The CAQ publishes a monthly Public Policy and Technical Alert (PPTA), which highlights and examines the regulatory, standard-setting, legislative, and broader financial reporting developments impacting the public company audit profession. This alert is designed to keep member firms and other stakeholders updated on significant public policy and accounting matters.
View the most recent edition of the PPTA newsletter below, and scroll down for older editions of the newsletter.
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Please note that the PPTA is intended as general information and should not be relied upon as being definitive or all-inclusive. The CAQ encourages member firms to refer to the rules, standards, guidance, and other resources in their entirety at the hyperlinks provided below. All entities should carefully evaluate which requirements apply to their respective organizations.
April 2023
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In This Issue
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March 2023
SEC Proposes New Requirements to Address Cybersecurity Risks to the U.S. Securities Markets
The SEC announced it proposed requirements for broker-dealers, clearing agencies, major security-based swap participants, the Municipal Securities Rulemaking Board, national securities associations, national securities exchanges, security-based swap data repositories, security-based swap dealers, and transfer agents (collectively, “Market Entities”) to address their cybersecurity risks. The proposal includes new notification requirements applicable to all Market Entities and additional reporting requirements applicable to Market Entities other than certain types of small broker-dealers (collectively, “Covered Entities”) that would improve the Commission’s ability to obtain information about significant cybersecurity incidents affecting these entities. Further, new public disclosure requirements for Covered Entities would improve transparency about the cybersecurity risks that can cause adverse impacts to the U.S. securities markets.
SEC Reopens Comment Period for Proposed Cybersecurity Risk Management Rules and Amendments for Registered Investment Advisers and Funds
The SEC announced it reopened the comment period on proposed rules and amendments related to cybersecurity risk management and cybersecurity-related disclosure for registered investment advisers, registered investment companies, and business development companies that were proposed by the Commission on February 9, 2022. The initial comment period ended on April 11, 2022. The reopened comment period will allow interested persons additional time to analyze the issues and prepare comments in light of other regulatory developments, including whether there would be any effects of other Commission proposals related to cybersecurity risk management and disclosure that the Commission should consider.
Responsibilities of Lead Auditors to Conduct High-Quality Audits When Involving Other Auditors
The SEC posted a statement by Paul Munter, Chief Accountant, regarding the expectation for the level of audit quality in audits involving other auditors. Munter discusses the auditor’s responsibilities with respect to audits involving other auditors, including members of their own network firms; highlights how the auditor’s responsibilities are incorporated currently in the PCAOB standards, including the PCAOB’s quality control standards; and provides reminders on good practices for audit committees and issuers.
SEC Proposes to Modernize the Submission of Certain Forms, Filings, and Materials Under the Securities Exchange Act of 1934
The SEC proposed amendments designed to modernize its information collection and analysis methods by, among other things, proposing that a number of filings be submitted to the Commission electronically on EDGAR using structured data where appropriate. Specifically, the proposed amendments would require the electronic filing, submission, or posting of certain forms, filings, and other submissions that national securities exchanges, national securities associations, clearing agencies, broker-dealers, security-based swap dealers, and major security-based swap participants make with the Commission. The proposed amendments would also make certain amendments regarding the Financial and Operational Combined Uniform Single (“FOCUS”) Report to harmonize it with other rules, make technical corrections, and provide clarifications. The public comment period will remain open for 30 days after publication in the Federal Register or until May 22, 2023, whichever is later.
Investor Advisory: Exercise Caution With Third-Party Verification/Proof of Reserve Reports
The PCAOB’s Office of the Investor Advocate issued an Investor Advisory due to concern that investors and others may place undue reliance on proof of reserve reports (“PoR Reports”), which are not within the PCAOB’s oversight authority. The Office of the Investor Advocate is aware of some service providers, including PCAOB-registered audit firms, issuing PoR Reports to certain crypto entities (e.g., crypto exchanges, stablecoin issuers). The Investor Advisory says investors should note that PoR engagements are not audits and, consequently, the related reports do not provide any meaningful assurance to investors or the public.
Meeting of the PCAOB Standards and Emerging Issues Advisory Group (SEIAG)
The PCAOB held a virtual meeting of its SEIAG on Thursday, March 30. Discussion centered on:
- Proposed QC 1000, A Firm’s System of Quality Control
- Proposed AS 2310, The Auditor’s Use of Confirmation
- Post-Implementation Review: CAMs and Estimates & Specialists – Findings and Steps Forward
- Going Concern
- Substantive Analytical Procedures
PCAOB Proposes Modernization of Standards Addressing Core Auditing Principles and Responsibilities
The PCAOB issued for public comment a proposed new standard, AS 1000, General Responsibilities of the Auditor in Conducting an Audit. The Board requests public comment on the proposal by May 30, 2023. If adopted, AS 1000 would reorganize and consolidate a group of standards that were adopted on an interim basis by the PCAOB in April 2003 and that address the core principles and responsibilities of the auditor, such as reasonable assurance, professional judgment, due professional care, and professional skepticism. The proposal would also amend certain other standards that address responsibilities fundamental to the conduct of an audit.
FASB Seeks Public Comment on Proposed Enhancements to Income Tax Disclosures
The FASB published a proposed Accounting Standards Update (ASU) that addresses requests for improved income tax disclosures from investors, lenders, creditors, and other allocators of capital (collectively, “investors”) that use the financial statements to make capital allocation decisions. The amendments in this proposed ASU would address investor requests for more transparency about income tax information, including jurisdictional information, by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. Comments are due by May 30, 2023.
FASB Seeks Public Comment on Proposed Improvements to the Accounting for and Disclosure of Certain Crypto Assets
The FASB published a proposed ASU intended to improve the accounting for and disclosure of certain crypto assets. The amendments would require an entity to measure crypto assets at fair value each reporting period with changes in fair value recognized in net income. They also would improve the information provided to investors about an entity’s crypto asset holdings by requiring disclosure about significant holdings, restrictions, and changes in those holdings. The amendments would apply to all entities holding crypto assets that meet all the following criteria:
- Meet the definition of intangible asset as defined in the FASB Accounting Standards CodificationMaster Glossary
- Do not provide the asset holder with enforceable rights to, or claims on, underlying goods, services, or other assets
- Are created or reside on a distributed ledger based on blockchain technology
- Are secured through cryptography
- Are fungible
- Are not created or issued by the reporting entity or its related parties
Comments are due by June 6, 2023.
