As part of the Center for Audit Quality’s (CAQ) ongoing effort to keep members and stakeholders informed on significant public policy and accounting matters, we are pleased to offer the Public Policy and Technical Alert (PPTA). Each month, the PPTA highlights and examines the regulatory, standard-setting, legislative, and broader financial reporting developments impacting the public company audit profession. 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.
In This Issue
SEC Announces Chief Accountant Paul Munter to Retire from Federal Service
The SEC announced that Chief Accountant Paul Munter plans to retire from federal service effective Jan. 24, 2025. Munter joined the agency in 2019, was named Acting Chief Accountant in 2021, and was appointed Chief Accountant in January 2023. As Chief Accountant, Munter led the Commission’s oversight of the FASB and the PCAOB.
Mark T. Uyeda Named Acting Chairman of the SEC
The SEC announced that President Donald J. Trump has designated Mark T. Uyeda as Acting Chairman of the agency. Acting Chairman Uyeda was first sworn into office as a Commissioner on June 30, 2022, after being confirmed by the U.S. Senate. He was subsequently re-nominated and confirmed for a five-year term expiring in 2028.
Acting Chairman Mark T. Uyeda Names Acting Senior Staff
The SEC announced Acting Chairman Mark T. Uyeda’s selections for several senior roles in acting capacities across the Commission to fill vacancies created by recent departures. The SEC senior staff selected by Acting Chairman Uyeda, with the concurrence of the Commission, include:
- Jeffrey Finnell, Acting General Counsel
- Robert Fisher, Acting Director of the Division of Economic and Risk Analysis
- Kathleen Hutchinson, Acting Director of the Office of International Affairs
- Samuel Waldon, Acting Director of the Division of Enforcement
- Ryan Wolfe, Acting Chief Accountant (effective Jan. 25, 2025)
SEC Updates Questions and Answers for Compliance and Disclosure Interpretations (CD&Is) of Proxy Rules and Schedule 14A/14C
The SEC updated the following CD&Is regarding Proxy Rules and Schedule 14A: Section 126. Rule 14a-6:
- Revised Question 126.06
- Revised Question 126.07
- New Question 126.08
- New Question 126.09
- New Question 126.10
SEC Issues Staff Accounting Bulletin (SAB) No. 122
The SEC issued SAB 122, which rescinds the interpretive guidance included in Section FF of Topic 5 in the Staff Accounting Bulletin Series entitled Accounting for Obligations to Safeguard Crypto-Assets an Entity Holds for its Platform Users (Topic 5.FF). Upon application of Topic 5.FF, an entity that has an obligation to safeguard crypto-assets for others should determine whether to recognize a liability related to the risk of loss under such an obligation, and if so, the measurement of such a liability, by applying the recognition and measurement requirements for liabilities arising from contingencies in Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Subtopic 450-20, Loss Contingencies, or International Accounting Standard (IAS) 37, Provisions, Contingent Liabilities and Contingent Assets, under U.S. generally accepted accounting principles and IFRS Accounting Standards, respectively.
A New Edition of the PCAOB’s Audit Focus Series Provides PCAOB Staff Insights for Auditors Regarding Journal Entries
The PCAOB posted Audit Focus: Journal Entries, a new edition of its Audit Focus series. This edition of Audit Focus highlights key reminders for auditors from the PCAOB standards related to testing of journal entries, provides the staff’s perspective on common deficiencies made by auditors, and shares good practices that PCAOB staff has observed.
PCAOB Launches New Resource Page for Smaller Audit Firms
The PCAOB launched a new online resource page: Information for Smaller Firms. Recently, the PCAOB has enhanced its focus on smaller firms with a range of initiatives. Building on previous efforts, the smaller firm resource page includes links to Audit Focus publications and videos, recordings of recent presentations from PCAOB forums for auditors of smaller businesses and broker-dealers, and a signup form for a new PCAOB Communications to Small Audit Firm Practitioners mailing list.
PCAOB Posts a Staff Presentation Video Designed to Help Firms and Auditors Understand a Firm’s Risk Assessment Process Under the PCAOB’s New Quality Control Standard (QC 1000)
The PCAOB posted a staff presentation video designed to help firms and auditors understand a firm’s risk assessment process under the PCAOB’s new quality control standard.
FASB Stakeholders Invited to Share Their Views on Future Agenda Priorities
The FASB published an Invitation to Comment (ITC) that gives stakeholders the opportunity to provide feedback on its future standard-setting agenda. Stakeholders are asked to review and provide comment on the ITC by June 30, 2025.
FASB Clarifies Interim Effective Date for New Disaggregation of Income Statement Expenses Standard for Non-Calendar Year-End Entities
The FASB published an Accounting Standards Update (ASU) that clarifies for non-calendar year-end entities the interim effective date of Accounting Standards Update No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. Public business entities are required to adopt the guidance in Update 2024-03 in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption of Update 2024-03 is permitted.
