Michelle Mackey

The 2024 Compliance Supplement was released today. See the link in the comments. The Compliance Supplement identifies compliance requirements for auditors to consider when performing single audits under the OMB's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). If you have at least $750,000 of expenditures of federal awards and are subject to the single audit requirement, you should familiarize yourself with the Compliance Supplement so you know what kind of testing your auditors may perform. While the entire 2024 Compliance Supplement is 2,105 pages and 21MB, you do not need to read everything. The Compliance Supplement is organized by federal agency and then by assistance listing number (formally the Catalog of Federal Domestic Assistance number). The assistance listing number should be made known to you in your grant agreements or in other documentation.

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Nearly 80% of Chief Audit Executives view cybersecurity threats as a high or very high risk. Is your organization prepared? If not, LBMC has an extensive cybersecurity practice. Let me know if we can help you. #LBMC #CyberSecurityAwareness #RiskManagement #InternalAudit

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This week on The Audit Podcast, we're joined by Derry Herring, Senior Vice President and Chief Audit Officer of Protective Life Corporation. In this episode, Derry discusses implementing new IIA Standards this year, highlighting challenges and lessons learned to ensure a smooth transition. He shares practical advice on avoiding pitfalls, strategies for expanding his audit team from 4 to 26 members, and useful Excel methods to streamline audit processes for smaller departments. #Audit #Podcast #InternalAudit #ExcelMethods #IIAStsndards

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Join John D'Amico, CPA, Managing Director, CBIZ Marks Paneth, and Shareholder, Mayer Hoffman McCann P.C., at the "Governmental Accounting & Auditing Conference" by New Jersey Society of CPAs on Wednesday, July 17. This webinar takes an in-depth look at governmental accounting and auditing to help you effectively implement current and new statements from the GASB, overcome implementation issues, enact changes in single audits, comply with local government regulations and circumvent fraud in your organization. John will present during the "Single Audit Update" session to discuss the recent changes: https://okt.to/XLbuNv #singleaudit #webinar #GASB #audit

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Practitioners grappling with clients who transact in digital assets? Check out our updated guidance with new auditing tips!! https://lnkd.in/e-gaHY-7 #AICPA #digitalassetsauditing #CPAassurance

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This week on The Audit Podcast, we're joined by Michael Pellet, Director of Internal Audit at Lyft. In this episode, Michael explores strategies for hiring and retaining top talent, highlighting his innovative staffing model. He emphasizes the importance of all auditors being proficient in data, even if they aren’t experts in AI, and underscores the critical role of data governance in today's audit landscape. Michael also shares how marketing techniques can be adapted to enhance internal audit processes. See the link for the full interview: https://lnkd.in/eyiPUXe #Audit #Podcast #InternalAudit #AI #Data #DataGovernance

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The PCAOB's sanctions against L&L CPAs underscore the critical need for robust quality control and adherence to audit standards. With penalties totaling $150,000 and an engagement partner barred, this case highlights the consequences of inadequate policies on reporting critical audit matters and missed deadlines. At CPAClub, we advocate for proactive investments in quality management to ensure compliance and uphold audit integrity. Trust us to elevate your firm's standards and safeguard investor trust. Read more about the article here: https://lnkd.in/e2zaB9-H #AuditStandards #PCAOB #CPAClubLive #CPAClubMembership #CPAClub #CPAClubPasses #FinancialSuccess #Accounting #Auditing #CPA #Audit #AccountingServices #CPALeaders #QualityManagement #cpafirms #pcaob #aicpa #auditquality #auditmanagers #auditseniors #advisory #advisoryseniors #advisorymanagers #cfos #controllers

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One of the unique services that we offer is an outsourced internal audit function. We serve publicly traded clients who are in start-up mode and on the cusp of developing their internal controls. We can assist with reviewing the set up the internal control structure. walk-through it, and develop procedures to test the controls for 404A purposes. One of our clients that we are assisting is looking to rid themselves of the material weakness that they have and we're are to help . One of the struggles of these types of engagements is what is known as the management letter. In it, we get to tell management how much they suck at what they are doing *ehm" , I mean, we get to tell them what areas they can improve on. And to be honest, any internal auditor can attest to this, I'm sure. It's not a pleasant conversation. It's full of defensiveness. But it is also full of compromise and understanding from their perspective. It's easy to come in from outside and say THIS is how you should do something. But many times, context is important. Last night, I was in a 2 hour meeting whereby I got a chance to get their side of the story and context to multiple situations. In some situations, I was extremely stubborn. And, I believe, rightfully so. In others, I can tell you I relented my position because what they said made sense. But what I can tell you is, despite them being one of the best accounting teams I've worked with, even they can have some flaws. So how much more so does your accounting team have flaws? Let us come in from the outside and take a look at what is under that hood. Message us if you'd like to learn more.

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I've completely lost control of what the Zeroed-In Consulting team talks about during our weekly calls these days. Between yesterday's botched wizard/witch introduction and Kyle Geers, CPA's unforgettable analogy comparing audits to root canals below (which, to be fair, isn't that far off), I never know what's coming next. One thing's for sure, though: it'll be about 50% accounting and 50% something entirely random—but always entertaining and often content-worthy. With the right team around you, even the most mundane topics can become entertaining! #auditprep #yearend #accounting

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What Clients Want from Their Auditors – New Research Insights… Traditional audits are time-consuming and stressful. But auditors are viewed as having a unique opportunity to add value to organizations. That is the view of US organizations in a new survey of over 250 businesses on their audit experience. The Main Challenge Uncovered: The distress of a traditional audit causes: ·      78% of respondents to have anxiety over the resource cost of the audit. ·      52% find the audit process stressful. ·      31% view the audit process as slow and cumbersome. ·      26% are burnt out as a result of tedious audits. ·      19% say it is so bad they have considered quitting their role. Imagine delivering a service where 1 in 5 clients you work with have such a bad experience of working with you that they want to quit their job! There is a noticeable delta within the data where auditors are using modern technology. The Main Opportunities: Auditors can shift the perspective of their work: · 95% of respondents believe the audit can provide data driven insights to support growth. ·      72% want recommendations to improve their finance and operations. ·      51% want to be compared to competitors to benchmark performance. The key here is data. You can only provide the data driven insights clients crave if you are using data in your audit process (and I don’t mean mapping a trial balance…)! Steps Firms Can Take: The good news is that clients have laid out next steps to auditors in this research: ·      72% want their auditors to modernize, so competitors don’t receive better audits than them. ·      67% of clients want auditors to use cloud based software for collaboration. ·      63% want data driven services to provide new insights to them. Check out the article on Accounting Today. There is a link to the full research report available for free at the top of my bio!

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Following auditor guidance can help companies refine Sarbanes-Oxley Act (SOX) Section 404 programs to navigate risks, streamline operations, and more. Attend our webcast on May 2nd to learn more.

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More reporting...

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Auditor independence is an area of common deficiencies year after year, according to PCAOB inspections.

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The 2024 Report to the Nations by the Association of Certified Fraud Examiners (ACFE) unravels the extensive and costly impact of occupational fraud, revealing businesses lose around 5% of annual revenue to workplace fraud. This analysis, based on 1,921 cases from 138 countries, exposes a total loss of more than $3.1 billion, underscoring the persistent threat of fraud across all business sectors.

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