FASB Improves Leases Guidance on Related Party Arrangements Between Entities Under Common Control
The FASB issued an ASU that improves the guidance for applying Topic 842, Leases, to arrangements between entities under common control. The ASU provides private companies and not-for-profit organizations that are not conduit bond obligors with a practical expedient to use the written terms and conditions of a common control arrangement to determine whether a lease exists and, if so, the classification of and accounting for that lease. In addition, the ASU requires all entities (that is, including public companies) to amortize leasehold improvements associated with common control leases over the useful life to the common control group.
FASB Improves Accounting for Investments in Tax Credit Structures
The FASB issued an ASU that improves the accounting and disclosures for investments in tax credit structures. The ASU allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits.
SAS No. 149 New Group Audits Standard
AICPA posted an alert on SAS 149, which introduces a risk-based approach to planning and performing a group audit.
Proposed New and Revised Interpretations Related to Fees
The Professional Ethics Executive Committee (PEEC) is exposing for comment two new interpretations and revisions to two interpretations of the “Independence Rule” (ET sec. 1.200.001):
- New “Determining Fees for an Attest Engagement” interpretation (ET sec. 1.230.030)1
- New “Fee Dependency” interpretation (ET sec. 1.230.040)
- Revised “Conceptual Framework for Independence” interpretation (ET sec. 1.210.010)
- Revised “Client Affiliates” interpretation (ET sec. 1.224.010)
Comments are due by June 15, 2023.
Proposed Revised Interpretation Uniform CPA Examination and Continuing Professional Education
The PEEC is proposing to expand the interpretation of the AICPA Code of Professional Conduct to include information about question and answer sharing on examinations taken in connection with CPE courses unless collaboration is expected and permitted. The PEEC also included language to clarify that falsifying attendance checks in any way is also considered an act discreditable to the profession. Comments are due by May 15, 2023.
AICPA Provides Comments on Interim Guidance Regarding Application of Corporate Alternative Minimum Tax
Following the release of interim guidance (Notice 2023-7) by the Department of the Treasury and the Internal Revenue Service (IRS) addressing how the Corporate Alternative Minimum Tax (CAMT) applies to corporations, certain partnerships, troubled companies, and affiliated groups of corporations that file consolidated tax returns, the AICPA submitted comments and recommendations that identify and provide additional information regarding CAMT guidance provided in the Notice and for rules not included in the Notice. The AICPA submitted comments and recommendations on the following issues:
- Financial Reporting and Accounting for Income Taxes
- Passthrough Issues
- General Concepts and Methods & Periods
- Mergers & Acquisitions Issues
IAASB Digital Technology Market Scan: Digital Assets
The International Auditing and Assurance Standards Board posted a Market Scan bulletin that explores Digital Assets, with a focus on recent developments within the Cryptocurrency market and what it might mean for the audit and assurance ecosystem. The IAASB’s Disruptive Technology team covers:
- What are digital assets and why are they important?
- The latest developments
- What this might mean for the IAASB
IFIAR Releases 2022 Report on Annual Survey of Audit Inspection Findings
The International Forum of Independent Audit Regulators (IFIAR) announced it has released its 11th annual survey of inspection findings arising from its Member regulators’ individual inspections of audit firms affiliated with the six largest global audit firm networks.
FRC Releases New Guidance on Audit Firm Eligibility Criteria
The FRC issued guidance for audit firms on eligibility criteria in the context of the firm’s system of quality management and the performance of engagements. ISQM (UK) 1 and ISQM (UK) 2 have been reissued with updated footnotes to reflect this guidance. The guidance contents includes details on:
- Key audit partners
- Engagement quality reviewers
- Ultimate and operational responsibilities for the system of quality management
- Public sector and local audit considerations
- Summary of eligibility criteria
IASB Proposes Narrow-Scope Amendments to Classification and Measurement Requirements for Financial Instruments
The IASB published an exposure draft proposing amendments to the classification and measurement requirements in IFRS 9 Financial Instruments. The amendments include:
- Clarifying the classification of financial assets with environmental, social, and corporate governance (ESG) and similar features
- Settlement of liabilities through electronic payment systems
Comments are due by July 19, 2023.
Insight Report: AI, Emerging Tech and Governance
The FRC posted an Insight report on AI, Emerging Tech, and Governance. The FRC held a roundtable hosted by the Centre for the Analysis of Investment Risk and the Centre for Financial Technology at Alliance Manchester Business School, and AI emerged as the primary focus in the discussions among a diverse group of stakeholders across companies, academics, accounting bodies, investors, and others. Notable takeaways were provided for governance, response, and academics and research.
IASB Initiates Project to Consider Climate-Related Risks in Financial Statements
The IASB announced it added a project to its work plan to explore whether and how companies can provide better information about climate-related risks in their financial statements. In undertaking the project, the IASB will consider the work of the International Sustainability Standards Board to ensure any proposals work well with IFRS Sustainability Disclosure Standards and that any information required by the two boards would be complementary. The project will research to what extent the educational material published in 2020 is helping companies reflect the effects of climate-related risks in the financial statements, and what actions, if any, the IASB could take to further improve information about these matters.
Monitoring Group Welcomes Important Step in Implementing Its Recommendations With the Establishment of the International Foundation for Ethics and Audit
The International Organization of Securities Commissions (IOSCO) announced the Monitoring Group (MG) recognized the announcement of the establishment of the International Foundation for Ethics and Audit (IFEA). One of the MG Recommendations is that “the standard-setting Boards should be housed in a separate legal entity outside of and independent from” the accounting profession. The creation of the Foundation marks a significant milestone in implementing the MG Recommendations in order to create a more independent and inclusive standard-setting structure that is responsive to the public interest in the development of timely, high-quality audit, assurance, ethics, and independence standards. The IAASB and the IESBA will now be housed in a separate, independent legal entity as outlined in the MG Recommendations.
IOSCO Sets Out Key Considerations to Promote an Effective Global Assurance Framework for Sustainability-Related Corporate Reporting
The IOSCO published a Report on International Work to Develop a Global Assurance Framework for Sustainability-Related Corporate Reporting. The report elaborates on IOSCO’s support for the on-going work of the IAASB and the IESBA to develop profession-agnostic assurance and ethics (including independence) standards over sustainability-related information. Among its key messages to stakeholders across the ecosystem, IOSCO encourages continued strong system-wide engagement throughout the development of the standards. A clear message in IOSCO’s factfinding work is that capabilities need to be enhanced across the entire ecosystem to support effective assurance over sustainability-related information.