FASB Seeks Public Comment on Proposed Codification Improvements
The FASB published a proposed ASU focused on targeted improvements to the FASB Accounting Standards Codification. The amendments in this proposed ASU address 34 issues that would affect a wide variety of Topics in the Codification and would apply to all reporting entities within the scope of the affected accounting guidance. Stakeholders are encouraged to review and provide input on the proposed ASU by April 22, 2025.
AICPA Updates Digital Assets Practice Aid
The AICPA announced it updated its practice aid, Accounting for and Auditing of Digital Assets, in response to the FASB ASU No. 2023-08, Intangibles – Goodwill and Other – Crypto Assets (Subtopic 350-60): Accounting for and Disclosure Of Crypto Assets. The practice aid offers a new definition for digital assets, new and amended accounting questions, and the introduction of new terms.
Professional Ethics Executive Committee (PEEC) Open Meeting Agenda: February 4-5, 2025
The AICPA announced PEEC will be holding its first quarter 2025 open meeting on February 4-5.
PEEC Open Meeting Minutes: November 12-13, 2024
The AICPA posted the minutes of the November 2024 open meeting of PEEC.
The International Ethics Standards Board for Accountants (IESBA) Launches Standard-Setting Project on Accounting Firm Culture and Governance
The IESBA launched a standard-setting project on accounting firm culture and governance. The standard-setting project aims to develop a principles-based culture and governance framework for accounting firms that promotes, supports, and reinforces a high standard of ethical behavior across all their professional services.
International Auditing and Assurance Standards Board (IAASB) and IESBA Unveil New Standards and Guidance to Strengthen Sustainability Reporting and Assurance
The IAASB and the IESBA announced the launch of an integrated effort to support effective implementation of their landmark standards aimed at advancing trust and transparency in sustainability reporting and assurance. In jurisdictions adopting the standards, both IAASB’s International Standard on Sustainability Assurance 5000 (ISSA 5000) and IESBA’s International Ethics Standards for Sustainability Assurance (including International Independence Standards (IESSA) become effective for periods starting on or after December 15, 2026, with early adoption permitted and encouraged.
January 2025 International Accounting Standards Board (IASB) Update Now Available
The IFRS Foundation announced that the IASB Update, summarizing the January 2025 IASB meeting, is now available.
Smaller Firm Task Force (SFTF) Comment Letter to the SEC on the PCAOB’s Firm Reporting and Firm and Engagement Metrics Rules
The CAQ posted a comment letter that represents the views of the SFTF regarding the totality of the PCAOB’s standard setting activities, including their recently adopted Firm and Engagement Metrics and Firm Reporting rules.
Sustainability Reporting and Assurance: Key Considerations for Legislators and Regulators
The CAQ posted a publication on sustainability reporting and assurance that explores important considerations for legislators and regulators as they respond to the evolving needs of the market by contemplating laws and regulations requiring companies to report sustainability information.
2025 Profession Outlook: Auditors Will Continue to Provide Stability and Dependability During Changing Times
The CAQ published a blog post written by Julie Bell Lindsay, Chief Executive Officer of the CAQ, that shares her outlook for the public company audit profession heading into 2025, including the regulatory landscape, the role for the audit profession in emerging technology, solutions for tackling the profession’s talent challenge, and the value of assurance in 2025 and beyond.
The Center for Audit Quality is a nonpartisan public policy organization serving as the voice of U.S. public company auditors and matters related to audits of public companies. The CAQ promotes high quality performance by U.S. public company auditors; convenes capital market stakeholders to advance the discussion of critical issues affecting audit quality, U.S. public company reporting, and investor trust in the capital markets; and using independent research and analyses, champions policies and standards that bolster and support the effectiveness and responsiveness of U.S. public company auditors and audits to dynamic market conditions. Based in Washington, DC, the CAQ is affiliated with the American Institute of CPAs. For more information, visit www.thecaq.org.
The CAQ Public Policy and Technical Alert (PPTA) is intended as general information and should not be relied upon as being definitive or all-inclusive. As with all other CAQ resources, this is not authoritative and readers are urged to refer to relevant rules and standards. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The CAQ makes no representations, warranties, or guarantees about, and assumes no responsibility for, the content or application of the material contained herein and expressly disclaims all liability for any damages arising out of the use of, reference to, or reliance on such material. This publication does not represent an official position of the CAQ, its board, or its members.
Questions and comments about the Public Policy & Technical Alert can be addressed to Donnie Heinerichs, Manager, ESG Initiatives (dheinerichs@thecaq.org) or Annette Schumacher, Senior Director, Professional Practice (ashumacher@thecaq.org).