- Dealers who flinch each year before their annual audit, or who think of the process as something that will significantly interfere with their work for days at a time, should think again. An audit doesn’t have to be a time-draining or stressful experience for those who are prepared. This article discusses how to anticipate auditors’ requests and learn from the management points they present at the end of an engagement. It also provides tips for preparing for the auditors’ physical inspection of inventory, and why it’s important to discuss with them the best inventory method to use.
- This article discusses the real meaning of transparency and whether the one-price model in auto retailing is a better way to sell vehicles than the traditional sales model of negotiating the vehicle price with customers. The pros and cons of each approach are explored.
- One job that should be at the top of a dealership’s year end priority list is conducting a recap of 2014 financial performance with their accountant. The review will provide a comprehensive snapshot of the dealership’s financial position toward the end of the year. It also will lay the groundwork for the 2015 financial forecast and budget. This article discusses some of the financial ratios that demand especially close attention, including gross and net profit margins, fixed costs, inventory turnover and current ratio.
- More punitive regulatory approach raises financial statement audit scrutiny: In the aftermath of the Great Recession, regulators have turned dramatically to a far more punitive approach in dealing with actual and alleged instances of noncompliance with laws and regulations by financial institutions. The increased presence of significant financial consequences, brings into greater light a financial statement auditing standard that previously had infrequent application and limited effect on the financial condition and results of reporting companies’ operations.
- At the recent Mortgage Bankers Association annual convention, Federal Housing Finance Agency (FHFA) Director Met Watt and US Secretary of Housing and Urban Development (HUD) Julian Castro announced a relaxation of lending standards for Government-Sponsored Enterprise (GSEs).
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