The Role of the Auditor in Climate-Related Information
The CAQ released a report that discusses the increasing emphasis that investors, regulators, and other stakeholders are placing on the reliability of climate-related information. The publication provides insight into:
- The types of climate-related information companies are disclosing
- The role public company auditors play in evaluating a company’s reporting of climate-related information
- The skillsets that enable auditors to perform attestation engagements over climate-related information
Audit Quality Reports Analysis: A Year in Review
The CAQ announced a study that examines the most recent audit quality reports for each of the eight accounting firms represented on the CAQ’s Governing Board. The study observed over 100 unique qualitative disclosures and quantitative audit quality metrics providing transparency into the firm-level processes that accounting firms employ to promote and enhance audit quality.
The Center for Audit Quality and EVERFI Create Limitless Opportunities in the Accounting Field
The CAQ and EVERFI, the nation’s leading social impact education innovator, announced the launch of a first-of-its-kind digital education program, Accounting Careers: Limitless Opportunities to help high school students discover how accounting skills can help them achieve their career goals and to attract greater diversity and representation into the accounting profession.
Recent PPTA newsletters
March 2023
In this issue:
- SEC Proposes New Requirements to Address Cybersecurity Risks to the U.S. Securities Markets
- SEC Reopens Comment Period for Proposed Cybersecurity Risk Management Rules and Amendments for Registered Investment Advisers and Funds
- Responsibilities of Lead Auditors to Conduct High-Quality Audits When Involving Other Auditors
- SEC Proposes to Modernize the Submission of Certain Forms, Filings, and Materials Under the Securities Exchange Act of 1934
- Investor Advisory: Exercise Caution With Third-Party Verification/Proof of Reserve Reports
- Meeting of the PCAOB Standards and Emerging Issues Advisory Group (SEIAG)
- PCAOB Proposes Modernization of Standards Addressing Core Auditing Principles and Responsibilities
- FASB Seeks Public Comment on Proposed Enhancements to Income Tax Disclosures
- FASB Seeks Public Comment on Proposed Improvements to the Accounting for and Disclosure of Certain Crypto Assets
- FASB Improves Leases Guidance on Related Party Arrangements Between Entities Under Common Control
- FASB Improves Accounting for Investments in Tax Credit Structures
- SAS No. 149 New Group Audits Standard
- Proposed New and Revised Interpretations Related to Fees
- Proposed Revised Interpretation Uniform CPA Examination and Continuing Professional Education
- AICPA Provides Comments on Interim Guidance Regarding Application of Corporate Alternative Minimum Tax
- IAASB Digital Technology Market Scan: Digital Assets
- IFIAR Releases 2022 Report on Annual Survey of Audit Inspection Findings
- FRC Releases New Guidance on Audit Firm Eligibility Criteria
- IASB Proposes Narrow-Scope Amendments to Classification and Measurement Requirements for Financial Instruments
- Insight Report: AI, Emerging Tech and Governance
- IASB Initiates Project to Consider Climate-Related Risks in Financial Statements
- Monitoring Group Welcomes Important Step in Implementing Its Recommendations With the Establishment of the International Foundation for Ethics and Audit
- IOSCO Sets Out Key Considerations to Promote an Effective Global Assurance Framework for Sustainability-Related Corporate Reporting
- The Role of the Auditor in Climate-Related Information
- Audit Quality Reports Analysis: A Year in Review
- The Center for Audit Quality and EVERFI Create Limitless Opportunities in the Accounting Field
February 2023
In this issue:
- SEC Division of Examinations Announces 2023 Priorities
- SEC Seeks Applicants for Public Company Accounting Oversight Board Seat
- SEC Updates Compliance and Disclosure Interpretations (C&DI) for Regulation S-K Item 402(V) Pay Versus Performance
- Accounting Standard Setting in a Rapidly Evolving Business Environment: A Focus on the Timely Delivery of Investor Priorities
- The PCAOB Expects Firms to Remedy Quality Control Deficiencies
- PCAOB Announces Agenda for March 9 Meeting of Its Investor Advisory Group (IAG)
- Financial Accounting Foundation (FAF) Debuts Enhanced Free Access to Online Accounting Standards Codification and Governmental Accounting Research System
- Cost of Business Report
- Momentum Builds for Corporate ESG Reporting and Assurance, Yet Disclosure Inconsistencies Linger, Study Finds
- New Technology-Focused FAQ From International Auditing and Assurance Standards Board (IAASB)
- February 2023 International Accounting Standards Board (IASB) Agenda and Meeting Papers
- Global Ethics Board Raises Expectations of Ethical Conduct in Tax
- FRC Publishes IFRS 9 Banking Audit Methodology Thematic
- IESBA Strengthens and Clarifies Independence Requirements for Group Audits
- PCAOB: A Firm’s System of Quality Control (QC)
- PCAOB: The Auditor’s Use of Confirmation
- Audit Committee Effectiveness: A Webinar Series
January 2023
In this issue:
- SEC Updates Agency Rule List (Reg. Flex Agenda)
- Paul Munter Named Chief Accountant
- SEC Updates Compliance and Disclosure Interpretations (C&DI) for Exchange Act Rules
- SEC updates C&DI for Exchange Act Forms
- SEC Division of Corporation Finance Updates the Financial Reporting Manual (FRM)
- Changes to Online Access to Accounting Standards Codification and Governmental Accounting Research System
- Perform Effective Risk Assessments to Improve Audit Quality
- International Accounting Standards Board (IASB) Proposes Temporary Relief From Deferred Tax Accounting for OECD Pillar Two taxes
- International Auditing and Assurance Standards Board (IAASB) Launches Consultation on Proposed Strategy and Work Plan for 2024-2027
- IAASB Digital Technology Market Scan: Robotic process Animation
- January 2023 IASB Agenda and Meeting Papers
