Here’s a Tip to see if you have a good accountant


Step 1 – give them loads of data e.g. 1 bankers box.  Your accountant will be delighted as we love data and we generally put it into a big spreadsheet with loads of complicated formulae.

Step 2 – ask them to review the data and give you their view, to empower you to make a decision.

You will know you have a good accountant if their response is on one page and gives you all the key information you need to make that decision.  The really good accountants will also give you benchmarks based on their experience.

There are many people attributed to this quote:-  “If I had more time, I would have written a shorter letter”.  Our team in Cooney Carey put in the time, effort and experience to provide concise, relevant and easy to read advise.

We think we are good accountants and thankfully many of our clients and peers agree.

If you have any queries in relation to the above please do not hesitate to contact a member of the Cooney Carey team at 01 677 9000 or by email at info@cooneycarey.ie

To keep in touch, connect with us on LinkedIn.

Posted on September 10, 2020 by Cooney Carey

What does an Auditor mean by “Materiality”


An auditor will calculate a monetary value as the “materiality” level applicable to those financial statements he/she is auditing.

The value will be based on the auditor’s professional judgement and their perception on the financial information needs of the users of the financial statements.

The auditor will generally calculate materiality by applying a percentage value to a benchmark such as: Turnover; Assets; Liabilities; certain individual assets/liabilities; Profits; Equity.

Once materiality is determined, the auditor will also calculate (a) Performance Materiality – normally 70-80% of materiality and (b) Trivial – normally 10% of materiality.

During the course of the audit, the auditor will accumulate all detected errors and misstatements in excess of the ‘Performance Materiality’ value.  If these errors or misstatements, either individually or together, exceed the materiality value, the auditor will request that the financial statements are corrected.

An auditor may also deem an error or misstatement material if it were to affect the following:

  • Compliance with regulatory requirements
  • Compliance with debt covenants or contractual requirements
  • Masks a change in a Key Performance Indicator
  • Has the effect of increasing management compensation
  • Relates to items involving particular parties
  • Disclosure of information users of the financial statements would require to understand the financial position of the reporting entity

If you have any queries in relation to the above please do not hesitate to contact a member of the Cooney Carey team at 01 677 9000 or by email at info@cooneycarey.ie

To keep in touch, connect with us on LinkedIn.

Posted on September 10, 2020 by Cooney Carey

Are your accounting policies appropriate and up to date?

accounting software

Accounting policies are the specific principles, bases, conventions, rules, and practices applied by a company in preparing and presenting its financial statements.

The company’s management shall use its judgement in developing and applying an accounting policy that results in information that is relevant and reliable.

A company needs to be sure that the accounting policies reflect current accounting requirements. A company may be concerned that poorly drafted policies may result in errors and inconsistent application of accounting requirements.

When choosing application of appropriate accounting policies, the following should be considered:

  • Substance over form
  • Objectivity
  • Fairness
  • Materiality
  • Prudence

A company shall select and apply its accounting policies consistently for similar transactions. A company’s choice in accounting policies will indicate whether management is aggressive or conservative in reporting its earnings.

A company’s accounting policies should be reviewed regularly to ensure that they remain the most appropriate to its particular circumstances. A company should implement a new accounting policy if it is judged more appropriate to the company’s particular circumstances than the present accounting policy.

WHAT QUESTIONS DO YOU HAVE?

If you need assistance with reviewing your current accounting policies or applying a change to an accounting policy contact us here in Cooney Carey on 01 677 9000 or send us an email to info@cooneycarey.ie.   We would be delighted to assist you.

To keep in touch, connect with us on LinkedIn.

Posted on August 6, 2020 by Cooney Carey

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