Floyd Advisory LLC

Happy #InternationalWomensDay! We want to recognize and thank the amazing women at Floyd Advisory for all they do for our clients and firm. #IWD #IWD2025 #gratitude

The topic of related parties has been prevalent in the news lately, including in a recent Wall Street Journal article describing Tesla’s potential requirement to disclose the U.S. government as a related party. https://lnkd.in/eKCREjGU So, who is a related party? Transactions between two parties are considered related if they cannot be presumed to be at arm’s length. Generally accepted accounting principles (“GAAP”) define a related party as one being i) an affiliate to an entity, ii) an investor or investee of an entity, iii) a trust for the benefit of employees, iv) familial, and/or v) a manager or owner of an entity, and can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. GAAP requires companies to disclose transactions with related parties in their financial statements. These disclosures enable users of the information to evaluate the potential impact related party transactions have on the overall financial performance or condition of a company. ? Public registrants are also required to disclose additional information, if relevant to the users of the financial statements, including disclosing transaction amounts on the face of the company’s balance sheet, income statement, and/or statement of cash flows, as applicable. GAAP further advises that related party transaction disclosures include additional information, such as i) a description for each transaction, the amounts, and any other information necessary for a user to understand the effects of the transactions on the financial statements and ii) amounts due from or amounts due to related parties and the terms and manner of settlement. #SEC #financialreporting #accounting #GAAP #relatedparties

??.??. ???????????????????? (??????) ???????????????? “???????????????????? ???? ??????????????” — ??????????! For the 28th consecutive year, the USG has received a "disclaimer of opinion" on its consolidated financial statements, which were released last month. This means the Government Accountability Office (GAO) was unable to obtain sufficient evidence to determine whether the financial statements are reliable. ???????? ???? ?? ???????????????????? ???? ??????????????? In financial audits, a disclaimer of opinion is issued when auditors cannot form an opinion due to insufficient, unreliable, or incomplete financial data. This is different from an “adverse” opinion, which states that the financial statements are materially misstated. A disclaimer means that the auditors could not gather enough appropriate evidence to assess the accuracy of the statements at all. When this occurs, it is typically due to severe financial reporting issues, such as missing records, control failures, or an inability to verify key balances. In most cases, companies that receive such an opinion face significant regulatory and market consequences. ?????? ???????????? ???? ???????? ?????????? ?????? ??????????????????????? For publicly traded companies, disclaimers of opinion are extremely rare. Over the past ten fiscal years, only 3 of the approximately 70,000 10-K filings included a disclaimer of opinion. ???? ?????????? ?????????????? ???? ?????????????? The USG has received a disclaimer of opinion every year since 1997, the first year consolidated financial statements were issued. The primary reasons for this include: ? ???????????????????? ???? ?????????????? (??????) ???????????????????? ???????????????????? – The DoD, which holds a significant portion of federal assets and spending, has never received a clean audit opinion due to persistent financial management weaknesses. ? ???????????????????????? ?????????????????????????????????? ???????????????????????? – Federal agencies report transactions with one another, but these balances do not always match, creating large discrepancies. ? ???????????????????? ???? ?????????????????? ?????????????????? ?????????????????? – There are ongoing issues in compiling and consolidating data across numerous federal agencies. ? ?????????????????????? ?????????????? ?????? ?????? ???????? ???????????????? ???? ?????? ?????????? ??????. ??????????. (??????) ?????? ??????t. ???? ????. (????) – The SBA and the ED carry large loan programs, for which the estimated values of the related assets and costs are inadequately supported. ???????? ???????? ?????????? While a disclaimer of opinion does not necessarily indicate fraud or wrongdoing, it does highlight ongoing difficulties in producing auditable financial information at the federal level. In contrast, most large corporations and public entities are required to provide auditable financials each year to maintain investor confidence and regulatory compliance.

William Floyd, PhD, CPA discusses how AI tools can assist, but not replace, forensic accountants.

Our partner Brian Loughman offers his insights on building trusting client relationships, supporting and mentoring colleagues, and emerging technologies that are capturing his attention in a Q&A featured in Financier Worldwide Magazine's "POWER PLAYERS: Investigations & White-Collar Crime 2025 - Exceptional Experts." The feature can also be found on our website here: https://lnkd.in/gtGJyY2a #investigations #whitecollarcrime #expert #thoughtleader

Floyd Advisory is a proud participant in the MassCPAs Pipeline Partner Program, which helps expand the CPA pipeline. In the video linked below, LeeAnn (Asiaf) Manning shares her experience supporting the Pipeline Partner Program, highlighting our firm’s participation in a recent event at Suffolk University for high school students interested in accounting. Check out the video here: https://lnkd.in/et8zmX8J Learn more about the Pipeline Partner Program here: https://lnkd.in/e4yqqdrm #TalentPipeline #FutureCPAs #AccountingLeadership #CPARecruitment

Floyd Advisory was proud to sponsor the Boys and Girls Clubs of Boston’s Annual Dinner. Bill Shea, CPA, LeeAnn (Asiaf) Manning, Michael Phillips and Rob Lashway, CPA, ABV, CFF had a great time representing our firm at this amazing event, which celebrates and supports the Clubs’ members, families and communities. #socialimpact #givingback

We are pleased to announce that Abigail Ahern, CPA, CFE has been promoted to Senior Manager, effective January 1, 2025. Please join us in congratulating Abigail on her hard work and demonstrated excellence in client service and teamwork. #promotions #careerdevelopment #success #congratulations

Last January, Archer-Daniels-Midland (ADM) shares fell 24% in a day after disclosing an investigation into issues with its segment reporting. Reviewing SEC comment letter activity in 2024, ADM's auditor, Ernst & Young, had the highest percentage of clients receiving comments on their segment reporting among the Big 4 (44 clients).

Last week, Floyd Advisory LLC team members Robert Conroy, CPA, CFE and Marni Kaufman, CPA, CFE, ABV met with students at the Early Investors Inc. Reality Fair at Holland High School in Dorchester, MA, to discuss potential career paths, tax planning and personal budgeting. Thank you, Rob and Marni, for making a positive impact on the youth in our community! #socialimpact #givingback #helpingothers #Boston