- IAASB Begins Work on Global Standards for ESG Assurance
- IAASB Opens Public Consultation on Less Complex Group Audits
- FRC Updates 2021 Statement of Intent on Environmental, Social, and Governance (ESG)
- IASB Gives Insights into Decisions Made on Merger and Acquisition Disclosures and Goodwill Accounting
- Leading Accounting Organizations Partner to Diversify the Accounting Profession
- Audit Committee Practices Report: Priorities and Committee Composition
- CAQ Alert 2023-01: Updates to SEC Non-GAAP Financial Measures Compliance and Disclosure Interpretations (C&DIs)
December 2022
In this issue:
- SEC issues sample letter to companies regarding recent developments in crypto asset markets
- SEC updates Compliance & Disclosure Interpretations (C&DI) for Proxy Rules and Schedule 14A
- SEC updates Compliance & Disclosure Interpretations (C&DI) for Non-GAAP Measures
- SEC final rule Insider Trading Arrangements and Related Disclosures
- Post-implementation review of AS 2501, auditing accounting estimates, including fair value measurements; amendments to auditing standards for auditor’s use of the work of specialists
- Audits with deficiencies increased in 2021, according to new PCAOB staff report
- Fact sheet: PCAOB secures complete access to inspect, investigate Chinese firms for first time in history
- PCAOB proposes new standard for the auditor’s use of confirmation
- FASB improves certain transition requirements in long-duration insurance guidance
- FASB defers sunset date of reference rate reform guidance
- Enhance audit quality from the top down
- Monitoring Group reports on progress to implement recommendations to strengthen the international audit and ethics standard-setting system
- FRC’s new AQIs give greater insight into audit quality
- Call for papers on hedge accounting requirements of financial instruments accounting standard
- FRC launches Audit & Assurance Sandbox
- New IAASB fact sheet helps auditors navigate quality management for group audits
- New edition of the IAASB handbook now available on the IAASB website
- The IESBA releases update on sustainability work
- IASB publishes its review of classification and measurement requirements relating to financial instruments
November 2022
In this issue:
- SEC publishes FY22-26 Strategic Plan
- SEC Final Rule, Enhanced Reporting of Proxy Votes by Registered Management Investment Companies; Reporting of Executive Compensation Votes by Institutional Investment Managers
- PCAOB’s Standards and Emerging Issues Advisory Group (SEIAG) meeting
- PCAOB approves 2023 budget, strategic plan to protect investors
- PCAOB proposes a new quality control standard
- PCAOB launches Technology Innovation Alliance Working Group
- FASB seeks input on proposed new chapter of its Conceptual Framework: Recognition and derecognition
- FASB seeks input on proposed improvements to leases guidance on related party arrangements between entities under common control
- Compilation of Agenda Decisions: Volume 7 published
- ISSB at COP27: CDP to incorporate ISSB Climate-related Disclosures Standard into global environmental disclosure platform
- FRC launches consultation on audit committees standard
- IOSCO statement on financial reporting and disclosure during economic uncertainty
- FRC sets out principles for public interest test
- IAASB issues guidance on how amendments made to IFRS Standard IAS 1 impact the ISAs
- IFRS Foundation proposes changes to the IFRS Accounting Taxonomy 2022 to improve quality of tagged data
- IESBA releases comprehensive research on impacts of technology on ethics; reaffirms relevance, applicability, and need for #IESBACode in accounting profession
- FRC publishes what makes a good environment for auditor skepticism and challenge
- IASB votes to retain impairment-only approach for goodwill accounting
- IASB proposes accelerated narrow-scope amendments to Accounting Standard on income taxes
- Jumpstart your digital assets journey: A tool for audit committees
- Audit Partner Pulse Survey, Fall 2022
- 2022 Audit Committee Transparency Barometer
- Audit Committee: The Kitchen Sink of the Board
October 2022
In this issue:
- SEC reopens comment periods for several rulemaking releases due to technological error in receiving certain comments
- The auditor’s responsibility for fraud detection
- SEC adopts rule amendments to modernize how broker-dealers preserve electronic records and enhance the electronic recordkeeping requirements for security-based swap entities
- SEC adopts listing standards for recovery of erroneously awarded compensation
- PCAOB Investor Advisory Group (IAG) Meeting
- The PCAOB updates its standard-setting and research agendas to reflect progress on a key strategic goal of modernizing standards
- Barbara Vanich named PCAOB Chief Auditor
- FASB seeks input on proposal to improve segment reporting
- FASB seeks input on proposed new chapter of its Conceptual Framework: The reporting entity
- FASB seeks input on proposed improvements to accounting for joint venture formations
- AICPA & CIMA offer resources for organizations requiring an audit of Covid relief funding
- Exposure draft, criteria for quality control materials (QCM) content
- System of quality management call to action: Strengthening audit quality
- IESBA staff issues alert highlighting key ethics and independence considerations for professional accountants in relation to the military conflict in Ukraine
- G7 reiterates commitment to mandatory climate disclosures and welcomes the ISSB’s work on global baseline
- IESBA issues staff publication highlighting the relevance and applicability of the IESBA Code in combating greenwashing
- IAASB opens public consultation for Revised Audit Evidence Standard
- IASB adds narrow-scope project to work plan on possible amendments to financial instruments Accounting Standard
- FRC publishes Annual Review of Corporate Reporting
- IASB amends accounting standard to improve information about long-term debt with covenants
- S&P 500 ESG reporting
- How do auditors maintain independence?
