International Fraud Awareness Week badge for 2020 from the ACFEAccording to a study conducted by the Association of Fraud Examiners (ACFE), fraud costs organizations about 5% of their annual revenues. For this year’s International Fraud Awareness Week, the Houston Chapter of the ACFE has lined up activities for friends, family and colleagues to join and participate in from November 15 – November 21 to raise awareness to fraud.

The Houston Chapter of ACFE has shared the daily International Fraud Awareness Week activities, which include:

Continue Reading Join International Fraud Awareness Week 2020 Activities

Portrait of Danielle Supkis Cheek, Director at PKF Texas; image used for announcement about Danielle's appointment IFAC committeePKF Texas is excited to announce Director Danielle Supkis Cheek, CPA, CFE, CVA, has been appointed to serve as the U.S. Representative to the International Federation of Accountants (IFAC) Small and Medium Practices (SMP) Committee. Her term will last from January 1, 2021 – December 31, 2023.

The IFAC SMP Committee is an advisory body providing strategic input on IFAC’s activities in three areas:

  • Providing regular and timely input to the international standard-setting process
  • Developing and sharing practical guidance, tools and resources
  • Promoting the visibility and recognition of SMPs

“With the coming adoption of new coming international quality control standards, this is an important time for firms,” said Supkis Cheek. “The industry continues to evolve rapidly, so the opportunity to be part of a committee providing what firms need is rewarding.”

For more information about the IFAC SMP Commitee, visit www.ifac.org/who-we-are/advisory-groups/small-and-medium-practices-advisory-group.

The Small Business Administration (SBA) and Department of Treasury released an updated Paycheck Protection Program (PPP) Loan Forgiveness FAQ with detailed instructions on Tuesday, August 4, 2020 as the COVID-19 pandemic continues.

hands typing on a laptop; image used for a COVID-19 update about the Paycheck Protection Program (PPP) Loan Forgiveness Application

The FAQs cover:

  • General loan forgiveness
  • Payroll costs
  • Nonpayroll costs
  • Reductions

Future legislation may impact this and other PPP-related guidance. We will continue to monitor possible updates, promptly advising you should the current documents be revised or amended.

If you have questions about PPP-related matters, please connect with your PKF Texas Entrepreneurial Advisory Services team members.

Byron Hebert, CPA, CTP
Practice Leader/Director, EAS
BHebert@PKFTexas.com
(713) 860-1455

Sam Razmandi, CPA
Director, EAS
SRazmandi@PKFTexas.com
(713) 860-5442

Matt Goldston, CPA, CVA, CM&AA
Director, EAS
MGoldston@PKFTexas.com
(713) 860-5439

Danielle Supkis Cheek, CPA, CFE, CVA
Director, EAS
DCheek@PKFTexas.com
(713) 860-5422

Additionally, we are keeping PKFTexas.com/COVID-19 up-to-date with information and resources to assist you as we all navigate these quickly-changing times.

The Houston Business Journal recently published an article on their website by PKF Texas Director, Danielle Supkis Cheek, who shares insight on selecting the “second-best” controls for fraud prevention.

someone holding a magnifying glass to a laptop keyboard; image used for blog post about Danielle Supkis Cheek article about fraud prevention

Danielle references the 2020 ACFE Report to the Nations as a resource for information and data, which companies can use when finding the best fit for their environment. She asserts that the second-best control is based on:

  • Broad applicability to small to large company (and not-for-profits).
  • Ability to execute on a test basis for low cost and ability to scale up.
  • Extra unintended benefits usually derived for operations from its existence.
  • It is a proactive data monitoring/analysis program.

For the full article with more detail, visit www.bizjournals.com/houston/news/2020/07/08/what-is-the-second-best-bang-for-buck-control-to-p.html.

For more information about forensic accounting and fraud prevention, contact Danielle Supkis Cheek at dcheek@pkftexas.com.

The Paycheck Protection Program (PPP) Flexibility Act amends the Small Business Act and the CARES Act, modifying certain provisions in an attempt to make it easier for businesses to have their PPP loans forgiven. For many companies these are welcome changes. However, there are few things to bring to your attention which could lead to unintended consequences in limited cases.

The one constant in the PPP is that the program will change. We do not expect this recent update to be the final PPP outlook, and we anticipate changes to the forgiveness form, as well as more regulatory interpretations that will impact the Program.

