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For 2017 close, expect auditors to queue up queries on 2018

Tammy Whitehouse | October 3, 2017

In preparation for the year-end close, companies should anticipate plenty of questions from auditors about the riskiest areas of financial reporting, especially around new accounting rules on the horizon.

To minimize the risk of auditors finding problems after the close, companies typically need to put some extra elbow grease into the application of new accounting standards that took effect in the current year. At the end of 2017, however, auditors will focus much more intently on rules that have not yet taken effect, like new standards on revenue recognition, leasing, and financial instruments.

“There really were no big-ticket accounting standards taking effect in 2017,” says Barry Kohn, a partner at Deloitte. “There were a few minor things that took effect this year that for the vast majority of companies are not going to have a significant impact.”

In fact, where the Financial Accounting Standards Board issued new standards taking effect for this year end,... To get the full story, subscribe now.