Post By Alyssa Sproat

Segregation of duties (SOD) is an essential part of the effectiveness of internal controls for any business. This integral separation ensures that key processes are performed by more than one person to prevent fraud or financial misstatement. While technology continues to become more sophisticated, the time is now to implement controls that segregate key functions within processes such as cash disbursements, investments, payroll, and many other areas.

The first step to implementing effective SOD is to truly understand […]

March 1, 2017 Benefit Plan Accounting, Forensic Accounting Read more...

Partnership Audit Changes Will Impact Pass-Through Investors Starting In 2018

Post By Richard Ruvelson

The Bipartisan Budget Act of 2015, (“the BBA”), which was enacted into law on November 2, 2015, repeals the current rules, enacted by Congress in 1982, governing partnership audits and replaces them with a new centralized partnership (includes LLCs taxed as partnerships) audit regime that, in general, assesses and collects tax, interest and penalties at the partnership level. This change can turn pass-through investments into income tax taxpaying entities. Under Temporary Regulations, issued in August of 2016, if […]

March 1, 2017 Accounting Read more...

Entity-Level Controls; Information Systems

Post By Doug Falatko

In any internal control environment at any entity, there is one common factor that affects all members of the organization- information technology (IT). Information technology is the element that has the broadest impact on its users and is one of the least understood and least likely to be discussed. While this element of the internal control environment may seem like something to defer to the IT experts of the world, information technology is something that should be […]

March 1, 2017 Audit Read more...

Combating Fraud With Internal Controls – Where Do I Start?

Post By Khal Taib
“It can never happen to us!” is a too common thought that passes through the minds of managers across the globe spanning countless industries. The concept of fraud is not a sexy subject for those in management. No one ever believes that what happened in the well-publicized fraud schemes, could happen to them or their respective organization. And yet, an entity with weak control activities can find itself swirling in fraud and finding themselves in the […]

February 23, 2017 Audit, Forensic Accounting Read more...

States May Delay Refunds to Help Prevent Taxpayer Identity Theft

 

Post By William Thomas

DC posted a short note about potential delays is processing refunds to their new MyTax.DC.gov blog. The purpose is to “safeguard tax dollars and combat identity theft.” Taxpayer identity theft is rampant across the country and an issue many jurisdictions face – both the IRS and states across the union. While many taxpayers do not wish for their refunds to be delayed, these jurisdictions are taking measures to ensure the refunds are issued to the correct taxpayer, which takes […]

February 16, 2017 Tax Read more...

Is Your Plan Still Paying Benefits to Deceased Pensioners?

Post By Zack Podrasky

One of the most important aspects of pension payments is the timely ceasing of benefits when a participant dies. The state of Illinois found this out the hard way. Between 2010 and 2014, some of the largest pension funds in Illinois incorrectly paid approximately 400,000 deceased pensioners over $3.5 million in benefits. Although some funds were eventually recovered, Plans should have policies and procedures in place to avoid this difficult and costly situation. This is why […]

February 15, 2017 Benefit Plan Accounting Read more...

FinCEN Form 114 Due Date Change

 

Post By Jobe Dupre

Are you a U.S. person with a financial interest in or signature authority over a foreign financial account? In other words, do you have or have authority over a bank account in a foreign country? If so, you should be aware of the foreign reporting required, specifically the filing of FinCEN Form 114.

If the aggregate value of this foreign financial account exceeds $10,000 at any time during the year, you must file a FinCEN Form 114. Prior […]

February 13, 2017 Tax, Wealth Management Read more...

Know Your Auto (Expenses):  Actual Versus Standard Mileage Rate Methods

Post By Scott Reddersen 

If you use your car for business purposes as a self-employed taxpayer or as an employee, you generally can deduct related expenses.  You have two methods from which to choose: the standard mileage rate, or actual car expenses incurred.

If you own your car and wish to use the standard mileage rate, you must utilize this method in the first year the car is available for use in the business.  In subsequent years, you can choose to use […]

February 10, 2017 Accounting, Tax Read more...

Administrative Expenses: Whose Alligator Boots are You Buying?

 Post By Emily Hewitt 

In federal court the former vice chairman of ABC-Mart pled guilty to committing fraud for a period that lasted longer than six years. John Smith was convicted of fraud for embezzlement, theft of gift cards and merchandise and unauthorized use of the company’s credit card for personal purchases. How can we and ABC-Mart learn from this nightmare?

Mr. Smith was allegedly involved in creating dummy vendors and invoices and coercing subordinates to approve expenses without support. He would […]

February 9, 2017 Audit, Forensic Accounting Read more...

IRS Warns About W-2 Phishing Scam

Post By Sean Urbany

Late last week, the Internal Revenue Service issued an urgent warning related to a recent spike in email phishing scams. The statement warns about a specific scam where cybercriminals are disguising their email address as to appear as an executive from the targeted organization. The cybercriminal then sends an email to individuals in the human resources or payroll departments of the organization requesting copies of all employee Form W-2s. The IRS indicates that this scam is […]

February 7, 2017 Human Resources, Tax Read more...