The COVID-19 pandemic significantly impacted many businesses throughout the country. Fortunately, a lot of assistance was offered to keep business entities afloat and help continue their day-to-day operations.  In November of 2021, the Financial Accounting Standards Board (FASB) issued new guidance in their release of ASU 2021-10.

Organizations and companies have been exposed to new and different types of risks over the past several months. Many have tested internal controls like never before, and in some cases, demonstrate the need for a more comprehensive strategy. Recognizing the need for financial statement audits to adapt to this reality, AICPA’s Auditing Standards Board has issued SAS 145.

On January 28, 2022, New Jersey Governor Phil Murphy signed bills S844 and S2533, raising the threshold for nonprofit audits from $500,000 to $1M, effective immediately. Therefore, New Jersey nonprofits whose gross receipts exceed $500,000, but do not exceed $1M, no longer need an audit.

This post updates previously published content regarding legislation that would raise the threshold for nonprofit audits from $500,000 to $1M. Assembly Bill 4635 (AB4635) passed the New Jersey legislature on December 20, 2021, and now heads to Governor Murphy for further action.

As auditors prepare for the upcoming year-end of December 31, 2021, they should be aware of the changes coming to auditor’s reports as a result of the implementation of Statement on Auditing Standards (SAS) No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, and other related SASs.

External auditors help assure that your organization’s financial statements are accurate, fairly presented, and free from fraud, but they can do so much more than that.

Audits are a necessary but sometimes disruptive part of running your business or nonprofit organization.  Meeting with your auditor, gathering documents, and scheduling time for the auditor to do their fieldwork all have to be considered.  Here are some tips to help make your audit more efficient, saving everyone time, money, and stress.

The American Rescue Plan Act of 2021 (ARPA), signed into law on March 11, 2021, not only contained provisions that affected individuals, businesses, and governmental entities, but it also had implications for accountants in regards to Single Audits.  A Single Audit is an examination of an entity that spends $750,000 or more in governmental assistance per year, through funding such as grants and awards, to ensure that the funds are being spent properly and the entity complies with laws and regulations. 

In New Jersey, nonprofit organizations that reach a specific threshold of the gross revenue received must comply with certain reporting requirements, including the mandatory submission of an audit conducted by an independent certified public accountant.

The COVID-19 pandemic has affected nearly every aspect of daily life, so preparing for your company or nonprofit organization’s audit may have some significant differences this year, considering the remote environment that many of us are working in today.