FAM Consultant

Dear CPA

Does this sound familiar?

''Well our records might not be perfect, but they were good enough to get by our audit last year, nothing has changed, so we should be okay this year.''

Year to year comparisons rather than the value of absolute amounts is usually taken.

So if this year’s depreciation expense can be reconciled to last year’s depreciation expense, allowing for additions and deletions, everything is assumed to be correct.