Although controls can never guarantee with absolute certainty that fraud will not occur, properly designed internal controls that operate effectively can help mitigate the effects of fraud and demonstrate to regulators, shareholders, and stakeholders that management is taking the proactive steps necessary to manage risk in an ever more complex global economy.
The Department of Treasury has announced for transactions occurring on and after Oct. 1, 2015, out-of-state retailers are required to remit sales or use tax on sales into Michigan if the seller has nexus under affiliate and click-through nexus requirements.
Retrospectively, reporting measurement period adjustments to amounts recognized in business combinations will soon be a thing of the past. Stakeholders shared that the cost outweighed the benefit and the Financial Accounting Standards Board (FASB) listened. On Friday, Sept. 28 the FASB issued Accounting Standards Update (ASU) No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustment, as part of its simplification initiative.
On Sept. 17, the House Ways and Means Committee passed a bill to make 50 percent bonus depreciation a permanent part of the tax code. The important capital investment incentive expired at the end of 2014. Prior to the August congressional recess, the Senate Finance Committee approved reinstating 50 percent bonus depreciation and increased Sec. 179 levels ($500,000 allowance and $2 million phase out) for two years (2015 - 2016).
While the external auditor has a responsibility to maintain objectivity and independence during an audit, the audit committee is also charged with several responsibilities. Overall, the audit committee must oversee the external auditor and the quality of the auditor's work. Specifically, only the audit committee can negotiate and agree upon audit fees, determine the scope of the audit work to be performed, and make recommendations and appointments of auditors.
The IRS has released finalized versions of two important tax forms that employers and all health insurance providers will need to file for the 2015 calendar year.