- Auditor independence
- PCAOB: The Application and Use of the PCAOB’s Interim Attestation Standards
September 2022
In this issue:
- Audit quality and investor protection under the Holding Foreign Companies Accountable Act
- SEC Division of Corporation Finance to add industry offices focused on crypto assets and industrial applications and services
- Inflation Adjustments Under Title I and III of the JOBS Act
- PCAOB staff requests information and comment on application and use of the PCAOB’s interim attestation standards
- FASB issues standard to enhance transparency around supplier finance programs
- IASB publishes proposals to update its Accounting Standard for small and medium-sized entities
- Now available: IESBA handbook 2022 edition
- IOSCO encourages standard-setters’ work on assurance of sustainability-related corporate reporting
- IASB issues narrow-scope amendments to requirements for sale and leaseback transactions
- Taskforce on Disclosures about Expected Credit Losses (DECL) updated guidance
- Revisions to ISA (UK) 600 Special Considerations: Audits of group financial statements (Revised September 2022)
- JICPA and IESBA staff issue joint guidance illustrating application of IESBA Code to technology-related scenarios
- UKEB report on Subsequent Measurement of Goodwill: A Hybrid Model published
- S&P 500 10-K Analysis
- The Center for Audit Quality and EVERFI announce national high school curriculum designed to attract more diversity into the accounting profession
- CAQ submits comment letter to the PCAOB related to its Draft 2022-2026 PCAOB Strategic Plan
- CAQ submits comment letter to the SEC related to its Draft 2022-2026 Strategic Plan
August 2022
In this issue:
- SEC appoints Anthony C. Thompson to second term on PCAOB
- SEC publishes draft FY22-26 strategic plan for public comment
- SEC adopts pay versus performance disclosure rules
- SEC Updated Questions and Answers (Q&A) for Compliance and Disclosure Interpretations (C&DI) of Rule 14a-19
- Auditor independence and ethical responsibilities: Critical points to consider when contemplating an audit firm restructuring
- PCAOB seeks public comment on five-year strategic plan for protecting investors
- The PCAOB releases 2022 audit committee resource
- The PCAOB issues annual report on inspections of broker-dealer audits
- PCAOB signed a Statement of Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the People’s Republic of China
- The PCAOB provides 2021 observations from the target team, a group of inspectors who focus on emerging audit risks and topics
- FASB issues 2022 Investor Outreach Report
- SEC accepts 2022 Q3 Supplemental GAAP Taxonomy
- FASB seeks input on proposal to improve accounting for investments in tax credit structures
- More companies obtaining ESG assurance, according to global survey
- Embrace fluidity and remove the risks of remote audits
- IAASB issues new frequently asked questions for reporting going concern matters in the auditor’s report
- IFRS Foundation completes consolidation with Value Reporting Foundation
- FRC publishes recommendations to improve digital security disclosure
- FRC publishes snapshots of current practice in auditor reporting
- Better ESG data drives more impactful decision-making by companies
- CAQ Symposium 2022
- Pop-up conversation with Rep. Brad Sherman (D-Calif.) and Mark Baer of Crowe
- LinkedIn Live | Audit partner observations: The economy, corporate reporting and more
July 2022
In this issue:
- Jaime Lizarraga sworn in as SEC Commissioner
- Comment on the Financial Accounting Foundation Draft Strategic Plan
- Prepared remarks at Center for Audit Quality ‘Sarbanes-Oxley at 20: The Work Ahead’
- PCAOB Chair Williams remarks on 20th anniversary of Sarbanes-Oxley Act and establishment of the PCAOB
- FASB proposes to improve certain transition requirements in long-duration insurance guidance
- AICPA solicits feedback on CPA Exam Exposure Draft
- Jeremy Osborn appointed AICPA & CIMA’s lead on ESG
- Artificial intelligence is a game changer for auditors
- Assurance in the Digital Age
- IAASB proposes narrow scope amendments to operationalize changes to the IESBA Code that enhance transparency about independence
- IOSCO published its Crypto-Asset Roadmap for 2022-2023
- IESBA staff releases Q&As to spotlight key changes to the non-assurance services provisions of the IESBA Code
- FRC sets out next steps in transition to new regulator
- FRC seeks assurances from audit firms and professional bodies on exams cheating
- Spearheading change to enhance confidence in audits and assurance
- FRC publishes latest audit quality review results
- New implementation guide available for identifying and assessing the risks of material misstatement in an audit of financial statements
- International Accounting Standards Board (IASB) sets out its 2022-2026 priorities
- Audit Partner Pulse Survey, Q2 2022
- BlackRock’s Dalia Blass, EY’s Julie Boland appointed to CAQ Governing Board
- Financial Accounting Foundation: Strategic Plan Draft for Public Comment
- SOX: The Evolution of Corporate Reporting
- International Sustainability Standards Board: IFRS S1 and S2 for public comment
June 2022
In this issue:
- The critical importance of the general standard of auditor independence and an ethical culture for the accounting profession
- SEC Division of Corporation Finance updates Compliance and Disclosure Interpretations (CD&Is)
- SEC announces spring 2022 regulatory agenda
- SEC adopts rules to require electronic filing for investment advisers and institutional investment managers
- Mark T. Uyeda sworn in as SEC Commissioner
- Saba Qamar named Investor Advocate at the PCAOB
- PCAOB adopts new requirements for lead auditor’s use of other auditors
- PCAOB issues Spotlight providing staff overview for planned 2022 inspections
- Financial Accounting Foundation (FAF) issues 2021 annual report
- FASB publishes its 2021 Agenda Consultation Report
- FASB issues standard to improve fair value guidance for equity securities
- Auditors staying focused on quality management
- Tom Seidenstein reappointed as IAASB chair
- IFIAR comments on the IESBA Proposed Exposure Draft on Proposed Revisions to the Code Relating to the Definition of Engagement Team and Group Audits
- IFRS Foundation Trustees appoint four further members to the International Sustainability Standards Board (ISSB)
- IESBA commits to readying global ethics and independence standards timely in support of sustainability reporting and assurance
- IAASB Digital Technology Market Scan: Natural language processing
- IFRS Foundation and Value Reporting Foundation (VRF) vote to approve consolidation from July 1
- FRC seeks stakeholders’ views on publicly available audit quality indicators to drive audit quality improvements
- FRC publishes first of its kind professional judgement guidance for auditors
- International Sustainability Standards Board (ISSB) and Global Reporting Initiative (GRI) provide update on ongoing collaboration
- PCAOB: Estimates and specialists post-implementation review
- CAQ comments on SEC climate disclosure rule proposal, supports objectives but identifies needed changes
May 2022
In this issue:
- Sample letter to companies regarding disclosures pertaining to Russia’s invasion of Ukraine and related supply chain issues
