Explaining the virtues of testing

One of the most challenging aspects of my job as a public accountant and auditor is explaining to clients why I’d like to do what I need to do. Frequently you’ll find in your position as the auditor that client employees will enjoy seeing you twist in the wind and will find the most effectiveContinue reading “Explaining the virtues of testing”

Are small-caps better served by mid-size firms?

A little late, but a blog post at CFO.com about the level of service a small-cap public company can expect to receive from a Big Four auditor compared to a mid-size firm seemed interesting enough to share: CFO.com reader Kunal Ganguly wrote us to say a company of Catapult’s size, with its $102 million marketContinue reading “Are small-caps better served by mid-size firms?”

Enron chronicle provides some holiday reading

I have been on vacation for the last half of this month, and that along with Christmas has resulted in much less activity on this blog than is normally seen. Additionally, I have been immersed in a great book on the Enron scandal, titled “The Smartest Guys In the Room: The Amazing Rise and ScandalousContinue reading “Enron chronicle provides some holiday reading”

Taking the wraps off materiality

Materiality is an important concept in auditing. The point of an audit is to certify the financial statements as being free of material misstatement. A material misstatement is one which would affect the decisions of a user of those statements. This recent blog post at the VeraSage Institute, more known for their pioneering work inContinue reading “Taking the wraps off materiality”

Value creation mode isn’t just from 9 to 5

I was recently asked what I thought about value pricing as it relates to professional services firms. The billable hour is typically how firms price their engagements, but the idea of value pricing is gaining momentum and acceptance is growing. I believe in a competitive market, value pricing would occur naturally. Misinformation from vested interestsContinue reading “Value creation mode isn’t just from 9 to 5”