Continue Reading What to Watch Out for in the Paycheck Protection Program Flexibility Act

The Small Business Administration (SBA) and Department of Treasury released the Paycheck Protection Program (PPP) Loan Forgiveness Application with detailed instructions on Friday, May 15, 2020.

hands typing on a laptop; image used for a COVID-19 update about the Paycheck Protection Program Loan Forgiveness Application

The SBA form has instructions that include:

  • The option for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the coverage period after receiving their PPP loan
  • Instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
  • Implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30, 2020
  • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined

Future legislation may impact this and other PPP-related guidance. We will continue to monitor possible updates to the PPP Loan Forgiveness Application, promptly advising you should the current contents of the application be revised or amended.

If you have questions about PPP-related matters, please connect with your PKF Texas Entrepreneurial Advisory Services team members.

Byron Hebert, CPA, CTP
Practice Leader/Director, EAS
BHebert@PKFTexas.com
(713) 860-1455

Sam Razmandi, CPA
Director, EAS
SRazmandi@PKFTexas.com
(713) 860-5442

Matt Goldston, CPA, CVA, CM&AA
Director, EAS
MGoldston@PKFTexas.com
(713) 860-5439

Danielle Supkis Cheek, CPA, CFE, CVA
Director, EAS
DCheek@PKFTexas.com
(713) 860-5422

Additionally, we are keeping PKFTexas.com/COVID-19 up-to-date with information and resources to assist you as we all navigate these quickly-changing times.

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Danielle Supkis Cheek, one of the faces of our fraud and forensics team. Danielle, welcome back to the Playbook.

Danielle: Thank you again for having me.

Jen: So, I’ve heard a little bit about treasury management. What do you do in that space, and what does that look like?

Danielle: Treasury management is just a fancy word for “banking services.” You’ll be able to reach out to your banker and find out what treasury management services they have, but it’s kind of the services that the bank offers you as a business customer typically.

Continue Reading How Treasury Management Can Help Protect Your Business

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Danielle Supkis Cheek, a director and one of the faces of our data analytics team. Danielle, welcome back the Playbook.

Danielle: Thank you again.

Jen: So, in this era of technology, and I mentioned in the intro—data analytics. One of the pieces that is data visualization. What are you seeing in that space, and how do you work with clients on that?

Danielle: Yeah, so, data visualization is what sounds like a scary term—people don’t really exactly know what it is—it pretty much is a fancy word for “pictures of graphs.” Just summering up data in a graph or a picture of some sort. A lot of people still seem to be very afraid to start, very afraid of, “What do I need to invest?” and afraid of, “What do I need to do?”

Continue Reading What is Data Visualization and How to Get Started

Jen: This is PKF Texas the Entrepreneurs Playbook. I’m Jen Lemanski, and I am back again with Danielle Supkis Cheek, a director and one of the faces of our PKF Texas Consulting team. Danielle, welcome back the Playbook.

Danielle: Always happy to be here.

Jen: So, we’ve had a few other directors in here talking about lease accounting, and I know the standards have changed a little bit since the last time we had—I think it was Chris Hatten was here. Can you give us a little bit of an overview about what’s happened with the delayed lease accounting standards?

Danielle: Yeah sure. The AICPA’s Technical Issues Committee actually wrote an unsolicited letter to the FASB requesting an extension related to… it was really mainly tied to… that we have a lot going on with the Revenue Recognition implementation, I think we talked about the past. And then adding it to the leases, the leases can change your balance sheet a lot, and I think we’ve had a lot of people talking about the implications to your balance sheet of the actual standard, that it can impact your covenants or various ratio analysis.

Continue Reading Get Started on Lease Accounting Now!

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m here with Danielle Supkis Cheek, a director in our Entrepreneurial Advisory Services group. Danielle, welcome back to the Playbook.

Danielle: Thank you for having me again.

Jen: I know revenue recognition is a hot topic right now; we’re getting ready to go into audit season. What are some trends you are seeing where clients need to get ready since it’s kind of a new thing that they should be ready for?

Danielle: A lot of clients, particularly certain industry types, have a tendency to kind of not dismiss revenue recognition, but they don’t perceive it as large of an impact. There’s a lot of areas where the revenue recognition rules effectively didn’t change too much, but there’s some really specific nuances that did change, as well as the auditors are going to be looking at how did somebody assess to see if it changed or not. So even in industries that didn’t change very much, there is a certain amount of documentation that needs to be in place for the company having assessed it.

Continue Reading How Revenue Recognition Impacts Companies