- SEC extends comment period for proposed rules on climate-related disclosures
- Resolving the lack of audit transparency in China and Hong Kong: Remarks at the International Council of Securities Associations annual general meeting
- SEC proposes to enhance disclosures by certain investment advisers and investment companies about environmental, social, and governance (ESG) investment practices
- SEC posts meeting agenda for investor advisory committee meeting
- The future of auditing
- PCAOB updates standard-setting and research agendas
- PCAOB announces members of new advisory groups, sets dates for first meetings
- Q&A: Accounting standard setters serve the public interest
- New IAASB fact sheet addresses engagement team definition
- Accountancy Europe issues factsheet on audit quality indicators: a global overview of initiatives
- IAASB issues new non-authoritative guidance on fraud in an audit of financial statements
- IESBA staff releases benchmarking report comparing the international independence standards with US SEC and PCAOB independence standards
- Path to global baseline: International Sustainable Standards Board (ISSB) outlines actions required to deliver global baseline of sustainability disclosures
- Watch now – IESBA discussion on sustainability and ethics
- Updated international standards on auditing
- FRC publishes inspection key findings and good practices
- FRC welcomes government plans to bring forward audit and corporate governance reforms
- NABA, Inc. and CAQ form strategic partnership to build pipeline for historically Black colleges and universities (HBCUs)
- SEC: Cybersecurity risk management, strategy, governance, and incident disclosure
April 2022
In this issue:
- Statement from the Chair: “Working on ‘team cyber’”
- PCAOB requests comment on the impact of auditing requirements related to estimates and specialists
- Jackie Cottrell to depart as director of the PCAOB’s Office of External Affairs
- PCAOB 2021 annual report
- FASB proposes updates to reference rate reform guidance
- How high-quality audits protect the public interest and propel businesses forward
- Great audit methodologies can enhance your data analytics
- IFRS Foundation publishes 2021 annual report
- FRC publishes 3-Year Plan takes further steps towards ARGA
- IAASB 2022-2023 work plan approved by the Public Interest Oversight Board
- IAASB modernizes its standard for group audits in support of audit quality
- IESBA expands universe of entities that are public interest entities
- Looking beyond 2023: IESBA calls for stakeholder input on future strategy
- IFIAR 2021 Annual Report
- IOSCO releases report on issues and considerations of market data in secondary equity markets
- IFAC releases new implementation tool for auditors
March 2022
In this issue:
- SEC proposes rules on cybersecurity risk management, strategy, governance, and incident disclosure by public companies
- Statement from the Acting Chief Accountant: Assessing materiality: Focusing on the reasonable investor when evaluating errors
- SEC proposes rules to enhance and standardize climate-related disclosures for investors
- SEC Division of Corporation Finance updates CD&Is
- SEC proposes rules to enhance disclosure and investor protection relating to special purpose acquisition companies, shell companies, and projections
- SEC publishes Staff Accounting Bulletin No. 121 related to crypto-assets
- PCAOB releases Spotlight on the use of a service provider in the confirmation process
- PCAOB shares perspective from 2021 Conversations With Audit Committee Chairs
- PCAOB adopts charters for its two new advisory groups
- PCAOB highlights key considerations for auditors related to the Russian invasion of Ukraine
- SEC accepts 2022 GAAP Financial Reporting Taxonomy and SEC Reporting Taxonomy
- FASB improves and expands hedge accounting
- FASB expands disclosures and improves accounting related to the credit losses standard
- IESBA Technology Experts Group members appointed
- IAASB Digital Technology Market Scan: Artificial intelligence A Primer
- IOSCO explains how decentralized finance is cloning financial markets
- IFRS Foundation publishes IFRS Accounting Taxonomy 2022
- IFIAR releases 2021 report on annual survey of audit inspection findings
- ISSB delivers proposals that create comprehensive global baseline of sustainability disclosures
- ISSB communicates plans to build on SASB’s industry-based Standards and leverage SASB’s industry-based approach to standards development
- AICPA & CIMA announce suspension of services in Russia and Belarus
- Putting CPAs in TPAs
- The value of an effective vendor risk management program
- Demonstrating the value of public company auditors
- CAQ alert 2022-01: Addendum to November 6, 2021 International Practices Task Force Document for Discussion: Monitoring Inflation in Certain Countries
February 2022
In this issue:
- Statement from the Acting Chief Accountant on the FASB’s agenda consultation: Engagement with investors and other stakeholders vital to development of high quality accounting standards
- Nominations open for qualified candidates to join IESBA as board members
- FRC: Guidance – auditor climate related reporting responsibilities under ISA (UK) 720
- IASB issues IFRS Accounting Taxonomy update for disclosure of accounting policies and definition of accounting estimates
- IAASB: New implementation guide available for quality management for audits of financial statements
- IESBA takes action to respond to transformative effects of technology
- IESBA addresses independence expectations in group audits
- FRC consults on revised guidance for recognizing key audit partners for local audit
- PwC’s Tim Ryan Tapped to Lead CAQ Governing Board
January 2022
In this issue:
- Anthony Thompson and Erica Williams sworn in as PCAOB board member, chair
- PCAOB to form two new advisory groups to enhance engagement with investors and other stakeholders
- 2022-2023 IAASB Work plan approved pending PIOB approval
- FRC releases a three-year plan and budget to prepare for the transition to ARGA
- IAASB releases conforming and consequential amendments aligning existing IAASB standards to new, revised quality management standards
- FRC: New research with audit committee chairs published
- Q&A: IAASB head on audit’s role in combating fraud, ESG, new technologies, and more
- Discussion document: Monitoring inflation in certain countries, November 2021
- Audit Committee Practices Report: Common threads across audit committees
December 2021
In this issue:
- SEC adopts amendments to finalize rules relating to the Holding Foreign Companies Accountable Act
- Statement from the Acting Chief Accountant on OCA’s continued focus on high quality financial reporting in a complex environment
- SEC approves 2022 PCAOB budget and accounting support fee
- PCAOB makes HFCAA determinations regarding mainland China and Hong Kong
- 2022 GAAP Financial Reporting Taxonomy, SEC Reporting Taxonomy, and DQC Rules Taxonomy now available
- FRC announces areas of supervisory focus for 2022/23
- IAASB: New technology-focused FAQ available
- 2023 IASB Research Forum – call for papers
- The demand for assurance engagements on sustainability and ESG reporting is high. Here is how the IAASB is responding.
