Corporate Reporting Trends
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The corporate reporting landscape is ever evolving, and auditors continue to adapt to meet challenges and changing priorities in real time. The CAQ periodically develops resources that help all members of the financial reporting ecosystem stay current on these trends.
Noncompliance with Laws and Regulations (NOCLAR)
Auditors can come across instances of non-compliance with laws and regulations (NOCLAR) during the course of their audit. What is the auditor’s role with regards to NOCLAR? This is a developing area as the PCAOB has proposed amendments to its auditing standards related to NOCLAR. Explore the CAQ’s latest resources in this area.
Emerging Technologies
Stakeholders want to understand how a company and its leaders are incorporating emerging technologies and other innovations into their business strategy. Technology such as blockchain and artificial intelligence (AI) are redefining the future of financial reporting, audit, and risk management. Digital assets like cryptocurrency and non-fungible tokens (NFTs) are changing the way public companies engage with straightforward applications like investing, and other opportunities to connect with customers and improve business processes. Although emerging areas can be used to streamline corporate reporting, they also present new risks that public companies should bear in mind.
Existing Priorities
Public company auditors can play a role in providing stakeholders with decision-useful information by drawing on the same capabilities that underpin the high-quality U.S. financial reporting system to promote the flow of comparable, reliable reporting that secures investor protection and confidence. Non-GAAP financial measures are used by various stakeholders for several reasons, including valuing companies, determining executive compensation, and as a means of communicating a company’s business strategy. Similarly, key performance indicators (KPIs) are disclosed by management to provide additional insights into the company’s performance or operations. In times of uncertainty and market volatility, these measures may become increasingly useful to a company’s ability to communicate supplemental information to investors and other stakeholders.
The latest news and
resources from the CAQ.