No doubt, audits can be a time-consuming process when you have a company to run. Fair value accounting, the movement to link GAAP accounting more closely with market prices for assets and liabilities, adds a dimension of complexity to the audit process. You need a provider who has the required knowledge and experience to make sure that your audit remains on schedule. Fair value accounting calls upon highly specialized financial skills, complex valuation models and current, hard-to-find market data to complete the audit process.
In many cases, your auditor may suggest or require that you engage an independent valuation specialist to assist in the reporting of fair values to comply with certain Accounting Standards Codifications (ASC), including:
- Stock option expense
- Purchase price allocation
- Goodwill impairment testing
- Long-lived asset impairment testing
- Derivatives and hedging instrument valuation
The fact is that when these needs arise, responding to those needs places additional time burdens on you. You may be required to drop what you are working on and provide the necessary documentation and support for the fair value components of the audit.
That distraction from daily operations and servicing customers is a true cost to most privately-held businesses. We mitigate that risk. Here are the top three ways that we enable you to be successful during an audit.
You will avoid the landmines of an audit by working with us. We ourselves are auditors. We know where the typical compliance pitfalls are and how to address them proactively before they threaten your audit timetable or budget.
Focus on Running Your Business
You will remain focused on your business during the audit process when working with us. Our full knowledge of the audit process means you spend more of your running your business instead of dealing with valuation debates. More importantly, you have peace of mind that the audit is being done right. In 2010, 42 percent of PCAOB comments on "Big Four" audits were in connection with the valuation component. Fair value appraisals are hard for even the largest firms to perform. We're the choice that helps get your audit done and you back to running your business full-time.
You want to know what it is like working us. At HA&W, we have zero tolerance for late delivery of the valuation report to support the audit. We deliver our part of the audit on time, no matter what it takes.