- CAQ Audit planning alert for auditors of brokers and dealers
November 2021
In this issue:
- SEC updates electronic filing requirements
- SEC approves PCAOB rule to establish a framework for determinations under the Holding Foreign Companies Accountable Act
- SEC appoints new chairperson and board members to the PCAOB
- Christina Ho and Kara M. Stein sworn in as PCAOB board members
- PCAOB approves 2022 budget
- FASB proposes changes to interim disclosure requirements
- FASB improves discount rate guidance for lessees that are not public business entities
- FAF trustees reappoint Marsha L. Hunt to the FASB
- FASB proposes expanded disclosures and improved accounting related to the credit losses standard
- IAASB announces new board member appointments for 2022
- IOSCO: IFRS Foundation’s International Sustainability Standards Board on the right track
- IESBA welcomes launch of eCode 2.0 and eIS; IAASB publishes fully-digital handbook of pronouncements on eIS
- IAASB and IFAC release less complex entities consultation survey
- FRC report sets out what it expects from audit firms to deliver high quality audit
- IESBA announces new board member appointments for 2022
- FRC publishes latest edition of Developments in Audit
- AICPA welcomes new International Sustainability Standards Board
- Statement of support for the International Sustainability Standards Board
- 2021 audit committee transparency barometer
- PCAOB: Supervision of audits involving other auditors
October 2021
In this issue:
- Statement from the Acting Chief Accountant: The importance of high quality independent audits and effective audit committee oversight to high quality financial reporting to investors
- Forum for Auditors of Small Businesses and Broker-Dealers
- New FASB standard improves consistency in accounting for acquired revenue contracts with customers in a business combination
- Gabriela Figueiredo Dias to lead the IESBA
- FRC review of Alternative Performance Measures by UK companies finds room for improvement
- FRC review of IAS 37 ‘Provisions, Contingent Liabilities, and Contingent Assets’
- IESBA: Now available: 2021 handbook
- FRC publishes oversight responsibilities and independent supervisor reports
- FRC to focus on climate-related reporting as new disclosure requirements beckon
- FRC publishes latest major local audit quality inspection results
- AICPA issues new standard on auditor’s risk assessment
September 2021
This edition of the PPTA discusses changes in the SEC general counsel, the PCAOB’s newly adopted rules for creating HFCAA determinations, and the FASB’s proposed improvements for equity securities. Also included are new FRC International guidelines, such as the International Sustainability Standards Setting.
August 2021
The August PPTA covers SEC’s enhanced access to financial disclosure data, PCAOB board members public statement, FASB 2021 Investor Outreach Report, and FRC guidance for auditors. The CAQ also posted a summary and analysis of the most recent publicly-available ESG data for S&P 500 companies.
July 2021
This month’s recap includes the SEC’s statement on investor protection related to recent developments in China, the FASB issued Accounting Standards Update, and the IASB proposed reduced disclosure requirements for subsidiaries. The CAQ also provides BEIS consultation on restoring trust in audit and corporate governance.
June 2021
In this issue, the SEC announced it’s Annual Regulatory Agenda, the PCAOB announced a reassessment of stakeholder engagement, the FASB appointed two new members (Jack Ciesielski and Brandon Coleman) to the Emerging Issues Task Force, the IAASB made new Quality Management Implementation Guides available, and the AICPA issued a Statement on Auditing Standards. The CAQ also provided an alert about SEC amendments to certain auditor independence requirements.
May 2021
In this feature, SEC Commissioner Allison Herren Lee gave a speech on the myths and misconceptions about ‘materiality,’ the PCAOB proposes rules to create a framework for the Holding Foreign Companies Accountable Act determinations, the FASB proposes to improve and expand hedge accounting, the FRC issues revised UK auditing standards for the auditor’s responsibilities relating to fraud, and audit risk assessment guidance was added to the AICPA and CIMA’s digital assets practice aid.
April 2021
This PPTA details multiple SEC public statements, the PCAOB nominations for its Standards Advisory Group, and the new IAASB guidance on helping advance assurance for non-financial reporting. Also included is an AFC published resource examining the implications of artificial intelligence in relation to mitigating fraud risk.
March 2021
This installation of PPTA delves into the SEC seeking public comment on amendments to the HFCAA (Holding Foreign Companies Accountable Act), the PCAOB approving the formation of a new advisory group, the FASB announcing that the SEC had accepted the 2021 GAAP Financial Reporting Taxonomy, the IFIAR urging continued audit quality improvement efforts, and the CAQ also published a guide to the PCAOB’s inspection program.
February 2021
This edition of the PPTA discusses the SEC’s Allison Herren Lee’s statement on the review of climate-related disclosure, the FASB announces a new investor education video on convertible instruments, the IASB proposes to extend support for lessees accounting for COVID-19-related rent concessions, and the AICPA’s proposed new quality standards are aimed to enhance and maintain a CPA firm’s audit quality. Readers can also find a CAQ comment letter on the IAASB’s Discussion Paper.
January 2021
This month details changes in the roles within the SEC, the departure of PCAOB board member J. Robert Brown, Jr, FASB clarifies the scope of recent reference rate reform guidance, the IFRS Foundation publishes educational material to support companies in applying going concern requirements, and the AICPA promotes Sue Coffey to CEO of public accounting. The CAQ also posted highlights from its SEC Regulations Committee’s virtual meeting.
December 2020
In this issue, the SEC announces new Investor Advisory Committee members, the PCAOB issues COVID-19 spotlight and provides insights and reminders for auditors, the FASB proposes improvements to accounting for acquired revenue contracts with customers in a business combination, the FRC highlights importance of a challenge culture in audit firms, and the AICPA hires Jennifer Burns, CPA as Chief Auditor. The CAQ also reports on common themes that emerged in data from the first year of CAMs implementation.
November 2020
This month’s report showcases the SEC’s statement on the third meeting with audit firm representatives regarding audit quality in emerging markets, the PCAOB approves 2021 budget and reaffirms strategic direction, and the FASB issues a standard that delays long-duration insurance guidance and updates early adoption provisions. In International news, the IAASB communique details plans to address complexity, understandability, scalability, and proportionality, and the IASB proposes amendment to its leases standard to improve accounting for sale and leaseback transactions.
October 2020
In this synopsis, the SEC Division of Corporate Finance updates CD&Is, the PCAOB issues a staff update and preview of 2019 inspection observations, the FASB proposes three targeted improvements to the leases standard, the FRC publishes future of corporate reporting discussion paper, and the CAQ posts SEC Regulations Committee highlights from July 29, 2020.
September 2020
In the September PPTA, the SEC modernizes disclosures for banking registrants, the PCAOB updates research and standard-setting agendas, the IFAC calls for a new Sustainability Standards Board alongside the IASB, and the CAQ shares a video highlighting skepticism as a focus for mitigating fraud risk.
