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Introduction
GAAP Consulting (‘Excellence in Financial Reporting’) provides independent financial reporting, auditing and corporate governance solutions to reduce your risks. Colin Parker (a member of the AASB) and Jim Dixon, and their network colleagues, provide independent expert advice on GAAP and GAAS, representation expertise, tailored training courses, and litigation support, to meet your needs.
Generally Accepted Accounting Principles (‘GAAP’)
Financial reporting is complex due to the nature of business transactions and structures, the 1000’s of pages of Australian GAAP based on IFRS, and interpretation issues. In preparing financial reports there is ever-changing composition of GAAP, the Corporations Act, and the requirements of other financial reporting mandates to understand and implement.
There are significant and on-going challenges in financial reporting for those charged with governance, management, and auditors with adverse market, regulatory and reputation consequences for inadequate reporting and auditing practices. Like other business risks, financial reporting and auditing risks must be understood and managed on an ongoing basis.
The application of GAAP to individual transactions requires detailed consideration, well in advance of the financial reporting preparation. GAAP must be monitored and analysed in your specific circumstances on a timely basis. Accounting and other staff need to be trained; internal policy positions researched and documented; and assurance provided to governance as to compliance with GAAP, and the reasonableness of the positions taken on contentions financial reporting issues.
Entities seek to have their positions on financial reporting understood by auditors, analysts, standard-setters, regulators, and governments. Such positions need to be well argued, documented and articulated by an independent and expert firm ‘GAAP Consulting’.
Generally Accepted Auditing Standards (‘GAAS’)
Auditing Standards have legal-backing for Corporations Act audits; there are criminal sanctions for breaches by auditors. Auditing standards have also implications for governance and management; such implications need to be understood and managed.
Audit firms must monitor and analyse GAAS developments; and implement new and revised auditing standards, and continually manage risk. Internal policy positions need to be researched and documented; manuals, programs, checklists, precedents updated; and auditors trained. Compliance systems need to be developed and assured. On matters of interpretation regarding GAAP or GAAS, second opinions will be sought from within the firm, or from other sources. ‘GAAP Consulting’ also provides extensive services for auditors, governance and management on GAAS.
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