August 2020
This installation discusses August staffing changes and reappointments at the SEC, the FASB updating financial reporting requirements related to convertible instruments and contracts in entity’s own equity, and the IASB issuing IFRS Taxonomy Update for COVID-19-Related Rent Concessions. Also featured from the CAQ is Anti-Fraud in Action: Balancing big data and data ethics during COVID-19.
July 2020
In this recap, the SEC announces the creation of the Event and Emerging Rick Examination Team, the PCAOB posts “Conversations with audit committee chairs: COVID-19 and the audit,” the FASB proposes concepts for defining elements in a financial statement, and the IAASB publishes COVID-19 related guidance on review engagements on interim financial information. Also, the AICPA issues updated standards on accounting estimates and disclosures for auditors navigating a complex financial reporting environment.
June 2020
This month’s PPTA details the SEC extending relief for virtual meetings of fund boards, PCAOB issues six largest U.S. Firm Inspection Reports in a new format, the FASB offers limited effective date delays on revenue recognition and leases standards, and the IAASB publishes COVID-19 related guidance on auditing accounting estimates and related disclosures.
May 2020
This month, the SEC provides temporary, conditional relief to allow small businesses to pursue expedited crowdfunding offerings, the PCAOB posts a spotlight on audits involving Cryptoassets, the FAF issues a 2019 Annual Report, and the IASB issues a package of narrow-scope amendments to IFRS Standards. The CAQ also shared COVID-19 Resources.
April 2020
In this PPTA, the SEC enhances standards for critical market infrastructure, PCAOB staff provides reminders for audits nearing completion in light of COVID-19, the FASB seeks public comment on a proposal to offer limited effective date delays on time-sensitive standards, IOSCO releases a statement on application of accounting standards during the COVID-19 outbreak. The CAQ also provides COVID-19 Resources.
March 2020
This issue provides an extensive list of COVID-19 Resources and news. Also included, the SEC adopts rule amendments and new standards, the PCAOB publishes 2019 Annual Report, the FASB issues new ASUs, the FRC publishes a report and discussion paper on technology in the audit, and the AFC publishes Assessing Corporate Culture: A Proactive Approach to Deter Misconduct.
February 2020
In this addition, the SEC proposes amendments to modernize the infrastructure for the collection, consolidation, and dissemination of market data, the FASB proposes improvements to accounting for contributed nonfinancial assets by not-for-profit organizations, the FRC outlines plans for an operational separation of the UK’s largest firms, and the AFC publishes Fraud and Emerging Tech: Blockchain.
January 2020
In this issue of PPTA, the SEC proposes amendments to modernize and enhance financial disclosures and issues MD&A metrics guidance, FASB clarifies the accounting for equity securities, AICPA seeks feedback on insurance entities working drafts, and accounting bodies call for improved UN Sustainable Development Goals disclosures. The CAQ also posts highlights of the September 2019 SEC Regulations Committee.
December 2019
In this synopsis, the PCAOB publishes Critical Audit Matters Spotlight, the SEC approves 2020 PCAOB budget, the FASB issues a standard to improve accounting for income taxes, IASB proposes a new standard to bring greater transparency to ‘non-GAAP’ measures, and the AICPA issues new standards. The CAQ white paper highlights the role of auditors in company-prepared information.
November 2019
In this issue, the PCAOB approves the 2020 budget and reaffirms the five-year strategic plan, the SEC staff issues SAB on new credit losses standard, the FASB issues new and proposed ASUs, and the AICPA proposes updates to audit and accounting guide for the gaming industry.
October 2019
In this report, the SEC announces PCAOB Board member changes, the FASB votes to delay effective dates for major standards, the FRC announces a new leadership team, and the CAQ issues new ‘Profession in Focus’ video.
September 2019
This installation discusses the new rule the SEC adopts to allow all issuers to ‘test-the-waters,’ the FASB proposes guidance to assist in transition away from interbank offered rates to new reference rates, the IASB amends IFRS standards in response to the IBOR reform, AICPA practice aid offers guidance on credit losses for auditors and the CAQ releases it’s 13th annual Main Street Investor Survey.
August 2019
In this installment, the PCAOB publishes a report on interim inspection program related to broker-dealer audits, the SEC increases fee rates for FY 2020, FASB proposes improvements related to distinguishing liabilities from equity, the IASB proposes amendments to IFRS standards to improve accounting policy disclosures, and CAQ issues new ‘Profession in Focus’ video.
July 2019
In this review, SEC staff publishes a statement highlighting risks for market participants to consider as they transition away from LIBOR, the PCAOB posts CAM resources for audit committees and investors, FAF Trustees open search for new board chair, and the U.K. government consults on CMA recommendations. The CAQ also comments on proposed SEC rules.
June 2019
In this issue, the PCAOB updates the Data and Technology project web page, the SEC adopts an amendment to a single issuer exemption for broker-dealers, the FASB seeks public company input on segment reporting, and the EC issues new rules to support the digitalization and transparency of financial reports.
May 2019
In this installation, the SEC proposes amendments to the accelerated and large accelerated filer definitions, FASB issues new, proposed ASUS, the PCAOB issues staff guidance that offers a deeper dive into the communication of CAMS, and the FCR publishes a guide to help smaller listed companies improve financial reporting. A CAQ tool helps audit committees oversee implementation of new credit losses standard.
April 2019
In this PPTA, the PCAOB releases the 2018 Annual Report, the FASB rejects a proposal on the credit losses standard, the IAASB seeks input on audits of less complex entities, and we introduce new videos on our website.
March 2019
In this edition, the PCAOB staff provides guidance in the advance of CAM effective dates, the SEC adopts rules to implement FAST Act mandate, the FRC consults on stronger growing concern standard for auditors, and CAQ comments SEC’s Request for Comment on Earnings Releases and Quarterly Reports.
February 2019
In this release, the SEC proposes to expand ‘test-the-waters’ modernization reform to all issuers, FASB proposes targeted transition relief to institutions applying credit losses standard, the IAASB launches future strategy and work plan consultation, and Senators introduce bipartisan legislation providing regulatory relief to spur innovation.
January 2019
In this release, Corp Fin issues a statement regarding recommencement of operations, FASB issues staff Q&A document on estimating credit loss reserves, the FRC launches consultation on changes to Third Country Auditors (Fees) Instrument, and the AICPA votes to issue OMnibus Statement on Auditing Standards. The CAQ Year in Review recaps 2018 activities.